If you have a financial emergency or you want to take advantage of a sales offer that’s good for a very short time only, you are likely to think about borrowing the cash you need.

If time is short, though, and you are under pressure to find that extra cash fast, you also need a quick decision on any loan application you make.

That might rule the opportunity of a personal loan from your bank – not only because they are likely to take more than a few days to arrange, but also because many banks insist that you have been a customer with them for at least a month or so before making an application.

But instant decision loans do exist – and may also go by the title of short-term or payday loans. Here are a few tips on making a successful application:

The amount

  • be reasonable in the amount you are applying for and if the limit of the amount for which you can apply is, say, £1,000 but you only need £700, go for the lower figure;

Repayment period

  • you are generally able to choose the repayment period that most suits you, and the shorter this is, the less you are going to be paying for your loan – this type of short-term loan is typically repayable in full in a period of between 1 and 18 months;


  • the amount you choose, the repayment period, the rate of interest and the setup fee likely to be charged by the lender are all factors determining what the loan costs and, therefore, its affordability for you and your ability to repay the loan within the agreed time;

Credit checks

  • play your part honestly and accurately when it comes to providing the information needed by the loan provider to establish your creditworthiness;
  • most providers use the information you provide to perform a “soft search” or “quotation search” to take a view on the likelihood of your application for the loan succeeding – this avoids the risk of your making multiple applications, having some or all of them rejected, and these rejections adversely affecting your credit rating;
  • that is why you may see instant decision loans also referred to as no credit check loans – but your status needs to be confirmed by the credit reference agencies when you do make the formal application for the loan;

Debt management

  • it is important that you apply for and use any short-term loan only when you are faced by a genuine financial emergency or need the cash for some exceptional purpose;
  • avoid making frequent use of payday loans – rolling the last over into a new one, for example – simply as a way of keeping on top of your everyday expenses and commitments;
  • this may be the path to debt management problems and finding that your borrowing is spiralling out of control;
  • if this looks like becoming a concern, lose no time in taking advice from one of the – free – debt advisory services, such as the National Debtline.

By exercising a little care and responsibility you are likely to find that a short-term loan may be readily available on the strength of an instant decision.

Author: Katie

Katie is a finance specialist with one of the biggest firms in London. From savings to investments, there’s nothing she can’t advise on and she’s here to help spread the word and help you on your way to financial freedom.

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