How Long Does It Take To Get A Personal Loan?
How long does it take to get a personal loan?  – Forbes Advisor

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The waiting time for a personal loan is crucial when you need money fast. If you need to pay rent, schedule emergency surgery for your dog, or cover unexpected car maintenance costs, you often can’t wait more than a few days. Unfortunately, there is no single answer: it can vary depending on the lender.

Here’s what we know about how long the process takes, from application to funding.

How long does it take to get a personal loan at a glance

The process of getting a personal loan depends on the type of lender you use and whether you have a simple request or if you have extenuating circumstances, such as being self-employed or having a high debt-to-income ratio (DTI). .

While most types of lenders share a similar application process, each individual lender has their own approval process, which can vary in how long it takes to get a personal loan. Here’s a look at how long it takes, on average, to get a personal loan from a bank, credit union, and online lender.

Online lender

Online lenders generally offer fast approval times and a simple application process. However, it may still take up to five business days to receive your money. However, some of the best online personal lenders offer same day approval and financing.

If you don’t have a lot of time to shop around and compare loans from different types of lenders, an online lender will usually have the quickest process from application to approval to funding.

Banks

Traditional banks are a solid option if you don’t need funds immediately and have an existing relationship with an institution. If a bank already understands your reputation as a borrower and you hold your accounts with that institution, it can help speed up the approval and funding process. Once approved, personal loans from traditional banks typically take up to seven business days to fund.

credit unions

Credit unions cater to people within their communities because membership requires you to live in a specific area. If you don’t need funds for a personal loan immediately and you are already a member of a local credit union, consider applying for a personal loan through your own. It usually takes up to seven business days for funds to arrive in your account once approved.

How long does it take to get a personal loan from the best providers

3 tips for quick personal loan approval

Follow these three tips to get fast financing for your personal loan.

1. Erase all credit report errors

According to the Federal Trade Commission (FTC), about one in five people have an error on their credit report which may affect their ability to qualify for a loan. Before applying for a personal loan, check your credit report with all three credit bureaus to see if there are any errors. If you spot an error, you can dispute it directly with the credit bureau.

You view your credit report from the three credit bureaus (Experian, Equifax and TransUnion) on www.AnnualCreditReport.com. Due to the Covid-19 pandemic, you can receive free weekly credit reports until April 20, 2022. Normally, you can only check it once a year.

It is crucial to check your credit report with all three bureaus as the information may vary. If you only check one or two, you may not see an error on the third bureau credit report.

Related: How to Easily Dispute Credit Report Errors

2. Know how much you need to borrow

When you prequalify for a loan, the lender will ask you for your desired loan amount. If this amount changes after you prequalify, the lender may need more time to process your application based on the new loan details.

Make sure you know exactly how much you need to borrow and how much monthly you can afford before applying for a personal loan.

3. Choose the right lender

Lenders usually have minimum income and credit score requirements, and it’s essential to understand these requirements before applying.

If your income is below its minimum, you probably won’t qualify.

If you don’t meet their credit score requirements, you can ask someone to co-sign the personal loan. A co-signer becomes legally responsible for the loan if you default, reducing the risk you pose to the lender. Applying with a cosigner will make it easier to get a lower interest rate, which could save you hundreds over the life of the loan.

Compare personal loan rates from top lenders

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Conclusion

When you need money fast, it’s important to find the right place to get a personal loan. An online lender may be your best bet if you need the funds as soon as possible, otherwise compare your options with a bank or credit union.

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