What's the best way to get a loan quickly?
The cheapest way to borrow money quickly isn't usually with a loan; it can often be with a credit card, especially if you can find a deal with 0% interest on balance transfers or 0% money transfers for a number of months.
Even if you can't get a 0% deal or are worried you'll be turned down because of bad credit, then using a credit card you already have (assuming your spending won't take you over your credit limit) is likely to be comparably cheap, especially if you pay it off quickly. This has the advantage of being instantly available to you so you won't even need to wait to get the money through.
Setting up a direct debit to do this is definitely worth considering although you'll need to make sure you have enough money in your account.
If your credit rating means credit cards aren't an option, look into an authorised bank account overdraft, borrowing from a friend, a guarantor loan or a Credit Union or Budget Loan. Read our guide for more information about your options: What is the Best Way to Borrow Money Until Payday?
If you're desperate for the loan to pay a bill, speak to the company you owe instead to see if there's anything they can do to help.
If you've ruled out other ways to borrow and are considering payday loans, then you'll need to spend some time picking the right one and making sure you understand how they work so you can play by the rules.
The first thing you need to be careful of is high interest rates and fees as these can push up the total cost of your loan.
If you don't meet your repayments, you'll be charged even more in interest and fees. It can also impact your credit score, which could make it tougher for you to get credit in future.
How to look for the right loan
Work out the exact amount you need before you start looking and avoid borrowing more than this just because it's offered, as this will push up the loan's cost.
To see which deal is cheapest, compare how much each loan will cost per £100 that you borrow - that way you can minimise how much you'll need to pay in interest and fees.
You should also check how long you'll have to pay back the money - this isn't necessarily a month, as some lenders will offer loans over shorter or longer terms. Pick the option that gives you long enough to pay back the loan in full for the cheapest price.
How to apply
Most instant decision loans for bad credit are available online, so you can apply for them quickly by entering your details on the lender's website once you've found the one you want.
The money will be transferred to your bank account, so could be available as quickly as an hour after you apply. Check the small print - just because a loan offers an instant decision, that doesn't mean you'll necessarily get the money instantly. Some will charge a same day transfer fee that will push up the cost considerably.
Most lenders will take the money owed directly from your bank account on the day it's due, often using a Continuous Payment Authority. This lets them make two attempts to remove the funds, so make sure you have enough in your account by the repayment date and that you're left with enough to pay the rest of your bills.