Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
Please note: High-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
Plenty of payday lenders are willing to transfer cash fast to eligible applicants. But despite what some lenders promise, an “instant” payday loan – from a lender you haven’t used before – simply doesn’t exist. However, some near-instant options are out there.
While some lenders only approve loans during business hours, with no guarantee of when they’ll get around to it, other lenders make an automatic decision where a loan application meets certain criteria, after which you’ll be in for a wait that could be as short as 15 minutes.
Let’s take a look at how long it takes to get cash from some of the key players in the UK payday loans market. We’ve covered high-cost loans paid back in one lump sum on your next payday and those paid in a few instalments.
Realistically, you’ll be hard-pressed to get a payday loan instantly, but some lenders have managed to streamline their processes to the point that borrowers who get approved can go from hitting “apply” to receiving funds comfortably within an hour.
Text loans and facilities that connect to your bank account (like SafetyNet Credit) or that access your Internet banking can, in theory, deliver funds even faster, but you’ll need to be an existing customer. However, you should never get to the point where you’re using this type of loan regularly. They’re simply not suitable for sustained borrowing.
The lender runs your application through its own in-house assessment. In many cases, this part of the process is automatic. But in more “borderline” cases, it may require human involvement – potentially even a discussion with you. The lender also requests a credit search from a credit reference agency (CRA).
Provided the lender’s happy to proceed, it then makes you a formal offer. In some cases, if the lender can’t approve the application in its received form, this offer may be for a lower amount or shorter loan term than you originally applied for.
Once you’ve accepted the offer, it’s then simply a matter of transferring the funds. This should, in theory, be fairly fast, depending on how slick the lender’s (and your bank’s) systems and processes are.
Hugo's best friend is moving soon, and he wants to treat him to tickets for the big game. Good seats are costly — about £90 per person — and Hugo knows they'll be sold out if he waits until his payday.
He decides to look into a payday loan that deposits cash directly into his current account. Hugo compares lenders to find a company with a competitive rate, checks he's eligible and then completes an online application. Within an hour, he has the money he needs to give his friend the send-off he deserves.
Hugo pays off the £200 loan in under a month. It's been quick and convenient, but cost him an eye-watering £32 in interest.
* This is a fictional, but realistic, example.
If you’re thinking of applying for an instant payday loan or short term instalment loan, take some time to review these key features to choose the right lender for you.
Payday or short term loans offer a quick source of money, though they come with high interest rates. As with any loan, you should only take it out if you’re sure you can make the repayments. However, as in the name, this source of finance is only a short term solution. If you’re looking for a longer term solution, you may want to explore longer term loans.
If you need to cash a cheque, it may take up to 3 days to clear it with a bank. Cheque cashing services give you immediate access to your money.
Sometimes you may need a little longer to pay off your loan – this is where a bad credit installment loan could work for you. Read on to find out how to apply.
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