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Tuesday, January 31st
You can't predict when your car will need a new transmission or a tree will fall through the roof of your house. However, it may be possible to pay for the cost of a car or home repair with a personal loan. It may also be possible to pay for school, consolidate credit card debt or accomplish other goals with this type of product. Let's take a closer look at how long it takes to apply for a loan, hear back from a lender and receive loan proceeds in your bank account.
How Long Does It Take to Apply for a Personal Loan?
Applying for a personal loan is a relatively easy process assuming that you have access to some basic information about yourself. Typically, you will be required to provide your name, address and other identifying information that a lender will use to verify your identity. In addition, you'll be asked to provide information about your employer and your monthly income. If you work for yourself, you may need to add some context about what you do and provide proof of income.
Assuming that you know this information from memory, it may take as little as five minutes to fill out a personal loan application form. In some cases, lenders will save your information for use at a later date. Therefore, if you are applying for a loan from a lender that you have a relationship with, it may only take a few seconds to fill out an application.
How Long Does It Take to Receive a Loan Decision?
If you apply for a loan online, there is a chance that you will receive a loan decision within seconds of submitting your application. There is also a chance that you will receive offers from lenders within minutes of submitting an application to an online lending portal.
This type of site will take your application and submit it to hundreds of local, regional and national lenders. After receiving your request for financing, interested lenders will submit loan offers to your email inbox. Of course, it may take several hours for lenders to thoroughly vet your application and decide whether to provide the financing that you seek.
In the event that you submit a paper application, you could be required to wait for up to 10 business days before you receive a response. It may take longer than 10 business days to learn your fate if a lender needs more information to make an educated decision. For instance, you may be asked for proof of your annual income or for more information about the nature of your business.
How Long Will It Take to Receive Loan Proceeds?
It will typically take at least one business day for loan proceeds to reach your bank account. However, if you apply for financing over the weekend, on a holiday or after the close of business on a weekday, it may take more time for your loan to be processed and for funds to be deposited into your bank account.
It's important to note that you may face additional delays if you don't provide the right routing or account number when completing your application. Therefore, it's in your best interest to check your application for accuracy before you click the submit button. If funds are deposited into the wrong account, it could take several days or weeks before the error is fixed.
The Benefits of Applying for Online Personal Loans
Applying for a personal loan online may be the fastest way to get the money you need to pay an emergency bill or meet your other financial needs. However, there are additional benefits to applying for financing online as opposed to submitting a paper application.
As a general rule, the online application process is more secure than the process of submitting a paper application. This is because your information is encrypted as it is sent from the application portal to the lender itself. Therefore, no one can see your name, address or other data that might be used to steal your identity or commit other types of fraud.
It's also more convenient to seek financing online as opposed to submitting a paper application. If you apply online, you can create save points that allow you to maintain your progress even if you can't finish an application in one sitting. For example, if your baby starts crying, you can simply save the form that you are working on and come back to it later.
Finally, many lenders will review electronic loan applications regardless of when they are sent in. Therefore, you might get a loan decision late at night, on a Sunday or on a holiday. If you decide to submit a paper application, it generally won't be reviewed outside of normal business hours.
How Will I Know If a Lender Needs More Information?
If a lender needs more information to process your loan request, you will typically receive a letter in the mail. The letter will outline exactly what you need to submit and how to submit it. Typically, you can send copies of documents such as a pay stub or tax return electronically to a secure server. Alternatively, you can send documents through the mail if you don't feel comfortable doing so on a phone, tablet, or computer.
In some cases, you will receive an email requesting more information and how to provide it. However, it may be a good idea to contact a lender prior to complying with such a request to ensure that it is legitimate. You can also talk to a customer service representative prior to responding to any letters that you might get in the mail.
What Happens If My Application Is Denied?
In the event that your application is denied, you'll typically receive a generic email stating that this is the case. You will then be sent a letter outlining the reasons for the rejection and the information that was used to justify doing so. The lender should also inform you how you can obtain the information that was used to deny your request for financing so that you can verify its accuracy.
What Happens If My Application Is Approved?
In the event that your application is approved, you will be sent to a secure page where you can review the proposed loan terms. From there, you can choose to accept the loan or deny it. If you agree to take the money, funds will be deposited to the account that you specified on the loan application. Once the funds have been deposited into your bank account, you can use them however you wish, and you will be obligated to repay the funds per the loan documents that you signed. Typically, lenders give borrowers 24 to 72 hours to review an offer before it is revoked.
Can I Apply for More Than One Loan at a Time?
Generally speaking, yes you can apply for more than one loan at a time. However, it may be harder to get a second loan because lenders may be concerned about your ability to manage your overall debt. It's also worth noting that applying for financing of any kind can have a negative impact on your credit score and creditworthiness. Therefore, it's generally best to only ask for a loan if you absolutely have to.
If you want to consolidate debt, pay an emergency medical bill or upgrade your home, it may be in your best interest to apply for a personal loan. This type of loan is available to most borrowers regardless of their credit scores and histories. However, those who have higher credit scores and lower debt-to-income (DTI) ratios will likely get the best terms.
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