When using your credit card doesn't make sense or isn't feasible, a personal loan could be the boost you need.
Life can throw curve balls at any of us. Medical bills can come unexpectedly, your home may need renovations, or you may just need a little extra cash to fund current expenses.
You don't need to pull out the plastic and incur the high-interest rates of your credit card. Lenders everywhere offer personal loans, which you can use for any of the above-referenced needs. In fact, you can use a personal loan for just about anything you'd like.
Depending on your credit score and other factors, you can secure a personal loan at a rate much lower than a credit card rate. You can also pay off the loan in three to five years.
The application and approval process is almost always incredibly smooth and hassle-free. While applying for a mortgage loan can often entail mountains of paperwork and going back and forth between parties in a seemingly never-ending process, getting approved for a personal loan can often take a couple of business days or less.
Most personal loan applications can be completed online by furnishing basic personal information. Once the required information is received, the lender will pull your credit score and make a determination of whether you may qualify, and if you do qualify, how much you can receive, what your interest rate will be and how long the term is. Assuming our credit score falls within the lender's parameters, you can receive an almost immediate approval response from the lender.
How Long Does it Take to Get a Personal Loan?
Whether your personal loan is for $1,000 or $100,000, you can receive your personal loan funds in as little as the next business day.
Of course, this time frame varies depending on the lender, but most personal loans are available in your account within one week at the most, but typically much sooner.
Here is a list of the three top-rated personal loan companies and their fund transfer time frame.
- #1 Rated - Best Egg: Instant decision process with fund transfer within one business day.
- #2 Rated - FreedomPlus: Same-day approval with fund transfer within two business days.
- #3 Rated - SoFi: No same-day approval with fund transfer within one week.
Certainly, this is one of the appeals of a personal loan, especially if there's an ongoing or upcoming emergency or event that demands your financial attention.
So, if you qualify for a personal loan, take comfort to know that those much-needed or much-desired funds are right around the corner.
Have more personal loan questions? Find answers to your questions on our personal loans home page.
Josh McFadden also contributed to this piece.