Edited by Michelle TipswordHow Long Does It Take to Get a Personal Loan?
Quick Answer
Approval times for personal loans vary from one lender to the next. Some provide funding within minutes of getting approved, but it could take up to five days in some cases.
A personal loan can provide quick cash if you're in a pinch and don't have an emergency fund to fall back on. After getting approved, it can take anywhere from minutes to days to receive funding. But every lender is different, which means that approval and funding times can vary.
Whether you're consolidating debt, covering a financial emergency or making a big-ticket purchase, knowing how quickly you can get a personal loan can help you choose the right lender.
How Long Does It Take to Get Approved for a Personal Loan?
The time it takes to get approved for a personal loan and receive funding ultimately depends on the lender, as well as how prepared you are with necessary documentation. Personal loans are available through banks, credit unions and online lenders. Here's a closer look at average funding times for each one.
Banks and Credit Unions
If you apply for a personal loan through a bank or credit union, a lending decision could happen in a matter of minutes. But in some cases, the approval process could take up to a week. Once your application gets the green light, you'll likely receive your loan funds within one to five days—but some may deposit the money into your account on the same day you're approved. Every lender is different, so it's important to do your research before applying.
Both banks and credit unions offer personal loans, as well as other financial products like checking and savings accounts, but they work a little differently.
- Banks are for-profit organizations that typically have stricter eligibility requirements for personal loans. Interest rates may also be higher when compared to credit unions and online lenders.
- Credit unions are not-for-profit organizations that usually serve a particular group of people, whether that's employees of a certain company, members of a specific faith-based group or residents of a geographic region. Credit unions are member-owned, which typically translates to lower interest rates on personal loans and looser eligibility requirements.
Online Lenders
Online lenders are known for their quick turnaround times.Some disburse personal loan funds within an hour after the loan closes—which could be the same day you submit your application. An online loan is like a traditional loan except that you'll complete your application and upload your documentation completely online—there's no option to apply in person, like you might have with a bank or credit union. If you get approved, your loan funds will be deposited into your bank account. Annual percentage rates (APRs) vary, but online lenders tend to offer better rates since most have lower operating expenses than traditional banks and credit unions.
Compare personal loan rates
Find APRs from 6.7% to 35.99% and flexible terms of 24 to 120 months. Loan amounts range from $1,000 up to $250,000, with funding available the same day or up to 7 days.
Offers from our partners
Est. APR6.70 - 35.99%
Loan amount$1,000 - $50,000
Est. monthly payment$31 - $1,806
Term36 - 60 mo
Est. APR6.99 - 35.99%
Loan amount$2,000 - $50,000
Est. monthly payment$62 - $1,806
Term36 - 60 mo
Est. APR7.90 - 35.99%
Loan amount$1,000 - $60,000
Est. monthly payment$45 - $2,168
Term24 - 60 mo
Est. APR8.74 - 35.49%
Loan amount$5,000 - $100,000
Est. monthly payment$228 - $3,237
Term24 - 84 mo
Est. APR7.74 - 35.91%
Loan amount$1,000 - $50,000
Est. monthly payment$31 - $1,804
Term36 - 60 mo
Est. APR8.99 - 35.99%
Loan amount$2,000 - $50,000
Est. monthly payment$91 - $1,806
Term24 - 60 mo
Est. APR7.95 - 29.99%
Loan amount$5,000 - $50,000
Est. monthly payment$226 - $1,617
Term24 - 60 mo
Est. APR7.99 - 35.99%
Loan amount$5,000 - $40,000
Est. monthly payment$226 - $1,445
Term24 - 60 mo
Est. APR7.99 - 35.99%
Loan amount$2,000 - $30,000
Est. monthly payment$90 - $1,187
Term24 - 48 mo
Est. APR8.99 - 29.99%
Loan amount$15,000 - $50,000
Est. monthly payment$685 - $1,617
Term24 - 60 mo
Est. APR9.95 - 35.95%
Loan amount$2,000 - $35,000
Est. monthly payment$92 - $1,264
Term24 - 60 mo
Est. APR8.96 - 27.68%
Loan amount$20,000 - $250,000
Est. monthly payment$415 - $6,166
Term60 - 120 mo
Est. APR9.98 - 26.39%
Loan amount$3,000 - $50,000
Est. monthly payment$138 - $1,390
Term24 - 72 mo
Est. APR9.99 - 35.99%
Loan amount$1,000 - $35,000
Est. monthly payment$32 - $1,264
Term36 - 60 mo
Est. APR11.69 - 35.99%
Loan amount$1,000 - $50,000
Est. monthly payment$33 - $1,806
Term36 - 60 mo
Est. APR18.00 - 35.99%
Loan amount$1,500 - $20,000
Est. monthly payment$54 - $723
Term36 - 60 mo
View all of our Best Personal Loans for 2025 to see what you’re likely to qualify for, and the rates and terms you might get.
What Credit Score Is Needed for a Personal Loan?
To qualify for a personal loan, you'll likely need a minimum credit score of 580 or higher—but a credit score of 700 or higher could unlock better rates and terms. In some cases, borrowers with poor credit could be charged interest rates as high as 35.99%. APRs like these could significantly increase your loan costs.
When you apply for a personal loan, the lender will also consider your debt-to-income ratio (DTI) before approving your application. This is the percentage of your gross monthly income that's currently going toward debt payments. Lenders usually prefer a DTI that's under 36%, though that isn't a hard-and-fast rule.
Learn more: Personal Loan Fees to Watch Out For
How Do Personal Loans Affect Your Credit?
Personal loans can affect your credit in both positive and negative ways, depending on how you manage your loan payments. You can expect your lender to report your payment history to the three major credit bureaus (Experian, TransUnion and Equifax). This activity will appear on your credit report, and affect your credit score, for better or worse.
Making on-time payments can help improve your credit score. Using personal loan funds to consolidate debt can also reduce your credit utilization rate, or the amount of available credit you're using, which can also help strengthen your score.
But missed payments can have the opposite effect—especially if you default on a personal loan. Even if you stay on top of your payments, increasing your total debt load could tip your credit score in a lower direction. Applying for a personal loan could also have a small, temporary effect on your credit score due to the hard inquiry the lender will do when it checks your credit as part of the application process.
Learn more: What Can a Personal Loan Be Used For?
What About Payday Loans and Title Loans?
Payday loans and title loans are considered high-risk financing options and should only be considered as last-resort options. You'll want to proceed with extreme caution.
- A payday loan is a short-term loan that usually doesn't require a credit check, but you can expect extremely high APRs—often to the tune of 400%, according to the Consumer Federation of America. That could create more financial harm than good. You'll likely pay more in the long run, and these loans could strain your budget and increase your risk of default.
- A title loan uses your vehicle's title as collateral for a fast loan. On top of charging sky-high fees, these loans also put your car at risk. Your vehicle could be repossessed if you don't make good on your payments.
How to Get Approved for a Personal Loan Faster
Every lender has its own turnaround time, but the following tips could help speed up the process—and get your loan funds into your account faster.
- Check your credit score. Your credit health is one of the most important factors a lender will consider when you apply for a personal loan. Knowing where you stand can clarify how likely you are to get approved. That might inspire you to improve your credit before applying. You can get your FICO® ScoreΘ and credit report for free with Experian to see where you stand.
- Get your documents ready. That includes recent W-2s, pay stubs and other documents to verify your income. Also be prepared to disclose your housing expenses and provide proof of identity, such as a copy of your driver's license and Social Security card.
- Research lenders. Do your homework to see which lenders have the shortest average funding times. Speed isn't the only thing that matters, however. You'll also want to compare rates, terms and customer reviews before making a decision. You could also use an online marketplace to help you compare personal loans from multiple lenders in one place.
- Apply online. Again, online lenders may disburse loan funds faster than banks and credit unions. Applying online could help shorten your wait time.
Alternatives to Personal Loans
Whether you don't qualify for a personal loan or you simply decide that it isn't right for you, consider these alternatives.
- Intro 0% APR credit card: A credit card with a 0% introductory APR offer can allow you to cover an immediate expense, then pay off your balance during the promotional period—before interest kicks in. That can unlock interest-free financing, but it could be a costly option if you can't pay off your balance within that timeframe. Also, you may need good to excellent credit to qualify for one of these cards.
- Borrowing from friends or family: It might feel awkward to ask a loved one for a loan, but they may be happy to help if you write up a loan agreement and suggest a fair interest rate. Just be sure to repay the loan as promised; otherwise, it could damage the relationship.
- Home equity loan or line of credit: Both of these options allow you to borrow against the equity you've built in your home. A home equity loan provides a lump-sum payment, while a home equity line of credit (HELOC) offers a line of credit you can draw on as needed for a specified amount of time. However, both options use your home as collateral and can take weeks to disburse funds—significantly longer than most other funding options.
The Bottom Line
After getting approved for a personal loan, you could receive your money within minutes or days—it all depends on the lender. Comparing lenders, having your documents ready and checking your credit beforehand can help move things along more quickly.
No matter which option you choose, it's important to stay on top of your loan payments to protect your credit. Having a strong emergency fund can provide a safety net so that you don't have to take out a personal loan to cover an unexpected expense.
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About the author
Marianne Hayes
Marianne Hayes is a longtime freelance writer who's been covering personal finance for nearly a decade. She specializes in everything from debt management and budgeting to investing and saving. Marianne has written for CNBC, Redbook, Cosmopolitan, Good Housekeeping and more.
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