Facing a financial emergency? Here's how fast you can get a personal loan

When an unexpected expense hits, like a car repair, a medical bill or a burst pipe, waiting weeks for cash isn't an option. The good news is that some lenders can get money into your account within hours of approval. Here's what you need to know.

How fast you can get a loan varies depending on various factors. Some online lenders advertise same-day funding, but that usually means applying early in the morning, getting approved quickly and having an account at a bank that processes transfers fast. In reality, most people apply for a personal loan and get their money within one to three business days.

Traditional banks and credit unions tend to be on the slower end, sometimes taking a week or more, while online lenders are generally the fastest option.

There are plenty of personal loans that can get money in your account fast, and some of our favorites are already on our list of best personal loans. Upstart, for example, stands out because it considers applicants with thin credit histories or no credit score at all, making it one of the more accessible options if your credit isn't in great shape. You can borrow between $1,000 and $75,000 with a range of fixed APRs, and most loans are funded in the next business day.

If your credit is solid and keeping costs low is the priority, LightStream is also great. It doesn't charge origination fees, late payment fees or prepayment penalties, meaning the rate you're quoted is essentially the full cost of borrowing. Loans range from $5,000 to $100,000, plus there's a 0.50% discount for signing up for autopay.

Even with a fast lender, a few factors can slow things down:

• Your application: Incomplete information or mismatched documents are one of the most common reasons for delays. Double check that your income, employment and identity documents are accurate and ready to upload before you apply.
• Your credit profile: Borrowers with strong credit tend to move through underwriting faster. If your credit history has complications such as a recent missed payment or a high debt-to-income ratio, lenders may take more time to review.
• The lender's cutoff times: Many lenders have a same-day funding cutoff, often midday or early afternoon. Apply after that window and you're likely looking at the next business day at the earliest.
• Your bank: Even after a lender approves and sends funds, your bank controls when the money actually hits your account. Some banks process ACH transfers faster than others, and weekends or holidays can add extra days.
• Verification steps: Some lenders require a phone call, additional documentation or manual review before finalizing. This is more common with larger loan amounts.

When you need money quickly, it's easy to jump at the first offer you see, but a few missteps can cost you more than you bargained for. Here's what to watch out for:

• Borrowing more than you need: It can be tempting to take the full amount a lender offers, but you'll pay interest on every dollar you borrow. Keep the loan amount as close to your actual need as possible.
• Ignoring the APR: The interest rate alone doesn't tell the whole story. The APR includes fees and gives you a more accurate picture of what the loan actually costs. Always compare APRs, not just rates.
• Overlooking origination fees: Some lenders charge an origination fee of 1% to 10% of the loan amount, which is often deducted from your funds before they hit your account. That means if you borrow $5,000 with a 5% origination fee, you're only receiving $4,750 but repaying the full $5,000.
• Skipping the fine print: Some lenders charge a fee if you pay your loan off early. If you think there's any chance you'll want to pay it down ahead of schedule, look for lenders that don't penalize you for it.
• Only looking at monthly payments: A lower monthly payment can look appealing, but a longer repayment term means more interest paid over time. Run the numbers on total cost not just what fits in your monthly budget.
• Applying with multiple lenders: Every hard credit pull can ding your credit score slightly. Look for lenders that offer prequalification with a soft inquiry first so you can compare offers without any impact to your credit.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal loan article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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