A personal loan can be quite helpful when you need to deal with sudden expenses. Perhaps, it is a car repair, long-delayed home maintenance or funding for your wedding.
The thing about borrowing quick money is that you want to get approved as earlier as possible. Many people ask the question about how much time it takes to get approved for a loan. The approval time may depend on what lender you choose and what situation you are in.
For example, if you have an excellent credit history as compared to bad credit or no credit, you are most likely to get the money in 24 hours or less.
Why Credit Score Is Important To Get Approved?
Always remember that every time you apply for a loan, it gets added to your credit report. And if you get rejected, unfortunately, it will negatively impact your score. You will have to report the rejection for future applications and it does not offer a good impression.
Therefore, it is important to ensure that you are fully ready to apply and have more than good chances of becoming approved.
- What You Should Know About Credit Score
- How to Calculate Your Credit Score
- How Bad Credit Score Can Affect Your Life
Requirements Before Applying for Loan
A credit score has a 3-digit number where a score above 660 points is good, anything below 600 is poor or bad, and a score equal to 760 and above is excellent in Toronto.
- What is The Average Credit Score in Canada?
- Different Kinds of Credit Score
- How Can I Get A 5000 Loan With No Credit?
You should also gather all your personal information that most lender will require. The basic details are the same but there could be extra requirements varying from lender to lender.
Providing sources of income is one basic requirement. Make sure that you provide all the sources; even your spouse’s if the lender allows it. It is possible that a lender will ignore a borderline credit score in favor of good income in comparison to how much money is being borrowed.
Read More: How Can I Get Approved For A Personal Loan?
How Long Does The Process Take?
The time it takes to get approved depends on which lender you are approaching. Banks and credit unions are offline sources of loans. Banks are quite reliable, but they are also known for their stricter policies and complicated approval processes.
On the other hand, one has the option of online direct lenders who often provide instant approvals.
Some lenders are highly automated and will provide quicker than usual approval. Others need time to collect information and formalize the process. This can take a considerable amount of time.
What Should I Do?
If you have decided to apply online, you should know that these processes take less time because you don’t have to leave your comfort zones at all. The entire process usually takes 10 minutes or less.
Moreover, if you are choosing a direct lender, you also do not have to deal with the hassle of intermediaries.