How Quickly Could You Get the Money From a Personal Loan?

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

If you need money fast, will a personal loan work for you? Find out how quickly the funds can hit your bank account. 

If you need money for a big purchase, home remodel, or for many other purposes, a personal loan is one option to consider. Depending on which lender you select, you can often borrow anywhere from $1,000 to $100,000 using a personal loan, and you will have a set payoff time such as five or seven years.

Unlike when you charge things on a credit card, though, you can’t just have an open-ended personal loan available to you for whenever you need it. You need to apply to borrow a set amount of money that is then distributed to you. So if you need money fast, you may wonder whether a personal loan will work for you.

Here’s what you need to know.

Some personal loans can provide quick funding

The good news is, in many cases, it is entirely possible to get a personal loan in a timely manner. Some lenders can provide funding as fast as the same business day that you apply for a loan and get approved for it.

This is not the case for all loan providers, of course, as some don’t provide instant decisions or offer same-day funding. But there are good options for borrowers who need the cash in their bank account quickly. This can make personal loans a viable solution when you can’t afford to wait.

Be careful when looking for a quick personal loan

While there are many reputable lenders offering speedy funding, you need to be careful because there are also dishonest lenders who try to take advantage of people who are desperate for cash. You’re more likely to stumble upon these types of loan providers if you do a search for same-day personal loans.

Ensure the lender you decide to work with offers a reasonable interest rate and favorable terms with no high upfront origination fees. If you see a lender charging a high rate (above around 15% or so), a lender that promises a loan with no credit check, or a lender that charges an origination fee, you should pause and consider whether this is really the right provider — and keep looking for other lenders.

Lenders typically disclose their funding process, application requirements, origination fees, and interest rates online so you can research these options to make sure you’re being offered a fair deal. You should also get quotes from at least three different lenders to confirm you’re getting the best rate possible.

The good news is, you can go through the process of getting quotes online, so this shouldn’t slow you down if you need same-day funding or want the money in your bank account quickly. And most lenders won’t even need to do a hard inquiry to tell you your rate. So even if you’re in a hurry, take the time to explore your options and find the right loan for you so you don’t end up regretting your borrowing choice.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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 does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More