If you need the funds urgently, it’s great news that most personal loans can be processed in a few days. However, to take advantage of this quick processing time, you’ll need to do some preparation on your part to simplify the approval process for your lender.
Time it takes to get an emergency loan
Most lenders can process and fund emergency loan applications within one to three business days since these loans are usually unsecured personal loans.
To receive same-day funding from certain lenders, you must apply before the deadline and provide all necessary documentation. However, even if you meet these requirements, it may take a day or two for your bank to deposit the loan funds into your account.
The application itself takes no more than thirty minutes to complete, regardless of how long it takes for your lender and bank to process your funds. It’s best to gather all necessary documents and information before starting the application to ensure a smooth process.
How to expedite the emergency loan process
To speed up the process, it’s important to be prepared when applying for an emergency loan. Most lenders will ask for identical information and documents as part of the application process.
Know your credit score
In order to avoid the frustration of being turned down for a loan and wasting time filling out an application that will not be approved, it is important to be aware of your credit score. This information will help you find a lender that you can qualify for.
Compare lenders
Not all lenders provide quick funding for emergencies. Even though most lenders can fund you within 2 to 3 business days, you should verify that your preferred lender offers such a service by comparing lenders. Otherwise, you may have to wait for more than a week to get your funds.
Prepare documents before you apply
Lenders require standardized basic information, which includes:
- Proof of income like your W2s, pay stubs or tax returns.
- Copy of your driver’s license or other government-issued ID.
- Social Security number and contact information.
Preparing all the required documents in advance will make the application process smoother. This is particularly helpful if you plan to submit multiple prequalification applications to compare rates, which is recommended. Even during an emergency, it is important to find the best possible rate to stay within your budget.
Double-check your application
To ensure a more successful loan application, please fill out all fields with as much accuracy as possible before submitting. It’s important to provide the lender with an accurate portrayal of your financial situation. To expedite the process, please double-check everything before submitting.
What to do if money won’t arrive in time
There are faster and more affordable emergency loan options available as alternatives to emergency loans.
- Consider requesting financial assistance from your friends and family. If you demonstrate that you can promptly repay them, they might be willing to lend you the money.
- If you need a small amount of money before getting an emergency loan, you can get a paycheck advance either from your employer or from an app.
- If you are experiencing financial difficulties, you can apply for hardship programs provided by utility companies and local governments to either reduce or defer payment of bills or rent.
- Lenders or billing companies may offer adjusted payment plans or deferment periods to provide flexibility in your budget, helping you avoid emergency loans and make ends meet more easily.
If you’re being pressured, take a step back
Emergency loans can be risky, especially for those with bad credit, as there are predatory lenders in the market. Some lenders may use terms such as “payday loans” or “auto title loans” to promote their services as emergency loans.
In an emergency requiring fast access to money, it’s essential to be cautious. If a salesperson tries to rush you into a loan without allowing time to read the documentation, it’s a red flag. Even in an emergency, take the time to carefully review all the information about fees and repayment terms that come with the loan.
To clarify, please watch out for scams. Legitimate lenders will not request payment to confirm your bank account or require payment with a gift card. These requests are all scams, so if you encounter them, avoid them and explore other options instead.