Life happens in unexpected ways every day. As the saying goes, when you make plans, God laughs. Life teaches us, again and again, to expect the unexpected, and yet, sometimes you get caught off guard.
Finding the right short-term personal loan depends on several factors, such as what the loan is for, the length of the loan, or the borrower's credit score. Once you find a loan, you have to determine the best one for you. There are a lot of terms to take into account, such as your ability to repay the loan, how it will affect your credit, whether you can get by with a payday loan or need something more.
If you're looking into getting short-term loans online, these are some reputable, well-reviewed places to get started.
Best Short-Term Loans
- PersonalLoans.com - Best for loans under $10,000
- Rapid1k.com - Best for loans under $2,500
- BadCreditLoans.com - Best for bad credit loans
- Now10k.com - Best for a quick loan
- Lendafy.app - Best for short term personal loans
- Upstart.com - Best for lower interest rates
PersonalLoans.com
Overview
- Loan type: Short-term personal loan
- Loan amount: $100-$10,000
- Qualifications: 18 years of age or older, valid identification, regular income, a bank account, telephone number, and email address
- Estimated interest rates: Vary by lender (169% and 1,825% APR for small-dollar loans)
- Fees: Late payment fee at the discretion of the lender
PersonalLoans offers users two types of short-term loans. There are personal loans and small-dollar loans. Personal loans require collateral and can range from $100-$10,000 depending on the lender, while small-dollar loans are unsecured loans of up to $5,000 that are typically expected to be paid back quickly.
This site has a network of short-term loan providers that they share your information with. Simply fill out a form with the necessary information, and PersonalLoans connects you with possible loan providers. PersonalLoans doesn't charge any fees for this service.
Reviewers love PersonalLoans because of the low bar to qualify, especially for the small-dollar loans, also known as payday loans. This makes getting a personal loan a possibility for those who wouldn't otherwise have the option.
Pros
- Lenders provide answers within minutes, with some prepared to deliver funds the following business day
- No obligation to accept any of the offered loans
- Borrowers with a low credit score or no credit history are still considered
Cons
- PersonalLoans isn't responsible for determining or modifying short-term loan payout terms or repayment terms
- Lenders can report late payments to credit bureaus without notifying PersonalLoans
Rapid1k.com
Overview
- Loan type: Short-term loan and small-dollar loans
- Loan amount: $100- $2,500
- Qualifications: 18 years of age or older, valid identification, regular income, a bank account, telephone number, and email address.
- Estimated interest rates: 169% to 1,825.00% APR
- Fees: Late payment fee at the discretion of the lender
Rapid1k also has a network of short-term loan lenders it connects potential borrowers with. Rapid1k focuses on borrowers who are looking for emergency funds. This is the kind of money you might need in a medical emergency or natural disaster, so the loan terms differ from other personal loans.
The application process for these short-term loans is simple. It takes just a few minutes and a few pieces of essential information to complete the application. Then, Rapid1k connects you with online lenders.
From there, you review the loan teams and conditions, as well as the interest rate. Funds can be made available as soon as the following business day.
Reviewers have few complaints about the service. Some have said there could be greater transparency regarding lenders and loan terms, but they still disclose all the legally obligated information before issuing any money.
Pros
- Emergency loans are available to lenders with bad credit or no credit history
- Simple form takes minutes to complete
- Funds can be ready in as little as one business day
Cons
- Cannot use if you have an active or recent bankruptcy or a history of late payments
- APRs are high
BadCreditLoans.com
Overview
- Loan type: Short-term personal loans
- Loan amount: $500-$10,000
- Qualifications: 18 years or older, U.S. citizen or legal resident, bank account, and regular income
- Estimated interest rates: 5.99 - 35.99% APR
- Fees: At the discretion of lenders
BadCreditLoans also connected borrowers to different short-term loan providers based on the information provided in a simple form. The providers are reputable names that have provided short-term loans for years and have many happy customers.
As an informed borrower, you'll have the opportunity to review the loan terms and discover any possible fees, as well as learn about your loan's APR. The interest rates from BadCreditLoan's network of providers are more similar to what you would see from other personal loan providers.
With BadCreditLoans, borrowers have 90 days to start repaying their short-term loans. There's a 72-month (6 years) maximum repayment term.
Pros
- No collateral required
- Simple request form
- Positive reputation since 1998
Cons
- Interest rates can vary significantly by lender
- Some reviewers were uncomfortable with how much upfront information she requires
Now10k.com
Overview
- Loan type: Short-term personal loan
- Loan amount: $100 - $10,000
- Qualifications: Valid identification, regular income, and a bank account.
- Estimated interest rates: 169% to 1,825.00%
- Fees: Vary by the lender (many with origination fees)
Now10K offers quick access to short-term loans, particularly emergency loans, with a simple application process that links borrowers and lenders in a matter of minutes. If approved, lenders can deposit funds into your bank account within a single business day.
Reviewers have noted that Now10K takes a close look at financial history, including employment history, income history, and more. They have an excellent reputation for working with lenders with bad credit or short credit history to secure their necessary funds.
Now10K can also be a solid option for borrowers with poor credit. These payday loans can help those with bad credit build themselves up to a better credit score if used responsibly.
Pros
- Accessible site makes it easy to access applications for emergency funds from any device
- Bad credit doesn't prevent lenders from approving applications.
Cons
- Income and credit score are heavily considered for lending amounts
- Loans that aren't repaid go into collections and continue to accrue interest during that time
- High origination fee
Lendafy.app
Overview
- Loan type: Short-term personal loans and small-dollar loans
- Loan amount: $100 - $10,000
- Qualifications: 18 years or older, U.S. citizen or legal resident, bank account, and regular income
- Estimated interest rates: 169% - 1,825.00% APR
- Fees: Vary by the lender, subject to high finance fees in certain states. Origination fees also vary from state to state.
Lendafy is another service that connects short-term loan borrowers and loan lenders. They offer small-dollar loans that are perfect for an emergency. Similar to a payday loan, these are small amounts of money expected to be paid back quickly. If approved, the funds can be in your account by the next day.
Reviewers have praised Lendafy for their loan terms, but also because of their long history of providing personal loans who find themselves in need in a pinch. Many have been able to use the service to build credit when they had little or no credit history, making it an excellent short-term loan option for younger or more inexperienced lenders
Pros
- Acceptance is available for those with bad credit or short credit history
- Quick application process
Cons
- APRs are too high for lenders in certain states to get loans due to local laws
- Late payment fees are high
Upstart.com
Overview
- Loan type: Short-term personal loans
- Loan amount: $1,000 - $5,000
- Qualifications: 18 years or older, valid identification, and a bank account
- Estimated interest rates: 6.95 - 35.99% APR
- Fees: Origination fee 0-8%, late fee of $15 or 5% of the amount due
Upstart is an excellent option for short-term loans if you're looking to borrow some money and are confident your credit score can back it up. Providers that work with Upstart offer unsecured personal loans designed to be paid back in 3 or 5-year repayment terms.
That said, the qualifications are steeper than they are with other short-term loans. Upstart considers different information when offering a short-term loan than most other lenders. They consider education, job history, residence, and other factors using artificial intelligence when evaluating their borrowers.
These special considerations make it easier for younger buyers with little credit history to get the funds they need from a short-term loan. Note that a short-term loan payout can happen in just one business day, but if you're borrowing to pay back educational expenses, you are subject to a 3-day waiting period.
Pros
- Same-day approval for emergency loan applications
- The pre-qualification process lets you find out if you're eligible before checking your credit report
- Accepts those with little or no credit history
- Offer direct payment to credits with some debt consolidation loans
Cons
- Borrowers are required to have a minimum credit score of 600
- Late fees apply after ten days of missed payment
- High origination fees
FAQs
What is a small-dollar loan?
Small-dollar loans, also known as payday loans, are meant to cover an amount of money you can repay upon your next paycheck. These loans have been outlawed in 12 states. Terms can vary greatly depending on regulations in the remaining states.
Why can't I get a small-dollar loan in my state?
Some states have outlawed lending that has interest rates above a certain percentage. This limits the abilities of short-term loan lenders in these states. As a result, short-term lenders in those states are left to explore other options to pay off their debt, as these loans are seen as predatory.
What is the difference between a secure loan and an unsecured loan?
A secure loan is the standard type of loan you think about, where some kind of collateral is required for lenders to release funds. Secured loans typically have lower rates, higher borrowing limits, and longer repayment terms.
Unsecured loans are often payday loans or other short-term loans with low loan amounts. The lenders still consider your financial history in determining the loan terms, but it still helps those who cannot provide collateral with the means to borrow money.
What are origination fees?
Various fees can be attached to personal loans. Many lenders charge borrowers a fee for late or missed payments, for example.
Origination fees are another typical fee. This charge is from the loan lender for processing your new loan application. It's typically due upfront to cover the lender's cost for vetting a new borrower. The origination fee is generally deducted from the loan amount.
Why is there such a high-interest rate on my loan?
The lender assumes a more significant risk because the qualifications to take out a short-term loan are lesser than the average loan through a bank or credit union. Some of these loans require no collateral, meaning there's no guarantee the lender gets back what's owed to them. The borrowers on short-term loans are considered riskier, hence the higher interest rate.
What can I use a short-term loan for?
There are countless reasons you can find yourself in need of fast cash. A pipe bursts in your basement. A tree falls on your car. Even medical emergencies can catch you by surprise. Sometimes what cash you have on hand just isn't going to cut it.
You could also be looking for a short-term loan if you're looking to build your credit. Used responsibly for debt consolidation or credit building, short-term loans can help put you in a better financial situation where you can then borrow with lower interest rates, higher borrowing limits, and other perks.
Not all short-term loans are created equal. The term can be attached to several different types of loans for small amounts of money. Some are more like secure loans, while others are more like a cash advance.
Think again if you think that banks and credit unions are the only places you can turn for short-term loans online or in person. The internet has opened up many new options for loan providers, leaving those who get rejected by credit unions and banks with other options. Gone are the days when you need to run up or max out a credit card to get a short-term loan. There are even short-term loans with favorable loan terms that help lenders instead of harming them.
Finding the right short-term personal loan depends on several factors, such as what the loan is for, the length of the loan, or the borrower's credit score. Once you find a loan, you have to determine the best one for you. There are many terms to consider, such as your ability to repay the loan, how it will affect your credit, whether you can get by with a payday loan or need something more.
Conclusion
There's no telling when you'll find yourself looking for a loan fast. There are a lot of different options out there, from payday loans to personal loans. What you're looking for from a short-term loan will depend on your circumstances. After all, you're looking at a different price tag for a car repair than you are for an unexpected surgery.
As a borrower, you need to think about if you can repay the loan and how it will affect your credit. You must know all the terms and conditions around your loans. Compare and contrast different lenders to ensure you've reviewed all your options and figure out what personal loan is right for you.
Short-term loans can help you out in a pinch, but make sure you know what you're doing before you jump in. Thankfully, these dependable providers make getting a short-term loan just a little bit easier.
