7 Best Short Term Personal Loans of 2025

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Short-term loans are usually characterized by terms that are less than 36 months. Some options, like installment loans, may need to be repaid within weeks. Short-term loans may have higher monthly payments than long-term loans, but you can often save significantly on interest charges.

The best short-term personal loans have quick funding, a wide variety of loan amounts and terms, low APRs and few fees. But it's rare to find a lender that hits all those targets. Skip ahead to our picks for the best short-term loan providers of 2025, sorted into seven categories for unique needs.

10 of 67 results

Finder Score	Loan amount	Turnaround time	Requirements
Finder score 9.1 Excellent CreditNinja Installment loan	Finder score 9.1 Excellent	$300 to $5,000	1 to 2 business days	Checking account at least 60 days old, regular income through direct deposit, resident of eligible state, age of majority in your state	Not available in: AK, CO, CT, FL, GA, IL, IA, KY, ME, MD, MA, MT, NV, NH, NJ, NM, NY, NC, ND, OR, VT, VA, WA, WV. Fast online funding up to $5K, but you won't know about rates and terms until after you apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9.4 Excellent OppLoans Installment Loans	Finder score 9.4 Excellent	$500 to $5,000	As soon as the same business day	+18 years old, Receive paychecks through direct deposit, $1,500 minimum monthly income, Live in eligible state	Not available in: CO, CT, GA, IA, MD, MA, NY, SD, VT, WV. Comes with the option to change your due date so you won’t fall behind on repayments.	Go to site View details Compare product selectionCompare	loading
Finder score 9.5 Excellent EarnIn	Finder score 9.5 Excellent	Up to $150/day, with a max of $1000 between paydays	1–2 business days standard; minutes with Lightning Speed	At least 18 and a US resident, Valid Social Security number, At least 60 days of banking history, Proof of consistent income, Positive bank balance, Get paid by direct deposit.	Access up to $150 per day, with a max of $1000 between paydays. Subject to EarnIn terms & conditions.	Go to site View details Compare product selectionCompare	loading
Finder score 9.4 Excellent Varo Cash Advance	Finder score 9.4 Excellent	$20 to $500	Instant, once qualified	You must have an active Varo Bank with a positive balance, no delinquent VLOC or charged off Believe account in prior 6 months and one of the following: 1) receive Qualifying Direct Deposits (QDD) of $800+ to your Varo Account current or previous calendar month (max line size $500) or 2) A linked account with QDD of $800+ in the current or prior calendar month, average daily balance of $100 in the previous 30 days and active for at least 60 days (max line size $250) or 3) receive deposits of $800+ to your Varo Account in the previous 3 months (max line size $100). Additional qualifications may apply.	Varo Advance (VA) is a small dollar line of credit. Initial limits range from $20-$250. Work your way up to $500 over time. Fees range from $1.60 - $40 based on loan amount and deposits to your Varo Bank Account. No interest is charged. Qualifications Apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9.4 Excellent Chime MyPay®	Finder score 9.4 Excellent	Up to $500	$2 to $5 for instant transfers	Chime checking account, direct deposits of $200+ and only available in some states	Plus access up to $500 of your pay before payday fee-free within 24 hours. See Chime terms and conditions.	Go to site View details Compare product selectionCompare	loading
Finder score 8.7 Great Current	Finder score 8.7 Great	$50 to $750	Up to 3 days or within an hour for a fee	Among other factors, you must receive a monthly total of $500 or more in Eligible Payroll Deposits into your Current Account.	Get up to $750 before payday, once you qualify. Paycheck Advance is an earned wage access service and is not a loan or credit product. Subject to Paycheck Advance Terms and Conditions.	Go to site View details Compare product selectionCompare	loading
Finder score 8.4 Great Brigit	Finder score 8.4 Great	$50 to $250	1 to 3 business days or instant with a Premium subscription or for a fee.	Bank account must have at least 60 days of activity, Balance must be above $0 and have an average minimum balance on pay day	Have up to $250 automatically deposited into your account — for a $8.99 membership fee.	Go to site View details Compare product selectionCompare	loading
Finder score 8.2 Great Cleo	Finder score 8.2 Great	$20 to $250	3 to 4 days or instant for a fee.	Not stated	Automatically monitor your spending plus access cash advances up to $100 at a time.	Go to site View details Compare product selectionCompare	loading
Finder score 8.2 Great Integra Credit installment loans	Finder score 8.2 Great	$500 to $3,000	Within minutes	Be a US citizen or permanent resident, Have a valid checking account, Live in a state where Integra Credit operates	Borrow up to $3,000 — but only for residents of nine states	Go to site View details Compare product selectionCompare	loading
Finder score 7.2 Great CashNetUSA Loan	Finder score 7.2 Great	$100 to $3,000	Funding possible as soon as the same day	Regular source of income, bank account, US citizen or permanent resident, age of majority in your state	Sign up for its discount program to get access to coupons and deals on everything from dining out to tax services.	Go to site View details Compare product selectionCompare	loading

Showing 10 of 31 results

What is the Finder Score?

The Finder Score crunches 3+ types of short-term loans across 65+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best short-term loans for all credit types, you can see how each short-term loan stacks up against other short-term loans with the same borrower type, rate type and repayment type.

Read the full breakdown

7 best short-term loan providers

Best overall: SoFi®
Best for low rates: Lightstream
Best if you don’t have a bank account: OppLoans
Best for shortest loan term: Possible Finance
Best for self-employed borrowers: Avant
Best for bad credit: OneMain Financial
Best for comparing lenders quickly: LendingTree

Best overall

SoFi personal loans

9 Excellent

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A standout provider, SoFi offers low rates, terms starting at 24 months and no required fees. That means there are no late fees, prepayment penalties or origination fees, and most competitors at least charge a late fee. SoFi's rates are also low, starting at 8.74% with a 0.25% autopay discount. As a SoFi borrower, you'd get access to multiple perks like referral bonuses, future discounts and more. However, you may need a credit score of at least 680 to qualify.

Min. credit score	680
APR	8.74% to 35.49%
Loan amount	$5,000 to $100,000

Available in all states

A standout provider, SoFi offers low rates, terms starting at 24 months and no required fees. That means there are no late fees, prepayment penalties or origination fees, and most competitors at least charge a late fee. SoFi's rates are also low, starting at 8.74% with a 0.25% autopay discount. As a SoFi borrower, you'd get access to multiple perks like referral bonuses, future discounts and more. However, you may need a credit score of at least 680 to qualify.
Pros

24-month loan term offered

Low rates

Extra perks as borrower
Cons

Need good credit

Funding time up to 30 days in some cases

Loan amount	$5,000 to $100,000
APR	8.74% to 35.49%
Interest Rate Type	Fixed
Min. credit score	680
Turnaround Time	As soon as same day
Loan Term	2 to 7 years

Fixed rates from 8.74% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or, Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 04/24/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plusby paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.

Min. credit score	680
APR	8.74% to 35.49%
Loan amount	$5,000 to $100,000

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Best for low rates

LightStream personal loans

9.5 Excellent

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LightStream's personal loans are hard to beat if you have good credit. It offers short loan terms, starting at 24 months, and its rates are some of the lowest out there, starting at 6.49% to 24.89% APR with the autopay discount. Speaking of, the 0.50% autopay discount is higher than most competitors — it's usually 0.25% elsewhere. LightStream also offers a Rate Beat program that offers to beat competitors' APR by 0.10%, and there are no origination fees or prepayment penalties. Just know that only 27% of applicants qualified for the lowest available APR, according to LightStream's own data, and it doesn't offer the option to prequalify.

Min. credit score	Good to excellent credit
APR	6.49% to 24.89%
Loan amount	$5,000 to $100,000

Not available in: Iowa, West Virginia

LightStream's personal loans are hard to beat if you have good credit. It offers short loan terms, starting at 24 months, and its rates are some of the lowest out there, starting at 6.49% to 24.89% APR with the autopay discount. Speaking of, the 0.50% autopay discount is higher than most competitors — it's usually 0.25% elsewhere. LightStream also offers a Rate Beat program that offers to beat competitors' APR by 0.10%, and there are no origination fees or prepayment penalties. Just know that only 27% of applicants qualified for the lowest available APR, according to LightStream's own data, and it doesn't offer the option to prequalify.
Pros

Low rates

Generous autopay discount

No origination fees or prepayment penalties

Rate Beat program
Cons

Need good credit to qualify

No prequalification process

Relatively high minimum loan amount

Few applicants get lowest rate available

Loan amount	$5,000 to $100,000
APR	6.49% to 24.89%
Interest Rate Type	Fixed
Min. credit score	Good to excellent credit
Turnaround Time	As soon as same day
Loan Term	24 to 240 months

Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Lowest rates require excellent credit. At least 27% of approved applicants applying for the lowest rate qualified for the lowest rate available based on data from 10/01/2024 to 12/31/2024. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.

Payment example: Monthly payments for a $25,000 loan at 6.49% APR with a term of 3 years would result in 36 monthly payments of $766.11.

Maximum APR for a LightStream loan is 25.79%. Loan terms range from 24 - 240 months depending on the loan type.

Min. credit score	Good to excellent credit
APR	6.49% to 24.89%
Loan amount	$5,000 to $100,000

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Best if you don’t have a bank account

OppLoans Installment Loans

9.4 Excellent

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OppLoans offers installment loans, an alternative borrowing method to payday loans. Its terms range from 9 to 18 months, which are short compared to traditional personal loans. Loan amounts are also small, ranging from $500 to $5,000, and you could receive funding as soon as the next business day. But APRs can reach as high as 195% APR. OppLoans has no specific credit score requirement, but it only requires a soft credit check to qualify. Rates and amounts vary by state.

Loan Amount	$500 - $5,000
APR	160% to 195%
Turnaround time	As soon as the same business day
Online application	Yes

Not available in: Colorado, Connecticut, Georgia, Iowa, Maryland, Massachusetts, New York, South Dakota, Vermont, West Virginia

OppLoans offers installment loans, an alternative borrowing method to payday loans. Its terms range from 9 to 18 months, which are short compared to traditional personal loans. Loan amounts are also small, ranging from $500 to $5,000, and you could receive funding as soon as the next business day. But APRs can reach as high as 195% APR. OppLoans has no specific credit score requirement, but it only requires a soft credit check to qualify. Rates and amounts vary by state.
Pros

9-month loan term available

No bank account required

Amounts start at $500

Fast funding time

Accepts all credit types
Cons

Charges high rates

Loans and requirements vary by state

Not available in all states

Loan amount	$500 - $5,000
Interest rate type	Fixed
APR	160% to 195%
Loan Term	9 to 18 months
Turnaround time	As soon as the same business day

Loan Amount	$500 - $5,000
APR	160% to 195%
Turnaround time	As soon as the same business day
Online application	Yes

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Best for shortest loan term

Possible Finance Mobile Installment Loans

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Possible Finance is a mobile borrowing app that offers short-term installment loans with no credit check. It offers the shortest loan terms on this list, with a maximum of eight weeks paid in four installments. Loan amounts are only up to $500, which makes sense given the very short term. Possible does report on-time payments to the credit bureaus, which isn't always the case with installment loans and can help you build credit. Turnaround time can be as fast as the next business day, and the cost is likely to be around $15 to $20 per $100 borrowed, but it varies by state.

Loan Amount	$50 - $500
APR	150% to 200%
Turnaround time	As fast as 1 business day

Not available in: Alaska, Colorado, Connecticut, Georgia, Illinois, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, North Dakota, Pennsylvania, South Dakota, West Virginia

Possible Finance is a mobile borrowing app that offers short-term installment loans with no credit check. It offers the shortest loan terms on this list, with a maximum of eight weeks paid in four installments. Loan amounts are only up to $500, which makes sense given the very short term. Possible does report on-time payments to the credit bureaus, which isn't always the case with installment loans and can help you build credit. Turnaround time can be as fast as the next business day, and the cost is likely to be around $15 to $20 per $100 borrowed, but it varies by state.
Pros

2-month loan terms

No credit check

Reports on-time payments

Fast turnaround time
Cons

Costs vary by state

Not available in all states

No option for longer term

Loan amount	$50 - $500
Interest rate type	Fixed
APR	150% to 200%
Loan Term	2 to 8 weeks
Turnaround time	As fast as 1 business day

Loan Amount	$50 - $500
APR	150% to 200%
Turnaround time	As fast as 1 business day

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Best for self-employed borrowers: Avant

Avant personal loans

6.8 Standard

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Avant may accept credit scores as low as 550 and self-employed borrowers — a rarity among personal and installment loan providers. Loan terms are from 24 to 60 months, and you can borrow up to $35,000. However, you'll have to borrow at least $2,000, which may be higher than some borrowers want. Rates range from 9.95% to 35.99%, which is on the higher end for personal loans, and there's an administration fee of 9.99% that's automatically deducted from your loan amount upon funding.

Min. credit score	550
APR	9.95% to 35.99%
Loan amount	$2,000 to $35,000

Not available in: Iowa, Kentucky, Massachusetts, Michigan, Montana, Virginia, West Virginia

Avant may accept credit scores as low as 550 and self-employed borrowers — a rarity among personal and installment loan providers. Loan terms are from 24 to 60 months, and you can borrow up to $35,000. However, you'll have to borrow at least $2,000, which may be higher than some borrowers want. Rates range from 9.95% to 35.99%, which is on the higher end for personal loans, and there's an administration fee of 9.99% that's automatically deducted from your loan amount upon funding.
Pros

24-month loan term offered

Accepts self-employment

Fair credit OK
Cons

High max rate

High minimum loan amount of $2,000

Administrative fee of 9.99%

Loan amount	$2,000 to $35,000
APR	9.95% to 35.99%
Interest Rate Type	Fixed
Min. credit score	550
Turnaround Time	As soon as the next business day
Loan Term	24 to 60 months

Min. credit score	550
APR	9.95% to 35.99%
Loan amount	$2,000 to $35,000

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Best for bad credit

OneMain Financial personal loans

5.8 Standard

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Unlike most lenders, OneMain doesn't have a minimum credit score to qualify. It also offers secured loans and accepts cosigners, making it an option for borrowers with poor credit who may have trouble qualifying elswhere. Loan amounts range from $1,500 to $20,000, with terms from two to five years. But its rates are a little higher than similar lenders, starting at 11.99%, and it charges origination fees up to 10%. It's also not completely online, so some borrowers may need to visit a physical location to finalize the loan documents, and it's not available in all states

Min. credit score	Not specified
APR	11.99% to 35.99%
Loan amount	$1,500 to $20,000

Not available in: Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont

Unlike most lenders, OneMain doesn't have a minimum credit score to qualify. It also offers secured loans and accepts cosigners, making it an option for borrowers with poor credit who may have trouble qualifying elswhere. Loan amounts range from $1,500 to $20,000, with terms from two to five years. But its rates are a little higher than similar lenders, starting at 11.99%, and it charges origination fees up to 10%. It's also not completely online, so some borrowers may need to visit a physical location to finalize the loan documents, and it's not available in all states
Pros

Accepts bad credit

Offers secured and unsecured loans

Accepts cosigners
Cons

Rates start at 11.99%%

Charges origination fees

Not available in all states

Loan amount	$1,500 to $20,000
APR	11.99% to 35.99%
Interest Rate Type	Fixed
Min. credit score	Not specified
Turnaround Time	As soon as one hour
Loan Term	24, 36, 48 or 60 months

_{* OneMain Disclosures:

Not all applicants will be approved. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). If approved, not all applicants will qualify for larger loan amounts or most favorable loan terms. Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Loan approval and actual loan terms depend on your state of residence and your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). APRs are generally higher on loans not secured by a vehicle. Highly-qualified applicants may be offered higher loan amounts and/or lower APRs than those shown above. OneMain charges origination fees where allowed by law. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $500. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Visit omf.com/loanfees for more information. Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. North Dakota: $2,000. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: North Carolina: $7,500. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.

Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.

Time to Fund Loans: Funding within one hour after closing through SpeedFunds must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after loan closing.}

Min. credit score	Not specified
APR	11.99% to 35.99%
Loan amount	$1,500 to $20,000

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Best for comparing lenders quickly

LendingTree personal loans

9.2 Excellent

LendingTree isn't a direct lender, but among connection services, it's a force. It has over 300 lending partners, which is considerably more than the competition. Rates and loan amounts vary by lender, but you can search for personal loans from $600 to $50,000 and terms from 12 months to 10 years. Requirements vary by lender, but you may need a credit score of at least 580 to qualify with most of its lending partners, and some charge origination fees. Additionally, you may receive calls or emails from LendingTree's partners after using its service.

Min. credit score	Good to excellent credit
APR	6.74% to 35.99%
Loan amount	$600 to $50,000

Available in all states

LendingTree isn't a direct lender, but among connection services, it's a force. It has over 300 lending partners, which is considerably more than the competition. Rates and loan amounts vary by lender, but you can search for personal loans from $600 to $50,000 and terms from 12 months to 10 years. Requirements vary by lender, but you may need a credit score of at least 580 to qualify with most of its lending partners, and some charge origination fees. Additionally, you may receive calls or emails from LendingTree's partners after using its service.
Pros

Compare multiple lenders quickly

Rates as low as 6.74%

300+ lending partners
Cons

May charge origination fees

Not a direct lender

May be contacted by its partners

Loan amount	$600 to $50,000
APR	6.74% to 35.99%
Interest Rate Type	Variable
Min. credit score	Good to excellent credit
Turnaround Time	If you apply during work hours on a business day, you can get access to approved funds within 24 hours.
Loan Term	Varies by lender

Min. credit score	Good to excellent credit
APR	6.74% to 35.99%
Loan amount	$600 to $50,000

Methodology: How we picked the best providers

We compared dozens of lenders that offer short-term financing, including installment and personal loan providers. In determining our best picks, we looked for unique perks, considered each lender’s reputation and crafted categories to suit a wide range of borrower situations.

Each lender is weighed against 10 metrics: Loan terms offered, interest rates, origination fees, prepayment penalties, available discounts, credit score requirements, work and income requirements, credit reporting, funding turnaround time and state availability. Better Business Bureau (BBB) profiles and Trustpilot reviews were also considered, factoring into lender reputation.

Customer reviews

Compare BBB ratings and see average star ratings on Trustpilot. Reviews and ratings should be taken with a grain of salt, but they can provide valuable insight.

Provider	BBB rating	Trustpilot rating
Lightstream	A rating, with 1.3-star rating out of 59 reviews	1.4-star rating out of 88 reviews
SoFi	A+ rating, with 1.36-star rating out of 357 reviews	4.4-star rating out of 9,143 reviews
OppLoans	A+ rating, with 3.49-star rating out of 161 reviews	4.4-star rating out of 3,557 reviews
Possible Finance	A+ rating, with 3.06-star rating out of 81 reviews	4.5-star rating out of 2,593 reviews
Avant	A rating, with 1-star rating out of 281 reviews	4.6-star rating out of 30,451 reviews
OneMain Financial	A- rating, with 4.22-star rating out of 2615 reviews	4.7-star rating out of 70,466 reviews
LendingTree	A+ rating, with 1-star rating out of 110 reviews	4.2-star rating out of 14,244 reviews

What are short-term loans and how do they work?

A short-term loan is usually defined by a term that’s three years or less and is typically unsecured. They usually have fixed interest rates, meaning the rate doesn’t change over the course of the loan, and you’ll repay it in equal monthly installments.

You may also run into installment loans that come with fixed interest rates, may not require a credit check, and are typically completed in 18 months or less. Payday loans are also considered short-term but are more risky and typically require you to pay off the balance by your next paycheck.

Both payday loans and installment loans tend to cater to borrowers with poor credit, and typically charge APRs in the triple digits and should only be considered in an emergency.

Pros and cons of short-term personal loans

Consider the benefits and drawbacks of short-term personal loans before you apply.

Pros

Loan flexibility. Short-term personal loans can generally be used for almost any purpose, like consolidating debt or paying for home improvements. But some lenders draw the line at using them for education-related expenses, such as tuition and fees.
Fast funding. Particularly with online lenders, you can often receive funds within 24 hours after loan approval, although it could take a few days depending on the lender, your financial situation and other factors.
Lower rates. Personal loans generally have better rates than credit cards, making them more affordable and a good solution for consolidating high-interest debt.
Fixed monthly payments. Unlike credit cards, where your monthly payment can fluctuate, most personal loans are repaid in fixed monthly installments, which can make them easier to budget for.
No collateral. Short-term personal loans are typically unsecured, meaning you don’t have to worry about losing your property if you can’t repay it. But if you default, your credit score will take a hit and it’ll be harder to qualify for financing going forward.

Cons

Increased debt. Obviously taking out a new loan increases your total debt, so it’s best to only add to your debt loan for a good purpose.
Need to meet requirements. To get the best deal on a short-term personal loan you’ll typically need to have a good to excellent credit score and prove enough income to repay it.
Higher rates than some options. Rates on unsecured loans may be higher than you could get with home equity financing or other secured options.
Fees can be high. Some lenders charge fees on top of interest — such as origination fees — which can significantly add to the cost of the loan. Lenders like SoFi and LightStream don’t charge origination fees, but they can be harder to qualify for than some loan providers.
Non-renewable funding source. Unlike credit cards or personal lines of credit, personal loans are paid out in a lump sum, so if you need more money you’ll have to apply for a new loan or find another funding source.

How to compare short-term personal loans

Like any other loan, comparing short-term loans starts with the APR — annual percentage rate. It’s how much you’re charged each year to borrow. It can include your interest rate and various fees, such as an origination fee. The lower the APR, the less you’ll pay in interest over the life of the loan.

You can start comparing lenders by considering these key factors:

Interest rate. The rates you’re eligible for largely depend on your credit score, income, debt-to-income (DTI) ratio, and other factors. But, some lenders are more lenient than others. Take the time to compare multiple lenders to find the best deal.
Extra fees. Lenders may charge fees like origination fees, prepayment penalties, administration fees or late fees. But some lenders don’t charge these extra fees at all, such as SoFi, which can mean huge savings.
Loan terms. Short-term personal loans can save you on interest, but they have higher monthly payments than a longer-term loan. Consider how much you can afford to pay each month before you decide what loan term makes the most sense.
Discounts. Most lenders offer an autopay discount, usually a 0.25% interest rate discount. Other typical discounts include student, military or relationship (for current customers).
Hardship options. Hard times can hit anyone, so it’s worth asking a lender if they offer deferment plans in case you run into a tough financial situation in the future.
Flexible repayment plans. Ask whether you can choose your due date or have the option to move your payment date. A few lenders may allow for bi-monthly payment plans as well, which could save you on interest.
Lender reputation. If a lender has multiple BBB alerts, a history of FTC (Federal Trade Commission) complaints or an overwhelming number of negative reviews, you may want to look for an alternative provider.

How to prequalify for a short-term personal loan

Prequalfication involves a soft credit check. It gives you an idea of your chances for loan approval and the chance to see potential rates and loan terms. Personal loans tend to require a higher credit score than car loans, for example, since these loans are unsecured. However, a few lenders, like Avant, accept scores as low as 580.

Keep in mind that prequalifying does not guarantee loan approval. And, your rate and terms may be different after going through the formal application process with a hard credit inquiry.

Some installment loan providers may not have a minimum credit score requirement or may skip the credit check entirely.

How to qualify for short-term personal loans

Exact requirements vary by lender, but here are some basic criteria to be aware of:

Good credit score, 670+
Debt-to-income ratio below 43%
Enough monthly income to repay the loan
No active or recent bankruptcies
Active bank account
At least 18 years old in most states
A US citizen or permanent resident

How much do short-term loans cost

The cost of a short-term loan is determined by your APR and loan term. The shorter the loan term, the less interest you’ll pay over time. However, some short-term loan lenders may charge higher interest rates for shorter loan terms, so be sure to compare your options.

In general, rates for personal loans run between about 6% and 36%, with the best rates going to borrowers with good to excellent credit scores. You may also have to pay an origination fee that could cost as much as 12% of the loan amount.

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Should I avoid payday loans?

Yes, avoid payday loans if possible. While payday loans can be a quick and fast way to borrow money, they may lead to a cycle of debt. They’re known for very high APRs and gouging late fees, and they’re also not legal in some states. See our guide on payday loan alternatives for more information and other quick financing options.

Alternatives to short-term loans

Short-term loans can be a smart way to borrow — the shorter your loan term, the less interest the loan accrues. However, short loan terms also mean higher monthly payments, so while saving money is important you’ll want to choose a borrowing method that you can comfortably afford.

Here are some alternatives to short-term loans:

Extending the loan term. It’s a simple solution to high monthly payments. Depending on your rate, you could end up spending more on interest, but it could be worth it to have a more manageable payment.
Home equity products. If you own a home with at least 20% equity, then a home equity loan or home equity line of credit (HELOC) could be an affordable borrowing option. Just keep in mind that the home is collateral for these loans, so you’re putting your house at risk if you can’t make your payments.
Cash advance apps. There are multiple cash advance apps available, with borrowing limits up to $250 or $500, and they don’t charge interest. However, you may have to pay for a monthly membership or pay a fee for instant transfers.
Credit card cash advance. You can use an existing credit card at an ATM to withdraw a cash advance, but credit cards generally have the highest rates unless you can land a credit card with a 0% introductory rate.

Frequently asked questions

What is the shortest term for a personal loan?

Most short-term personal loan lenders’ terms start at 24 months, but a few may offer terms as short as one year. If you go with an installment loan lender, terms are even shorter, but you’ll typically pay higher rates.

How can I borrow money and get it instantly?

If you need to borrow money instantly, your best bet is to try a cash advance app, which can send you funds in minutes if you qualify, but you’ll typically have to pay a small fee. Another option is a payday loan, but rates are generally very high and you risk falling into a cycle of debt.

Thank you for your feedback!

To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.

Written by

Lacey Stark

Writer

Lacey Stark is a freelance personal finance writer for Finder, specializing in banking, loans, investing, estate planning, and more. She has 20 years of experience writing and editing for magazines, newspapers, and online publications. A word nerd from childhood, Lacey officially got her start reporting on live sporting events and moved on to cover topics such as construction, technology, and travel before finding her niche in personal finance. Originally from New England, she received her bachelor’s degree from the University of Denver and completed a postgraduate journalism program at Metropolitan State University also in Denver. She currently lives in Chicagoland with her dog Chunk and likes to read and play golf. See full bio

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