3 Same-Day Loans That Aren't Payday Loans

by Lyle Daly | Updated July 5, 2022 - First published on Aug. 7, 2021

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Need a loan ASAP? These fast loans won't cost you a fortune.

When you're short on money for an unexpected emergency or a bill that's due right away, a quick loan could tide you over.

Unfortunately, people in this situation often take out risky and expensive payday loans. These loans are popular because many don't require a credit check, and you can get cash the same day. They also usually have extremely high interest rates -- they can exceed 400% per year -- and terms of just two weeks.

The combination of high interest rates and short terms makes it hard to get out of payday loan debt. Borrowers get stuck in a cycle of only paying off the interest, and taking out new loans every two weeks.

If you wonder how long it takes to get a loan without such predatory terms, the good news is that there are fast options with much lower interest rates. You don't get the money the same day, but the following lenders can fund loans as quickly as one business day after approval.

Learn More: What Are Payday Loans?

1. Discover Personal Loan

Discover Personal Loan is a low-fee option for borrowers with the credit to qualify. You need a FICO® Score of 660 or higher to meet this lender's minimum requirements.

Loan amounts start at $2,500 and go up to $35,000. This lender offers some of the longest personal loans -- you can get a loan for anywhere from 36 to 84 months.

The nice thing about a Discover Personal Loan is its affordability. Its low interest rates are competitive with the best personal loans, and it doesn't charge prepayment fees or origination fees.

2. Upstart

Upstart has some of the most flexible credit score requirements of any lender. The minimum FICO® Score to qualify for a personal loan with Upstart is 580. It also offers loans for consumers who don't have a credit score yet. In that case, Upstart bases its decision on your education and employment.

There can be high interest rates with Upstart, especially for borrowers with low credit scores or no credit history. Loans can also carry hefty origination fees.

This lender offers loans of $1,000 to $50,000, and you can choose a three-year or five-year term. There's no prepayment penalty, so if you don't need a loan for long, you can pay it off early without extra fees.

3. Avant

Avant specializes in loans for borrowers with low credit scores. The minimum FICO® Score to get approved for a personal loan with Avant is 580.

Loan amounts range from $2,000 to $35,000, and terms are between 24 and 60 months. Avant doesn't charge a prepayment penalty.

The main drawback with Avant is its fees. Interest rates are on the high side, and there can be an administration fee.

How to speed up the loan process

To get through the loan process as quickly as possible, have documentation ready and watch out for errors on your application.

Most lenders ask for the following documentation when you apply for a loan:

  • Identification: You may be asked to provide one or two forms of ID, such as a valid driver's license, passport, Social Security card, or another type of government-issued ID.
  • Proof of income: Bank statements, pay stubs, or tax returns
  • Proof of address: A mortgage contract, a lease agreement, utility bills in your name, or a voter registration card

As you fill out the application, double check the information. Any mistake, such as an incorrect digit in your bank account, can lead to delays.

Payday loans may be fast, but there are other lenders that provide funds almost as quickly. With any of these three lenders, you may get approved for a loan the day you apply, then receive the funds on the next business day. It's only a little more time to wait for a much better deal on a personal loan.

The Ascent's best personal loans for 2022

Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing The Ascent's best personal loans for 2022.

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