Besides tapping credit cards, one of the fastest ways to borrow money is by taking out an unsecured personal loan. With personal loans, you borrow a lump-sum amount (typically from $1,000 to $100,000) that you repay with interest in fixed monthly payments over the course of several months or years. Many lenders offer same-day or next-day funding for personal loans, meaning you can have money deposited into your account quickly after your application is approved.
Same-day personal loans are available online from select lenders, banks and credit unions. If you prefer to apply in person, you may be able to get a loan the same day you apply by visiting your local banking branch.
To have the best chance at quick approval and funding, consider applying for a loan through banks you already have a relationship with. Having a checking or savings account may help you get your money deposited into your account faster. Plus, the bank may be more willing to lend to you if you have an established deposit and repayment history.
It also helps to have good credit. Each lender has its own credit score requirements, but some only offer same-day funding to those with a high credit score. Good credit not only gives you access to the money you need faster, but it also helps you qualify for more favorable terms, like a lower interest rate. If you have the opportunity before applying for a loan, look for ways to improve your credit quickly.
1. Research lenders. This guide identifies same-day personal loan lenders that serve borrowers nationally, which is a good place to start if you need to borrow money fast. But it’s not an exhaustive list, and the best option for your needs might be the regional credit union in your backyard. Get in touch with your financial institution of choice to see if it offers same-day lending, and reach out to a few more lenders on top of that – it helps to have multiple options.
2. Get prequalified. Most (but not all) personal loan lenders let you prequalify to check your eligibility and estimated interest rate with a soft credit inquiry, which won’t impact your credit score. Prequalification determines whether you’re a good candidate for a loan and the financing terms you can expect. That way, you can move on quickly without having to fill out a formal application if a certain bank or lender isn’t a good fit. Keep in mind, though, that getting prequalified doesn’t necessarily guarantee you’ll be approved for the advertised terms.
3. Compare rates and terms. Even if time is an issue, it’s still a good idea to shop around with several different lenders to compare loan terms, like interest rates, monthly payments, repayment terms and origination fees. Also, check whether a lender has a prepayment penalty for paying off the loan early, and it doesn’t hurt to check out lender reviews.
4. Fill out an application. Once you’ve decided on a lender, you’ll need to formally apply for the loan, which involves a hard credit check that will have a minor (and temporary) negative impact on your credit score. The application will require proof of identification, income and employment, so be prepared to provide pay stubs, a government-issued photo ID, and your Social Security or tax identification number, among other documents.
5. Receive the funds and prepare for payments. If you’re approved, lenders that offer same-day funding will typically deposit the loan amount directly into your bank account, although some brick-and-mortar banks and credit unions might give you the opportunity to pick up the check at your local branch. Your first payment will be due within 45 days of loan disbursement, so prepare for repayment shortly after you receive your money.
Getting a Loan Quickly With Poor Credit
Personal loans require a credit check, and you’ll typically need a credit score in the mid-600s or higher to qualify. To get the best possible terms – like low interest rates and high loan amounts – you’ll need an excellent credit score in the mid-700s or higher.
While it’s more difficult to qualify for a personal loan if you have bad credit, it’s not impossible. Here are a few legitimate ways to borrow a loan quickly with less-than-stellar credit:
- Check with your local credit union. Since credit unions are nonprofit and member-owned, they may be more willing to lend to applicants with poor credit. Many credit unions also offer payday alternative loans, or PALs, which are small-dollar short-term loans with capped interest rates.
- Apply with a creditworthy co-signer. You can improve your chances of loan approval when you enlist a co-signer with good credit. Just keep in mind that the co-signer would be equally responsible for repaying the loan, which can sour a personal relationship if you fall behind on payments.
- Opt for a secured personal loan. Putting up collateral like your vehicle or a savings account may make it easier to qualify for a loan, but you also risk losing the asset if you don’t make payments. And since many borrowers turn to personal loans because they lack the savings to cover an emergency expense, a savings-secured loan would be impractical.
- Research online lenders with low credit score requirements. Some lenders cater to bad-credit borrowers, but they’ll typically charge higher interest rates and fees than they would to an applicant with good credit. Be wary of any loan options that sound too good to be true. For example, predatory lenders may advertise no-credit-check loans that are actually payday loans or pawnshop loans with triple-digit APRs that can get you trapped in a cycle of debt.
Borrowing money to cover an unexpected expense should be seen as a last resort after tapping your emergency savings fund or asking for financial help from friends or family. But not everyone has a rainy day fund or a loved one flush with cash. If you need money today but you don’t want to take out a personal loan, here are a few other ways to get cash fast:
- Use a cash advance app such as Chime that lets you borrow money from your upcoming paycheck.
- Take on gig work that pays out fast, like donating plasma or delivering food through apps like DoorDash, Instacart or Uber Eats.
- Sell lightly used items on sites like Facebook Marketplace, Nextdoor or Craigslist (use caution and offer to meet in public spaces).
- Pawn jewelry, electronics, power tools or other valuables – just make sure you’re selling an item you won’t miss.
- Look into financial assistance programs through the federal government or your state’s department of social services.
Let’s say you don’t necessarily need cold, hard cash, but you need help covering an unplanned cost. You may be able borrow money at a reduced interest rate or avoid paying interest altogether through another type of payment plan, depending on what you need to finance. For example, if you need to replace a broken refrigerator, see if you qualify for a deferred-interest financing agreement through a home improvement store credit card.
You might be able to pay for a new set of tires using a buy now, pay later service like Affirm. There are also medical credit cards, which can help you cover the cost of emergency dental procedures or even vet visits. These alternative financing options may be more practical than taking out a same-day loan, but the conditions can vary widely. Be sure to read the fine print to compare interest rates and repayment terms before accepting a new form of credit.
Of course, nobody wants to be in a situation where they’re left scraping up funds or running up their credit to cover a last-minute expense, and many of the above suggestions aren’t ideal long-term solutions. If you’re stuck in a cycle of debt from borrowing money, consider reaching out to a nonprofit credit counselor for more lasting help.
The average personal loan rate is 12.21% as of May 22, according to a Bankrate survey. Personal loan interest rates are trending higher in 2024 so far, up by a full percentage point from July 2023:
Personal loan rates vary widely based on creditworthiness. Borrowers with very good or excellent credit scores will see much lower interest rates than those with fair or poor credit. Often, borrowers with bad credit will apply for a secured personal loan that uses an asset as collateral in order to achieve lower rates:
Bankrate Averages
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. Personal loan companies are evaluated based on customer service ratings, interest rates, maximum loan term, minimum and maximum loan amounts, minimum FICO score, online features, and origination fees.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
