Instant Loans – Fast Cash When You Need It
Nobody can budget for every contingency. Life is unpredictable, and sometimes a spending emergency comes out of nowhere. Even a relatively small expense, when it arrives out of the blue, can derail your budget and send you scrambling to find some extra cash. If you’re lucky you have some mad money set aside that will cover the emergency. If not, you could find yourself staring down a nasty financial shortfall.
When money’s short and life has become unpredictable a small short-term loan might be in order. Of course, if your credit history is in something of a sorry state might be thinking any loan is out of the question. But a poor credit rating doesn’t leave you totally bereft of choice. There are alternative lending options available that can help bad credit borrowers secure the instant loans they need to cover almost any spending emergency.
What do We Mean by Instant Loans?
Instant loans are a type of alternative lending product designed to meet the needs of consumers facing a sudden cash shortfall. Like payday loans they deliver instant cash for approved borrowers. Even those with less than impressive credit scores.
Instant loans or same day loans as they’re sometimes known, pick up where traditional lending products leave off. By providing quick cash for borrowers in a crisis instant loans give consumers the financial flexibility they might otherwise lack. Instant loans are typically used to cover common expenses including:
- Unexpected home repairs.
- Sudden car repairs.
- Emergency medical costs.
- Ballooning utility costs.
- School fees.
- Rent and mortgage payments.
An instant loan is a short-term lending product specifically designed to provide borrowers with accessible solutions to small, but immediate, financial difficulties. They are in no way meant to provide long-term financial support or relief. Like payday loans they deal in relatively small sums which are meant to be repaid over a brief period. Typically from 1 – 12 months.
How Does Your Credit History Impact an Instant Loan?
Your credit history is simply a record of your past financial performance. Both conventional and alternative lenders refer to an applicant’s credit score when determining their creditworthiness. The higher the score the lower the perceived risk and the more likely they will be to approve a loan.
A bad credit rating is typically seen as an indication of past financial difficulties. However, a poor credit rating can also be caused by the lack of extensive credit history. This is a problem that many younger borrowers face when applying for their first loan or line of credit. The lack of a credit history often places them in the same high risk category as borrowers with troubled financial backgrounds.
For the majority of consumers, however, a bad credit rating is the result of a variety of factors, the most common of which include:
- A history or late or missed payments.
- High frequency of cash advances.
- Applying for, and being denied, credit.
- Defaulting on past loans of debts.
- A history of County Court Judgements or bankruptcies.
How Affordable are Instant Loans?
Short-term lending products like quick loans and payday loans are highly accessible and relatively easy to get approved for given you’re typically borrowing lower amounts. However, like all loans, they do come at a price by way of an increased APR as you’re only borrowing the money over a short period.
Instant loans tend to have highly structured repayment schedules, even if they are designed to be paid back relatively quickly.
Before applying for any loan, regardless of type or sum involved, keep the following points in mind:
- Interest Rates and Loan Fees – It is important to understand that the total cost of your loan includes more than the basic sum you’re borrowing. You are also committing to pay any accrued interest on your loan. Thankfully there are no additional fees to pay with any of the loans we offer here at Pounds to Pocket.
- Current Income and Obligations – When you accept any loan you are adding a new monthly expense to your budget. Carefully review your current income, your pay schedule, and your current financial obligations. Is there enough money coming in to cover another regular payment?
- Repayment Terms – Instant loans are a type of short-term lending product. Customers should expect to repay their 12 month loan in full over the course of a few short months. Late payments or missed payments are to be avoided at all costs.
Will Applying for an Instant Loan Hurt My Credit Score?
Conventional lenders rely heavily on an applicant’s credit score when deciding whether or not to authorise a loan. At Pounds to Pocket we look beyond your credit rating, considering your income and employment status to determine your eligibility for a short-term loan.
When you apply for a short term loan our lending partners will perform a soft credit check. This won’t show up in your credit history and does not impact your score. Our system then uses your details to match you with a direct lender who is able to facilitate your loan. When your loan is approved your will receive a loan offer which you are free to accept of reject. If you accept the offer the lender will finalise your loan by performing a hard credit check. This will show up in your credit history. But at this point your loan has already been approved and you’re safely on the way to receiving your funds.
Applying for an Instant Loan is Quick and Easy
At Pounds to Pocket we make applying for an instant loan quick and painless. First, you’ll need to tell us how much money you wish to borrow. Then we’ll need to collect some information from you to get things started. In order to process your loan request we will need the following information:
- Name, address, email address and contact number.
- Employment status.
- Monthly income amount.
- Monthly expenditure amount.
- Details of your UK current account.
Before submitting your online application we suggest that you review the information to confirm that it is all up-to-date and accurate. Any mistakes in your application may lead to you not getting accepted for your loan.
All applicants will receive an instant on screen decision after submission of the application form. Once a loan is approved, most customers will see the cash deposited into their account same day. However if you apply on a weekend or public holiday, it will typically be transferred within the next business day.
Learn How to Manage Your Finances and Improve Your Credit Score
If you are struggling with a bad credit rating you’re not alone. Millions of people across the UK have less than perfect credit scores. If you would like advice on how to better manage your finances and improve your credit rating we recommend the following UK government resources. Advice and counselling is free to the public.
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