What type of loan has the fastest approval time

December 14, 2017
Sometimes you need money quickly. You might need to make a necessary purchase, repair something important or just get enough money to cover your day-to-day costs until your next payday arrives.
What type of loan has the fastest approval time

The obvious option for borrowing money fast is a credit card. However, if you do not currently have a credit card in your wallet or if you do not have a large enough spending limit, then you might be out of luck.

What are your chances of getting instant approval for a new credit card? And what are the alternative loan options?

How long until I can use a new credit card?

Credit card applications are usually handled online. Sometimes, you will be able to get instant approval. This means you will know right away whether or not you are approved for a new card. However, even then, it will take seven days or so to get your new card in the mail. So getting a new credit card is not an overnight process.

If you have a less-than-perfect credit score, then you may not be instantly approved. If this happens, you will have to wait for several days while someone from the credit card company reviews your application. The wait time for this review varies from company to company, but it usually takes about a week. So the total wait time for getting a new credit card will be a week or two, on average. If you need money quickly, and you do not currently have a credit card with a high enough spending limit, then you will have to seek an alternative.

What about personal loans?

Personal loans from a bank can be slightly faster than the credit card approval process. Banks do not usually offer instant approval, but, if you have an account at the bank, you will not have to wait for the credit card to arrive in the mail because the money can be deposited in your bank account. The process may take a few days to a week. It is not instant, and you will need to undergo a complete credit check before getting an answer.

Online personal loans

These loans are ideal if you need money quickly because approval does not require a complete credit check. You merely have to supply a bank statement and a paystub or other proof of income. The best online personal loan providers will either approve or deny your application within a few hours. They will then deposit the money for your loan in your bank account. This deposit will usually take place on the same day that you started your application.

You will usually have 30-90 days to repay online personal loans. The amounts may vary from money supplier to money supplier, but the loans are usually available for between $500 and $750. You can borrow less than that if you need less.

If you have time, you may be better off trying to apply for a credit card or a personal loan from a bank. However, if you need money quickly, nothing will beat the quick process of an online personal loan.