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Same Day Unsecured Loans
Homeowners will often use secured loans as a method of finding the finance they need. For tenants and non homeowners this is not an option, meaning that often they will turn to unsecured loans.
There are a number of different types of unsecured loans available, each offering a different product in order to suit certain situations. Many looking for unsecured loans will require quick cash or even same day approval, luckily there are now a number of lenders offering same day unsecured loans.
These are the options available:
As is the case with all types of loans each lender will have a different process, some choose to manually underwrite each case, carrying out income & outgoing checks and manually credit score both on the applicant and guarantor. The more popular process amongst guarantor lenders is an online process; this makes the process much quicker meaning lenders are able to offer a same day payout. By making the process online it means that lenders will not require any paperwork documentation such as application forms or supporting documents. Guarantor lenders are able to offer amounts ranging from £1000 and £5000 over a term of 1 to 5 years. The guarantor is designed to support the application and guarantee to pay the monthly repayments should the borrower fail to do so. The guarantor must be a homeowner, have good credit and must be receiving regular income.
There is now a new product called the non homeowner guarantor loan, these are similar to the normal guarantor loan except lenders are able to accept tenants and non homeowners providing they have good credit and are on the electoral role at their current address. Non Homeowner Guarantor Loans are only able to offer up to £1000 over a course of 12 to 24months.
Offer amounts ranging from £100 to £1000, the loan term is dependant on the amount borrowed, however they are available over a term of 12 months. Despite only offering a relatively small amount, there are still a number of checks involved regarding the affordability of the loan; because of this the loans themselves will take longer to process than the equivalent payday loan. Most lenders will still look to make a same day decision. Instalment loans do not require a guarantor.
Offer amounts ranging from £50 to £500 (with some lenders now offering a £1000 product); payday loans are designed to be repaid at the borrowers next payday. The approval rates of the payday loan is somewhat higher than any other type of same day unsecured loan, however lenders will not approve the loan if it is not affordable to the borrower. These are the quickest type of unsecured loan offering a 10 minute decision with the money being transferred into your account within 1 hour. The APR of payday loans is considerably higher than that of instalment loans due to the nature of the repayments, there is also not as much emphasis put on the credit history of the borrower meaning there is more risk involved to the lender regarding the repayment ability of the applicant.
As you can see there are a few options to someone looking for same day unsecured loans, however the most suitable loan will depend on a number of factors, these being:
- Do you require a same day decision or a same day payout?
- How much do you require?
- What term do you require the loan over?
- How affordable are the monthly repayments?
If you require a same day payout then it’s unlikely that a guarantor loan will be the loan to suit you best, mainly due to the fact that the earliest you can expect the cash is 36 hours after applying. With guarantor loans the payout time will be dependant on the borrower’s ability to submit the relevant documentation. If quick cash is what you need then a payday loan is probably the best option, despite non-homeowner guarantor loans offering similar amounts of cash, they do require a number of checks on the applicant (and guarantor) meaning that the decision time is much higher.
For those looking for an almost instant decision and quick cash a payday loan is undoubtedly the most suitable loan, one thing to remember is that payday loans are designed to be repaid in full at the borrowers next payday, if the borrower fails to do this then the loan rolls-over, the problem with this being that due to the high rates of APR the total repayment figure does increase rapidly.