Taking out a conventional loan can be a fairly long drawn out activity even for relatively small amounts of money. With fast loans – also known as payday loans – however, if your application is accepted the whole process can typically be completed and the money in your bank account in as little as a couple of hours or a day or so.
Other points of difference
A standard loan is typically taken out for a minimum of 1 year and can have a duration of up to 25 years in the case of mortgage lending.
Fast loans tend to be for relatively small amounts of money. They are typically paid back in full on your next or next but one payday. Interest is charged but loan durations tend to be a few weeks at most.
Payday loans are designed to be a short-term facility and they can be used for any purpose you wish. They can be used to pay for emergency plumbing repairs or you could take out a payday loan to allow you to take advantage of a special sale price in your favourite shop.
Payday loans are available online. They typically have a fairly straightforward application process where you will be asked for some basic personal information. This is likely to include details of your employment and your bank account.
Short credit checks may be carried out but you may be eligible for a payday loan even if you have a less than perfect credit history. This is possible because the amounts of money being borrowed are relatively small.
One of the main criteria is that the amount you are seeking to borrow is sensible in terms of your actual wage or salary.
Straight to your bank
Once approval is given, in most cases, the funds will be transferred to your bank account in a couple of hours or by the next day at the latest.
On your next payday a debit is posted your bank account to repay the loan and that’s that.
So if you have a short-term cash flow problem, fast loans may be the solution for you.