If you’re in a position where you need access to fast cash – then you’ll likely need to consider a same day loan. To clarify, a same day loan – or instant loan as it is often called, is usually packaged as a payday loan. By this, we mean that you’ll likely need to use a payday loan provider that specializes in smaller sized loans, albeit, they often have the capacity to release the funds in as little as one hour.
On the flip side, this will come at a cost – a much higher APR rate than what you will find by using an alternative funding source, such as a personal loan or credit card. Nevertheless, if it is fast funding that you are looking for, then be sure to read our in-depth Same Day Loan Guide. Within it, we’ll cover everything that you need to know – such as how a same day loan works, how much it is likely to cost you, how quickly you will get your hands on the funds, and more.
- 1 What are the Pros and Cons of Same Day Loans?
- 2 How to Apply for a Same Day Loan? Read our Step-by-step Guide:
- 3 Best 3 Same Day Loan Providers 2019:
- 4 What is a Same Day Loan?
- 5 Same Day Loans: How much can I borrow? APR fees?
- 6 Am I eligible for a Same Day Loan?
- 7 FAQs:
- 8 How quickly can same day loan providers transfer the funds?
- 9 How much can I borrow via a same day loan?
- 10 How much do same day loans cost?
How to Apply for a Same Day Loan? Read our Step-by-step Guide:
Terminology in the online loan space is often used interchangeably. In this respect, we mean that same day loans, instant loans, and payday loans are typically similar in what they offer. Although this includes super-fast funding times, this is usually at the cost of smaller loan sizes and higher APR rates. Nevertheless, if you’ve never applied for a same day loan before, then we would suggest reading the step-by-step guide that we have outlined below.
Step 1: Find a suitable lender
Your first port of call will be to find a suitable same day loan provider. You’ll initially need to check the provider’s website to assess how quickly they typically release the funds. Don’t forget, even if the lender does market funding on a same day basis, they will still need to verify your information before they can do this.
You also need to make some considerations regarding fees and loan sizes. It is all good and well if your lender is notable with its funding times, but you also need to make sure that they are able to lend you the required funding amount. Moreover, you also need to assess what the provider’s fee structure is like.
Step 2: Start the application process
Once you have found a lender that meets your individual needs, you will then need to start the online application. In the vast majority of cases, you will need to get the ball rolling by entering the amount that you wish to borrow, and for how long, via the homepage. You’ll then be taken the main application page.
Step 3: Enter your personal and financial information
As is the case with all credit-based applications, you will now need to provide the lender with your personal information. This will include your full name, home address, date of birth, driver’s license or passport number, telephone number, and email address. After that, you’ll then need to enter some information about your income.
Not only will this include your employment status, but also the amount of money that you bring home each month, and the frequency at which you receive your salary (for example the last day of the month). You will also need to provide details about the place that you work, such as the name of the company, the address, and your direct line manager.
Step 4: Read the digital loan agreement and sign it
Once you have entered your personal and financial information, the same day loan provider will then run its electronic checks. They do this by cross-referencing your data with third-party sources – including that of credit bureaus. The key point here is that because you require the loan funds on the same day, they will attempt to verify your information without asking for supporting documentation.
As such, if you are in possession of a good credit score with the main three bureaus, then you stand the best chance possible of having your application approved instantly. Once a decision has been made (which usually takes no more than a couple of minutes), you will then be able to view your pre-approval rates. This covers the interest payable on the loan, as well as when you will be required to pay it back. If you’re happy with the terms outlined in the loan agreement, sign it to complete the application.
Step 5: Satisfy the verification checks
If the lender was unable to verify your information automatically via its third-party sources, you’ll likely need to provide supporting documentation. Don’t worry, as this will usually consist of a recent payslip or bank account statement – which is hopefully something you have access to. Once you upload the document, the same day loan provider will manually verify it, before sending you the digital loan agreement to read and sign.
Best 3 Same Day Loan Providers 2019:
So now that you know how to apply for a same day loan, you’re now ready to begin the online application with your chosen lender. However, if you’re unsure which lender to go with, we have outlined the best three providers currently active in the UK market. To gauge the type of factors that we look out for before listing a recommended lender on our site, be sure to read the following criteria.
Criteria used to rank the best same day loan lenders
❓How quickly can the provider release the loan funds to you
❓The minimum and maximum loan sizes available
❓The minimum eligibility requirements to get the loan
❓How much APR you’ll be paying on the same day loan
❓Registered with the FCA as an approved UK lender
What is a Same Day Loan?
As the name suggests, a same day loan is simply a loan that allows you to access the funds on the same day that you make the application. As we noted earlier in our guide, such loans are also labelled as ‘instant loans’, although in reality, they are merely payday loans.
The reason for this is that unlike a more conventional personal loan or credit card application, same day loan providers will usually perform watered-down checks on your financial standing, which is why they are able to release the funds so quickly. However, this is also why the APR rates on same day loans are much higher, and why the size of the loans are much smaller.
Same Day Loans: How much can I borrow? APR fees?
As we have noted throughout our guide, same day loans will usually come with a much higher APR rate, as well as smaller loan sizes. This is to offset the risk of releasing the funds in such a fast amount of time. Nevertheless, we have broken down the size of the same day loan that you will likely be able to get, as well as its respective fees.
✔️ Small loan sizes
If you require emergency cash on a same day basis, then this is likely because you need to cover an unexpected event. This could be anything from covering the costs of repairing your vehicle, or seeing you through the last few days of the month before you next get paid.
Either way, it is likely that the size of the required loan amount is much smaller than what would be required via a personal loan. Nevertheless, same day loan providers will typically cap the amount that you can borrow to £1,000. If you do need more than this, then the lender will likely need to perform additional checks, which can include supporting documentation. If they do, then same day funding is probably going to be out of the question.
✔️ Higher APR rates
If you are happy to borrow an amount below £1,000 in order to obtain same day funding, then you also need to make some serious considerations regarding the underlying APR fees. While the specific amount payable will depend on the provider in question – as well as your current creditworthiness, you should expect to pay a rate of between 100% APR and 1,000 APR%.
In fact, you could end up paying even more, with the likes of Very Merry Loans explaining that some of their partnered providers charge up to 1,333% APR. However, the good news is that in late 2018, the FCA installed new regulations that caps the amount of interest that payday loan providers can charge. This amounts to £24 per £100 that you borrow, with the total interest payable never exceeding twice the amount borrowed. While this still represents a sky-high rate in APR terms, it does at the very least put some limitations on how much you end up paying on your same day loan.
Am I eligible for a Same Day Loan?
Whether or not you are eligible for a same day loan will depend on a number of factors. This includes the same day loan provider themselves, as well as your current credit score and income amount. In order to give you a clearer picture as to some of the metrics that same day loan companies look for when assessing your eligibility, check out the following list.
✔️ Credit score
If you are currently in possession of a healthy credit score, then you will likely have no issues at all in being approved for a same day loan. On the contrary, if your score falls within the ‘poor’ or ‘very poor’ threshold, then the chances of having your application approved are much lower. If you think that your credit score is less than ideal, then you might best off going with a lender that doesn’t run credit checks, and instead looks at other metrics such as your income.
✔️ Annual Income
Regardless of whether the same day loan provider looks at your credit score, they will always assess your affordability levels by asking you how much you earn. Some lenders will state the minimum annual income amount, while others judge this on a case-by-case basis. With that being said, you will likely need to be earning at least £10,000 per year to stand a chance of being approved for a same day loan.
✔️ Historical Relationship With Debt
Same day loan lenders will also need to look at your historical relationship with debt. On the one hand, if you have always paid your previous debt obligations back on time and thus – never missed a repayment, then you will stand a very good chance of obtaining a same day loan. On the other hand, if your credit report highlights multiple late or missed payments, or worse – defaults, then you might find it difficult to get a same day loan.
How quickly can same day loan providers transfer the funds?
There is no one size fits all answer to this question, as there are simply too many variables to consider. On the one hand, if your credit profile is in good standing and the lender is able to verify your identity electronically, then you might be able to obtain a same day loan in less than 1 hour. On the flip side, if your credit profile is less than ideal, and/or the lender is unable to verify your identity, then this can delay the process by a couple of days.
How much can I borrow via a same day loan?
Due to higher risks of performing watered-down verification checks, same day loan lenders typically limit the funding amount to £100-£1,000.
How much do same day loans cost?
Same day loan providers are essentially payday lenders in all but name. As such, you could be paying anywhere between 100% APR and 1,000% APR - sometimes more.