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If you need a debt consolidation loan, encounter an expensive emergency, or have some remodeling to do around the house, you may wonder how fast you can get a personal loan. Getting a personal loan is simpler and faster than getting a mortgage or small business loan. Still, the time it takes from loan approval to funding depends on the lender and how well you have prepared to apply.
Read on to learn more about how long it takes to get a loan and tips for faster loan approval.
It's possible to get a personal loan in one to ten business days. That's in ideal circumstances -- if you have a strong credit score and steady employment history. If your case is a little more complicated, it could take longer. For this reason, a lender will likely take more time to verify your financial history if you are self-employed or get paid sporadically.
Here's how long it takes to get a loan from some of the lenders on our experts' list of best personal loans:
Avant
Pre-approval: Same-day
Days to get funds deposited after final approval: 1
Upstart
Pre-approval: Same-day
Days to get funds deposited after final approval: 1
Discover Personal Loan
Pre-approval: Same-day (for most borrowers)
Days to get funds deposited after final approval: 1
Pre-approval: Same-day
Days to get funds deposited after final approval: 2
Happy Money
Approval: 3-7 days
Days to get funds deposited after final approval: 3-6
Current as of Jan. 20, 2021
Even if you're in a hurry, do yourself the favor of comparing multiple lenders. Taking time to shop around can save you money, because not all personal loan lenders are the same. The interest rate and terms available through one lender can be far different than from another -- so finding the best one can save you hundreds of dollars.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
There are two key ways you can speed up the loan process:
Each personal loan lender has a different set of requirements, but you can save time by gathering these documents ahead of time:
ID: Driver's license, passport, military ID, Social Security card, a government-issued photo ID, or certificate of citizenship (some lenders need one, while others ask for two forms of ID)
Proof of income from an employer: Bank statements, W-2 tax forms, pay stubs, income tax returns, or a letter of verification from your employer
Proof of income if you are self-employed: Bank statements, copies of past income tax returns, and 1099 tax forms
Proof of address: Voter registration card, utility bills, a lease agreement, or a mortgage contract
The loan approval process may feel like a hassle, but once you've taken care of the task, your documents are ready to go any time you need them. That means that the next time you apply for a mortgage, open a credit card, or take out an installment loan, you'll be ready.
For a detailed step-by-step guide to getting a loan, check out our guide: How to Get a Personal Loan.
You'll notice that the terms "pre-approval" and "final approval" are both used above. These are two different things, and knowing what they mean will help you understand how personal loans work.
Let's say you decide to rate shop and want to check out five different lenders. Most lenders run a soft credit check (that doesn't affect your credit score) before letting you know if you qualify for a personal loan. Once you've pre-qualified, they tell you more about the interest rate, annual percentage rate (APR), and terms. This process has no impact on your credit score, which gives you the freedom to check as many lenders as you would like until you find a loan that works for you.
Once you've decided that a loan is right for you, it's time to let the lender know that you want to move forward. At this point, the lender runs a final hard credit check. This hard check dings your credit score slightly. Don't worry -- the ding can be erased by making your monthly payment on time for several months.
Even if a loan application is pre-approved in minutes, it typically takes from one to 10 business days to receive final approval and the disbursement of funds. If you filled out your application accurately and nothing has changed in the interim, you're only waiting for the lender to verify the information provided.
You will find one thing to be true of any loan: the better prepared you are, the easier the process will be -- and the happier you're likely to be with the outcome.
Here are some other questions we've answered:
Looking for a personal loan but don’t know where to start? Our favorites offer quick approval and rock-bottom interest rates. Check out our list to find the best loan for you.
The amount of time to get a loan depends on the lender, but it's typically 1-10 days. It might take longer if you're self-employed.
Be prepared to provide the lender with proof of identification, income, and residency. Respond quickly to lender requests.
Yes, but the fees and interest rates on same-day loans can cost you hundreds of dollars above other loans. It's better to wait a few days for approval on a less expensive loan. If you can, the best way to get a loan is to take your time, compare multiple lenders, and find the best one for you.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
Citi Personal Loan disclaimer:
**Rates as of 05-31-2024. Your APR may be as low as 11.49% or as high as 20.49% for the term of your loan. The lowest rate quoted assumes excellent credit and a loan term of 24 or 36 months. Your APR will depend on a variety of factors including your creditworthiness, term of loan, and existing relationship with Citi. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
Rates quoted are with AutoPay. Your loan terms are not guaranteed and may vary based on loan purpose, length of loan, loan amount, credit history and payment method (AutoPay or Invoice). AutoPay discount is only available when selected prior to loan funding. Rates without AutoPay are 0.50% points higher. To obtain a loan, you must complete an application on LightStream.com which may affect your credit score. You may be required to verify income, identity and other stated application information. Payment example: Monthly payments for a $10,000 loan at 8.49% APR with a term of 5 years would result in 60 monthly payments of $205.12. Some additional conditions and limitations apply. Advertised rates and terms are subject to change without notice. Truist Bank is an Equal Housing Lender. © 2024 Truist Financial Corporation. Truist, LightStream, and the LightStream logo are service marks of Truist Financial Corporation. All other trademarks are the property of their respective owners. Lending services provided by Truist Bank.