Published in: Personal Loans | May 20, 2019

How Long Does It Take to Get Your Money When You Take Out a Personal Loan?

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Need money fast? Find out how long it takes to get access to cash when you take out a personal loan.
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When you need to borrow money, often that need is a pressing one. In other words, you can’t afford to wait a long time to get ahold of your cash because you need to use the funds for something ASAP.

If this is your situation and you’re considering getting a personal loan to provide the funding you need, it’s important to understand how long it typically takes for the money you borrow to become available to you.

How long does it take to get money when you apply for a personal loan?

When it comes to how quickly you can get your personal loan funded, the answer will vary dramatically from one lender to another.

For some personal loan lenders, it can take a long time to get your loan funded. For example, if you get a loan through LendingClub, it typically takes about seven days from the time you apply for a loan before you receive the funds. This includes application time, the wait for approval, and the distribution of the money. LendingClub warns that in some cases it can actually take a little bit longer than a week before you’re able to get funding.

Other personal loan lenders, however, will make your money available very quickly. If you borrow from Upstart, for example, 99% of borrowers gain access to their money within the next business day.

Because some lenders provide funding much more quickly than others, you’ll need to shop around if time is of the essence. Online lenders especially are more apt to be able to get you funding quicker than local banks or credit unions.

Whether you look online or visit a bank in person, you should be able to find plenty of personal loan lenders that will get you your money within a few days. These personal loan lenders will typically offer loans on much better terms than payday loan lenders that advertise fast access to cash.

Be careful when looking to borrow money fast

When you’re considering applying for a personal loan and focused on speed, you should be aware that there’s often a price to pay for convenience. In other words, many of the lenders that promise the most timely access to borrowed funds will often charge higher rates or fees than lenders who have a slower approval and funding process.

In some cases it’s worth paying these added costs to get your money. If you need car repairs done today or don’t want to be late paying an important bill, securing personal loan funding right away can make sense.

If you don’t absolutely need the money now, you should focus first on getting the most affordable interest rate and the best overall loan terms -- with fast funding relegated to a secondary concern only.

Because the terms are often better when you’re not focused on getting funds immediately, consider looking for alternatives that would allow you to take your time. You may want to ask your family for a very short-term loan, for example. Or if you’re borrowing to pay rent or another bill, ask your creditor or landlord if there’s a grace period or if they’re willing to work with you while you wait for borrowed funds to come through.

Fast access to cash is possible with personal loans

While some personal loan lenders take a week or more to get your funding, it is definitely possible to get loans the next business day or within just a few days of applying. Look for online lenders who tend to have a quicker approval process if you need timely access to cash -- but just be careful to shop around for the best terms and be aware that you may not get as favorable a rate if your primary focus is on speed rather than total loan cost.

Our Picks of the Best Personal Loans for 2020

We've vetted the market to bring you our shortlist of the best personal loan providers. Whether you're looking to pay off debt faster by slashing your interest rate or needing some extra money to tackle a big purchase, these best-in-class picks can help you reach your financial goals. Click here to get the full rundown on our top picks.