Best Short-Term Loans of December 2024

ElitePersonalFinance
Last Update: November 10, 2024 Loan Reviews Loans

Short-term loans are loans that come with short repayment periods. In this article, we pick loans that are with relatively short minimum terms, of up to 1 to 3 years. These are the loans that have the best terms and cheapest APR, but they require a high credit score.

Is this what you were looking for? Then move on.

But most people are actually searching for short-term loans for bad credit, which is something different. And many of them end up with payday loans. This is exactly what we recommend avoiding. We created another article on short-term loans for bad credit that are not payday loans. There you will learn many options to get cheaper than payday loans if you have bad credit. Here is it:

https://www.elitepersonalfinance.com/best-short-term-loans-bad-credit/

To find all loans in one place, visit our marketplace.

Best Short-Term Loans of December 2024: Key Findings

Short-term loans typically are also small-amount loans. Their repayment period is less, their monthly fees are higher, and their total amount paid is lower.

Before getting a loan with higher monthly fees, it is essential to examine your finances and ensure that you can afford them without problems.

Loans on our list range from $100 to $250,000, with APRs not exceeding 35.99%. Their terms offer minimum repayment from 1 month to 10 years. They require a high minimum credit score of 550 to 700.

To create this list, we pick lenders that offer minimum terms of 1 to 3 years.

You can always give back your loan at any time. If you have a long-term loan, and you decide to cancel it, the lender will give you a discount.

Short-term loans for bad credit are not payday loans. We have an advanced article that discusses the types of short-term loans for bad credit that are cheaper than payday loans.

Best Short-Term Loans of December 2024

Lender: Loan Amount: APR: Min. Credit Score: Terms: Best For:
SoFi $5,000 – $100,000 5.74% – 20.28% 680 24 – 84 months No-fee personal loans
PersonalLoans $1,000 – $35,000 5.99% – 35.99% 580 3 – 72 months Short and long-term personal loans
PNC Bank $1,000 – $35,000 5.99% – 35.99% 660 6 – 60 months Online and in-person service
TD Bank $2,000 – $50,000 6.99% – 18.99% 700 12 – 60 months Good to excellent credit scores
Wells Fargo $3,000 – $100,000 5.74% – 19.99% 660 12 – 84  months Wells Fargo customers
Happy Money $5,000 – $40,000 5.99% – 24.99% 550 24 – 60 months A stable credit history
Uprova $300 – $5,000 34.5% – 35.99% 580 3 – 36 months Avoiding loan origination fees
FreedomPlus $7,500 – $50,000 7.99% – 29.99% 620 24 – 60 months Debt consolidation
LendingTree $1,000 – $50,000 2.49% – 35.99% 600 9 – 36 months Obtaining a low APR

Why Trust ElitesPersonalFinance Guides?

Our marketplace is full of lenders vying for your business with low-interest rates and excellent repayment terms. ElitesPersonalFinance is one of the few natural sources to help you understand what you’re getting into before signing on the dotted line.

Regarding financial products like loans, we believe that knowledge is power. With that in mind, we work with reputable companies to ensure that our readers get the most accurate and up-to-date information.

Note that ElitesPersonalFinance strives to provide accurate and updated information. However, rates and terms are subject to change at any time. Always confirm terms and conditions with the provider before making final decisions.

SoFi

Loan Amount: $5,000 – $100,000
APR: 7.99% – 23.43%
Min. Credit Score: 680
Approval: 1 – 7 Days
Terms: 24 – 84 months
Fees:
  • There are no loan origination fees
  • There are no late payment fees
  • There are no closing fees
  • There are no prepayment fees
Qualification Criteria:
  • Meet the minimum age requirement of 18
  • It would help if you had a score of 680 or higher.
  • Have a job, an offer of employment with a start date within the next 60 days, or a steady stream of Money from another source.
  • Get started now by registering with SoFi’s website.
Average Borrower Profile:
  • Holds a Credit Score of 700
  • Makes a total annual gross income of $100,000
  • Generates $5,696 in monthly free cash flow
  • For those with a perfect credit history, the APR is only 6.59%
  • An interest rate of 10.93% is charged for good credit.
Best For: No-fee personal loans
Check rates

SoFi is best for those with good credit who are seeking a high loan amount and no-fee personal loan. The lender offers loans directly to consumers. SoFi requires borrowers to have a minimum credit score of 680 or higher, and an annual gross income of $100,000.

SoFi offers eligible borrowers loan amounts of $5,000 to $100,000, with repayment terms of 24 to 84 months. SoFi charges no loan origination fees, late payment fees, closing fees, or prepayment penalties. Basically, this lender charges an APR of between 7.99% – 23.43% for their personal loans.

The best part? For those with a perfect credit history, the APR is only 6.59%.

An interest rate of 10.93% is charged for good credit. Additionally, the company offers career coaching and financial planning services to help you stay on track.

SoFi short-term loans start at 2 years and $5,000.

However, to be eligible, you must be employed, have an offer of employment with a start date within the next 60 days, or have a steady stream of income from another source.

SoFi is a better lender that offers more personal loan options, lower interest rates, and no fees.

It’s also worth noting that the typical SoFi borrower has a FICO Score of 700, suggesting that the lender may apply harsher underwriting rules to this group of borrowers. The application will not affect your credit score.

Pros:

  • No fees whatsoever
  • A wide variety of loan terms
  • Get $10 if you open a SoFi Money account
  • Financing rates range between 7.99% and 23.43%

Cons:

  • Higher credit score requirements
  • The minimum loan amount is $5,000

The impact of COVID-19:

SoFi’s Special Handling Team helped borrowers who had trouble making loan payments during the pandemic. Contact SoFi at 1-855-456-7634 for more information if you’re in a similar position.

PersonalLoans

Loan Amount: $1,000 – $35,000
APR: 5.99% – 35.99%
Min. Credit Score: 580
Approval: 1 Day
Terms: 3 – 72 months
Fees:
  • Loan origination fee of 1% – 5%
  • You may incur late payment fees after a 15-day grace period
  • Most lenders don’t charge prepayment fees
Qualification Criteria:
  • Be at least 18 years of age
  • Your credit score must be at least 580 to qualify.
    Typically, a maximum DTI of 43% is permitted
  • Regularly receive Money from work or the government
  • Avoid a history of payment delays, insolvencies, or charge-offs
  • Access PersonalLoans’ online application by filling out the required fields
Average Borrower Profile:
  • Lenders, including banks and other financial institutions, post customized loans and other financial product offers on PersonalLoans, which borrowers can then peruse
  • Numerous financing choices exist for people with poor, average, sound, and exceptional credit
Best For: Short and long-term personal loans
Check rates

PersonalLoans is an excellent lender for borrowers looking for short and long-term personal loans. However, you must have a minimum credit score of 580 or higher, a minimum income of $1,000, and a maximum DTI of 43%.

PersonalLoans provides access to various loan terms, with a minimum of 3 months, which makes them one of the best big lenders with great short-term loans. PersonalLoans loans are with APR of 5.99% to 35.99%.

If you’re considering a personal loan from PersonalLoans, it’s essential to know that there is an origination fee of 1% – 5%. PersonalLoans is also one of the few companies that charge a late payment fee after a 15-day grace period.

Nonetheless, PersonalLoans is an excellent option if you need a loan and have less-than-perfect credit.

Pros:

  • A wide variety of loan terms
  • Origination fees as low as 1%
  • Late payment fees after a 15-day grace period
  • Available in all states

Cons:

  • Loan origination fee of 1% – 5%
  • Late payment fees after a 15-day grace period
  • A minimum credit score of 580

The impact of COVID-19:

PersonalLoans is a comparison platform and does not provide loans itself. More importantly, PersonalLoans lenders choose their deferment and forbearance terms. Therefore, you should contact your lender immediately to discuss your choices.

PNC Bank

Loan Amount: $1,000 – $35,000
APR: 5.99% – 28.74%
Min. Credit Score: 660
Approval: 1 – 7 Days
Terms: 6 – 60 months
Fees:
  • Late payment fee of 10% of the amount due, or $40, whichever is greater, after a 15-day grace period
  • Insufficient funds fee of $36
  • There are no loan origination fees
  • There are no prepayment fees
Qualification Criteria:
  • Be at least 18 years of age
  • Have a credit score of at least 660
  • The maximum DTI ratio is often 45%
  • Have recurring employment income or government benefits
  • Apply online or at a PNC Bank branch
Average Borrower Profile: PNC Bank doesn’t disclose average personal loan statistics
Best For: Online and in-person service
Check rates

PNC Bank is a wonderful option for those with good credit because its “well-qualified” candidates receive the industry’s lowest annual percentage rates. In addition, this lender is great for both online and in-person services. However, to qualify, you need to have a minimum credit score of 660 and a maximum DTI ratio of 45%.

One can borrow short-term loans between $1,000 and $35,000. Interest rates range from 5.99% to 28.74%, and repayment periods range from six months to five years. The APR range is for loans between $15,000 and $36,000 for a three-year term, according to PNC Bank’s filings. Interest rates as high as 35.99% may apply to other loan amounts and terms. You also can’t utilize the Money for school expenses or consolidating debt.

In contrast, PNC Bank is similar to Wells Fargo in that it is a conventional bank that does not impose such fees on borrowers. For the 0.25% auto-pay discount offered by PNC Bank, you’ll need a PNC Bank checking account. PNC Bank has over 2,600 locations in 29 states, so customers may get help whenever required. Therefore, if you place high importance on face-to-face engagement, you may do better with a traditional lender like Wells Fargo or TD Bank.

In addition, PNC Bank has a comprehensive online portal that makes it easy to apply for a personal loan, check rates, and see if you’re approved. You can also find your local branch and schedule an appointment through the website.
Pros:

  • No origination fees or prepayment penalties
  • Generous 0.25% autopay discount
  • The interest rates for short-term loans offered by PNC Bank vary between 5.99% and 28.74%
  • PNC Bank provides APR reductions to consumers

Cons:

  • You need a PNC Bank checking account to qualify for an autopay discount
  • After the initial grace period of 15 days, a late payment will incur a $40 late fee plus 10% of the outstanding balance
  • There is no cosigner release option
  • The maximum DTI ratio is 45%

The impact of COVID-19:

For people who had trouble making ends meet throughout the pandemic, PNC Bank was there to help. Applying is simple; head to PNC Bank’s online application form and fill it out.

TD Bank

Loan Amount: $2,000 – $50,000
APR: 6.99% – 19.99%
Min. Credit Score: 700
Approval: 1 – 7 Days
Terms: 36 – 60 months
Fees:
  • Late payment fee of 5% of the amount due, or $10, whichever is less
  • There are no loan origination fees
  • There are no prepayment fees
  • There are no application fees
  • There are no insufficient funds fees
Qualification Criteria:
  • Be at least 18 years of age
  • Have a credit score of at least 700
  • The maximum DTI ratio is often 43%
  • Have recurring employment income or government benefits
  • Apply online or at a TD Bank branch
Average Borrower Profile: TD Bank doesn’t disclose average personal loan statistics
Best For: Good to excellent credit scores
Check rates

TD Bank is a well-known lender that issues loans of considerable size. This lender is great for borrowers with good to excellent credit scores of 700 or higher. To qualify, you must have a minimum credit score of 700 and a maximum CTI ratio of 43%

TD Bank offers personal loans ranging from $2,000 to $50,000 and has interest rates of 6.99% to 19.99% for durations of 2 to five years. There are no hidden costs, such as application, prepayment, or origination charges. If you create a checking or savings account with TD Bank and set up automatic payments, your interest rate will be reduced by 0.25%. However, TD Bank charges a late payment fee of either 5% of the overdue amount or $10, whichever is smaller.

The main drawbacks are that TD Bank only lends in 16 states and that a credit score of 700 is required to apply for a loan. However, the bank offers 1,100 locations where you may apply, both in person and online. That’s why TD Bank is a great place to go for a $50,000 personal loan if you prefer dealing with people in person.

Pros:

  • The loan amount is up to $50,000
  • APRs begin at 6.99%TD Bank assesses no origination, prepayment, or NSF fees
  • Your credit rating won’t be impacted by applying

Cons:

  • Chares late payment fees
  • The application process is not available in all states
  • To be approved for the most significant loans, you’ll need an excellent credit score

The Impact of Covid-19:

TD Bank postponed their loan payments to help those affected by the pandemic. But these aid packages were not open to conventional mortgages or home equity lines of credit. You can reach a representative at 1-800-937-5020 if you need help finding a personal loan.

Wells Fargo

Loan Amount: $3,000 – $100,000
APR: 5.74% – 21.74%
Min. Credit Score: 690
Approval: 1 – 7 Days
Terms: 12 – 84  months
Fees:
  • Late payment fee of $39
  • Insufficient funds fee of $39
  • There are no loan origination fees
  • There are no prepayment fees
Qualification Criteria:
  • Be at least 18 years of age
  • Have a credit score of at least 690
  • The maximum DTI ratio is often 43%
  • Have recurring employment income or government benefits
  • Apply online or at a Wells Fargo branch
Average Borrower Profile:
  • APRs between 5.74% and 8.22% for a 3-year term are typical for borrowers with excellent credit.
  • Interest rates for a one-year loan range from 9.47% to 11.96% for borrowers with good credit.
  • Annual percentage rates (APRs) for a three-year loan with a fair credit score range from 11.96% to 14.46%.
Best For: Wells Fargo customers
Check rates

Wells Fargo is a great short-term loan lender for the company’s customers. This lender requires a minimum credit score of 690 and a maximum DTIO ratio of 43%.

Personal loans from Wells Fargo can be obtained for between $3,000 and $100,000 for terms between one and seven years at interest rates between 5.74% and 21.74%. However, maturities between $5,000 and $100,000 range from one to seven years, while maturities between $3,000 and $10,000 range from one to three years.

As an additional stipulation, Wells Fargo will only consider online applications from existing customers. Existing customers, however, may qualify for APR reductions of 0.25per cent to 0.5per cent under specific circumstances. On the other hand, Wells Fargo has more than 7,200 brick-and-mortar facilities in the United States where new clients can apply in person.

Pros: 

  • Short loans from Wells Fargo start at a minimum of $3,000
  • The interest rates on Wells Fargo loans can be between 5.74%t to 21.74%
  • APR reductions are available to Wells Fargo clients
  • Minimum terms for short-term loans start at one year
  • Wells Fargo, much like SoFi, does not charge any fees upfront for making loans to customers

Cons:

  • You will be charged a $39 late fee if your payment is received after the due date
  • The fine for inadequate funds is $39
  • To apply online, you must be a current customer
  • Applying may impact your credit score

The Impact of Covid-19:

Borrowers of some Wells Fargo products, including credit cards, lines of credit, auto loans, and personal loans, were eligible for deferred payment terms during the pandemic. If you still require financial aid, call Wells Fargo at 1-866-828-5047.

Happy Money

Loan Amount: $5,000 – $40,000
APR: 7.99% – 24.99%
Min. Credit Score: 550
Approval: 1 – 7 Days
Terms: 24 – 60 months
Fees:
  • A loan origination fee of 0% – 5%
  • There are no late payment fees
  • There are no application fees
  • There are no prepayment fees
Qualification Criteria:
  • Be at least 18 years of age
  • Have a credit score of at least 550
  • Most of the time, 43% is the highest allowable DTI ratio
  • Get regular payments from work or the government
  • Lack any outstanding debts at the moment
  • Have at least three years of credit history
  • Provide details via Happy Money’s website.
Average Borrower Profile:
  • Has a credit score of 710
  • Has $2,000 in cash flow per month
  • Has a DTI ratio of 40%
Best For: A stable credit history
Check rates

Happy Money is a firm that is known for offering excellent credit card consolidation services. This lender is an excellent option for borrowers with a stable credit history. To qualify for a short-term loan, you must have a minimum credit score of 550, a maximum DTI ratio of 40%, and a $2,000 cash flow monthly.

The typical loan size is between $5,000 and $40,000. However, the smallest loan amount allowed varies by state. The minimum loan amount varies by state, with New Mexico borrowers required to borrow $5,100 and Maryland borrowers needing to borrow $6,100. Lending from Happy Money can be done with a minimum repayment term of 2 years and a maximum of 5 years.

Short-term loans from Happy Money have variable interest rates (APRs) between 7.99% and 24.99%. This APRs are based on a borrower’s creditworthiness, credit utilization, credit history, state of residence, loan amount, loan term, and loan term. Happy Money does not penalize customers for paying off their loans early, like some other lenders. The origination costs for a Happy Money loan range from 0% to 5% of the loan amount and are deducted from the Borrower’s principal after the Loan is funded.

Pros:

  • To prequalify, applicants might run a mild credit check
  • Competitive annual percentage rates (APRs) between 7.99% and 24.99%
  • Borrower qualifications are identified online
  • No late payment penalties will be imposed
  • Creditors who receive loan funds as part of a debt consolidation plan may be eligible for interest rate reductions of 0.25 percent to one percent.

Cons:

  • Origination costs for Happy Money short-term loans range from 0% to 5% of the loan amount.
  • Limited to credit consolidation
  • Happy Money offers $5,000-$40,000 loans. This maximum loan amount is more significant than some online and traditional lenders but lower than market leaders.

The Impact of Covid-19:

Borrowers experiencing COVID-19-related disruptions or other financial hardships can turn to Happy Money’s relief services for assistance. If you have questions regarding the available choices, please contact Happy Money at 1-949-346-8740 or success@happymoney.com.

Uprova

Loan Amount: $300 – $5,000
APR: 34.5% – 35.99%
Min. Credit Score: 580
Approval: 1 – 7 Days
Terms: 9 – 36 months
Fees:
  • Insufficient funds fee of $25
  • Late payment fees often apply
  • There are no application fees
  • There are no loan origination fees
  • There are no prepayment fees
Qualification Criteria:
  • Be at least 18 years of age
  • Have a credit score of at least 580
  • Have recurring employment income or government benefits
  • Fill out your information through Uprova’s online portal
Average Borrower Profile: Uprova doesn’t disclose average personal loan statistics
Best For: Avoiding loan origination fees
Check rates

Uprova is one option on our list of the best short-term loans in 2024 that lend a small loan amount of less than $1,000. This lender is best for borrowers who want to avoid origination fees, and want the smallest loan amounts possible. To qualify, you must have a minimum credit score of 580 or higher.

You can borrow between $300 and $5,000 for nine months to 36 months at an APR between 34.5% and 35.99%. Similar to PersonaLoans, a minimum credit score of 580 is required for approval. Although we want to help everyone who needs a loan, our maximum loan amount is $5,000.

To its credit, Uprova is another option on our list of no-fee loan providers. This fee is deducted from the total amount you are loaned. For example, if you borrow $10,000 but pay a 3% origination charge, you’ll end up with $9,700 in your bank account, and interest will be calculated based on the entire $10,000. Thus, it’s preferable to refrain from doing so.

In addition, neither the application nor the prepayment is charged by Uprova, but the company does impose a $25 cost for inadequate cash and regularly assesses late charges. However, only 28 have access to financing from Uprova.

Pros:

  • You can get a loan from Uprova anywhere from $300 to $5,000
  • Short-term loans from Uprova cost between 34.5% and 35.99% APR
  • No fees are charged to initiate the Loan
  • Your credit score won’t take a hit if you check your rate

Cons:

  • Late payment fees often apply
  • Typically, you will be charged a cost of $25 for insufficient funds
  • This type of financing is not offered in every state

The Impact of Covid-19:

Uprova’s policies were not changed because of the epidemic, but you can still ask about possible loan deferments if you’re affected. You can contact Uprova at 1-866-362-3444 if you need assistance.

FreedomPlus

Loan Amount: $7,500 – $50,000
APR: 7.99% – 29.99%
Min. Credit Score: 620
Approval: 1 – 7 Days
Terms: 24 – 60 months
Fees:
  • A loan origination fee of 0% – 4.99%
  • Late payment fee of 5% of the amount due, or $15, whichever is greater.
  • There are no prepayment fees
Qualification Criteria:
  • Be at least 18 years of age
  • Have a credit score of at least 620
  • Have a DTI ratio that doesn’t exceed 45%
  • Have a minimum credit history of 3 years
  • Have recurring employment income or government benefits
  • Fill out your information through FreedomPlus’ online portal
Average Borrower Profile:
  • Has a credit score of 700
  • Has an annual income of $120,000
  • Borrows $19,000
  • It has a DTI ratio of 45%
  • Incurs a 4.99% loan origination fee
  • Achieves a 7.99% APR with excellent credit and a loan amount of less than $12,000 on a three-year term
Best For: Debt consolidation
Check rates

FreedomPlus is an excellent debt consolidation service and a great resource for finding reliable short-term loan providers for those with good credit. Lenders typically approve borrowers with good credit and stable income for personal loans with credit scores of 620 and above. If you have an average annual income of $120,000, and a maximum TDI ratio of 45%, FreedomPlus may be a great short-term lender for you.

Although you can start your application on the company’s website, you’ll need to speak with a personal loan counselor to finish the process and get your Loan approved.

However, this lender does not offer its products in Wyoming, Connecticut, Colorado, Oregon, Wisconsin, Hawaii, West Virginia, Vermont, Kansas, New Hampshire, North Dakota, and Nevada.

In all other states,  borrowers can get loans between $7,500 and $50,000 for durations between two and five years at interest rates between 7.99% and 29.99%. Borrowers searching for debt consolidation loans, similar to those who use Happy Money, are eligible for lowered interest rates. However, in contrast to before, you can save up to 4%.

Borrowers who are eligible for FreedomPlus can lower their interest rate in three different ways:

  • If you apply with a co-borrower, FreedomPlus may reduce your interest rate by up to six percent. FreedomPlus will look at borrowers’ income and credit scores on a joint loan application to determine if they should approve the Loan.
  • Borrowers eligible for the FreedomPlus program with at least $25,000 in retirement savings may be eligible for a rate reduction of up to five percentage points. The most significant possible savings may go to borrowers who borrow $40,000. There is no collateralization of any kind with your retirement funds.
  • Direct disbursal of loan funds to creditors can result in a rate reduction of up to four percentage points for borrowers using a FreedomPlus loan for debt consolidation. Borrowers can get the total discount if they pay off another creditor with at least 85% of the FreedomPlus money.

Pros:

  • Simplified, direct payments to debtors with debt consolidation loans
  • Pre-qualification with a gentle credit check is an option
  • You can apply for a loan with a cosigner or joint applicant
  • The APRs for FreedomPlus loans are between 7.99% and 29.99%
  • Debt consolidation loans can get you a rate reduction of up to 4%
  • If you have a sizable retirement account, you may qualify for an interest rate discount of up to five percent

Cons:

  • The loan origination cost ranges from 0% to 4.99% with FreedomPlus
  • A late payment fee of either 5% of the total amount owed or $15 will be assessed
  • The minimum amount you can borrow is $7,500
  • Unavailable in 12 states
  • No mobile app to manage Loan

The Impact of Covid-19:

FreedomPlus doesn’t post any specific hardship policies on its website, but you can get additional information by contacting FreedomPlus at 1-800-297-5879 or emailing CustomerSupport@FreedomPlus.com.

LendingTree

Loan Amount: $1,000 – $50,000
APR: 4.37% – 35.99%
Min. Credit Score: 600
Approval: 1 Day
Terms: 24 – 60 months
Fees:
  • A loan origination fee of 1% – 8%
  • You may incur late payment fees
  • Most lenders don’t charge prepayment fees
Qualification Criteria:
  • Be at least 18 years of age
  • Have a credit score of at least 600
  • The maximum DTI ratio is often 43%
  • Have recurring employment income or government benefits
  • Fill out your information through LendingTree’s online portal
Average Borrower Profile:
  • If your credit is excellent, borrow $20,000 at an APR of 8.83%
  • With an APR of 17.54%, $9,818 can be borrowed with good credit
  • Individuals at minimum wage can borrow $11,016
  • Self-employed people can get a loan of $12,266
  • Part-time employees can borrow an average of $7,944
  • Borrowing by the unemployed norms $8,254
  • Typically, borrowers utilize personal loans to pay off high-interest credit card balances or pay off other high-interest debt
Best For: Obtaining a low APR
Check rates

LendingTree is a web-based loan matching service that may find you competitive personal Loan offers from multiple reputable lenders. This short-term loan marketplace is a great option for borrowers looking to obtain a low APR. If your income bracket is at the minimum wage, you can borrow $11,016, while if you are self-employed borrower, you can borrow an average loan amount of $12,266. In  addition, if you are a part-time employee you can qualify for an average loan of $7,944, while if you are unemployed you can qualify for an average loan amount of $8,254.

LendingTree partners charge an APR of 8.83% for excellent credit, and APR of 17.54% for good credit. However, to qualify, you must have a minimum credit score of 600, and a maximum DTI of 43%.

Short-term loans from $1,000 to $50,000 are funded by LendingTree’s partners. LendingTree’s partners typically provide payback terms for short-term loans starting with one year.

LendingTree’s partners have a wide variety of interest rates, from 2.49% to 35.99%. There may be an origination fee from a certain of LendingTree’s partners, ranging from 1% to 8% of the total loan amount. Some of the lenders you find on LendingTree may add a late payment fee to your Loan.

There is no negative influence on your credit score from checking your rates on LendingTree and comparing multiple options simultaneously. To compare rates, terms, and costs, you should still look into other loan companies.

As LendingTree does not work with every possible lender, you may want to look into other options, such as traditional banks, credit unions, or even online-only businesses. However, before you make any prepayments on your Loan, you must research each lender on this marketplace to see if it has any prepayment fees.

Pros:

  • You can apply for preapproval from many different lenders for a personal loan.
  • You can make a no-obligation comparison of no-credit-check personal loan options.
  • It lets you learn how to manage your finances by checking your credit report, creating a budget, and more, all for free.
  • Loan amounts from $1,000 to $50,000 are available via LendingTree’s network of lenders.
  • You can get reasonable annual percentage rates (APRs) ranging from 4.37% to 35.99%
  • Loan terms can be adjusted from one to five years.
  • LendingTree’s services should be available to you in any state
  • Applying for a PersonalLoan is risk-free because it doesn’t affect your credit score

Cons:

  • High-interest rates
  • Several lenders impose fines for early repayment or other costs
  • Has the potential to forward your information to its affiliated lending partners
  • Loan origination fees from lenders on LendingTree range from 1% to 8%

The Impact of Covid-19:

Due to its nature as a comparison platform, LendingTree does not make loans itself. The lenders on LendingTree’s platform set their terms for deferment and forbearance. Thus, you should contact your lender immediately to discuss the available choices. LendingTree has compiled a comprehensive list detailing the most up-to-date policies of various lenders for your perusal.

What are Short-Term Loans?

If you have an immediate need for cash, that you plan to repay faster, you may want to look into short-term loans. Short-term loans are typically also small-amount of loans that people prefer to pay faster. To settle a credit obligation, you must pay back the loan’s principal plus interest by the agreed-upon repayment date, which is often less than a year after the loan was taken out.

For individuals that have yet to establish themselves as creditworthy by traditional banking standards, the option of a short-term loan from an online lender is a welcome lifeline. A smaller amount of money is borrowed for this type of loan, typically between $100 and $10,000. The APR varies between 5.99% to 35.99%.

Pros and Cons of Short-Term Loans

Pros:

  • Fast approval and funding. In most cases, these are small amounts of loans, and the approval for them is always easier.
  • Quick payment plans. You get rid of the loan faster.
  • You don’t necessarily need good credit.
  • Some offer early repayment discounts if you decide to give back the money faster.
  • The total interest paid on short-term loans is less.

Cons:

  • Higher interest rates.
  • Requires frequent payments.
  • It has a high cycle risk, which may end up in a painful death trap.
  • Could be habit-forming.
  • Short-term loans lead to increased monthly payments.
  • Risk of a low monthly budget, and applying for a new loan to pay regularly.

Where to Get a Short-Term Loan?

Short-term loans are a quick and easy way to get cash when needed. You can get short-term loans from Online Lenders, Banks, Credit Unions, and your local credit union.

Getting short-term loans is pretty easy. It would help if you had must out an application, provided some personal information, and waited for the approval. The lender will then lock in the loan amount and send you a copy of the agreement.

How to Plan Your Loan?

Here is the best way to get the best short-term loan for you:

  • Determine the total amount you wish to borrow and how that money will be used. You should sum up their prices if you need to borrow money for more than one thing.
  • Think about how long it will take to pay that money back. Check your historical statements to determine the typical amount of discretionary income you receive each month. Cut costs if you want to borrow money but don’t have any.
  • You may only get a clear picture of this by reading a few illustrative instances connected to loan offers. Still, it’s more about how much you’re comfortable paying on top of your loan, so decide how much interest you’d be happy to pay.
  • Think about whether or not you genuinely require a loan. You may not need to borrow money if you can hold off until your next paycheck or put aside the money yourself.

How to Apply for a Short-Term Loan?

Here are the necessary steps you should take to apply for a short-term loan:

  • Check the costs: Longer loans mean more excellent interest rates. Short-term loans have interest costs. Interest rate and loan length affect this. The total amount owed on a fixed-rate loan is amortized over its tenure. You might also apply for a loan with a variable interest rate, causing your monthly payments to fluctuate. These are less predictable, but you can still estimate them for frequent outlays.
  • Check your eligibility using money matches. If you don’t have enough money in savings to pay off the Loan, you may be eligible for a short-term loan as long as you meet specific requirements.
  • Start comparing short-term loans. Use our comparison tool to compare offers from different lenders and find the best deal for you. You’ll also be able to see how much interest you’ll pay over time and how much it will cost to borrow $1,000 at different interest rates.
  • Consider any alternatives to short-term loans. If you’re looking for a way out of debt, there are other options besides taking out a short-term loan that can help reduce your expenses and increase your cash flow until it’s time for another payday loan payment. For example, consider asking family members or friends for help with costs that keep you from making ends meet (such as rent) or selling items on Craigslist so you can earn extra money each month when bills aren’t due yet.
  • Pick the right financial product and apply.

How Terms Affect The Loan?

When you are looking for a loan, there are several things that you should consider. These are, the loan amount, the overall interest paid for the whole period, and the monthly interest.

As said before typically short-term loans are also small amounts. These are loans that people prefer to pay back quickly and get rid of them. That leads to lower total interest paid over the loan. However, there is one main disadvantage. This will increase your monthly interest.

You have to be sure that you can pay your monthly, without problems. In some cases, important budget costs should be cut. This also can lead to applying for a new loan to repay this. Note also that your new loan will be more expensive and the approval for it will be not easier. That is because you already have a higher DTI ratio and higher risk because of your previous loan. So, this is a situation that should be avoided. Better consider a longer repaying period, if you are not sure.

The table below shows you this.

Amount: APR: Terms: Monthly Payments Total Amount Paid:
$10,000 10% One year $879.16 $10,549.91
$10,000 10% Two year $461.45 $11,074.78
$10,000 10% Three year $322.67 $11,616.19

Thus, from our table, increasing the loan term from one to three years, the monthly payment decreases from $879.16 for a one-year loan term, to $461.45 for a two-year term loan, to $322.67 for a 3-year term loan. But the total amount paid increases from $10,549.91 for a one-year term loan to $11,616.19 for a three-year term loan.

It is essential to remember that a longer repayment period will lead to more money being paid in interest. For instance, from our table, paying the same amount of loan for three years costs the borrower $1,066.28 more. Hence, it is essential to calculate all your expenses and apply for a short-term loan after that. Nonetheless, some lenders offer flexible conditions. They can be a lower monthly payment in case you have some problems or extend the repaying period. So, all these things should be taken into account.

It’s advisable that you consider a short-term loan with a lower monthly payment and a longer repayment period only if you are sure that you can afford the monthly payments. If not, you will start having problems repaying the loan on time.

What to Do With Bad Credit?

If you have bad credit, get a personal loan, which is capped at 35,99%. Note that there many scams here. Many predatory payday lenders make people think that short-term and payday loans are the same. This is not true. Short-term loans are a loan that is obtained for a relatively short period. There is nothing with a term payday. Bad credit personal loans are capped at 35.99% and work with people with bad credit. Payday loans are short-term loans. But their APR average at 400%. We don’t recommend them.

A personal cash advance or payday loan is usually available to those who have bad credit or need some extra cash in an emergency. A payday advance can help you pay your bills or get back on your feet if you’re having trouble paying off debts that aren’t going away soon (like medical bills).

There are many more ways to get short-term loans, cheaper than payday. We discuss that here:

https://www.elitepersonalfinance.com/best-short-term-loans-bad-credit/

Alternatives on Short-Term Loans?

Here are short-term loans  alternatives that we recommend:

  • Paycheck Advance
  • Credit Cards
  • Cash Advance on Credit Card
  • Loans Apps
  • Buy Now Pay Later

Paycheck Advance

This is the simplest and most popular way to get a cash advance. You can get one by withdrawing your paycheck right after you get paid. The best thing about this method is that you don’t need to go through any process of applying for a loan.

Credit Cards

If you want to borrow money from your credit card, you must apply and get approved before withdrawing the cash. This method is also one of the easiest ways to borrow money because it’s simple. You have to fill up some forms and wait for approval from your bank or credit card company.

Cash Advance on Credit Card

With this method, you have to pay a fee each time you withdraw funds from your credit card account. However, this type of loan has many benefits, such as paying interest rates lower than those offered by payday lenders or lenders offering loans over computers. In addition, most banks will let you know when they’re due so that you don’t end up overdrawn later.

Loans Apps

Buying products on the internet can be a great way to save money and time. But, before you do that, you must know what you’re buying. If you’re unsure what you’re buying or why it might not be a good idea, this is where Loans Apps come in handy.

Loans Apps are apps that allow you to borrow money easily and quickly without having to go through a bank loan application process. They offer short-term loans between $100 to $500.

Buy Now Pay Later

Buy Now Pay Later is a type of short-term loan that can be used as a way to fund your next purchase. It allows you to pre-pay for goods and services you need without paying the total amount at the time of sale.

With Buy Now Pay Later, you can choose how much money you want to put down in advance and pay off your purchase over time. The amount you put down will depend on how much money you have available, but it will also depend on how much interest it makes sense for you to pay.

This option can be a good alternative if you don’t have enough money or don’t want to borrow from banks or other lenders.

Nonetheless, there are other short-term loan alternatives we don’t recommend because they are predatory. These include:

  • Payday loans
  • Auto title loans
  • Pawnshop loans

Payday Loans

Payday loans are one of the most expensive and predatory types of short-term loans. They charge an APR averaging 400% and are unavailable everywhere. We strongly advice against payday loans. The trap of payday loans is that they can trap you in a never-ending cycle of debt. It’s also less hassle than you imagine receiving a quick loan even with poor credit.

Auto-title Loans

Auto title loans are also predatory (still high, averaging 300% APR) since you often default on your car to get the Loan. And if your car is repossessed, it will be sold at auction without you having any say in how much money you lose. Avoid these whenever possible.

Pawnshop Loans

Pawnshops are some of the most expensive places to borrow money, even compared to payday lenders. You might think pawnshops are a good option because they’re regulated, but they’re still risky because they take a large cut of your money to operate legally (and keep their doors open). Avoid pawnshop loans whenever possible.

How We Picked The Lenders?

Finding the right lender is an important step in getting a short-term loan. Our team of experts reviewed the lenders listed here and found them to be reputable, transparent, and trustworthy.

Our short-term loan guide is the best place to start your search for a lender. We searched for the best lenders regarding terms, APR, fees, and credit scores. We also worked with reputable lenders that can offer you excellent customer service and care.

We checked favorable terms, APRs, fees, credit scores, fast approval & funding, and the swift application process. You are on the right page if you are looking for a short-term loan.

We have picked the best short-term loans in December 2024 so that you can get the best possible deal at an affordable price.

Frequently Asked Questions

Can a Short-Term Loan Increase your Credit Score?

Yes. A short-term loan can help you improve your credit score if you make all of your payments on time. Your payment history is one of the most important factors in your credit score, so timely payments can have a significant impact.

What is the Average Interest Rate for a Short-Term Loan?

The average interest rate for a short-term loan is around 15%. However, this can vary depending on the lender and the type of loan you choose.

What is the Maximum Loan Amount I Can Borrow?

The maximum loan amount you can borrow will depend on the lender and the type of loan you choose. Some lenders may only offer up to $500, while others may offer up to $100,000.

How Long Do I Have to Repay a Short-term Loan?

The repayment period for a short-term loan will vary depending on the lender and the type of loan you choose. Some loans may be due in full within a few weeks, while others may have repayment periods of up to six months.

Conclusion

Short-term loans have become increasingly popular as people access more funding options. However, there are some things you need to consider before taking out a loan. As always, you should research and compare the different rates of interest offered by different lenders. Also, check if the lender has any special offers or bonuses that can help you reduce your monthly payments.

If you’re looking for a way to help your family or yourself in a time of financial crisis and need money fast, these loans can be a great resource. They offer fast cash with minimal paperwork and are often offered at competitive interest rates. You can get up to $1,000 in just minutes if you qualify. But only apply if you have an emergency and have researched beforehand to determine which lenders offer the best terms. And don’t forget that these loans are typically only available for a short period, so make sure you plan!

MEET THE AUTHOR

ElitePersonalFinance

Recommended Articles

AS SEEN ON