How Long Does It Take for Personal Loan Approval

  • Centennial Funding

  • 07/28/2022

  • Financial Literacy

how long for personal loan approval

If you’re considering a personal loan, you may be wondering how long the approval process takes. This article will discuss everything you need to know about personal loan approvals and how long it takes to approve them.

How long does a personal loan take to get approved?

There are different kinds of lenders, and each of them has its own processes that they follow for personal loans.

Here are some of the lenders you can choose from:

Online Lender

online lender personal loan

An online lender is a good option if you’re looking for a loan with a quick approval process. Online lenders typically have a streamlined application process that can be completed entirely online. These lenders also often use automated underwriting systems, which means your loan can be approved very quickly.

Application Time

In most cases, you can fill out an online application for a personal loan from online lenders in just a few minutes. However, some lenders may require you to submit additional documentation. If this is the case, it could take a few days to get approved.

Approval Time

Once you’ve submitted your application, you should receive a decision within a few minutes to a few hours. If you’re approved, you’ll typically receive your loan funds within one to two business days.

Funding After Approval

If the online lender approved a personal loan, you’ll typically receive your loan funds within one to two business days. However, some lenders may offer same-day or next-day funding.

Banks

bank personal loan

Another type of lender you can get a personal loan from is a bank. Banks typically have a longer personal loan approval process than online lenders. This is because banks use manual underwriting, which means your loan application will be reviewed by a human instead of an automated system.

Application Time

It usually takes longer to fill out a personal loan application with a bank than it does with an online lender. This is because banks often require you to submit additional documentation, such as pay stubs or tax returns.

Approval Time

After you’ve submitted your application, it could take a few days to a few weeks to get approved. This is because banks use manual underwriting, which means your loan application will need to be reviewed by a human.

Funding After Approval

If you’re approved for a personal loan from a bank, you’ll typically receive your loan funds within one to two weeks.

Credit Unions

Credit Union personal loan

A credit union is another type of lender you can get a personal loan from. Credit unions typically have a similar personal loan approval process to banks. This is because credit unions also use manual underwriting, which means your loan application will be reviewed by a human instead of an automated system.

Application Time

It usually takes longer to fill out a personal loan application with a credit union than it does with an online lender. This is because credit unions, similar to banks, will require you to submit additional documentation.

Approval Time

After you’ve submitted your application, it could take a few days to a few weeks to get approved. This is because credit unions use manual underwriting, which means your loan application will need to be reviewed by a human.

Funding After Approval

Once the loan is approved, the credit union will release the funds to you. This typically happens within one to two weeks.

Payday Loans, Pawn Shop Loans, & Car Title Loans

personal loan on pawn shop

If you plan to get a personal loan from a payday lender, pawn shop, or car title loan company, be aware that the approval process is usually very quick. This is because these lenders don’t typically use traditional underwriting methods.

Application Time

It usually only takes a few minutes to fill out an application for a personal loan from a payday lender, pawn shop, or car title loan company.

Approval Time

These lenders often give you a decision on your loan application within a few minutes. In some cases, you may even be able to get your loan funds the same day you apply.

Funding After Approval

If you’re approved for a personal loan from one of these lenders, you’ll typically receive your loan funds within a few hours to a few days.

Tips to Get Approved for a Personal Loan

If you want to have your personal loan application approved, there are a few things you can do.

1. Gather Information

Be sure to have all the required information ready when you apply for a personal loan. This includes your name, address, contact information, date of birth, Social Security number, and income information.

2. Clear Up Any Credit Report Errors

If you have any errors on your credit report, be sure to dispute them before you apply for a personal loan. These errors could impact your ability to get approved for a loan.

3. Know How Much You Need to Borrow

When you’re applying for a personal loan, lenders will often ask how much money you need to borrow. It’s important to know how much you need before you apply so that you can get an accurate loan estimate.

4. Choose the Right Lender

The most critical part of getting a personal loan approved is choosing the right lender. Be sure to shop around and compare offers before you decide which lender to apply with.

5. Gather The Necessary Documents

As mentioned, you will need to have certain documents handy when you apply for a personal loan. These include your identification, proof of income, and bank statements.

6. Review Your Loan Agreement Carefully

Once you’ve been approved for a personal loan, it’s important to review your loan agreement carefully before signing it. This document will outline the terms of your loan, including the interest rate, monthly payment amount, and repayment schedule.

7. Make sure your credit is accessible.

If you have a joint account, make sure that you will still be able to access it after the divorce. The last thing you want is to be denied a loan because your credit is not accessible.

8.Pre-Qualify for a Personal Loan

One of the best ways to increase your chances of getting approved for a personal loan is to pre-qualify for the loan. This means that you fill out an application with a lender and they give you an estimate of how much money you could borrow.

9. Apply Online

Applying for a personal loan online is often the quickest and easiest way to get approved. Many online lenders have streamlined the application process and can give you a decision within minutes.

What Credit Score Do I Need to Get a Personal Loan?

There is no set credit score required to get a personal loan. However, the better your credit score, the more likely you are to be approved for a loan and to get a lower interest rate.

If you have bad credit, there are still options available to you. There are some lenders that specialize in loans for people with bad credit. These loans may have higher interest rates and fees, but they can still be a good option if you need money quickly.

How Do Personal Loans Affect Your Credit?

how personal loan affects credit score

Personal loans can have a positive or negative impact on your credit, depending on how you use them.

If you make your payments on time and in full, personal loans can help improve your credit score. On the other hand, if you miss payments or default on your loan, it could damage your credit score.

Have Your Personal Loan Approved Today!

The things we tackled in this article are just some of the most important things to remember when getting a personal loan.

Personal loans can be a great way to get the money you need for things like home improvements, medical bills, or even just to consolidate debt.

If you’re looking to get approved for a personal loan, be sure to follow these tips. And if you have any questions, our team at Centennial Funding is here to help! We specialize in helping people get the best possible terms on their loans and we’d be happy to assist you in any way we can.

Centennial Funding

Centennial Funding

Share post: