How do quick loans work?

Question

To get a small loan fast, apply online for a personal loan from Avant, Best Egg or Discover, after getting pre-qualified and comparing your offers. Each lender has loan amounts as low as $2,000 and provides approval and funding within a few business days. Avant also has a low credit score requirement (600), while Best Egg offers the potential for a very low APR, and Discover does not charge an origination fee.... read full answer

Many lenders offer quick approval and funding within a few business days. And some offer relatively small personal loans of only a few thousand dollars. However, those two traits don’t always overlap. By picking a lender that offers both, borrowers can avoid having to wait a long time for approval and also won’t be forced to borrow more than they need.

Where to Get a Small Loan Fast:

Lender	Smallest loan	Approval timeline	Funding timeline
Avant	$2,000	24 - 48 hours	1 business day
Best Egg	$2,000	Up to 2 business days	1 - 2 business days
Discover	$2,500	Up to 3 business days	1 - 7 business days
OneMain Financial	$1,500	Up to 48 hours	1 - 3 business days
PNC	$1,000	24 - 48 hours	1 business day
USAA	$2,500	1 business day	1 - 3 business days
Wells Fargo	$3,000	Up to 3 business days	1 business day

If you’re interested in getting a small loan quickly from any of these lenders, it’s a good idea to get pre-qualified first. You can use WalletHub’s free and easy personal loan pre-qualification tool to check with multiple lenders at once.

Once you’ve pre-qualified for an offer, you’ll then fill out the actual application. You’ll need to provide both basic personal information (address, birthdate, SSN, etc.) and financial information (income, housing status, employment status, etc.). After you submit your application, it should only take a few business days at most to receive a decision and get funded.

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Answer 1 · 2019-12-04 08:47:18

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Adam McCann, Financial Writer

@adam_mccann • 12/04/19 This answer was first published on 12/04/19. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Quick loans work for lenders more than borrowers. Most lenders offering quick loans overcharge borrowers desperate for fast cash, knowing those people have few alternatives. Having the luxury of being able to wait a few days for funding could be worth a lot, as it figures to expand your pool of options and enables you to comparison-shop your way to better loan terms.

With that being said, there are several types of quick loans, and they each work a bit differently. In all cases, you’ll get a lump sum of money upfront and pay it back with interest. However, there are additional details to consider, most notably the APRs, fees, and consequences of non-payment.

How Quick Loans Work:

Personal loan: A quick personal loan works like any other personal loan. It usually takes less than 7 business days to get a loan funded (same day with the best lenders), and once you receive the money you’ll pay it back in monthly installments. You’ll be able to borrow $1,000 to $100,000 for 12 to 84+ months, depending on the lender. APRs typically range from 6% to 36%.
Payday loan: You can get a payday loan the same day you apply. But unlike with a personal loan, you only have until your next paycheck to pay the loan back. Plus, you’ll typically only be able to borrow less than $1,000, and you’ll have to pay a fee that’s often equivalent to an APR of 400% or more.
Auto title loan: It’s possible to get these loans the same day you apply. An auto title loan’s distinctive feature is that it requires your car as collateral. You’ll be able to borrow a portion of the car’s value for up to a month, and may owe up to 25% of what you borrow in fees and interest. If you can’t pay the loan back, the lender will repossess your vehicle – though they may let you roll the loan over to another month first.
Pawn shop loan: You can walk into a pawn shop with an item and walk out with cash the same day. “Pawning” an item lets you get some of its value in cash, which you can pay back with interest (2% to 25% per month) in order to reclaim your item. If you don’t pay by a certain deadline, the shop will sell your item.
Loan from a friend: With a loan from a friend or family member, there’s no requirement for the individual loaning you the money to set a strict deadline for repayment or even to charge interest. But it’s still a good idea to put the terms of the loan in writing and sign them.

Taking out a personal loan and borrowing from friends are both preferable to getting a loan from a payday lender, auto title lender or pawn shop. Both will likely be far less expensive for you and give you more time to pay the loan back.

How do quick loans work?

Adam McCann, Financial Writer

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