ACH transfer
Automated Clearing House transfer: the electronic bank-to-bank payment network used for most U.S. personal-loan disbursements and monthly payments. Settles in 1-3 business days, typically free.
Full definition
ACH (Automated Clearing House) is the U.S. electronic payment network operated by NACHA that handles most consumer bank-to-bank transactions, including direct deposit, autopay, and personal-loan funding. When you accept a personal loan, the lender disburses funds via ACH, which lands in your checking account the next business day. Monthly payments to the lender also typically run via ACH. ACH transfers are free for the consumer in nearly all cases; wire transfers (faster, more expensive) are the alternative for time-sensitive funding.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- Pre-qualificationA preliminary check that estimates the loan terms you might qualify for, based on a soft credit inquiry that does not affect your score.
- Pre-approvalA stronger lending check than pre-qualification, often involving a hard credit inquiry and a conditional commitment from the lender.
- UnderwritingThe lender's process of evaluating credit, income, identity, and risk before approving and pricing a loan.
- Co-signerA second person who agrees to repay your loan if you don't. A strong-credit co-signer can help you qualify or lower your APR.
- Co-applicantA second borrower who shares both the obligation to repay and access to the funds. Different from a co-signer.
- Promissory noteThe signed legal document in which a borrower promises to repay a loan according to specified terms. The promissory note is the loan's enforceable contract.
Ready to apply this knowledge?
Compare personal loan offers in two minutes. Soft credit check only, no impact to your score.
Begin your request