Numerous situations can arise where you need funding from a personal loan as quickly as possible. From a flooded basement in your home to an emergency car repair, you can find lenders who offer personal loans with faster funding periods — in some cases, on the next business day after your application has been approved.
A fast personal loan allows you to receive a lump sum payment from a lender within a short period, usually the next business day. Some personal loans take several days to deposit the funds, but a fast personal loan offers expedited funding times.
You can use these funds to cover almost any personal expense, such as:
If you need emergency loan funds to meet a specific financial deadline or unforeseen event, you may need to get a fast personal loan. These loans are approved based on your credit profile, including your credit score and history, plus your income. Expect to submit supporting documentation, such as W-2s and paystubs, when you apply for the loan.
Related: Learn more about getting a personal loan
Here are some of the best personal loan lenders to consider if you need a fast personal loan.
You can speed up the application process for a fast personal loan if you’re prepared for the following five steps:
- Check your credit score: Borrowers with stronger credit scores will increase their approval odds and lock in lower interest rates. Knowing your credit score beforehand gives you insight into what the lender sees. It also lets you correct any issues on your credit report, which can improve your credit score.
- Gather documentation: Find out from the lender what supporting documentation you need to complete the application. This likely includes information to verify your identity (like a driver’s license), proof of residence, and income.
- Calculate payments: Use a personal loan calculator to pinpoint how much a monthly payment is and what works best for your budget. Try to borrow only the smallest amount you need so your monthly payment is manageable.
- Compare lenders: Even though you need funds fast, taking time to compare interest rates, repayment terms, and fees between lenders can save you money in the long run. You can also prequalify with lenders, giving you better insight into your interest rate and loan amount without submitting a full, formal application and being subject to a hard credit check.
- Apply: Follow the steps to apply, whether with an online lender, bank, or credit union. Lenders with physical locations may require applicants to submit in person. You can typically expect funds deposited into your account the next business day after approval.
Generally, you can receive funds quickly once approved for a fast personal loan. Some lenders may offer same-day or next-day funding once the decision is made. However, receiving funds could take up to five business days or a week, which may not work for your timeline.
Most online lenders tout quicker funding times than banks or credit unions. No matter who the lender is — if you need funds quickly — verify how long it’ll take to receive the money so you can plan accordingly.
Numerous factors influence the loan amount you may qualify for. These include your credit history, credit score, the amount you want to borrow, the repayment terms, and other factors the lender may consider.
One way to determine the loan amount is to get prequalified with a lender. This quick process lets you input some of your personal details, so you can get a general idea of your interest rate and loan size.
Multiple factors influence the cost of your loan, including the interest rate, repayment term, plus any loan fees charged by the lender.
The following scenarios of a loan’s cost using a personal loan calculator will give you an idea.
Yes, some lenders offer fast personal loans with bad credit. If your credit’s on the low end, you may need to provide additional documentation, such as proof of income, to obtain approval.
If your credit score is a concern, some lenders allow you to apply with a cosigner (or even co-borrower, such as a spouse). A cosigner is financially responsible for your payments if you can’t repay your loan. Your cosigner’s credit score and income is used to help you qualify, which may result in better repayment terms.
Fast personal loans are typically unsecured, which means you don’t have to offer collateral. However, if you have something you can use to secure a loan, such as a vehicle or real estate, then it can increase your chances of approval.
Related: Learn more about getting a personal loan
Before you lock into a loan with a high interest rate or unfavorable repayment terms, consider these alternatives when you need quick cash.