What is a Fast Personal Loan and How Do I Get One?


Our goal here at Credible Operations, Inc., NMLS Number 1681276, hereinafter referred to as “credible”, is to give you the tools and confidence you need to improve your finances. Although we promote products from our partner lenders who reward us for our services, all opinions are our own.

Are you looking for some quick cash to cover a large expense or financial emergency? Fast personal loans are a useful option. Compare loan rates and terms. (iStock)

Your fridge is dying. Your car’s transmission is cutting out. You need emergency medical care. Sometimes you need to raise cash quickly to cover an expense.

When faced with an unexpected bill, a quick personal loan may help you meet your expenses. In many cases, you can get a permit you apply on the same day. But while quick personal loans can help you weather a financial emergency, if you can wait a few days to get your money, you may be paying more for one than you could pay.

Credibility makes it easy Compare personal loan rates from multiple lenders.

What is a Fast Personal Loan?

A personal loan is a type of installment loan that you can use for any purpose from paying an unexpected expense to consolidating higher-interest credit card debt. The interest rates on personal loans are usually lower than the interest rates on credit cards. Applying for and approving a personal loan can take several days.

A quick personal loan helps borrowers in need of cash quickly as it usually comes with faster approval times. Online lenders are popular providers of quick personal loans. Most online lenders offer a streamlined process for faster approval and funding, all of which can be done without leaving your home.

Although loan approvals are never guaranteed, lenders usually approve quick personal loan applications as long as you meet their requirements. Your chances of getting approved are best if you have strong creditworthiness, stable income, and a low debt-to-income ratio.

How fast do we talk

The standard financing time for most personal loans with a bank or credit union is one to seven business days. Online banks are usually faster and can process and fund your loan within five working days.

But some lenders, like Avant and LightStream – two of Credible Partner’s lenders – specialize in providing quick personal loans, with funds deposited into your bank account the same day or the next day after approval.

Fast personal loan lender

Not all personal lenders offer quick personal loans. The following Credible Partner lenders all offer Same Day or Next Business Day financing.

Avant

  • Financing time: On the next working day (if released by 4:30 p.m. CT on a weekday)
  • Minimum creditworthiness: 550
  • Minimum income: $ 1,200 monthly
  • Loan Amounts: $ 2,000 to $ 35,000
  • Loan terms (years): 2 to 5

Axos

  • Financing time: Next working day
  • Minimum creditworthiness: 700
  • Minimum income: Does not disclose
  • Loan Amounts: $10,000 up to $ 50,000
  • Loan terms (years): 3 to 6

Discover

  • Financing time: The next working day after acceptance
  • Minimum creditworthiness: 660
  • Minimum income: $ 25,000
  • Loan Amounts: $ 2,500 to $ 35,000
  • Loan terms (years): 3 to 7

LendingPoint

  • Financing time: The next working day
  • Minimum creditworthiness: 580
  • Minimum income: $ 20,000
  • Loan Amounts: $ 2,000 to $ 36,500
  • Loan terms (years): 2 to 4

LightStream

  • Financing time: Already on the same working day
  • Minimum creditworthiness: 660
  • Minimum income: Does not disclose
  • Loan Amounts: $ 5,000 to $ 100,000
  • Loan terms (years): 2 to 7

OneMain Financial

  • Financing time: Already on the same day, but usually requires a visit to a branch
  • Minimum creditworthiness: None
  • Minimum income: Does not disclose
  • Loan Amounts: $ 1,500 to $ 20,000
  • Loan terms (years): 2 to 5

Universal credit

  • Financing time: Approved once within a day
  • Minimum creditworthiness: 560
  • Minimum income: Does not disclose
  • Loan Amounts: $ 1,000 to $ 50,000
  • Loan terms (years): 3 to 5

Update

  • Financing time: Within one day of completing the required reviews
  • Minimum creditworthiness: 560
  • Minimum income: Does not disclose
  • Loan Amounts: $ 1,000 to $ 50,000
  • Loan terms (years): 2 to 7

How Much Can I Borrow with a Quick Personal Loan?

You may be able to obtain a personal loan with a minimum loan amount of $ 1,000 up to one $ 100,000 maximum, and a repayment term of 12 to 84 months. The amount that you can qualify for depends on many factors including your credit score, credit score, repayment period, the amount you are applying for, and other factors.

  • Credit history and history Your creditworthiness plays a vital role in whether a lender will give you a loan, the interest rate, and the size of the loan. If your Creditworthiness is low or your credit report shows derogatory notes or late payments, the lender can offset their perceived risk by offering you a lower loan amount and a higher interest rate.
  • Income – Lenders want permanent employment and an income that shows they have sufficient funds to pay back the money borrowed.
  • Debt-Income Ratio (DTI) – Your DTI is the amount of your income that is used to pay your monthly debt payments. A low DTI shows that you can afford the loan with a lower risk of default. As a general rule, the lower your DTI, the greater your chances of qualifying for the lowest interest rate loan.
  • Loan Period – If your repayment term is longer, your payments may be lower making them more manageable even though you will be paying more interest during the term of the loan.
  • Loan amount – Avoid paying interest if possible. To do this, only apply for the loan amount that you need.

Would you like to see where you are at? Consider prequalify for a loan – without affecting your creditworthiness – to determine how much you can borrow and what interest rate you could get.

How Much Does a Fast Personal Loan Cost?

To illustrate how credit terms, along with your creditworthiness, can affect the cost of a loan, consider the following examples:

Advantages and disadvantages of quick personal loans

Fast personal loans can be beneficial when you want access to quick cash to pay for unexpected expenses. But personal loans also have disadvantages. So before you get a quick personal loan, it is important to weigh the pros and cons in relation to your individual financial situation.

benefits

  • Apply online quickly – You can usually fill out the loan application in a few minutes and make a decision immediately.
  • Fast financing – You don’t have to wait weeks or even months to get loan funds. You can often receive funds the same day or the next business day after approval.
  • Lower interest rates – With personal loans, you may pay significantly less interest than other fast cash options, such as: Payday loan or credit cards.

disadvantage

  • Issuing fees – Many online quick loan providers do not charge a commitment fee, but if a lender does charge one, the fee can range from 1% to 8%. That is why it is so important to compare and find loans with the most favorable terms and lowest fees.
  • Might be more expensive than waiting – If you need the money right away, you may be more inclined to rush to accept an offer of credit with less than desirable terms. Even if you find yourself in financial distress, you should carefully review the terms, fees, and obligations of the loan before signing it.
  • Higher Interest – If you have bad credit, you may receive loan offers with interest rates of up to 36%. In this case, it may be worthwhile to improve your credit rating before applying for a quick loan.

Alternatives to quick personal loans

Fast personal loans are a solid option when you need quick cash. But they’re not the only option. Here are some personal loan alternatives that you should consider:

Payday loans often come with fees that are equivalent to an annual percentage rate (APR) of 400% or higher. Also, these loans are usually due in full by the next payday, which can be very difficult, especially if you are short of cash. The typical car loan costs around $ 700 with an APR of 300%, according to the Consumer Financial Protection Bureau. If that isn’t bad enough, failure to repay the loan could result in the seizure of your vehicle, which is the case with 20% of borrowers.

Comparison of Personal Loan Rates is a matter of minutes using Credible to check rates from multiple lenders.


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