Loans Guides

Instant decision loans explained

If you want to take out a loan for a major purchase or to consolidate your debts, you’re probably itching to get your hands on the money, but how easy is this? (Updated 16/7/09)

Once you’ve made your application, there’s no reason why a company can’t perform a credit check straight away and let you know whether the money’s yours.

Alliance Leicester Unsecured Loan

Company	% Typical APR
	Borrow between £7,500 and £15,000 with Alliance & Leicester, 8.0% APR typical.

Many loans can now be approved instantly online, although some lenders still prefer to deal with you in person over the phone. Phone applications may also be approved instantly if you find the right lender.

Can I get an instant decision loan with poor credit?

Many lenders promise an instant decision for a certain percentage of borrowers. This could mean that your application will need more consideration if you’re self-employed or have a poor credit rating. Unfortunately, when some lenders say they’ll give you an instant decision, this means saying no to this type of borrower.

If you have poor credit, you might be better off hedging your bets – take out a secured loan, or one with a higher interest rate, as a series of loan rejections could make your credit rating worse. You will also find that instant decision loans are more popular in the personal (unsecured) loans market, so you might have to choose between a quick decision and a better likelihood of success.

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Are there any other ways I can rush my loan application?

If your application for an instant decision loan is accepted, some lenders will provide express delivery of your money. This is usually a courier delivery, so it may take a bit longer (or be unavailable) for outlying areas, and you will normally have to pay a fee for the service (around £30-£40).

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How do I choose my instant decision loan?

Most lenders will state whether or not they offer instant decision loans. Bear in mind that an instant decision can mean a yes or a no, and many of these lenders might incorporate the cost of making instant decisions in their APRs and other charges.

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Top tips for getting the best loan deal

Follow our top tips to find the instant decision best loan:

Compare instant decision loans to get the best deal - When comparing loans make sure you look carefully at the APR as well as checking for any additional fees.
Watch out for delivery charges – Some lenders will offer to send a cheque to you by courier or transfer you loan into your bank account the same day. These services will usually attract an extra fee so only pay for them if you really need them.
Watch out for payment holidays – Some lenders may offer to defer your repayments for a few months at the start of the loan. However, you will still be being charged during this time and your future repayments will be larger to compensate. Your total amount repayable will be larger too, so avoid this if possible.
Check your credit report before you apply for a loan – Not only will checking your credit report reveal to you how you look to prospective lenders, it also gives you the opportunity to correct any information that is wrong and give yourself the best chance of being approved.