Quick loans — or fast personal loans — cater to those who want a speedy approval and funding process. These loans are unsecured loans, or loans without collateral. Instead, lenders rely on credit score, income and existing indebtedness to decide eligibility and rates. Their processing speed makes fast loans particularly attractive and even a priority when you want to provide an immediate solution to a financial problem.

Quick loans range from 6% to 36% APRs. The best rates are reserved for borrowers with top-notch credit scores. But watch out for any origination fees, which can get deducted from the loan amount and that come into play to determine the annual percentage rate; loan amounts vary tremendously, between $1,000 and $100,000, with fixed monthly payments for nine to 12 months to seven years.

When comparing quick loans, you want to assess rates, terms and funding times. It is rather knowing how much short-term financing will cost in total and how to structure the repayments to help inform the decision, not speed, that’s the more pertinent consideration.

How Long Does a Short Loan Work Take?

The process for getting a fast loan can be distilled into four actionable steps, with timeframes that are separated by half an hour!

Pre-qualification: This — which takes a few minutes or fewer — gives borrowers an idea of the likely rates and terms they might get, without affecting their credit scores. Most lenders will ask for only some basic personal information, like income information and the amount you need to borrow.

Applications: Formal applications may take 30 minutes or longer. Lenders will usually require you to provide additional documentation (like  bank statements) that confirms your financial information.

Pray: This takes anywhere from a few hours to two days depending on the speediness of the lender and whether you need to provide any additional documentation. Others grant approvals on the same day, or even instantly.

Funding One to five business days after approval and these loans can be fast, with the best lenders able to fund you on the same day.

Where to Apply for an Instant Loan in the U.S.

Types of lenders • online lenders • credit unions • banks Each comes with specific advantages depending on their type:

Internet lenders: These web-based companies simplify the entire origination process so that a borrower can apply for money, receive it, and pay it all digitally. Many online lenders — such as Light Stream, Rocket Loans and SoFi — offer same-day funding, if borrowers qualify.

Credit Unions: Not for profit organizations, these can charge lower APRs, and may take other factors into consideration beyond a traditional Credit Score during the application process. Old credit union customers can enjoy the benefit of faster processing and more favorable terms.

Banks: It is, if may provide superior rates but they are quite fast with their current clients. It typically takes one week to process for noncustodial customers.

How to Get a Fast Loan

These tips can expedite the loan process for borrowers:

Get Documentation Prepared: Some programs ask for proof of income and identification, having this available will hasten the process.

Pre-qualifying: This method allows borrowers to compare loans and lenders without credit inquiries appearing on their credit reports.

Don’t Wait Too Long to Apply: Apply while the application is prepared and complete. Follow the lender’s cutoff time to ensure that funding occurs as quickly as possible the same day.

Quick Loans for Bad Credit

And while bad credit borrowers (defined as having scores below 630) can still get quick loans, they may carry steep APRs. But credit unions that usually check lenders for credit scores and other info on creditworthiness can have the best loans for people with bad credit. Nonbank online lenders such as Avant and Lending Point may consider those borrowers, too, approving and funding loans quickly.

But folks with bad credit should check the terms of the loan and ensure that monthly payments are affordable. Because high APRs make repayments potentially costly, borrowing should always be done within responsible limits.

Quick Loans to Avoid

But some of these, including payday and high-interest installment loans, should be used with caution — and only as temporary options.

Payday loans: These are loans due to recompense in full, usually within two to four weeks, with repo rt of an interest of up to 400% APR. Though they provide fast cash for borrowers, they can be difficult to repay and have the potential of ensnaring the borrower in a downward spiral of debt.

High-Interest Installment Loan: These loans give you at least a little more time to pay off the debt than payday loans do. But they also tend to come with APRs of 36% or higher, making them an expensive long-term fix.

If you borrowed $1,000 for six months, with an APR of 60 percent your interest alone could be $182 — compared to $59 if your A.P.R. was 20 percent. Time to look for alternatives to high-cost borrowing.

Quick Loans vs Credit Card

While the same can be said as with credit cards, quick loans have unique uses. Fast loans are a good way to go if you have larger one-off expenses that lend themselves to fixed loan amounts, fixed monthly payments (or such an arrangement), and when qualified, a lower interest rate. In contrast, credit cards function as revolving lines of credit that cover smaller, ongoing expenses and come with higher variable interest rates unless the full balance is paid off every month. These loans dispense lump-sum cash quickly into your hands (with a fixed repayment plan), while credit cards offer more flexibility (with the caveat that they can be more expensive in the long run, if you’re not careful).

Alternatives to Quick Loans

If the rates or terms on a quick loan don’t look good here are some other options to explore:

• Borrow from community lending programs.
• Use a cash advance app for small, short-term needs.
• Explore “buy now, pay later” options for necessary purchases.
• Borrow from a family member or get a pawnshop loan secured by an asset.

Final Thoughts

Short term loans are an ideal option for fast and efficient funding when borrowers are aware of the terms and associated costs. For the majority responsibly comparing the diffuse fees out there, seeking alternatives when necessary; end of risk of long sustainability but can be vital to get close to some sort of personal lending together.