Many of our best personal loan lenders offer fast online applications with approvals in minutes and funding within days. However, the actual timeline depends on several key factors.
These include the lender's process, your credit score, and how prepared you are with the required documents. This article will guide you through everything you need to know to get your loan as fast as possible.
Personal Loan Application Process
The loan application process varies by lender, but generally follows these three steps:
- Apply: Once you've found the right lender, submit your application online, by phone, or in person. You'll need supporting documents to verify your identity and income. The lender will review your application and run a credit check to make their decision.
- Review and accept the loan offer: If approved, you'll receive a loan offer. Review the terms and conditions, then accept if you're ready to move forward.
- Receive your funds: After accepting, the lender starts disbursing your money. Direct deposit is fastest—you'll get funds in your bank account within one business day with some lenders. Paper checks take longer.
“It’s important to take your time when reviewing the terms, monthly payment, and APR carefully before accepting. You must select the option that best supports your financial goals and budget, not just the fastest timeline or the lowest APR,” says Paul Ricci, CEO of online lender Best Egg.
Factors Influencing Personal Loan Approval Time
“The approval process for a personal loan is unique to each lender, so take your time to research what loans and lenders are most suitable for your financial needs. It may take some time to be approved, depending on the company and your information,” says Ricci.
Several factors determine how fast you can get a personal loan:
The Lender Process
- Online lenders are your fastest option: Many offer quick applications, decisions in minutes, and funding as fast as the next business day. Some even provide same-day funding.
- Banks and credit unions: The institutions typically take longer. Phone and in-person applications also slow things down compared to online applications.
- Manual reviews add time: Lenders using automated systems approve loans faster than those requiring loan officers to manually review applications.
"Online lenders offer faster approvals—sometimes in as little as one to three business days—compared to traditional banks or credit unions, which may have longer processing times and more stringent application requirements," says Ricci.
Completeness of Information
Lenders need information about your identity, employment, income, and finances. If you're prepared with everything upfront, your application moves much faster. However, incomplete applications drag out the process while you gather additional documents.
Your Credit Score
- Strong credit scores mean faster approvals: FICO scores in the good, very good, or excellent range typically get approved quickly and easily.
- Lower credit scores slow things down: Subprime credit applications take longer to review, and you may have trouble finding willing lenders.
How to Speed Up the Loan Process
Build Up Your Credit Score Before You Apply
Higher credit scores mean faster approvals, lower rates, and better terms. If you have time, improve your credit before applying:
- Pay your debts on time: Making your debt payments on time every month is the best thing you can do to build credit, as payment history makes up the biggest percentage of your credit score.
- Keep a low credit utilization: Only use a small percentage of your available credit. Avoid carrying high balances on your credit cards, home equity line of credit, and other revolving credit accounts. It's recommended to avoid exceeding 30% of your available credit.
- Keep accounts open: The older the debt accounts on your credit report, the better it is for your credit, as the age of your accounts factors into your credit score. Keep your credit cards open even if you don't use them much anymore (unless you have a compelling reason to close them out).
- Check your credit report: If your credit report contains inaccurate negative information, it could hurt your credit score. Check your credit report to ensure it represents you fairly, and dispute any incorrect information.
Choose the Right Lender
If you want a personal loan quickly, research each lender's timeline upfront. Many lenders post their approval and funding schedules on their websites.
Look for lenders offering online applications with instant decisions and funding within days of approval. However, don't sacrifice important factors like competitive rates and a strong reputation for speed alone.
"For most online lenders, the process from application to receiving funds typically takes one to three business days. Speed matters, but so does transparency. Look for lenders with clear, upfront terms—the best financial decisions come when you have all the facts, not just fast access to funds," says Ricci."
Collect Your Loan Documents Ahead of Time
The loan application will go faster if you have all the information you need upfront. Gather your documents before you apply:
- Identity verification: You'll need to submit documents that prove your identity, such as a driver's license, birth certificate, passport, or Social Security card.
- Income verification: Prove your income using documents such as a paystub, W-2, 1099, or bank statement.
- Address verification: Documents like a utility bill, mortgage or rental paperwork, or tax return can verify your address.
- Financial documentation: If you want to receive your loan via direct deposit (the fastest option), provide banking information that includes an account number and routing number.
"The key to a smooth and speedy approval is submitting a complete and accurate application. Think of it like preparing for a job interview — the more organized and informed you are, the better your chances of success," says Ricci.
Common Loan Application Pitfalls and How to Avoid Them
Avoid these common mistakes that can slow down your personal loan application:
- Not checking your credit first: If your credit isn't great, you might face an unpleasant surprise when applying. Check your credit report and score beforehand to spot errors or find ways to improve your approval odds.
- Skipping the shopping process: Shopping around takes time upfront, but pays off. Comparing lenders helps you find faster timelines and lower rates. Read reviews and check reputations to avoid future headaches.
- Missing required documents: Without the right documents, your application stalls. If lenders need to request missing info, you'll face delays while scrambling to find what's needed.
"Delays or denials can occur if your application includes inaccurate, missing, or outdated information – so double-check everything before submitting to avoid unnecessary setbacks," says Ricci."
Frequently Asked Questions
How long does it take to get approved for a personal loan?
Most online lenders can approve your application within minutes to a few hours. Traditional banks and credit unions typically take 1-3 business days. Your credit score, application completeness, and the lender's process all affect timing.
How quickly can I get my loan money after approval?
Once approved and you accept the loan terms, funding usually takes 1-3 business days with direct deposit. Some online lenders offer same-day or next-day funding. Paper checks take longer, often 5-7 business days.
What can I do to speed up my personal loan application?
Check your credit score first, gather all required documents beforehand, and apply online with lenders known for fast processing. Having your identity verification, income proof, and banking information ready prevents delays.
