1. Home
  2. Blog
  3. Everything you need to know about instant loans

Everything you need to know about instant loans

Fri 23 October 2020

Everything you need to know about instant loans

You’ll probably have heard the term, you may have even considered applying for one.

But what exactly is an instant loan - and is it right for you? 

Let’s take a look at the varied types of instant loan, what they’re used for and whether there are alternatives available that might better suit your circumstances.

What is an instant loan?

An instant loan is a type of loan that’s designed to help people borrow money very quickly.

They are commonly used to pay for sudden or unexpected expenses and can be a useful solution to some short-term cashflow issues.

People use instant cash loans to help deal with unplanned events such as a house repairs, a boiler breakdown, car trouble or a vets’ bill. 

How do I apply for an instant loan?

You can apply for an instant loan online without having to visit a bank or fill out lengthy paper application forms.

If and when you need instant access to cash, traditional banks may not be able to help because their processing times are generally longer than online direct lenders.

With loan amounts commonly ranging from £50 up to £1,000 or more, instant cash loans can be approved by lenders very quickly; with the cash sometimes transferred to your account within hours or even minutes.

Instant loans online can be useful if you have a short-term cashflow issue and, used responsibly, can be helpful in times of real need.

Is an instant loan right for me?

Instant cash loans often feature a higher-than-normal interest rate.

Therefore you must ensure that you only borrow what you really need, and can make repayments in the agreed time.

Direct lenders also offer instant loans online if your credit score is less than perfect.

What is a payday loan?

A payday loan is a type of short-term instant loan designed to help you cover unforeseen expenses until your next payday.

Once taken out, you must then repay the full loan amount, plus interest, when you next get paid.

If you do need to borrow money and are thinking of arranging an instant payday loan, you may want to consider other options first.

Whilst they’re easy to set up, an instant payday loan could potentially escalate into a problem debt quickly. 

If you’re thinking of getting an instant payday loan, you may want to consider an alternative option such as a doorstep loan

Doorstep loans can be applied for online and, once approved, the cash can be delivered to your door, or paid into your bank account.

You pay it back in weekly instalments, rather than in one payment like an instant payday loan.

If you are struggling with your debts and require assistance, you can speak to organisations such as the Money Advice ServiceStepChange or National Debtline.

Representative 466.37% APR. Morses Club specialise in small cash loans to help with unexpected expenses. Our loans aren’t right for everyone, and you should only borrow what you can afford to pay back. If you would like to find out if a Morses Club cash loan is right for you, read our FAQs for more information.

Have you read…

What to do if you’ve been declined a loan

What to do if you’ve been declined a loan

Overdraft vs a loan

Overdraft vs a loan

What happens if I pay off my loan early?

What happens if I pay off my loan early?