How can you find “the best” short-term loan?
There are times in life when you might need money quickly. If you find yourself in a situation where you’re considering a short-term loan, you may be wondering how you can compare your loan options to find the best one.
Below is our guide on what to look for in applications and everything you need to know to make a good decision for your financial future.
LendUp Payday Loans
Apply for a payday loan conveniently online and borrow between $100 and $250.
- Min. loan amount: $100
- Loan term: 7–30 days
- Total costs: Depends on your state, loan product, loan amount and the term of the loan.
- Must be 18+ (19+ in Alabama)
- No security deposit needed
- Confidential and secure
- Visit the site to see if available in your state
A selection of loans you can apply for
Here are some loan providers you can apply with. Note that the max loan amount is based on the lender’s max amount and will vary based on your state.
A selection of lender-matching services you can apply with
These lender-matching services are not lenders, loan brokers or agents for any lender or loan broker. They also do not make credit decisions. They focus on trying to match you with a lender that might be able to provide you the funds you seek. Note that the max loan amount is based on the matching services max amount and will vary based on your state of residence. If you proceed with one of these services, confirm that the lender is reputable by checking with your local government.
What features make a short-term loan the best for you?
Here are some simple questions you should ask yourself while searching for a short-term loan:
- Do you prefer a secured loan? Finding a short-term loan that doesn’t require any form of collateral shouldn’t be difficult, but some short-term loan providers might want you to provide collateral in the form of your car’s title.
- Is there a store network and online presence? Any lender that calls itself the best short-term loan company should offer you convenience when it comes to borrowing. This may mean they have a wide network of stores across the country or that they let you apply for and manage your loan online.
- How long does it take to process the loan? Some of the best short-term loans ensure that you have access to the approved funds the following business day. A limited number of lenders provide prepaid debit card loans which can give you access to funds quickly after approval by transferring the amount to your eligible card. You can then use the money anytime and anywhere.
- Are you aware of all the fees? While some of the best short-term loans provide quick access to funds, take the time to find out just how much you’ll have to pay in the form of fees. The best short-term loan company in this regard is the one that charges the lowest fees. Remember how much you borrow affects how much you have to pay.
- Does the lender accept bad credit applications? If you’re looking for the best bad credit short-term loan, take into account that most short-term lenders accept applications from individuals who don’t have good credit history. If the lender you’re looking at requires good credit history and you aren’t eligible, simply move on to the next.
What else do you need to know about short-term loans?
What are the differences between lenders I should look for?
When you’re comparing the best loans, it’s often hard to know exactly what you should be on the lookout for. Here’s an example you can follow when determining the best lender for you.
| LendUp | CashNetUSA | ACE Cash Express | |
|---|---|---|---|
| Maximum | $250 | Varies | Varies |
| Minimum | $100 | Varies | Varies |
| Loan Length | 7 to 30 days | Varies | Varies |
| Loans Available | Payday Loans Installment Loans | Payday Loans Installment Loans Lines of Credit | Payday Loans Installment Loans Auto Title Loans |
| States Serviced: | California Louisiana Missouri Michigan New Mexico Tennessee Texas Wisconsin | Alabama Alaska California Florida Hawaii Louisiana Maine Michigan Minnesta Nevada Texas Washington Wyoming | California Idaho, Kansas Louisiana Minnesota Ohio Texas |
What are the pros and cons of short-term loans?
- You can get your money quickly. When you’re applying for a short-term loan, you can get your money immediately after approval if you apply in-store, and most online lenders transfer approved funds to your bank account the next business day.
- Freedom to use the money as you like. You apply for a short-term loan no matter what reason you need the money.
- Bad credit is OK. short-term loan providers will accept applications from people with poor credit histories, but make sure you compare other aspects when looking for the best bad credit short-term loan.
- Higher than normal fees. Even the best short-term loan company will charge fees for providing loans, and short-term loans tend to attract higher fees in comparison to conventional loans. A general rule of thumb is that the more you borrow, the more you pay in the form of fees.
- Disreputable lenders. If a short-term lender sounds great and is offering rates too good to be true, be sure to find out if they are. Ensure the lender complies with all relevant state regulations and that they are operating legally.
- Not always available. Some states don’t allow short-term loans. If you live in one of them, look into installment loans or personal loans instead.
Need cash quick? Let’s work out your best options
Anything that isn’t “the best” with these loans?
Before you apply, ensure that you won’t have any problems in repaying the loan. If you think you might have trouble, don’t take out the loan. Late or missed payments come with increased fees, charges and interest rates on top of negatively impacting your credit. Always work the repayment schedule into your budget, and the best loans will remain the best.
Know that even the best short-term loans can end up costing much more than originally anticipated, especially if you don’t repay your loan on time.
Bottom line
Bear in mind that while the best short-term loans will give you quick access to the money you need, there are a number of good short-term loan providers vying for your attention, so compare all your options before applying.
Are payday loans available in my state?
Compare short-term loans in your state
Questions you might have asked
We understand that you may be cautious when applying for short-term loans. Here are some of the frequent questions our users have asked.
I’m in need of a small loan but don’t have a checking or savings account. Is there any other way around it?
Hi Frankie,
Thanks for your question.
If you need funds quickly but don’t have a bank account, you may consider getting a payday loan from a lender and have the funds deposited onto a prepaid debit card. You may compare your options on this page.
Please do review the requirements and eligibility criteria when you apply.
Cheers,
Anndy