How fast can you get a loan in an emergency?

Images by GettyImages; Illustration by Hunter Newton/Bankrate

Emergency loans can be a lifesaver if you’re hit with a sudden expense and need fast cash. Most loans are funded within days of approval. Some lenders offer same-day funding if you and your application meet certain conditions.

You must submit accurate and complete information to expedite the lender’s approval process.

How long does it take to get an emergency loan?

You can get an unsecured personal loan from banks, credit unions and online lenders. Before you can use the funds, you must:

• Submit an application.
• Receive and accept a loan offer.
• Wait for the lender to send your funds.
• Wait for your financial institution to process the deposit.

The application likely won’t take more than 10 minutes to fill out, especially if you have the information you need at hand. If you apply online, you may have a decision within minutes. If you submit in person and the lender has a person review your application instead of software, approval may take a day or two.

Most lenders send the funds to your account within one to three days of approval. However, your financial institution must process the deposit before you gain access to it — which may also take several days.

Some lenders offer same-day funding. To qualify, you must apply before the cutoff time on a business day and submit the required documentation. Even then, it could still take a day or two for you to access your emergency loan funds due to the processing delay.

Lender funding times

The table below shows the average funding timeline of some of the best emergency loan lenders.

How to expedite the emergency loan process

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

1. Know your credit score

Each lender has its own minimum credit score requirement to approve you for the 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 being rejected.

2. 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 the one you want offers this by comparing lenders. If not, you may end up waiting over a week for funds.

Besides funding timelines, review each lender’s Gather documents ahead of time annual percentage rates (APRs), repayment terms and fees to ensure you get a loan you can afford.

3. Gather the necessary documents

Lenders will want copies of the following to verify that the information you provided is accurate.

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

Having all of this prepared ahead of time will streamline the application process.

It will also come in handy if you’re submitting multiple applications to prequalify and check rates — which you should always do.  Finding the most competitive rate is crucial to staying on budget even in an emergency.

4. Double-check your application

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

What to do if money won’t arrive in time

Emergency loan alternatives may be quicker and less expensive than emergency loans themselves. Compare pros and cons of each before settling on an emergency loan.

• Ask your loved ones for help. Friends and family may be willing to lend you money if you can show that you can pay them back quickly.
• 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.
• Adjusted payment plans or deferment periods offered by lenders or billing companies may also provide some flexibility to your budget.
• Paycheck advances — directly from your employer or an app — can cover small amounts before you get an emergency loan. Just remember that your next paycheck will be smaller.

If you’re being pressured, take a step back

any predatory companies target those seeking emergency loans. Products like payday loans and car title loans are frequently marketed as emergency loans to entice vulnerable borrowers.

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 a bad sign. Even in an emergency, you need to take the time to review every detail about fees and repayment that come along with a loan.

You should also be aware of scams. No legitimate lender will ask you to send a payment to “verify” your bank account or to pay a fee with a gift card. These are scams, and if you spot them, turn the other way. Consider your alternative options instead.

The bottom line

Lenders typically fund emergency loans within a few days after approval — and some even offer same-day funding. That said, the key to a quick transaction is knowing your options and having all the necessary information handy before applying.