What are the credit requirements for a quick loan?
Credit requirements depend on the lender. Most lenders want to see good-to-excellent credit, but a handful of lenders cater to borrowers with fair or poor credit. Be sure to double-check with the lender before applying.
What is considered a quick loan?
Loans that can be disbursed as soon as the same business day as approval (or even one business day later) are typically considered quick loans.
Most lenders can provide funding in a few days, usually 3–5 business days after approval. However, some lenders who disburse funds through a mailed check can take longer to get you the loan proceeds — usually closer to a week. That’s why a quick loan is the ideal solution for someone who wants (or needs) their money ASAP.
How do you apply for a quick loan?
First, you should compare different quick loans. Many lenders will let you check (for free) on their websites what interest rate you’ll likely receive with them. This lets you eliminate the high-rate options and hone in on your preferred lender.
Once you’ve picked your lender, you then apply for a loan. This will trigger a hard inquiry on your credit history, which lowers your score a little, so don’t apply for more than one loan if you can help it.
The application usually requires you to submit personal information like your address, social security number and the loan purpose.
The best way to receive a loan quickly is to ensure all information is accurate and complete. Errors or failure to submit complete information could delay the approval process.
What are the pros and cons of quick personal loans?
Pros
- No collateral required: Personal loans generally don’t require you to secure the loan with an asset. This is good news since you won’t be at risk of losing something valuable, like your car, if you default on the loan. However, there will still be implications to your credit score if you fail to repay your loan, as with any other form of credit.
- Lower interest rates: Personal loans generally carry lower interest rates compared to credit cards (unless you have a credit card with a 0% intro APR). This makes them a more affordable alternative. Just keep in mind that applying with a higher credit score makes you eligible for.
- Long loan terms: Terms for a personal loan can be as long as 5–7 years but some lenders offer repayment terms that are even longer. Longer repayment terms generally mean lower monthly payments.
- Lump sum disbursement: Borrowers receive their funding in the form of a lump sum deposited into their bank account. This provides ultimate flexibility in when and how you use the funds.
Cons
- Potentially numerous fees: Unlike credit cards, personal loans often come with origination fees, application fees and sometimes even prepayment penalties. These fees can add onto the cost of borrowing a personal loan. Though, it is possible to find lenders that don’t charge these fees.
- Higher monthly payments: For the most part, credit cards require a low minimum monthly payment (though, experts advise paying off your balance in full each month). With personal loans, though, your monthly payment is often higher than that of credit cards even if you have a long loan term. Granted, you’re able to borrow higher amounts with a personal loan than you would with a credit card.
More on our picks for best personal lenders for funding in as little as one business day
1. LightStream
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LightStream offers low-interest loans with flexible terms for people with good credit or higher. This lender provides personal loans for just about every purpose except for higher education and small businesses. Another pro to using this lender is that LightStream doesn’t charge any origination, administration or early payoff fees.
Eligible borrowers
Good to excellent credit needed
Loan amounts
$5,000 to $100,000
Loan terms
24 to 144 months
2. SoFi
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SoFi Personal Loans are available from $5,000 to as much as $100,000, which makes them a great option for those who need more money to cover bigger expenses. Plus, SoFi personal loans do not require origination fees.
SoFi offers a 0.25% interest rate reduction for signing up for autopay. There’s also some more flexibility when it comes to choosing the type of interest rate you receive. Loan applicants can choose between variable and fixed APR. Fixed APRs give you one rate that you pay for the entirety of your loan, and variable interest rates fluctuate, but SoFi caps them at 29.99%.
Eligible borrowers
Must reside in a state where SoFi is authorized to lend and must be employed, have sufficient income from other sources, or have an offer of employment to start within the next 90 days.
Loan amounts
$5,000 to $100,000
Loan terms
24 to 84 months
3. PenFed
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PenFed is a federal credit union that provides many personal loan options for debt consolidation, home improvement, medical expenses, auto financing and more. You don’t need to be a member to apply, but you will need to sign up for a PenFed membership and keep $5 in a qualifying savings account to receive your funds.
It offers personal loans as small as $600 which makes it a great option for those who don’t need higher amounts of financing.
Eligible borrowers
While it’s not required to be a PenFed member to apply, a membership will be created for you if you decide to accept the loan.
Loan amounts
$600 to $50,000
Loan terms
1 to 5 years
4. Avant
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Avant stands out for considering applicants with credit scores under 600, but keep in mind that the higher your credit score, the more likely you are to receive the lowest rates. Before you decide to apply for this loan, you can see if you pre-qualify for a rate that’s on the lower end of the APR range.
While there are no penalties for early payoff, there is an origination fee of up to 4.75% and a late fee of up to $25 after the 10-day grace period.
Eligible borrowers
Applicants must have a personal checking or savings account on file
Loan amounts
$2,000 to $35,000
Loan terms
12 to 60 months
5. OneMain Financial
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OneMain Financial offers personal loan options that are a little more flexible compared to other lenders. Repayment terms run between 24 months and 60 months and OneMain Financial also allows borrowers the option to secure the loan with collateral to potentially receive an interest rate on the lower end of the lender’s range. Plus, borrowers can choose the date their monthly payments are due and have the option to apply with a co-applicant.
OneMain Financial has an origination fee that’s on the higher end: either a fixed fee between $25 and $500 or up to 10% of the loan amount, depending on which state you live in. While there aren’t any penalties for paying off the loan early, there is a late fee that will run you $30 or up to 15% (depending on your state).
Eligible borrowers
Applicants must submit proof of income and proof of residence to be considered
Loan amounts
$1,500 to $20,000
Loan terms
24, 36, 48, 60 Months
6. Prosper
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Prosper allows co-borrowers to submit a joint personal loan application, which can be beneficial if the primary borrower has a limited credit history or has a lower credit score. The co-borrower on a personal loan application shares the liability for repaying the loan with the primary borrower which is why lenders may see a borrower as less risky if they have another person applying alongside them.
Origination fees are between 2.41% to 5% and get deducted from the loan proceeds.
Eligible borrowers
Must reside in a state where Prosper is authorized to lend and be at least 18 years of age
Loan amounts
$2,000 to $50,000
Loan terms
24, 36, 48, and 60 months
7. Citi Bank
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Citi is a household name in the banking and lending space. In addition to having in-person branches nationwide, this lender also offers ways for customers to use its services online. Citi stands out as a personal loan lender because it doesn’t charge origination fees, early payoff fees or late fees.
This lender also offers a 0.50% rate reduction for enrolling in autopay, which is very generous considering most other lenders only offer a 0.25% interest rate discount.
Eligible borrowers
Must be at least 18 years old
Loan amounts
$2,000 to $30,000
Loan terms
Up to 60 months
Final Thoughts
In 2024, securing a quick personal loan is easier than ever, thanks to the largest US financial companies offering streamlined processes and competitive rates. These top-tier institutions provide reliable and fast loan services, ensuring that you can access the funds you need with minimal hassle. Whether you’re consolidating debt, financing a big purchase, or handling an emergency, these leading financial companies have you covered with their efficient and customer-friendly solutions. Explore your options and find the perfect fit for your financial needs, making your borrowing experience smooth and stress-free.
Read also: Top 7 largest US financial companies – January 2023