How Long Does It Take to Get Approved for a Loan?
Life comes with many surprises that can catch anyone off guard. One day, you may be in need of money and need help right away. This is where personal loans come in.
With nearly 40% of Americans struggling from financial issues, it can be challenging to get emergency loans in your specific situation. You may be wondering how long does it take to get loan approval.
The good news is that it’s possible to get a loan approval within the same day. Though, not all loans and lenders are the same. In this article, we’ll discuss everything you need to know about how to get approved for a loan.
How Long Does it Take to Get Loan Approval?
Every lender has its own rules for giving out money to debtors. You can usually get a personal loan from a credit union or traditional bank. You can also work with an online lender to get the money you need.
The time it takes for you to get a personal loan will ultimately depend on the lender. Still, here is some helpful information to point you in the right direction:
- Overall Speed: 3-7 days
- Application Speed: Less than 15 minutes
- Approval Speed: 3-7 days
- Funding Speed: 1-7 business days
Credit Unions & Traditional Banks:
- Overall Speed: 1-15 days
- Application Speed: No more than 60 minutes
- Approval Speed: 1-15 days
- Funding Speed: 1-15 days
As you can see, online lenders usually move faster than credit unions and traditional banks. Though, credit unions and traditional banks may offer higher loan amounts. We’ll explain all these criteria in further detail below along with how it works.
Loan Approval Basics for Online Lenders
It’s never been easier to borrow money online these days. With just a few clicks, you can fill out an online application and receive the money you need in a few days.
Here is all the information you need to know how long it takes to receive loan approval from an online lender:
There are so many online lenders on the internet. This makes it possible to complete an application in just a few minutes. You usually have to provide proof of income and your Social Security number to learn how much money you qualify to receive.
If you want to move forward with that amount, the lender will then take a closer look at your application.
On average, it usually takes a lender a few days to approve your request for a loan. It’s impossible to predict how long any lender will take during this process.
The most important part of the approval process is when the lender checks your credit history. This will usually help them determine whether it’s reasonable for them to grant your request.
Once your application is approved, the lender will transfer the money to your bank account. This process can take several days, but some lenders may deposit the money on the same day.
When you do receive the money, make sure you check with your bank to make sure it’s ready to be spent.
Credit Unions & Banks:
If you don’t prefer to take out a loan online, you can visit your local banking branch. Sometimes, you may be able to get funding for your loan one day after your application is approved.
Here is everything you need to know about the time it takes to get approved for a bank loan:
Depending on the bank you visit, you’ll need to fill out a paper or online form. This is usually done by a bank teller. Filling out a paper form is usually tedious and it’s not possible to immediately verify your information.
Because of this, you should take your time when completing a paper loan application. This can save you the headache of getting denied and even speed up the process.
After your application has been approved, you can usually receive funding within the same day. This is great if you need cash immediately because of an emergency.
Still, it’s important to note that banks can take several days to process your application. The bank or credit union will have to review your credit history and see if you’re a good fit for their loan services.
If a bank has the staff and resources, they can process and approve your application within one business day.
A bank or credit union can typically fund your loan request within that same day. Some banks may take longer to deposit the money into your bank account.
Tips for Fast Loan Approval
Getting approved for a loan quickly doesn’t just depend on the lender. It also depends on you. Below are some great tips to help you speed up the loan approval process:
Get the Right Information:
Every lender will need to verify your information in order to learn more about you. If you can provide this information promptly, the loan approval process will go much smoother.
Here are some documents you’ll need to show with any loan application:
- Driver’s license
- Proof of income (bank statements, pay stubs, etc)
- Social security card
Depending on the lender, you may be required to submit more documents about yourself.
Fix Your Credit:
It’s not uncommon to have errors on your credit report. This can cause your application to get denied. Although it can take a while to fix credit report errors, it’s best to get them out of the way before applying.
Select the Right Lender:
Not every lender will grant your loan request. This doesn’t matter if you have a great credit score or a poor score. Lenders have the discretion to approve or deny any application for whatever reason.
The best way to find the right lender is to collect a list of different banks. This way, you can find out which lender offers the most reasonable loan for your situation.
Learn More About Personal Loans
If you’re wondering how long does it take to get loan approval, the answer is a few days. Though, some lenders may be able to approve your loan within the same day.
Do you want to learn more about personal loans? If so, check out our blog for more articles on this subject.