Same day loans are instant personal loans granted on the day you apply for them (or worse case 1 day later.) They’re typically suited for short term use, because they’re more expensive than longer term loans. Typically in the UK a same day loan’s interest can range from 40%-300%. Which means you can end up paying back double or even triple what you borrow.
How do they work?
To apply for a same day loan, you should first check out vendors and find the one with the best rates. You can see a full list of same day loan offers we put together. Once you’ve picked a vendor you’ll need to provide a few details to apply:
(i) Choose an amount to borrow.
(ii) Choose a time (we always recommend borrowing a shorter time as the interest rates are higher.)
(iii) Your next payday and the following payday and your payment frequency (ie fortnightly or monthly.)
(iv) Your name, full address, phone number.
(v) Your residence type (owner, tenant, family etc) and how long you’ve lived there.
(vi) Marital status.
(vii) Monthly salary and other income.
(viii) If you have any dependents.
(ix) Your budget – food, rent, utilities, phone bills, transport, loans, mortgages and any miscellaneous costs.
(x) Employment details (job title, title, company name, industry, how long you’ve worked there, work email, company size and work website and email.)
Am I eligible for a same day loan?
Checklist for qualification for same day loans:
Most same day lenders require you are:
-At least 18 years old
-Employed with regular income
-Are a UK resident with a UK bank account.
Which begs the question: can you get the loan if you’re on benefits or unemployed?
There are some lenders that will lend to you if you’re on benefits or unemployed, but as you’re more of a credit risk loan rates will be significantly higher. The lenders in the UK that will at least look at your application are PaydayUK, NowLoan and fair finance.
Can you get a same day loan with bad credit?
Yes a number of lenders will work with you if you have bad credit, however you’re more of a credit risk so you’ll likely pay significantly more. Although you can boost your credit score quickly using a few hacks:
(i) Register to vote – which can boost your score by 50 points.
(ii) Use the free Experian boost – it scans your bank and can help you build credit faster or improve your credit score.
Are there any borrowing limits?
Given that same day loans are designed to be short and sharp loans tend to not be more than £10,000 and are often between £500-2000. It doesn’t make sense to apply for a bigger same day loan as the APR Is so high. So if you can borrow a smaller amount from a same day loan and then get the balance from a cheaper personal loan that makes more sense as a personal loan lends more and is cheaper.
Process for credit checks and fees to apply
All legitimate same day loan lenders are legally required to run a credit check (as they are required by the Financial Conduct Authority to do so.) You can apply and get an instant decision with only a soft credit check which doesn’t affect your credit score and won’t be visible on your credit score, so this can be a good tool to test a few lenders and see which will offer the cheapest loan.
Most same day loan lenders roll their fees into the APR and others will either charge a percentage of the loan or a flat fee. So paying a fee could be worth it if the APR is significantly lower.
What to look out for in a same day loan
When looking for a same day loan you should look at a few factors when deciding. Firstly, what is the minimum time you can borrow the money? Many lenders’ minimums are quite long 6 months and the longer the length of the loan the more you’ll pay. Since same day loans are designed to be short term and have high interest it’s always better to find a loan that’s shorter 2 weeks to 2 months is ideal.
How repayments work is always worth looking at, some of the lenders will charge more or less in the first months and based on your financial situation it may be better to pay more later (if you’re starting a new job for example.) Also check if you can repay early or if there is an early repayment fee.
The final and most important thing is to look at the interest they charge, most lenders will show a representative APR. Which means that at least 51% of their customers will get a rate the same as this APR or lower. Although this means you could get a higher rate if you’re in the other 49% (which will be based on your income, job, debts and credit score.)
What are the benefits of a same day loan?
1. Same day loans (aptly named) are fast to apply for and receive. You can apply within 60 minutes and be paid out that same day. Typically you’ll get an answer with 1-60 minutes filling out the application and paid out if successful straight away.
2. Many lenders don’t charge you for repaying quickly, so it’s a very flexible source of loans. Repayment plans can also be flexible and connected to your paydays.
3. Lenders have to comply with strict laws that protect your personal information.
4. Lenders typically assess your financial situation and make sure you can realistically pay the loan based on their terms.
What can the money be used for?
Same day loans are fairly versatile, you can use them for a number of emergency and non emergency expenses. Here are some the typical uses for a same day loan:
(i) To fix a broken down car you need to get to work or pick up your kids.
(ii) Funeral expenses for an unexpected loss.
(iii) Vet bills if you have no pet insurance.
(iv) Household appliances that have broken down or home improvements.
(v) Home improvements.
(vi) Medical or dental bills that aren’t covered by the NHS.
Best brands and companies to get same day loans from.
There are a lot of same day loan lenders out there, so it really makes sense to compare the different lenders. Here are some of the most competitive offers based on representative APR:
TSB Bank allows you to borrow £300.00 to £999.00 for a period of 3 to 12 months. Interest rate is 39.9%, APR 34.1%
Now Loan is a company that offers same day loans for those in need – the amount can be chosen in the range of £100.00 to £10,000.00. The representative APR is 49.9% and the interest rate is set at 41.16%. It is required to pay the credit back in the period of 3 to 12 months. The money is received in 2 minutes after application is approved.
1 Plus 1 Loans allows to borrow £1,000.00 to £10,000.00. The APR is 47.8%, interest rate is 39.7%. The period to repay the loan can be chosen between 12 to 36 months.
TFS Loans offer guarantor loaning options. It allows to borrow between £2,000.00 and £15,000.00, to be paid back over 24 to 48 months. Representative APR is 44.9%, and yearly interest rate at 22.79%. Online application is completely free.
Light Finance offers loans of £100.00 up to £10,000.00. Payment period can be from 3 to 60 months, depending on the amount borrowed. The representative APR is 49.9%.
Likely Loan allows to borrow £500.00 to £5,000.00 for APR 59.9% and annual interest of 59.9%. Repayment period is 12 to 36 months, the money is transferred to the borrower the next working day after application is confirmed.
Little Loans offer loans from £100.00 to £10,000.00 for period of 3 to 60 months. Interest rate is 49.9%, APR 49.9%
Whilst these lenders have competitive offerings, it’s always worth looking at a few lenders as your individual circumstances can affect the interest rate significantly.