Best Short-Term Loans in 2023

Personal loans with one-to-three year terms

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Best short-term personal loans in 2023

Written by Carol Pope | Edited by Amanda Push and Janet Schaaf | Updated October 26, 2023
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LenderUser ratingsBest for…APR rangeLoan termsLoan amountsCredit score required
(1,526)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

Short-term loans for fair credit9.95% to 35.95%12 to 60 months$2,000 to $35,000580
(2)
User Ratings & Reviews rating-reviews-tooltip-icon

Ratings and reviews are from real consumers who have used the lending partner’s services.

Short-term loans for customer satisfaction7.49% to 25.49% (with autopay)24 to 144 months$5,000 to $100,000Not specified
Small short-term loans7.99% to 17.99%12 to 60 months$600 to $50,000700
Quick short-term loans8.99% to 25.81% (with discounts)24 to 84 months$5,000 to $100,000680
Secured short-term loan8.49% to 35.99% (with autopay)24 to 84 months$1,000 to $50,000580
Short-term loan for bad or no credit6.40% to 35.99%36 and 60 months$1,000 to $50,000300

Short-term loan lenders at a glance

Best short-term loans for fair credit

APR range9.95% to 35.95%
Loan amounts$2,000 to $35,000
Loan terms12 to 60 months
Origination feeUp to 4.75%
Funding timelineAs soon as the next business day
Minimum credit score580
ProsCons

 Offers loans to those with bad and fair credit

 Highly rated mobile app for account management

 Offers approval in minutes

 APRs not as competitive as some

 Possible origination fee

 $25 late payment fee

 Not available in all states

Best short-term loans for customer satisfaction

APR range7.49% to 25.49% with autopay
Loan amounts$5,000 to $100,000
Loan terms24 to 144 months
Origination feeNone
Funding timelineAs soon as the same day
Minimum credit scoreNot specified
ProsCons

 Offers unique programs aimed toward customer satisfaction

 Competitive maximum APR

 Flexible term lengths

 No origination or late payment fees

 Must have good-to-excellent credit to qualify

 No prequalification

 Cannot change monthly due date

Best small short-term loans

APR range7.99% to 17.99%
Loan amounts$600 to $50,000
Loan terms12 to 60 months
Origination feeNone
Funding timelineAs soon as the next business day
Minimum credit score700
ProsCons

 Low minimum loan amount

 Offers joint loans

 Can prequalify

 Must join credit union to borrow

 High credit score requirement

 $29 late payment fee

Best quick short-term loans

APR range8.99% to 25.81% with discounts
Loan amounts$5,000 to $100,000
Loan terms24 to 84 months
Origination fee0% to 6% (not required)
Funding timelineAs soon as the same day
Minimum credit score680
ProsCons

 Offers quick loans

 Unemployment Protection benefit could bring peace of mind

 No late payment fees

 Must pay origination fee for lowest APR

 High minimum loan amount

 Not available to bad-credit borrowers

Best secured short-term loans

APR range8.49% to 35.99% (with autopay)
Loan amounts$1,000 to $50,000
Loan terms24 to 84 months
Origination fee1.85% - 9.99%
Funding timelineAs soon as the next business day
Minimum credit score580
ProsCons

 May offer lower APRs if you use your car as collateral

 Lower minimum credit score requirement

 Wide range of loan amounts

 Not all cars qualify as collateral

 Charges an origination fee

  $10 late payment fee

Best short-term loans for bad or no credit

APR range6.40% to 35.99%
Loan amounts$1,000 to $50,000
Loan terms36 and 60 months
Origination fee0.00% - 12.00%
Funding timelineAs soon as the next business day
Minimum credit score300
ProsCons

 May be available if you have no or bad credit

 Low minimum APR

 Customer service available seven days a week (excluding major holidays)

 Potential for high origination fee

 Only two term lengths offered

 Charges 5% of unpaid amount or $15 (whichever is greater) for late payments

What is a short-term loan?

There is no standard definition of short-term loan, but generally, it’s a personal loan with short repayment terms. A term is the amount of time you have to repay your lender, and you choose it before the lender finalizes your loan. Sometimes, you can refinance a personal loan after the fact to make your term longer or shorter.

Short loan terms can range between 12 and 36 months, though they may be even shorter depending on the lender and type of loan. Short-term loans may also come with higher minimum monthly payments, but you’ll pay less interest than you would with long-term loans.

Short-term loan pros and cons

Some lenders will allow you to modify your loan in the middle of your term; others are less flexible. In other words, you should choose a loan term you can handle — you might be stuck with it.

Like any financial product, short-term loans come with pros and cons. Consider below:

ProsCons

 Less interest. The shorter your term, the less interest you’ll pay over the life of your loan.

 Lower interest rates. Personal loans with shorter loan terms typically have lower interest rates.

 Less time in debt. Taking out a short-term loan means you’ll be in debt for a shorter period of time.

 Higher monthly payments. Since you’ll have less time to spread out your balance, your monthly payments will be higher.

 Limited availability. Not all lenders offer short-term loans.

 Can come with risk. Short-term loans usually have higher monthly payments. If you run into financial hardship, a short-term loan could put strain on your budget.

 Predatory lending. A days- or months-long loan term can be a sign of predatory lending.

How to compare short-term loans

Comparing short-term loans can be confusing, especially if this is your first time borrowing money. Referencing the definitions below while reviewing your loan offers might make the process easier.

  • Loan term length: Your loan term length is the amount of time you have to repay what you borrowed. Choosing the best loan term can be a balancing act. A longer loan term means you’ll pay more interest, but a short-term loan has higher monthly payments. Use our personal loan calculator to see how different term lengths can affect the total cost of your loan.
  • APR: Annual percentage rate (APR) is the overall cost of your loan, including your interest rate and fees. The lower your APR, the more affordable your loan. Since borrowers with higher credit scores are statistically less likely to default on a loan, lenders give them the lowest APRs.
  • Funding timeline: This measures how long it will take for you to receive your funds. This metric may be especially important if you need an emergency loan. When reviewing funding timelines, be sure to account for the amount of time a lender needs to provide its approval decision, as well as how long it takes to disburse your funds.
  • Fees: Some lenders charge more fees than others. Keep an eye out for origination fees, or an upfront fee that the lender deducts from your total loan amount. While less common, some short-term loans come with a prepayment penalty. This is an extra charge for paying your loan off before the end of your term.
  • Repayment experience: Everyone likes to do business differently. If you usually make online payments on your other bills, you may want to check out lenders’ mobile app reviews. If you enjoy doing business one-on-one, a bank or credit union might be more your style. Make sure a lender can meet your preferences before signing on the dotted line.

How to qualify for a short-term loan if you have bad credit

Taking out a short-term loan with bad credit may be possible, but you might want to take the steps below to boost your personal loan approval odds.

  • Check your credit score. Checking your credit score before applying for a loan can help you weed out the lenders that you probably aren’t eligible for. This is especially important if the lender doesn’t offer prequalification (since you’ll have to submit to a hard credit pull to check your eligibility).
  • Make on-time payments. Your credit score is calculated using several metrics. Of them, your payment history is the most significant (it makes up 35% of your score). Suffice it to say, making your payments on time is essential if you’re trying to improve your credit.
  • Pay down existing debt. Many lenders review your debt-to-income ratio (DTI) to help determine your ability to repay a loan. Your DTI compares how much money you make to the amount you spend. Lenders typically consider a DTI below 35% “good.” If yours is 43% or higher, you may want to pay down some of your current debt.
  • Target bad-credit lenders. If you don’t meet the personal loan requirements for more traditional lenders, you may need to apply with those that specialize in bad credit. Do note that while you may find a willing lender by using this tactic, you’ll likely face higher APRs.
 Get free credit score insights with Spring

Your credit score is more than just a number — so much of your life can be dictated by these three digits. Your credit score can make or break your ability to take out a loan, buy a new home or even land that dream job.

Keep your finger on your finances with LendingTree Spring. With Spring, you can check your credit score and see how it may be affected if you take out a short-term loan.

Avoiding predatory short-term loans

Short-term loans can be helpful, but this product is often used in predatory lending. To avoid being taken advantage of, you might want to avoid a short-term loan if it also:

 Doesn’t require a credit check

 Carries an APR above 36%

 Comes with a prepayment penalty

 Requires a days- or weeks-long loan term

 Has a lot of negative feedback on the Consumer Financial Protection Bureau’s complaint database

If your short-term loan comes with any of these red flags, you might want to move on to another lender. A predatory loan (such as a payday loan) will likely leave you worse off than where you started.

Other types of short-term loans

Thanks to excessively high APRs or extra-short repayment terms, we recommend skipping many of the short-term loans below. Still, knowing what’s out there could help you avoid the cycle of debt.

Paycheck advance

Some employers may let you take a paycheck advance, which is like getting paid before you’ve completed the work. With this type of loan, you’ll be borrowing a portion of your next paycheck. This can be handy in the present moment, but not so much for your future self.

Employers are not allowed to make a profit through paycheck advances, but they can charge a fee or interest to pay for the extra accounting needed to provide this short-term loan.

Not all employers allow paycheck advances, but there are mobile paycheck advance apps that can help you borrow funds sans credit check. When you get your next paycheck, the amount you borrowed will be deducted from your account, usually with no fees or interest.

Paycheck advance apps usually only lend a couple of hundred of dollars at a time, at least to start. Take the mobile app EarnIn. When you first sign up, you can only borrow up to $100. But over time, you may be able to increase your paycheck advance amount, up to $750.

Credit card cash advance

You can borrow against your current credit card and get a cash loan by taking a cash advance. Since you’ve already been approved for the card, you don’t have to go through another credit check to get this short-term loan.

You may be able to withdraw funds from an ATM using your credit card that allows credit advances or through a convenience check sent by the credit card company. How much you can access generally depends on your credit limit, but some lenders may have a separate cash advance credit limit.

Beware: Using your credit card to get access to cash can be expensive. You’ll probably have to pay extra fees, but companies might charge a higher interest rate, too. That interest also begins to accrue immediately, leading you to owe more than you borrowed by your first billing cycle.

Pawnshop loan

If you have a valuable item — such as jewelry or a musical instrument — that you’re willing to risk, you could get a pawnshop loan. With this short-term loan, you’ll use your valuable item as collateral. If you can’t hold up your end of the loan, the pawnshop gets your item (for good).

To make a profit, pawnshops usually offer loans for 25% to 60% of your item’s worth. Since the pawnshop undervalues your collateral, you might be forced to put up something very valuable to get the loan amount you need.

According to the National Pawnbrokers Association, the average pawnshop loan is $180, and the shop will usually require you to pay back your loan within 30 days. Most pawnshops don’t charge interest, but don’t think you’ll get away scot-free. Instead of interest, they’ll charge fees. Many times, these fees reach predatory levels.

On the plus side, you don’t need to pass a credit check to get a pawnshop loan. Also, defaulting or making late payments won’t impact your credit score.

Car title loan

Car title loans are another type of short-term loan that requires collateral. This time, you’ll use your car title, motorcycle title or truck title rather than a valuable personal item. Like pawnshops, car title loan lenders undervalue your collateral, typically to the tune of 25% to 50%.

Since the lender knows it can recoup some of its losses through repossession, it doesn’t check your credit or have stringent requirements. On the other hand, you may lose your vehicle if you don’t make payments. Title loans also come with fees that may equate to 300% APR, and you’ll probably only have 30 days or less to pay back what you borrowed.

Payday loan

Payday loans are similar to paycheck advances, but they’re offered by lenders rather than your employer or an app. These short-term loans have lax requirements. You usually only need to provide proof of income and have a bank account — no credit check is required.

While these loans are easy to get, payday loans come with colossal interest rates, like 400% APR. Payday loans typically come with a fee between $10 and $30 for every $100 borrowed, but this depends on state laws. You might also face fees for accessing your loan through a prepaid debit card, if that’s how you opt for payment.

Even though you’ll pay dearly for a payday loan, you’ll only get a small amount of money in return. While this varies by state, $500 is a common loan size. You’ll also need to repay your loan (plus interest) in one lump sum, usually through your next paycheck.

How we chose the best short-term loans

We reviewed more than 28 lenders to determine the overall best short-term personal loans. To make our list, lenders must offer personal loans with a minimum term between 12 and 36 months. The lender must also offer competitive annual percentage rates (APRs). From there, we prioritize lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

Frequently asked questions

Whether a short-term loan is hard to get depends on your credit and the lender in question. Many of the best short-term loans are simply standard personal loans with a repayment term between 12 and 36 months.
 
Generally, it can be harder to qualify for an affordable personal loan with a credit score below 640, but some lenders are willing to loan to bad-credit borrowers at a higher APR.

The length of a personal loan term varies by lender and the type of loan you choose. For example, payday loans tend to have terms that only extend a few weeks. Traditional lenders may have terms that span at least one to three years.

As long as your lender reports your payments to the credit bureaus, on-time payments can build your credit. On the flip side, that means that late payments can hurt your credit, too. Not all lenders report to the bureaus, so you may want to spend time researching before taking out your short-term loan.