Here are a few tips on how you can speed up the personal loan process. Your credit report can tell you – and a lender – how well you’ve managed any debts you’ve carried prior to submitting your personal loan application. Your credit report will show whether you’re prone to making late payments on credit cards or any other form of credit or loan you’ve had previously.1. Check Your Credit Report
Besides helping you determine whether your credit profile is strong enough to qualify for a personal loan, checking your credit report will help you determine whether the report has errors or problems that need to be resolved. An error on your credit report can impact your ability to qualify for a personal loan and slow down the process.
2. Know How Much Money You Need
Knowing the loan amount you need to borrow and the monthly payments you can afford can be useful in processing your application smoothly. If you change this amount after the process is underway, it may take longer to qualify and collect your money.
3. Research Lenders With Fast Approval
As noted above, the amount of time needed for approval and funding will depend on the lender type. And, the length of time can also vary by individual lender, so it’s important to shop around and review the interest rate, repayment term and approval process timeline that multiple lenders offer.
For a better idea of what a lender can do for you, prequalify with some of your top lender choices.
4. Get Prequalified
Prequalification doesn’t guarantee approval, but it’s a good sign. It’s also usually fast, and it won’t affect your credit score. Just enter your information into a prequalification form and get your result. If you’re denied, it might be discouraging, but it’ll help you understand personal finance areas you’ll need to improve in before applying again.
5. Have Documentation Ready To Go
Having the proper documents organized and ready to submit can significantly speed along your application process. Personal loan documentation includes:
- Proof of identity (driver’s license, passport or Social Security number)
- Proof of income (pay stubs, bank statements or tax returns)
- Proof of address (utility bills, lease agreement or voter registration card)
6. Apply Online
As mentioned, online applications typically allow for faster processing, with a loan application only taking a few minutes to complete. Most lenders also allow you to track your application online.
Make sure you double-check the information on your application before hitting “submit.” Mistakes can slow down the process considerably.
