How Long Does It Take to Get Approved for a Line of Credit?

Written by True Tamplin, BSc, CEPF®

Reviewed by Editorial Team

Updated on March 08, 2023

How long it takes to get approved for a line of credit depends on what kind of line of credit it is.

For a regular credit card, often the individual will be approved in minutes.

This is due to the fact that approval is based on an algorithm and inputs from the user.

Home equity lines of credit, or HELOC, are usually approved within 2 - 6 weeks.

A business line of credit can take anywhere between a few weeks to a few months.

This is due to the fact that business lines of credit are often "collateralized," meaning the loan is given to the business with the business's assets used as collateral.

Assigning the appropriate valuation to the assets and submitting proper documentation, such as tax returns, a balance sheet, and independent valuations of assets can take quite a bit of time.

In general, collateralized loans have a much lower interest rate than non-collateralized loans.

How Long Does It Take To Get a Line of Credit Approved? FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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