In times of financial need, a short-term loan can provide a quick solution to unexpected expenses or emergency situations.
However, with so many lenders and loan options available, it can be difficult to determine which one is the best fit for your specific needs.
In this article, we'll explore the 4 best short-term loans available, comparing their interest rates, fees, eligibility requirements, and more. Whether you have good credit or bad credit, we'll help you find the short-term loan that's right for you.
What Exactly is a Short-Term Loan Anyway?
If you’ve never been one to borrow money, you’re probably not familiar with all of the available personal loan options out there such as short-term loans.
A short-term loan is a type of loan that is designed to be repaid in a shorter period of time than a traditional loan.
Typically, short-term loans have a repayment period of anywhere from a few weeks to a few months, and may include payday loans, installment loans, or personal lines of credit.
Short-term loans are often used to cover unexpected expenses or bridge a gap in income, and may be an attractive option for borrowers who need quick access to cash.
Even if you aren’t approved for a major personal loan, most times, you can still opt for a one-time, short-term loan to get your hands on much-needed quick cash.
How Many Types of Short-Term Loans Are There?
If you find yourself considering applying for a short-term loan, you’ll want to be as informed as possible before making any final decisions.
As with most financial options these days, there are several types of short-term loans available to the general public.
Here are but a few of the most popular forms of short-term loans to apply for in 2023:
One of the most popular short-term loan options comes in the form of cash advances. Most times, cash advances are small amounts of money and require repaying within a couple of weeks. Sometimes cash advance repayment may be extended for up to a month or two.
For those who find themselves in need of a bit more cash than what a basic cash advance allows may consider a short-term installment loan. The main difference between a cash advance and an installment loan is that installment loans require smaller payments over a longer period of time. Typically, they also have less interest attached to the payments than cash advances.
Bad Credit Loans
Last but not least of the most popular short-term loan options are bad credit loans. These loans normally come with pretty steep interest rates even in comparison to cash advances. It is not recommended to take a bad credit loan unless it is absolutely necessary.
Personal loans are unsecured loans that can be used for a variety of purposes. They can have a short or long term repayment period and are usually offered to people with good credit.
Best Short-Term Personal Loans of 2023
Whether you need quick access to funds to cover an emergency expense, or you're looking to consolidate debt, these lenders will be able to get you a short-term personal loan no matter you credit score.
SoFi – Best overall short-term personal loan
SoFi stands out as a great choice for short-term personal loans, not just for its loan options in terms of amount and repayment, but also for the exceptional financial support it provides to its clients.
Consider applying for a personal loan with SoFi, an online lending platform that offers unsecured fixed-rate loans ranging from $5,000 to $100,000 with repayment terms between two to seven years.
To be eligible, you must have a minimum credit score of 650 and an annual income of at least $45,000.
SoFi does not charge origination fees, late fees, or prepayment penalties, and offers comparatively low APRs.
However, note that SoFi does not offer direct payment to other creditors for debt consolidating loans.
Take advantage of additional benefits such as unemployment protection and the ability to change your payment due date once a year.
SoFi offers online personal loans with consumer-friendly features for good- and excellent-credit borrowers. Qualified borrowers will find few lenders better than SoFi, thanks to no fees required and thoughtful perks like unemployment protection and free financial advising.
Upgrade – Best for bad credit
Upgrade is a leading online lender that offers personal loans to individuals with fair to bad credit. If you have a credit score between 580 and 700, Upgrade may be a good option for you.
The lender uses a more comprehensive underwriting process that takes into account a range of factors beyond just your credit score, including your income and expenses, to determine your eligibility for a loan.
This makes it easier for individuals with less-than-perfect credit to secure a loan.
Upgrade offers loans ranging from $1,000 to $50,000, making it a good option for a variety of financial needs, including debt consolidation, home improvement projects, and medical expenses.
The lender also offers competitive interest rates and flexible repayment terms, allowing you to choose the loan that best fits your budget and timeline.
Additionally, Upgrade has a fast and easy online application process that can provide you with a loan decision in minutes.
Upstart – Best for small loans
Upstart is a popular online lender that specializes in providing personal loans to individuals who may not have the best credit history. It's a great option for those looking for small personal loans, as the minimum loan amount offered is $1,000.
Upstart uses a unique underwriting model that takes into account more than just your credit score, including your education and employment history, to determine your eligibility for a loan.
This makes it a good option for individuals who are just starting out or who may have had some financial setbacks in the past.
One of the main benefits of taking out a loan with Upstart is its fast and easy application process. You can apply for a loan online in just a few minutes and receive a decision within minutes. Once approved, funds can be deposited into your account as soon as the next business day.
Upstart also offers competitive interest rates and flexible repayment terms, making it a great option for individuals who are looking to take control of their finances and manage their debt.
Overall, if you're in need of a small personal loan and have a less-than-perfect credit history, Upstart is definitely worth considering.
Take control of your finances with a personal loan from Upstart. You can choose to use the loan for debt consolidation, credit card refinancing, a wedding, moving, or medical expenses. With loan amounts ranging from $1,000 to $50,000 and terms of 36 or 60 months, there's a loan option for everyone. To get approved, simply have a FICO or Vantage score of 600 or more.
ZippyLoan – Best no credit check loan
Just remember that if you actually need money now, then you can opt for a personal loan. When you need money in a hurry ZippyLoan is where to go.
You apply for a loan through the ZippyLoan site, if approved they send your loan application to one of many loan providers.
You review the loan details and e-sign if you like what you see. No risk in checking what offers you’ll get. You can borrow between $100 and $15,000 as soon as tomorrow. Loans service up to 60 months.
ZippyLoan connects borrowers to lenders through its network of lenders. They’ll find you the lowest interest rate and is one of the best no credit check loans. You can visit ZippyLoan here.
Short-Term Loan FAQs
What is a short-term loan?
A short-term loan is a type of loan that is designed to be repaid in a shorter period of time than a traditional loan. This may include payday loans, installment loans, or personal lines of credit.
How do I know if I'm eligible for a short-term loan?
Eligibility requirements vary by lender, but typically involve meeting certain minimum criteria related to credit score, income, and other factors. To determine if you're eligible for a short-term loan, you should research and compare lenders and review their specific eligibility requirements.
In addition to finding the right lender for a short-term loan, there are a number of other steps you can take to improve your financial situation and avoid the need for short-term loans in the future. This may include creating a budget, building an emergency fund, and improving your credit score through timely payments and responsible borrowing.
By taking a proactive approach to managing your finances and finding the right short-term loan when you need it, you can take control of your financial future and achieve your goals. With careful planning and responsible borrowing, you can use short-term loans as a tool to help you overcome financial challenges and build a stronger financial foundation.
What are the interest rates on short-term loans?
Interest rates on short-term loans may be higher than traditional loans, due to the higher risk involved. However, rates can vary significantly depending on the lender and the specific loan terms.
Can I get a short-term loan with bad credit?
Yes, it is possible to get a short-term loan with bad credit. However, borrowers with bad credit may face higher interest rates and fees, and may be limited in the amount they can borrow.
How much can I borrow with a short-term loan?
The amount you can borrow with a short-term loan will depend on the lender and the specific loan terms. In general, short-term loans tend to have lower borrowing limits than traditional loans.
How quickly can I get a short-term loan?
The time it takes to get a short-term loan can vary depending on the lender and the specific loan terms. Some lenders may offer same-day or next-day funding, while others may take several days or more to process and approve your loan application.
What happens if I can't repay my short-term loan on time?
If you can't repay your short-term loan on time, you may face additional fees, penalties, and interest charges. In addition, your credit score may be negatively impacted. It's important to work with your lender to explore repayment options and avoid defaulting on your loan.
Are there alternatives to short-term loans?
Yes, there are a variety of alternatives to short-term loans that may be more suitable for your financial needs. This may include traditional loans, credit cards, or other forms of credit. It's important to research and compare all of your options before deciding on a loan product.
Best Short-Term Loans Conclusion
In conclusion, when it comes to finding the best short-term loan for your financial needs, there are a variety of factors to consider. Whether you are looking for a payday loan, installment loan, or personal line of credit, it's important to research and compare lenders to find a loan that suits your unique circumstances.
When evaluating lenders, it's important to consider the interest rates, fees, and repayment terms offered. While short-term loans may have higher interest rates than traditional loans, it's important to look for a lender that offers reasonable rates and fees. In addition, consider whether the lender allows for flexible repayment terms, which can help you manage your cash flow and budget more effectively.
It's also important to choose a reputable lender that is licensed and regulated by the appropriate state and federal authorities. This can help protect you from predatory lending practices and ensure that your personal and financial information is secure.
Ultimately, the best short-term loan for you will depend on your individual financial situation and needs. If you have bad credit or are struggling to meet your financial obligations, a short-term loan may provide the temporary relief you need to get back on track. However, it's important to borrow responsibly and avoid taking on more debt than you can afford to repay.