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Best Short-Term Loans in 2024

Are you looking for a convenient short-term loan for your emergency expenses? BadCredify has compiled the top five selections for the finest lenders that provide short-term loans, detailing what sets each apart.

Most loan providers have a minimum credit score requirement; you must have a fair credit score (580 – 669). We’ve also described the other factors that should be considered when you apply for short-term personal loans: interest rates, repayment terms, and available loan amounts.

Best Short-Term Personal Loans for Fair Credit in 2024

★★★★★

Est.APR

6.40% – 35.99%

Loan amount

$1,000 – $50,000

Min Score

300


More About

PROS

  • Quick access to loan funds;
  • No prepayment penalties;
  • Flexible monthly payments;
  • Beyond credit score verification (soft credit check);
  • Flexible loan amounts.

CONS

  • Origination fees up to 10%;
  • High annual percentage rate;
  • Co-signers aren’t allowed;
  • Limited repayment loan terms.

OVERVIEW

Upstart is a financial platform that enables borrowers with weak credit to get personal loans with flexible payback options. Its key advantage is same-day funding, and there is simply a light credit check conducted throughout the application procedure.

WHO IT’S FOR

Poor credit borrowers who can’t qualify for traditional personal loans.

WHY WE LIKE IT

Upstart does not do credit checks on its customers. Instead, it examines applicants’ whole financial condition. In addition, customers can apply in the morning and receive their personal loan before the end of the day.

LENDER PERKS

  • Quick funding (same-day deposit available)
  • No origination fees
  • Soft credit checks performed

FEES

  • Origination fees up to 10%;
  • $15 late fee
  • $15 NSF fee

REQUIREMENTS

  • Be at least 18 years old;
  • Prove your US citizenship or permanent residence;
  • Provide your bank account information
  • Show your monthly income (at least $2,000 monthly income) by providing pay stubs, tax forms, or bank statements;
  • Have fair credit (at least 300);
  • Provide an active email address and phone number.

TIME OF RECIEVE FUNDS

One business day (same-day funding available)

★★★★★

rise credit logo

Est.APR

58.90% – 299.00%

Loan amount

$300 – $5,000

Min Score

None


More About

PROS

  • Quick access to loan funds;
  • No prepayment penalties;
  • Flexible monthly payments;
  • Beyond credit verification (soft credit check).

CONS

  • High-interest rates;
  • Small loans amounts;
  • Not available in all states.

OVERVIEW

Rise is a financial platform that helps borrowers with bad credit get personal loans with flexible repayment terms. Its main advantage is the lack of additional fees, and a minor credit check is performed throughout the application process.

WHO IT’S FOR

Poor credit borrowers who can’t qualify for traditional personal loans.

WHY WE LIKE IT

Rise does not conduct traditional credit checks on its clients. Instead, it looks at applicants’ overall financial situation. Customers can also apply in the morning and obtain their personal loan before the end of the day.

PERKS OFFERED

  • Quick funding;
  • No origination fees;
  • Soft credit checks performed.

FEES

  • No fees for late payments or prepayment.

REQUIREMENTS

  • Be at least 18 years old;
  • Prove your US citizenship or permanent residence;
  • Provide your bank account information
  • Show your monthly income (at least $2,000 monthly income) by providing pay stubs, tax forms, or bank statements;
  • Have fair credit (at least 300);
  • Provide an active email address and phone number.

TIME OF RECEIVING FUNDS

One business day (same-day funding not available).

★★★★☆

upgrade logo

Est.APR

8.49% – 35.99%

Loan amount

$1,000 – $50,000

Min Score

Doesn’t specified


More About

PROS

  • No prepayment penalties;
  • Multiple rate discounts;
  • Next-day funding;
  • The due date may be changed;
  • Direct payments for debt consolidation.

CONS

  • APRs may be high;
  • Origination fees are charged;
  • Late fees may be applied.

OVERVIEW

Upgrade is an online financial service that offers up to $50,000 loans to borrowers with good to fair credit. It provides several interest rate reductions and allows you to add a co-applicant or collateral to your application. Choose it if you need money quickly and are not concerned about relatively high interest rates.

WHOM IT SUITS

Fair-credit borrowers who need the money quickly.

WHY WE CHOOSE IT

Upgrade offers convenient maximum and minimum loan amounts along with flexible repayment terms. It also accepts fair credit borrowers and provides several interest rate discounts.

PERKS OFFERED

  • Rate discounts for auto pay, direct payment, and reward checking;
  • Allows to add a co-applicant;
  • Mobile app for managing your loan.

FEES

  • Origination fees: 1.85% to 9.99%;
  • Late payment fees: $10;
  • Non-sufficient funds fees: $10 per payment returned.

ELIGIBILITY REQUIREMENTS

  • Be a U.S. citizen, a permanent resident, or living in the U.S. on a valid visa;
  • Be at least 18 years old (19 in Alabama and some other states);
  • Give a working email address;
  • Provide valid bank account details;
  • Confirm a sufficient monthly income to cover your loan payments.

FUNDING TIMES

As soon as one business day after clearing verification.

★★★★☆

Est.APR

9.116% – 29.99%

Loan amount

$2,000 – $45,000

Min Score

640


More About

PROS

  • Low annual percentage rate;
  • Wide range of available loan amounts;
  • Same-day funding in some circumstances;
  • Accessible for fair credit borrowers.

CONS

  • High origination fee (up to 9%);
  • No cosigners are allowed for joint loans;
  • It is not available in all states.
  • Limited term lengths range from 36 to 60 months.

OVERVIEW

Rocket Loans is a financial platform that allows bad credit borrowers to get personal loans with flexible repayment terms. The same-day funding is its main advantage and there is only a soft credit check performed during the application process.

WHO IT’S FOR

Poor credit borrowers who need to make a significant debt consolidation.

WHY WE LIKE IT

Rocket Loans has low APRs and no additional fees. Also, consumers may apply earlier in the morning to receive the personal loan by the end of the same day.

LENDER PERKS

  • Easy loan application process
  • Fast funding
  • Low interest rates

FEES

  • Origination fees of up to 9%
  • $15 late fee
  • $15 NSF fee

REQUIREMENTS

  • Be at least 18 years old;
  • Prove your US citizenship or permanent residence;
  • Provide your bank account information
  • Show your monthly income (at least $2,000 monthly income) by providing pay stubs, tax forms, or bank statements;
  • Have fair credit (at least 640);
  • Provide an active email address and phone number.

TIME OF RECIEVE FUNDS

One business day (same-day funding available)

★★★★☆

onemain financial logo

Est.APR

18% – 35.99%

Loan amount

$1,500 – $20,000

Min Score

None


More About

PROS

  • Joint and secured loans are available;
  • Wide range of loan options for low credit;
  • Pre-qualifying doesn’t affect your credit score;
  • Convenient options for debt consolidation.

CONS

  • Relatively high interest rates;
  • Charges origination fees;
  • APRs are not disclosed when pre-qualify.

OVERVIEW

OneMain Financial is a reliable financial service that offers personal loans between $1,500 and $20,000 without minimum credit score requirements. With its joint applications, flexible repayment terms, and soft credit checks for pre-qualifying, it can suit borrowers with bad credit. Interest rates are usually high, though.

WHOM IT SUITS

Borrowers with credit issues who want to avoid predatory lenders.

WHY WE CHOOSE IT

The company offers a wide range of secured, unsecured, and joint loan options with flexible repayment terms. Its personal loans are available to underbanked borrowers.

PERKS OFFERED

  • Direct payment to creditors for debt consolidation;
  • Loan cancellation within 7 days;
  • Fast funding

FEES

  • Origination fees: 1% to 10%, or $25 to $500, depending on the state;
  • Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount;
  • Non-sufficient funds fees: $10 to $50 per payment returned.

ELIGIBILITY REQUIREMENTS

  • At least 18 years also;
  • Permanent US resident;
  • Income confirmation;
  • Valid bank account or debit card.

FUNDING TIMES

Within one business day of approval via a direct deposit. Funding within several hours may be offered if you receive the funds on your debit card.

BadCredify evaluates lenders based on more than 70 rating criteria, including interest rates, repayment terms, eligibility requirements, fees, consumer experience, affordability, and more. Find out more about our full methodology.

Learn more about our methodology

What are Short-term Loans?

Short-term loans don’t have a specific definition, but generally, they are personal loans with shorter repayment terms. The typical loan terms range from 12 to 36 months. However, short-term loans may have even shorter terms, depending on their type.

A short-term personal loan may have higher monthly payments, but the borrowers will pay less interest than they would pay with a long-term repayment schedule.

How Does a Short-Term Loan Work?

Short-term loans work as simple as the other loan products. Here is the working process described:

  1. Application. You apply online or offline by providing the needed information about you and your bank account and submitting the loan request form.
  2. Loan approval decision. You wait for the lender’s answer that will send it to your email address or will tell you in person.
  3. Loan agreement. If approved, you review the loan offer, and if you agree, sign the loan agreement.
  4. Personal loan funding. After all formalities, the lender funds the money in a lump sum in your bank account.
  5. Payback process. During the set repayment terms, you make monthly payments until you cover the borrowed amount plus interest.

How Can I Get Short-Term Loans Online?

To borrow short-term loans online, you must apply on the lender’s website and meet the eligibility criteria that may vary. However, the basic requirements include:

  • Be 18 years old and above;
  • Have a steady monthly income and a bank account;
  • Prove your US citizenship or permanent residence;
  • Provide a valid email address and phone number.

Pros & Cons of Short-Term Loans

Pros

  • Perfect for emergency major expenses;
  • Easy loan application process;
  • Wide range of available loan amounts;
  • Lower interest rates (if you choose the short-term repayment terms);
  • Less time in debt.

Cons

  • Higher monthly payments;
  • Predatory lending practices.

Get a Personal Loan for Your Needs

  • Applying does not affect your credit score
  • Apply 24/7 Online
  • Any credit score is accepted
  • Check customized interest rates from trusted lenders in a few minutes
get short-term personal loan online

Other Types of Short-Term Loans

Short-term loans come in all forms and shapes, and sometimes, it is hard to find out how to choose the most convenient one. Here are the common types of short-term loans that could help you cover your emergency expenses:

Payday Loans

A payday loan is a short-term cash loan you borrow from a payday lender and repay on your next paycheck. The available loan amounts range from $100 to $1,000, repaid in a lump sum, not with fixed monthly installments as a personal loan.

Usually, a payday loan term varies between seven and 30 days and has no prepayment penalty. Also, payday loans may have high-interest charges, whose APR may reach 375%.

Payday lenders don’t have minimum credit score requirements or an origination fee to charge. Most of them don’t check your credit report through major credit bureaus. But you must prove your income with pay stubs to qualify for payday loans.  

Credit Card Cash Advances

A credit card cash advance is also a short-term loan you get from your credit card. The available loan amounts depend on your credit limit. Most credit card issues have minimum credit score requirements that range from fair to excellent credit.

If you can’t meet them, consider federal credit unions that may offer you a 0% APR credit card. This credit union gives you a grace period with no interest, but after it expires, you must repay the loan with its costs included.

Merchant Cash Advances

Although this short-term loan is a cash advance, it functions like a loan. The lender lends the borrower the required loan amounts. The borrower pays the loan by granting the lender access to the borrower’s credit facility. The lender takes a share of the revenues from each purchase a borrower’s client makes until the loan is repaid.

Car Title Loans

These loans are also considered short-term loans that help you get money immediately. You can use your car to secure the loan and borrow money from the vehicle’s value. Its advantage is that you’re allowed to drive your car while you make the car title loan payments. These short-term secured loans are also good for bad credit borrowers, but they will carry higher interest rates.

Line of Credit

A line of credit (LOC) is a predetermined borrowing limit that may be used at any time. You may withdraw funds as needed until the limit is met. In the event of an open line of credit, money can be borrowed again as it is returned. It is a contract between a financial institution (often a bank) and you that specifies the maximum loan amount you may borrow. You can withdraw money from the LOC at any moment if you don’t exceed the agreement’s maximum amount (or credit limit).

How to Choose the Best Short-Term Personal Loan?

Shopping for the best short-term personal loan is challenging, but don’t worry. BadCredify provides you with several tips and tricks to find a convenient loan product for you:

  • Find lenders that provide short-term loans. Not all loan providers offer cash loans with shorter repayment terms. Most want to lend more significant loan amounts to earn money on interest.
  • Check the interest charges and other additional fees. The shorter repayment terms, the less interest you’ll pay over the loan repayment. 
  • Ask about the funding timeline. Every lender has its funding cut-off times; we suggest you find a lender that transfers the money within one business or even sooner.
  • Verify the repayment method. Usually, most lenders have automatic payment options. They just withdraw the monthly loan payment from your checking account. It helps you avoid missing payments and late penalties.

Methodology

BadCredify analyzed more than a dozen lenders to create this list, limiting them to those providing short-term personal loans with payback terms of 12 months or less. We then examined each lender’s interest rates, fees, application processes, and other factors.

We also analyzed many features within each main category, such as possible loan amounts, payback terms, APR ranges, and related costs. We also examined the lender’s minimum credit score criteria, whether it allows co-signers or joint applications, and its regional availability. Finally, we looked at each provider’s customer service tools, borrower benefits, and features that make the borrowing process easier, such as prequalification choices and mobile applications.

We assigned partial points where applicable based on how well a lender satisfied each requirement.

Frequently Asked Questions

Can I build my credit with a short-term loan?

Suppose the lender reports your monthly loan payments to the major credit reporting bureaus; it can improve your credit history. On the other hand, if you miss the payment, it can affect your credit score in the long term.

How much does a short-term loan cost?

It depends on the loan type you get. Usually, the interest rate may vary from 7.99% to 35.99%. Plus, there can be additional charges, such as origination fees of up to $10.

What is the shortest term for a personal loan?

It depends on the loan type you borrow. For example, the shortest term for a payday loan is two weeks, but for a personal loan, it is six months and above.