Loans Advice: What Are ‘Instant Decision Loans’? By David P Walker At Isnare.com Ezine Articles

If you are hoping to take out a loan, whether it is for a purchase or as a means of consolidating your debts, it’s likely that you will be looking for an option which releases the money you need quickly.

While some loans take a long time to be approved, it is actually a very simple and straightforward process to perform a credit check and let you know whether or not you will be able to borrow the amount of money you need. Therefore, a number of lenders offer instant decision loans, meaning they will be able to let you know straight away if you will be able to borrow from them.

Who grants instant decision loans?

Instant decision loans are granted by lenders who have the resources to quickly and efficiently go through the process of loan approval to give you a yes or no answer straight away, meaning you are not left waiting.

Many of these lenders are now able to take you through the loan application process and approve a loan instantly online, while others will insist on speaking to you over the phone or in person. Whichever method your loan approval takes, it can be instant if you choose the right lender.

Be aware, though, that some lenders charge for the making an instant decision loan. This charge is sometimes incorporated into the lender’s APR. Also bear in mind that your ‘instant decision’ may turn out to be a ‘no’ – and loan rejections can have an impact on your credit rating.

Will I receive my money instantly, as well?

‘Instant decision loans’ mean just that – the decision is instant. This does not necessarily mean that you will get you money straight away, although there are ways to speed up this next part of the process, as well.

If you have had your loan application accepted, some lenders will also offer you the option of having your money delivered to you by a courier. However, beware of this as there will usually be a cost for this of approximately £30 - £40.

How can I get a good deal?

Tips for finding the best deal include comparing the APRs on a range of instant decision loans and watching out for any additional fees and charges, such as delivery costs. Beware of payment holidays, as these can mean future payments, as well as the total cost of the loan, end up being significantly higher.

It’s also important to check your credit rating and amend any mistakes before applying for a loan, or you could end up damaging your credit rating by being rejected.

I have a poor credit rating – can I get an instant decision loan?

While this is sometimes possible, instant decision loans are not usually the best option for people with a poor credit rating. While you may still get an instant decision, the decision is a lot more likely to be ‘no’ if you have a bad credit rating.

In other cases, lenders will reserve their instant decision loans for people with good credit ratings and take longer to approve a loan for someone with a bad credit rating, or for someone who is self-employed.

While you can get lucky, it is more likely that you will not do so straight away, and any loan rejections you get will be likely to further affect your credit rating. It may therefore be a better option to choose a secured loan or a loan with an increased interest rate, rather than opting for an instant decision loan.

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