An unexpected expense just hit—your car breaks down, a medical bill arrives, or rent is due. You need cash fast, but your credit score is holding you back. Banks won’t approve you, and payday loans come with sky-high interest rates.
Short-term loans for bad credit can help. While they cost more than traditional personal loans, they’re a safer alternative to payday or title loans with triple-digit APRs. Below, we cover the best short-term loan options that offer fast funding—even if your credit isn’t perfect.
Best Short-Term Loans from Online Marketplaces
Choosing a reputable lender helps you avoid hidden fees and extreme interest rates.
Not sure where to start? We’ve listed online lenders with clear terms and a simple application process to help you find a short-term loan, even with bad credit.
MoneyMutual
MoneyMutual is an online marketplace that connects borrowers with a network of lenders offering short-term cash advance loans.
BadCreditLoans.com
BadCreditLoans.com is an online platform that connects borrowers with lenders offering personal loans tailored for individuals with less-than-perfect credit.
PersonalLoans.com
PersonalLoans.com is an online lending network that connects borrowers with lenders offering personal loans.
Best Short-Term Loans from Direct Lenders
Here are some options for applying directly with a reputable lender instead of using loan marketplaces:
Lending Point
LendingPoint is an online lender specializing in personal loans for individuals with fair to good credit.
NetCredit
NetCredit offers online personal loans and lines of credit for individuals with less-than-perfect credit.
Side-by-Side Comparison of Short-Term Loans for Bad Credit
Now that we’ve covered the details of each lender, here’s a side-by-side comparison to help you quickly see the key differences. Use this table to compare loan amounts, APRs, repayment terms, and funding times so you can choose the best option for your situation.
| Lender | Loan Amount | APR Range | Repayment Terms | Funding Time |
|---|---|---|---|---|
| MoneyMutual | $250 – $5,000 | Varies | Varies | As fast as 24 hours |
| BadCreditLoans.com | $500 – $10,000 | Varies | 3 – 72 months | Next business day |
| PersonalLoans.com | $500 to $35,000 | 5.99% – 35.99% | 6 – 72 months | 1 – 5 business days |
| LendingPoint | $1,000 – $36,500 | 7.99% – 35.99% | 24 – 72 months | Next business day |
| NetCredit | $1,000 – $10,000 | 34% – 155% | 6 – 60 months | As fast as 1 day |
How Your Credit Scores Affect Your Loan Options
Your credit score plays a major role in the loans you qualify for and the terms lenders offer. A higher score makes it easier to get approved for loans with lower interest rates and better repayment terms.
A lower score can limit options, leading to higher rates, stricter terms, or even denied applications. However, a bad credit score isn’t permanent. Paying bills on time, keeping credit utilization low, and managing debt wisely can help improve it over time.
Even with bad credit, some loan options are still available. Knowing which ones to consider can prevent you from getting stuck with high-interest debt. With the right approach, rebuilding credit is possible, leading to better financial opportunities.
Pros & Cons of Short-Term Loans for Bad Credit
Short-term loans can be a lifeline in emergencies, but they come with trade-offs. Here’s what to consider before borrowing.
Pros
- Fast funding: Many lenders offer same-day or next-day cash.
- Easier approval: Some lenders focus more on income than credit score.
- No collateral needed: Most loans are unsecured, so you don’t risk losing assets.
Cons
- High interest rates: These loans cost more than traditional personal loans.
- Short repayment terms: Some require full repayment in just a few weeks.
- Risk of debt cycle: Reborrowing to cover payments can lead to long-term financial trouble.
How to Choose the Best Short-Term Loan
Not all short-term loans are created equal. Choosing the right one can save you money and prevent financial headaches. Here’s what to look for:
- Compare APRs & fees: A lower interest rate means lower borrowing costs. Watch out for high fees that could make the loan more expensive.
- Check repayment terms: Some loans require full repayment in weeks, while others offer installment options. Pick one that fits your budget.
- Verify lender reputation: Make sure the lender is licensed in your state and check customer reviews to avoid scams or predatory practices.
- Read the fine print: Look for hidden fees, prepayment penalties, or terms that could cost you more in the long run.
- Assess affordability: Borrow only what you can realistically repay to avoid getting trapped in a cycle of debt.
Bottom Line
Short-term loans can provide fast cash, but they should be a last resort. Borrow only what you can repay and choose a lender with fair terms. High interest rates and short repayment periods can make these loans expensive, so compare options carefully.
If you rely on short-term loans often, consider ways to improve your financial situation. Building an emergency fund, reducing expenses, or boosting your credit score can help you qualify for better loan terms in the future. The best financial safety net is one that doesn’t require borrowing.
Frequently Asked Questions
What is a short-term loan?
A short-term loan is a loan that must be repaid within a few weeks to a year, unlike traditional loans that have multi-year terms. These loans provide quick cash for unexpected expenses or temporary financial shortfalls.
Most short-term loans are installment loans, but they can also include payday loans, lines of credit, title loans, and pawn shop loans. Each option comes with different costs and risks, so it’s important to understand the terms before borrowing.
What is the difference between a payday loan and a short-term personal loan?
A payday loan is a high-cost, short-term loan that typically must be repaid in full by your next paycheck. These loans often come with extremely high interest rates and fees, making them a risky option.
A short-term personal loan, on the other hand, usually has a longer repayment period, lower interest rates, and is structured as an installment loan with fixed monthly payments.
Do banks offer short-term loans?
Yes, banks, credit unions, and online lenders offer short-term loans, but approval requirements vary. Banks and credit unions often have stricter credit and income criteria, making it harder to qualify with bad credit. Online lenders tend to have more flexible requirements, making them a better option for borrowers with lower credit scores or those needing fast funding.
What happens if I can’t repay my short-term loan on time?
If you miss a payment or fail to repay your loan on time, you may face late fees, higher interest charges, and potential damage to your credit score. Some lenders offer extensions or alternative repayment plans, but others may send your account to collections quickly. It’s important to contact the lender as soon as you anticipate difficulty making a payment.
Are there alternatives to short-term loans if I have bad credit?
Yes, there are other options to consider if you have bad credit. Credit unions sometimes offer small-dollar loans with more favorable terms. Some lenders provide secured loans that require collateral but offer lower interest rates. You may also consider borrowing from friends or family, negotiating payment plans with creditors, or seeking assistance from local financial aid programs.
