How fast can you get a loan in an emergency?

Emergency loans can be a lifesaver if you face a sudden expense and need quick access to money. Most loans are funded within a few days of approval, although some lenders offer same-day funding if you meet certain conditions.

To avoid delays, submit accurate and complete information to the lenders you apply with. Even if you need cash urgently, it’s a good idea to get prequalified with multiple lenders to find the lowest rate available to you and keep borrowing costs down.

How long does it take to get an emergency loan?

You can get an unsecured personal loan from banks, credit unions and online lenders. Most applications take less than 10 minutes to complete, especially if you have the information you need on hand. If you apply online, you may receive a decision within minutes.

Most lenders send the funds to your account within one to three business days of approval. Keep in mind that your financial institution must also process the deposit before you can access the funds, which may also take several days.

Some lenders offer same-day funding, disbursing funds within hours of receiving a signed loan agreement. To qualify, you must apply before the cutoff time on a business day and submit the required documents in full. Even then, it could still take a day or two for you to access your emergency loan funds due to bank processing times.

Lender funding times

The lenders with the best emergency loans are often able to fund borrowers within one to three days. While these lenders all have short funding timelines, their eligibility requirements and loan offers differ. Compare at least three of them before selecting one if you have time.

How to speed up the emergency loan process

Almost every lender will require the same information and documentation to process an emergency loan application. To speed up the loan approval timeline, compare lenders and gather all the necessary information before you start.

Know your credit score

Each lender has its own minimum credit score requirement for a personal loan. Your credit score is also a key factor in determining your interest rate.

To find the right lender for your situation, you will need to check your credit score. Then, focus your search on lenders that serve your credit band to save time and avoid the frustration of rejection.

Compare lenders

Not every lender offers a quick turnaround for emergency loans. While many should be able to get you funded within one to three business days, be sure to confirm that the lender you want to work with offers quick funding times. If not, you may end up waiting over a week for funds.

Besides funding timelines, review each lender’s general annual percentage rate (APR) range, repayment terms and fees to ensure you get a loan you can afford.

Gather any necessary documents

To verify your personal information, lenders will request a few common documents, including:

• Proof of income, such as pay stubs or tax returns.
• A copy of your driver’s license or other government-issued ID.
• Your Social Security number and general contact information.

Having all of this prepared ahead of time will streamline the emergency loan process. It will also come in handy if you’re submitting multiple applications to get prequalified and check the lowest rates — which you should always do. Finding the most competitive rate is crucial to staying on budget even in an emergency.

Double-check your application

Once you select your lender and fill out the application, ensure all your information is correct before submitting. This will allow the lender to get the most accurate picture of your finances and credit to determine if it will offer you a loan.

Checking the information you provide helps you get the funds you need promptly. Providing inaccurate information often means getting rejected and having to start the application process over.

Types of emergency loans to avoid

Be aware of predatory companies that target those seeking emergency loans. While legal in many states, these lenders and practices may put you in a cycle of debt that can be difficult to break out of.

• High-interest loans: Products like payday loans and car title loans are frequently marketed as emergency loans to entice vulnerable borrowers. However, the high fees charged by lenders and short repayment timeline can make them difficult for many borrowers on a limited income to afford.
• High-pressure sales: If you are facing an emergency situation where you need money fast, you need to be careful. Any salesperson who pressures you to agree to a loan without reading over the documentation is not working in your best interest. Even in an emergency, you must take the time to review every detail about fees and repayment that come along with a loan.
• Common scams: You should also be aware of personal loan scams. No legitimate lender will ask you to send a payment to verify your bank account or require you to pay a fee with a gift card. These are scams, and if you spot them, turn the other way. Consider alternative options instead.
• Credit card cash advances: While not as risky as a payday loan, credit card advances should only be used as a last resort and are too expensive to rely on. They function as a short-term cash loan that is borrowed against your credit card’s limit and typically come with high fees and interest.

Alternatives to an emergency loan

Emergency loan alternatives may be quicker and less expensive than an emergency loan. Hardship programs, your friends and family or other options could get you the money you need without going into debt.

• Ask your loved ones for help: Friends and family may be willing to lend you money if you can show that you will pay them back quickly. It’s a good idea to draft a lending agreement that outlines your responsibilities to repay the debt, even when dealing with loved ones.
• Look for hardship programs: Utility companies and local governments may offer hardship programs that you can apply for to reduce or defer bills or rent if you are struggling financially.
• Consider a payment plan: Adjusted payment plans or deferment periods offered by lenders or billing companies may also provide some flexibility to your budget.
• Request a paycheck advance: Paycheck advances — directly from your employer or through a pay advance app — can cover small amounts before you get an emergency loan. Just remember that your next paycheck will be smaller.

Bottom line

When you need emergency cash immediately, an emergency loan can help. Lenders typically fund emergency loans within a few days after approval — and some even offer same-day funding. The key to a quick transaction is knowing your options and having all the necessary information handy before applying. Even when you’re in a rush, however, it is important to use caution and avoid predatory lending companies that can pose a risk to both your finances and credit.