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How Long It Takes to Get Approved and Get a Personal Loan


How Long It Takes to Get Approved and Get a Personal Loan: Online lenders are typically the fastest personal loan option — you might be able to get the money you need as soon as the same day you apply. If you don’t have the cash saved in the bank to cover a major cost, taking out a personal loan could be a good idea. It usually takes one and seven business days to get a personal loan — though this will depend on which type of lender you work with.

Here’s how Long It Typically Takes To Get A Personal Loan:

  • Online lenders: Less than 5 business days
  • Banks:1-7 business days
  • Credit unions:1-7 business days
  • Payday loans, pawn shop loans, and car title loans: Can be the same day

Online lenders: Less than 5 business days

If you need money quickly, an online lender could be a good option. You can often apply online within minutes and might even get an instant decision, depending on the lender. If you’re approved, you’ll typically get the funds within five business days. Some lenders send money even faster — for example, Lightstream might fund your loan as soon as the same business day. With online lenders, you can often apply for preapproval to check your rates before submitting a full application and undergoing a hard credit inquiry. This way, you can shop around before choosing a lender.

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Keep In Mind: Many online lenders have strict credit and debt-to-income (DTI) ratio requirements. If you have less-stellar credit or a significant amount of debt, you might not qualify for the lowest interest rates.

Payday Loans, Pawn Shop Loans, and Car Title Loans: Can Be Same Day

If you need money as soon as possible, payday, pawn shop, or car title loan lenders can usually give you cash on the spot. But this convenience comes at a hefty price.

Here are the average interest rates you can expect from these types of loans:

  • Payday Loans:300% To 500%
  • Pawn Shop Loans:12% To 240% (Or Higher)
  • Car Title Loans:300%

Borrower BewareThese astronomically high fees and interest rates could make it difficult to pay off your loan, causing you to end up further in debt as interest charges accrue. Also, keep in mind that the lenders that provide these types of loans can also be predatory in nature. A payday loan, pawn shop loan, or car title loan should be a last resort if you need quick cash. A same-day personal loan or even a credit card could be a much less costly choice in the long run. If you’re considering a personal loan, use our personal loan calculator below to estimate how much you’ll pay for it over time.

Enter Your Loan Information

Loan amount? Enter the total amount borrowed$

Interest rate? Enter your annual interest rate% or

Loan term?Enter the amount of time you have to repay your loan

Total Payment$32,433

Total Interest$17,433

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Monthly Payment$270

With a $15,000 loan, you will pay $270 monthly and a total of $17,433 in interest over the life of your loan. You will pay a total of $32,433 over the life of the loan.

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What You Need To Apply For A Loan

To ensure the application process goes as quickly as possible, it’s a good idea to prepare ahead of time. Lenders will ask you for basic information, which often includes the following:

  • Name
  • Social Security number
  • Address
  • Phone number
  • Proof of identity (such as a driver’s license or passport)
  • Annual income
  • Proof of income (such as a pay stub or W-2 form)

To qualify for a personal loan, you’ll generally need at least good credit. However, there are some lenders — such as Avant and LendingPoint — that are willing to work with borrowers who have poor or fair credit. Keep in mind that you’ll need good to excellent credit to qualify for the best interest rates.

Tip: If your credit score doesn’t mean lender requirements, having a creditworthy cosigner might help you qualify. A cosigner is someone with good or excellent credit who shares responsibility for the loan.

Not all lenders allow cosigners, but some — such as LendingClub and SoFi — do, which could improve your chances of getting approved. Even if you don’t need a cosigner to qualify, having a cosigner might help you get a lower interest rate.

Getting a Personal Loan From An Online Lender Is Convenient

How long it takes to get a personal loan generally depends on which lender you choose. Choosing an online lender is often the fastest and easiest option — if you’re approved, you might get your funds as quickly as the same day you apply. If you decide to take out a personal loan, be sure to consider as many lenders as possible to find the right loan for you. With Credible, you can easily compare your prequalified rates from multiple lenders in two minutes after filling out a single form. Plus, all of Credible’s partner lenders are online, meaning the application and funding process will be quick and simple.

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