If you need cash fast, you need to choose the right lender. You can get approved for a personal loan in just a few hours, but some lenders can take weeks to make a decision. Once you are officially approved, the money still has to be sent to your account. By finding the right lender, you can speed up your loan process and get the money you need right away.
How Long Does It Take to Get Approved for Personal Loans?
Fortunately, you and I can get our loans approved in just a few minutes if we find the right lender. If you choose the wrong lender, it can take weeks. Often, online lenders offer faster approvals than in-person institutions.
There are 38.4 million personal loans in the United States. The average loan balance is $16,259. Currently, the average person makes a loan payment worth $360 every month.
These loans are offered by a range of institutions. If you are in a rush to get a loan, an online lender is generally the fastest option available. These lenders are able to process loans using advanced algorithms, so they are not limited by the number of loan officers they hire.
In comparison, credit unions and banks generally use underwriting staff members to process loans. If there are a lot of loan applications, then the approval process could take a long time. In some cases, it could even take weeks to process a single loan.
An online lender can generally process a loan application in a few minutes or a couple of days. Then, they can fund the loan in just one or two business days. Meanwhile, peer-to-peer lenders can also approve loans in a few minutes or several days. They can generally fund these loans in a week or less.
Banks and credit loans can take a few days to approve a loan. In some cases, it can even take weeks. After you finally get your loan approved, it can take up to three weeks to get the funding in your bank account.
Loan Processing Times at Different Lenders
Each lender has a different process for approving loans. For example, some lenders use software programs to process loans. In general, these lenders have a much faster, smoother approval process. The following are examples of approval and funding times at popular lending organizations.
- American Express: It takes up to three days to get a loan approved. Then, it takes three to five days to get your funding.
- Avant: You can get a loan a approved in just 24 to 48 hours. Afterward, you can get funding in a single business day.
- Citibank: Citibank can approve your loan in two to three business days. Then, you can get your funds in one to five business days.
- Discover: It takes up to three days to get a personal loan approved by Discover. Once you get approved, you can get your funding in one to seven business days.
- Earnest: With Earnest, it can take 5 to 10 days to get your loan approved. Afterward, it can take two more days to get your loan funded.
- LendingClub: LendingClub approves loans within seven business days. Then, you have 30 days to sign the loan agreement. Your loan cannot be funded until the agreement is signed. Once the papers are signed, it takes one to four business days to get your loan funded.
- LightStream by SunTrust Bank: With LightStream, it takes less than 24 hours to get your loan approved. After this is done, you can get your funds in one business day.
- Marcus by Goldman Sachs: Marcus approves loans in two business days or less. This lender sends out funds within one to four business days.
- Prosper: Prosper approves loans in seven business days. Then, it funds them in just one to three days.
- SoFi: This organization approves loans in two to four business days. It may take up to 15 business days if you are a self-employed worker. While SoFi provides funding within 15 days from the date when someone accepts the offer, they can often fund loans in even less time. In most cases, it takes just four to seven days to get a loan funded.
- Wells Fargo: At Wells Fargo, you can get a loan approved in three business days or less. Afterward, you can get your funding in just one business day.
How Long Does It Take a Loan to Get Approved at Different Organizations?
There are a few factors that determine how long it takes to get a loan approved. If you are applying for a bad credit loan, your lender may require more information before they approve you. The type of lender is also a major factor.
An online lender only takes a few minutes or days to approve a loan. These organizations are generally the fastest option because they can use algorithms to process loans. In general, you can finish your entire application in just 15 minutes.
When you work with a peer-to-peer lender, the process takes a little longer than it does with a standard online lender. In many cases, you can get your loan approved in just a few minutes. This is more likely to be true if you have all of your documents ready.
Credit Unions and Banks
Traditional institutions generally take longer to process loans. Even at the fastest banks, it can take days to get your loan approved. In many cases, it can take several weeks to finish the application process.
Banks are slower because of a variety of reasons. Often, they use actual people to review and approve loans. In addition, many banks have higher credit standards than online organizations. Because of this, they require more documentation and spend more time reviewing each application.
How Long Do I Have to Wait for My Funds?
Getting your loan approved is only one step in the entire process. Once your loan is approved, it can take a few minutes or weeks to get your funding. Some types of lenders can fund loans in a shorter amount of time.
An online lender can fund your loan in just one or two business days. As soon as your loan is approved, the lender sends the money to your bank account. In general, this type of transfer takes a full day. If the lender sends your money in the morning, you may be able to get your funds on the same day.
If you work with a peer-to-peer lender, you can often get your money within a week. In some cases, you can get your funds on the day after your loan is approved. Since peer-to-peer lenders use individual investors to fund each loan, funding can sometimes take a while.
Credit Unions and Banks
When you go to a credit union or a bank, it can take a few weeks to get your funds. Sometimes, you can get your funds by the next day. In general, you will be able to get your funds faster if you already have an account at the credit union or bank.
How Can You Speed up the Approval Process?
Whether you are applying for a bad credit loan or have great credit, there are a few things you can do to speed up your approval process. If you are organized and have the right documents, you can get your loan approved right away. The following steps can help you get the loan you need as quickly as possible.
- You should only apply for a loan if you meet the organization’s credit requirements. Otherwise, the lender will need to take more time to consider your qualifications.
- Before you apply for any loan, you should check your credit report. Inaccuracies and fraudulent information can harm your credit score. If your credit score is low, your application could be slowed down or rejected.
- You can save time by getting pre-qualified. While pre-qualification does not guarantee that you will be approved, it makes it more likely.
- Before you turn in your application, you should check it for errors. If you misspell your address or write your Social Security number incorrectly, it can slow down your application. To avoid issues, you should make sure all of the information on your application is accurate.
- If you want to speed up the loan process, you should try applying online. With online applications, your information is sent through an automated system. Software programs can instantly approve loans, so you could get your application results in just a few minutes.
Checklist: Where Should You Go to Get Your Loan?
If you want to receive a loan right away, there are a few things you can do. By working with an online lender, you can get a loan approved in just a few minutes or days. Your loan approval can take longer depending on where you go.
- Online lenders take a few minutes or a couple of business days to approve a loan.
- Peer-to-peer lenders can approve a loan in a few minutes or a few business days.
- Banks can approve a loan in a few days or weeks.
- Credit unions also take a few days or weeks to approve a loan.
A Loan Can Help You Reach Your Financial Goals
Applying for a loan takes just a few minutes. After you apply, your loan can be approved in a few hours, days or weeks. The amount of time it takes depends on the lender you work with.
We want to hear what your experience was like in the comments section. If you have applied for a personal loan, who did you choose to work with? How long did it take for the lender to approve your loan?