What are Quick Loans?

A quick loan is a short sharp loan , designed to be used for an emergency. The idea is a lender applies and gets access to the capital within a day or max two. Quick loans are also referred to as same day loans.

How are they different from regular personal loans?

Quick loans are different from regular personal loans as they are typically approved much faster, and are for smaller amounts. Their average range of loans is £200-£5000 and they’re designed for shorter periods from weeks to months. They are also much more expensive than a normal personal loan, so should really only be used for an emergency expense or unplanned cost and not to finance a car or a holiday.

How does my credit affect quick loans?

Your credit will always affect loans you are offered. Whilst there are lenders who will work with you with even very bad credit, it will also affect how much you can borrow and how the interest rates you pay.

What is Credit check process

Lenders will do a soft check of your credit before sending you an offer and if you accept a hard pull. This hard pull does affect your credit temporarily. It’s always advisable to double check with the lender that they only do a soft pull for an indicative offer.

Should I use a direct lender or broker?

A broker is a good and free way to take the work out of searching for lenders yourself. If you don’t have time a broker will find the best lender and get an offer for you. They’ll also only take you on if they think you’re likely to get a loan. Since they work with many lenders they have good networks and will do their best to find you a lender. The flipside is if you have time to do homework you may find lenders the broker does not work with. Given brokers only work with lenders that will pay commissions and not every lender does. 

Qualification checklist

In order to qualify you need to be a UK resident or citizen, have a UK Bank account and be over 18 years old. You’ll also need to be able to provide the following:

1. Your name, address, dependents and marital status.
2. Proof of income, benefits, savings, assets or any other proof you can pay back the loan. You can get a loan if you’re unemployed or on benefits but will still need to show some inflows or assets.
3. If you are employed, proof of employment, as well as their address and payslips.
4. Your residence type (owner, tenant, family etc) and how long you’ve lived there.
5. Your budget – food, rent, utilities, phone bills, transport, loans, mortgages and any miscellaneous costs.

Things you need to know 

Quick loans typically are same day loans (although they are sometimes conflated with Payday loans which are more predatory.) Usually same day loans or quick loans application fees are all wrapped up in the interest rates. Quick loan interest rates are from 35-60% typically. So they are much less affordable than personal loans which have 5-15% interest rates. So same day loans really make sense for short, unexpected expenses like medical bills or issues with your car. We’d always recommend same day loans for non essential purchases and always keep the amount as low as possible.

Whilst it’s possible to get more than one same day loan at a time (if your salary allows) we’d highly recommend not doing this, there are cheaper ways to get credit including personal loans, 0% interest credit cards and mortgages if you have one.

Can I cancel or change my mind?

UK law (Consumer Credit Act) allows you to cancel a contract within 14 days of signing a document. This applies to all credit arrangements, in person, via the internet or on the phone.
You must of course repay the money if it has been sent and some lenders may charge a fee for early repayment. This fee shouldn’t be significant though.

How can I apply? (Quick loan online)

Quick loans can be applied for in person at a bank or lender, via email, on the phone or you can apply for a quick loan online at any lenders site. You can see a full list of quick loan lenders here.

Best options for quick loans

Because there are so many same-day loan providers to choose from, it makes sense to compare them.Based on a typical APR, here are some of the most competitive offers:

You can borrow £300.00 to £999.00 from TSB Bank for a period of 3 to 12 months.The interest rate is 39.9%, with an annual percentage rate of 34.1 percent.

Now Loan is a lender that provides same-day loans to people in need, with amounts ranging from £100.00 to £10,000.00.The representative annual percentage rate (APR) is 49.9%, while the interest rate is 41.16 percent.It is necessary to repay the credit within three to twelve months.After the application is approved, the money is received in 2 minutes.

Borrowing from £1,000.00 to £10,000.00 is possible with 1 Plus 1 Loans.The annual percentage rate (APR) is 47.8%, while the interest rate is 39.7%. The loan repayment length can range from 12 to 36 months.

TFS Loans provides choices for guarantor loans.It allows you to borrow between £2,000 and £15,000 with a repayment period of 24 to 48 months.The annual interest rate is 22.79 percent, and the representative APR is 44.9 percent.It is absolutely free to use the online application.

Light Finance provides loans ranging from £100.00 to £10,000.00.Depending on the amount borrowed, the repayment time can range from 3 to 60 months.The average annual percentage rate (APR) is 49.9%.

The Likely Loan allows you to borrow between £500 and £5,000 at a rate of 59.9% APR and 59.9% yearly interest.The money is transferred to the borrower the next working day after the application is confirmed, and the repayment period is 12 to 36 months.

Little Loans provides loans ranging from £100.00 to £10,000.00 for terms ranging from three to sixty months.The interest rate is 49.9%, and the annual percentage rate is 49.9%.

While these lenders provide competitive rates, it’s always a good idea to shop around because your personal circumstances can have a big impact on the interest rate.