Can I get an instant decision on a loan?

What is an instant decision loan? 

An instant decision loan is exactly what it sounds like – an unsecured personal loan with a quick approval process.  

They are aimed at people who want a fast decision. And since they are unsecured, you don’t need an asset, like property, to back them. 

How does the instant decision process work? 

With an instant decision loan, you borrow a lump sum and repay it in fixed instalments (including interest) over a set period. 

Let’s walk through the application process step-by-step:

1. Check your eligibility 

You can use an eligibility checker to get a quick online decision without affecting your credit score.  

You will be asked to fill in a few questions about yourself (such as your name, address, income, and how much you want to borrow).  

The lender will then run a soft search of your credit file, and an online decision engine will review your details and provide results almost immediately. So, you’ll know whether you’re likely to be approved for a loan before you apply. 

Our eligibility checker also shows you different loan options that match your eligibility, including interest rates and terms. 

2. Make a full application 

If you’re happy with your quote and want to go ahead, the next step is to submit a full application.   

The lender will run a hard check, which will show on your credit file and can cause a temporary dip in your credit score.  

3. Receive the money 

Providing the loan is approved, you may receive the money within hours, or it could take a few working days. The exact time it takes for money to appear in your current account depends on your bank. 

As long as you always pay your loan on time, your credit rating should gradually start to improve. 

Am I eligible for an instant decision loan? 

Loan eligibility can vary by lender, but there are common criteria that many lenders consider, such as your:

1. Age - you need to be at least 18 years old.
2. Residency status – you need to live in the UK.
3. Bank account – you must have an active UK bank account for the loan to be paid into.
4. Income – lenders want to see that you have a reliable source of income and can afford the loan repayments. This could be a wage, benefits, or a pension, for example.
5. Credit history – lenders will carry out a credit check to see how well you have managed your money in the past. A high credit score can boost your chances of approval and give you access to lower interest rates.

Can I get a loan without a credit check?  

‘No credit check’ loans that guarantee approval don’t exist. All lenders need to carry out credit and affordability checks when you apply for a loan that’s regulated by the FCA.  

But there are steps you can take to improve your credit score and boost your eligibility for a loan in the future. For example, you could; 

• register to vote
• set up Direct Debits for your bills (so you never forget to make a payment)
• fix any errors on your credit report 

Should I get an instant decision loan? 

While instant approval loans can be convenient, you should carefully consider the terms, interest rates, and your ability to repay the loan before deciding whether to apply.  

Let’s look at some of the pros and cons: 

Advantages  

• Useful in an emergency 
• Quick application process and instant decisions
• Money is paid out quickly - on the same day in some cases
• You may still qualify with bad credit – depending on the lender’s criteria 

Disadvantages  

• You might find it difficult to borrow a large amount of money with an instant decision loan
• Interest will apply – check the APR to find out the overall cost, including interest and charges.
• Negative impact on your credit score – if you make mutiple credit applications within a short space of time or miss repayments