When comparing loans and lenders, you might be looking at the principal amount and the interest rates first and foremost – as you should. You want to be sure you’re getting a loan that fits your financial needs without having an astronomical interest rate.
But one factor you might be overlooking in your comparison? Lending speed.
Here’s a deeper dive into why lending speed matters and what you can do to speed up the process.
Why Does Lending Speed Matter?
Every lender has a different process for how and when loans are granted and when money appears in the borrower’s account. Some personal loans can be accessible that day or at least the very next day, while other loans can take months to arrive!
When it comes to student loans, mortgages, and car loans, you can’t wait forever for that money to arrive. You have deadlines to meet. For mortgages and car loans, for example, you could miss out on your favorite car or the house of your dreams if the process isn’t completed quickly. And if you have a fast closing on a house, your lender may not be able to process the mortgage in time.
For student loans, students and their colleges have deadlines. If the money isn’t in the student’s account before these deadlines, the school could revoke access to classes and transcripts and send the account to collections.
And even when it comes to personal loans, speed can matter. While you can put off that kitchen renovation or request an extension on medical bills, if you have a veterinarian bill for your dog or have to afford emergency car repairs to get to work, you need that money right away. In the event of the unexpected, speed matters.
How Can You Compare Lending Speed?
Loan information usually details the amount the loan is for, the interest rate, the length or term of the loan, and other information. On the surface, it is not always obvious how fast the loan will arrive in your bank account!
Therefore, borrowers may have to dig a little deeper to determine just how fast they’ll receive the loan. This information could be in the loan’s terms when you go to sign up, or you may have to do some extra research.
Generally, personal loans can take two to five business days to arrive, but smaller banks and credit unions could take longer. On the other hand, a private student loan can take 1 to 3 weeks to be approved, but, if delays occur, it could be 2 to 3 months instead.
If your potential lender is not upfront with this information, a Google search is recommended. Every lender has their own process for applications, including unique approval processes.
How Can You Speed Up The Lending Process?
There are ways borrowers can speed up the lending process and potentially get their money faster. Follow these tips:
1. Have Everything You Need Before You Apply
Getting your ducks in a row before you even apply for a loan can definitely speed up the process! This means having documentation like your last year’s tax returns, income, bank statements, driver’s license, loan application, and other details in one place. Some lenders may not require your tax returns at first but may request them at a later date. It’s helpful to have them ready to go if this request comes through!
2. Be Honest and Accurate
Lying or making mistakes on your loan application is a surefire way to slow down the process and could result in you not getting the loan at all. Take your time with your application and double-check the information before you hit submit.
3. Stay On Top of Any Requests
It’s entirely possible that the lender will reach out for additional information or documentation. Don’t delay in getting these details to them! You’re just slowing down the process, and, if you take too long, you could lose out on the loan, too. Be sure you’re answering any phone calls or emails promptly.
While interest rates and loan amounts absolutely matter to your finances, don’t forget to look at lending speed. By taking a look at your current finances and comparing lending speed, you can be sure you’re meeting any financial obligations on time and without further stress.
Heading to college, but need further financial assistance when it comes to affording said college? Private student loans can help bridge the gap between federal student loans, scholarships, savings, and other sources of money. And just like other loans, speed matters! If you want to uncover private student loans and compare your options, be sure to head over to our free Student Loan Finder here to get started today.
| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
5.34%-15.96%* Variable
3.99%-15.61%* Fixed
|
Undergraduate and Graduate
|
VISIT CITIZENS |
|
|
4.92% - 15.08% Variable
3.99% - 15.49% Fixed
|
Undergraduate and Graduate
|
VISIT SALLIE MAE |
 |
4.50% - 17.99% Variable
3.49% - 17.99% Fixed
|
Undergraduate and Graduate
|
VISIT CREDIBLE |
 |
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
|
Undergraduate and Graduate
|
VISIT LENDKEY |
 |
5.50% - 14.56% Variable
3.69% - 14.41% Fixed
|
Undergraduate and Graduate
|
VISIT ASCENT |
 |
3.70% - 8.75% Fixed
|
Undergraduate and Graduate
|
VISIT ISL |
 |
5.62% - 16.85% Variable
3.69% - 16.49% Fixed
|
Undergraduate and Graduate
|
VISIT EARNEST |
 |
5.00% - 14.22% Variable
3.69% - 14.22% Fixed
|
Undergraduate and Graduate
|
VISIT ELFI |
