Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

Quick Loans

Looking for a quick loan of between £100 to £5,000 from a reputable lender who is authorised and regulated by the Financial Conduct Authority? Are you worried that you might not qualify for quick loans approval because of your credit score?

Did you know that there are lenders out there who may actually approve applications from bad credit borrowers?

You may have heard these types of quick loans referred to as instant loans, fast loans, cash loans, or payday loans. They can be a temporary solution to help cope with an unexpected bill or an emergency financial situation.

How can I get a quick loan?

To make an online application for a quick loan, you can choose to apply direct to one of the many lenders offering quick loans online or, alternatively, you can apply online via a broker instead. Whichever you choose, you'll normally find out within seconds whether your fast loans application has been approved.

Where can I go to borrow money fast?

If you are approved for a loan, then most lenders are able to offer you quick transfer of your funds send to your bank account within minutes* of agreeing to their terms and conditions as part of the application process.

If you apply through a broker, you can get your cash sent within minutes too. Later on, in this guide, we will explain how applying through a broker works.

Please note that the type of bank account you have can affect the speed with which quick loans transfer to your account.

How do you get a loan with bad credit?

There are over 80 different bad credit lenders who may be happy to work with you even if you have a less than perfect credit score.

What's on your credit report is still important to quick loan lenders but, unlike mainstream banks, for example, they also take strongly into account your current financial situation when they make their decision. So, the answer is that you still might be able to a loan with bad credit.

However, please be aware that, even for lenders who offer quick loans for people with poor credit every day, they still have to perform a credit check on you when you make a full application.

Making a loan application directly with a lender

If you want to apply direct to a lender for a quick loan, you can do so via their website.

When a borrower starts their online application for an instant loan, they first need to fill in the lender's application.

On that form, a borrower will share:

  • their personal and financial details,
  • the amount of money they need to borrow, and
  • the length of time they want to pay it back over.

The lender then runs a hard credit search on the borrower.

Depending on the information the borrower provides and what's on their credit report, the lender will either:

  • offer them the amount they want,
  • offer them a smaller amount, or
  • decline the loan.

Making an instant loan application through a broker

A broker selects the lenders from their panel who are most likely to want to work with you based on what's on your application form and how much you want to borrow.

What do I need to know about quick loans?

For any customer considering taking out a quick loan, there are certain important facts you need to know.

1) Application fees

Most lenders and brokers do not charge you a fee for applying for a quickloan. If you are considering applying, please make sure before you do that the lender, or the broker is not going to charge you. We never charge any fees.

2) Repayments and affordability

If, when applying for a loan, a lender makes you an offer, you'll be shown a schedule of repayments before you agree to go ahead with the loan.

Typically, fast loans are offered with a repayment period of between three months and a year. You make your repayments on an agreed day each of those months. Each monthly repayment pays off part of the original loan amount you took out plus the interest.

When you apply for cash loans, the lender will ask you a number of questions about your household income and expenditure. They'll ask questions like how long you've been in your current job for and how much you earn. They'll ask you to provide details on how much you pay for mortgage/rent, council tax, food, clothing, transport, and so on.

Why all of the questions? A lender needs to be sure that you can afford the loan and that you have enough cash left over at the end of the month to comfortably meet each of the payments in full and on time over the term of the loan. Borrowing money should not put you or your loved ones in a further financial hardship.

The more lenders understand about you and how you handle money, the faster these companies can make a decision on your application based on your current financial situation.

3) How much can I borrow?

Included within a lender's application form is an "affordability assessment". It's the part of the form where they ask you how much you earn and how much you spend every month (your expenditure).

When coming to their decision about whether they'll lend money to a borrower or not, a finance company will compare the amount of money you have left after your expenditure with the size of the monthly repayment.

Generally, the more spare money you would have left after making a monthly repayment on your loan, the more favourably they'll view your application.

4) Interest rates and APR

Interest rates on quick cash loans tend to be higher than on the type of loans you might be offered by a bank or you might pay on a credit card.

APR stands for "annual percentage rate" - this describes the cost of a loan (including interest rates and charges) if taken out over the course of a year. The APRs on short term loans taken out for just a few months often appear incredibly high because APR is calculated as if the loan repayment period was over 12 months.

5) Maximum number of loans

Lenders tend to offer limited access to their loan services - they will generally want you to clear an existing loan in full before they offer you another one.

It is possible to have more than one loan running at any one time with more than one company however you should avoid doing this.

Quick loans should only ever be used to cover specific financial emergencies or to cover one-off and unexpected bills. You should not take out multiple quick loans at the same time or in succession if you're struggling to make ends meet month after month.

Keeping up with repayments

Before you try to access any type of financial product including quick loans, please be absolutely certain that you actually need the money and that you can't get the money from someone else. You may wish to ask a friend, family member, or your boss to see if they can help out if you're suffering a short-term financial squeeze.

Not keeping up with repayments on fast loans has severe long-term financial consequences. Finding other sources of credit (including loans, credit cards, and mortgages) will become substantially more difficult for you for many years to come.

If you are struggling with debt already, you may benefit from speaking with one of the UK's leading debt help charities. Their services are free and easy to access. Please click on one of the following links for help - StepChange, PayPlan National Debtline, the Debt Advice Foundation, the Money Advice Service, and Citizens Advice.

What happens if I fail with repayments?

If you fail to meet one or more of the payments on your loan, a lender may choose to levy a charge against your account. You may also continue to be charged interest if you are behind on your loan. If you are charged interest, it's likely that the interest rate that you're charged will be fixed at the same level of interest on the loan agreement.

Every lender is different. If you receive an offer from a lender, please make sure you read more on how customers who make late repayments are handled, specifically on the loan product you've been offered.

What happens if I am short of money?

If you take out a quick loan and you find later on that you're not going to be able to meet your next repayment, please get in touch with your lender straight away.

Ask to speak to a representative in their customer service department. Subject to a lender's policies and procedures, they may be able to be flexible when agreeing with you a plan to make your next repayment. If they do agree to an alternative arrangement, please make sure that you send them the amount you have agreed to pay on the day you agreed to pay it. This will help you avoid any further action being taken against you.

We would always advise you to read a lender's terms and conditions before accepting a loan. This is so that you can understand what their policies are when borrowers fall behind on the payments on their loans.

What is the best quick loan?

So, which one is best for you? It's difficult to say because each borrower's situation and circumstances are unique. Until a full credit check is carried out on you, you never know the exact offer a lender might make you and, if you apply direct to too many lenders in a short space of time, it actually makes getting a loan harder.

Little Loans is a Financial Conduct Authority authorised and regulated broker with a panel of established and reputable lenders experienced in providing quick loans to borrowers with less than perfect credit scores. To start your application with us, please click here.

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Representative Example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28. Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative. We’re a fully regulated and authorised credit broker and not a lender