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In a nutshell
Personal loans are a way to get cash relatively quickly. Depending on the lender, it’s possible to get funding within one to three business days.
- The process can be fast if you apply online, you already have your required documentation available and your credit score is above 680.
- It is possible to get a personal loan with a credit score below 680, but you may have to wait longer for the funds, and you will probably pay a higher interest rate.
Factors influencing loan approval time
Various factors influence how long it takes to get a personal loan. Understanding the timeline can help you decide when to apply and how to best manage the process.
Type of lender
Different lenders have different requirements for getting a personal loan. The fastest lenders are usually online lenders. They can approve your loan in minutes and, in some cases, deposit money in your account as early as the next business day. Some lenders even transfer the funds on the same day.
On the other hand, if you get a personal loan from a bank or credit union, you might need to go into a physical branch. It can take longer for the loan officer to review your documents, and funding might take up to a week or more.
How much documentation you need to provide
Some lenders use readily available information, such as your credit report and score, to make a decision. They might also require you to use a service like Plaid to provide bank account details. In these cases, you provide minimal documentation and rarely need to upload anything. This usually speeds up the process, helping you get your personal loan faster.
If a lender requires you to obtain bank account statements and upload PDFs, or if you need to offer additional information, such as tax returns and paystubs, it can take longer to get through the loan approval process.
Your credit situation
Many personal lenders check your credit report and credit score when evaluating you for a personal loan. If you have a high credit score, you’re more likely to be approved quickly and get your money faster.
There are personal loans for fair credit, but they might require more documentation. While some lenders make quick approval and funding decisions when you have poor or fair credit, some will want to get a better idea of your banking situation and verify that you’ll be able to make regular payments, which can delay the funds making it to your bank account.
How long it takes to get a personal loan
It’s fairly common to get a personal loan within a week. Depending on the lender, documentation and your credit, it might even be possible to get a personal loan the same day you apply. In many cases, though, you’re likely to go through the approval and funding process in one to three business days.
Requirements for a personal loan
Every lender has their own criteria for personal loans. Generally, though, you’ll need to meet the following requirements to get a personal loan:
- Be the age of majority in your state.
- Have legal status as a U.S. citizen or permanent resident.
- Have a bank account in good standing.
- Show that you have handled credit well in the past by having a fair to excellent credit score.
Tips to get a personal loan fast
You can speed up the approval process by being prepared. Here are some things you can do to reduce the time between when you apply for your loan and when the money arrives in your bank account.
Know your credit situation
Review your credit reports and check for errors. In some cases, mistakes on your credit report can bring your credit score down, reducing your chances of getting approved. If you find errors, fix them before you apply for a personal loan. You can apply to the credit scoring agencies to investigate any errors.
A consumer credit website can give you an idea of your credit score and potential red flags. Take a look at your debt-to-income ratio and your finances to make sure you can afford a personal loan. Figure out your cash flow so you know what payment date to request.
Have your documentation handy
You’ll typically need to provide some proof of your identity and income when you apply for a personal loan. Here are some items to have readily available before you start the process:
- Your Social Security number.
- A government-issued ID, such as a driver’s license or passport.
- Proof of your address, such as a utility bill.
- Proof of your income or finances, such as bank statements and/or paystubs.
When applying for a debt consolidation loan, get information on account numbers and the amount you owe or use loan statements.
Not every lender requires uploads of your documentation. In some cases, they connect to your other accounts or use other methods. Being prepared, though, can speed up the process.
Pre-qualification
Many lenders will pre-qualify you without a hard credit check. You’ll be able to gauge the likelihood of getting the amount you’ve applied for and what interest rate and terms you’ll be offered. Some websites can help you see several available loan offers.
Pre-qualification isn’t approval, however; you’ll have to go fill out a more thorough application and potentially provide documentation, as well as go through a hard credit check, to find out if you’re actually approved. Your interest rate and loan term might change as well.
Related: How to prequalify for a personal loan
Go online
One of the fastest ways to get a personal loan is to apply online. Many traditional banks and credit unions have online portals that allow you to fill out a loan application. Lenders that specialize in online loans can be even faster.
After you’ve applied, make a note of the customer service number so you can call if needed. Also, check your email, since you might be given additional directions via email.
Double-check your loan application
Typos and other mistakes can slow down your approval. Before you submit your application, review all your answers and make sure the information you provide is accurate. That way, you won’t waste time correcting the information on the application.
Types of fast loans to avoid
Not every personal loan is a good choice, even if you can get the money fast. Here are some types of loans to be wary of:
- Payday loans: You borrow a small amount of money fast for a flat fee. You’re supposed to pay it off on payday, but it’s easy to extend the loan for another two weeks by paying another fee, getting you stuck in a debt cycle and costing you a lot in interest and fees.
- Car title loans: These often have high APRs, and if you can’t make payments you could have your car repossessed.
- Online bad credit loans: Similar to payday loans, you might be able to get a bigger, faster loan if you use a lender specialized in bad credit. However, these loans usually require weekly payments and their APRs can be in the triple digits.
- Pawnshop loans: You use a valuable item as collateral and pay a fee. Fees can be high, and if you don’t repay the loan within the stated time period, you could lose your item.
The AP Buyline roundup
If you want fast cash with a personal loan, research ahead of time to verify that you’ll be able to afford the loan. Additionally, you can speed up the process by getting pre-qualified with online lenders and being ready with your documentation.
Frequently asked questions (FAQs)
How long can it take to get approved for a personal loan?
Approval times vary by lender, but it’s possible to get approval in as little as a few minutes when you apply online. If you need to go into a bank or credit union in person, it might take days or even a week (or longer) to get approved.
What credit score is needed for a personal loan?
There’s no set credit score for personal loans. Some lenders specialize in personal loans for fair credit or even bad credit. Generally, though, the higher your credit score, the easier it is to get approved for a personal loan and the better your terms will be.
How hard is it to get a personal loan?
How hard it is to get a personal loan depends on your credit and income situation, as well as the policies of the lender. It’s usually harder to get a personal loan if you already have a lot of debt or if your credit score is low.
Are personal loans easy to get approved?
Personal loans can be easy to get approved, depending on the online lender and your qualifications.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.
