Instant Loans

Do you need emergency money that can be in your bank account as fast as possible?

When a financial crisis comes out of the blue and you have no time to wait around until you can get cash to resolve the issue, the thing you may be looking for is an instant loan that can get money to you straightaway. Online payday and short term loans may be regarded as ‘instant loans’ thanks to the speed at which you can complete your loan application and get cash in your bank account.

Follow this link if you want to know more about: What is a payday loan?

What are the key features of instant payday loans?

There are lots of loan companies out there that offer payday loans online however there will still be slight differences in just how quick each company is at getting the money to you. You can get an ‘instant payday loan’ at any time of the day or night, including on weekends and bank holidays. Online direct lenders who offer instant loans will have:

A very clear and simple application form: All lenders will need certain key information in order to successfully process a loan application, however the most instant cash loans come from lenders who make their application process as easy and streamlined as possible.

A fully automated application process: The application process for a truly instant payday loan will be fully automated, so there is no underwriter who needs to manually review any information before the loan can be approved. This is made possible because the online lender uses an algorithm which automatically assesses the information you have submitted, the information on your credit file and any other relevant information the lender holds about you and ‘scores’ you accordingly. Depending on how you score against the lender’s algorithm determines if you will be approved for a loan and up to what credit limit.

Want to know more about credit checks? Click here…

Quick loan transfer time: For an instant loan, this would normally mean the transfer of your loan can be initiated immediately upon approval. Instant payday loans will be transferred individually via Faster Payment which means the transfer is as fast as your bank can process the payment, and this can be in as little as 10 to 15 minutes from the moment of approval for customers of any major bank.

Are there any risks associated with instant loans?

Instant short term loans online can be particularly risky for customers as the application is completed so fast that you might be acting on impulse or a spontaneous urge that is not in your best interests long term. Payday loans are a high cost credit product, so if you are a bit strapped for cash then paying the cost of interest may be a detrimental choice to make especially if, with some careful budgeting or saving, you can go without the additional loan money.

That’s why it is even more important to think carefully and responsibly when considering taking out an instant payday loan. Ask yourself:

  • Do I need this money now?
  • Can I afford to pay the interest on top of repaying the original loan amount?
  • Is this quick loan the best possible option for me in my circumstances?

If you answered “no” to any of these questions, it would be wise to steer clear of instant cash loans as you may be at risk of pushing yourself into severe financial difficulty. Debts can quickly spiral once you start taking on more in credit commitments than you can realistically afford to repay. Taking out an online payday loan to repay another short term loan, for example, is one thing to vehemently avoid, as it's easy for the debts to gradually creep up and ultimately overwhelm you, in turn doing serious damage to your credit file and making credit more difficult and expensive to obtain in the future.

Read our dedicated page on How to Budget! for tips on getting control of your own finances.

What are instant payday loans used for?

Generally, instant loans from an online lender are intended for emergency situations when the consequences are worse if you can’t get money instantly compared to the cost of borrowing at a high interest rate for a short amount of time (usually until your next payday) when you can afford to cover the cost in full. Take a quick look at our useful page: “Do I need a loan?” for more information.

If you are sure that the loan repayment will be affordable on the date that it is due, an instant payday loan may be your most preferred option due to the privacy of borrowing from a direct lender online and taking into account that you can usually repay an instant loan early for only the current balance on your account, you can often settle your loan just as fast as you took it out.

At Clear and Fair we compare multiple online payday and short term lenders in one click so you can see in an instant which lender can offer you the best value loan for your circumstances. Each lender will have their own application and loan transfer processes so please refer to the lender’s own website to confirm their specific application process and loan transfer procedures.