5 Short-Term Loans for Bad Credit for 2024


You need cash, and you need it urgently. The only problem is that your credit score is in shambles, so it’s hard to qualify for most traditional forms of credit. Payday and title loans aren’t appealing because they’re too expensive and put your assets at risk.

So, what can you do if you need to cover an urgent car repair, a medical bill, or some other unexpected expense without borrowing from family or friends?

Well, there are several short-term loan options out there for people with bad credit. They may have higher interest rates than a traditional personal loan. But, it’s cheaper than payday or car title loans with triple-digit interest rates.

Short-Term Personal Loans from Online Loan Marketplaces

It’s important to choose a reputable lender for your short-term personal loan. That way, you can avoid predatory practices from companies that aren’t interested in your financial well-being.

Don’t know where to start with your search for a lender? We’ve compiled a list of online lenders who bring clear terms in addition to an easy online experience. Consider one of these marketplaces for a short-term personal loan with bad credit:


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MoneyMutual offers short-term cash advance loans that are similar to payday loans for up to $2,500. The lowest loan amount you can get is $250.

Interest rates and terms vary depending on the state, lender, and credit history. They do run a credit check. However, despite bankruptcy or other serious credit issues, it is still possible to get a loan.

MoneyMutal has served more than two million customers to date. Once approved, you can receive your funds via direct deposit, sometimes in less than 24 hours after approval. The online application takes just minutes to fill out.

Want to learn more? Check out our full review.


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BadCreditLoans.com gives you a higher chance of finding a short-term loan product that suits your needs by distributing your information to their network of lenders.

You should also know that their lenders cater to consumers with bad credit.

Loan amounts range from $500 to $10,000. You will have between 3 and 36 months to repay the loan. Funds should be available as soon as the next business day.

Even better, lenders in their network offer unsecured loans. So unlike title loans and other secured loans, no collateral is required to qualify, and your assets won’t be at risk.

Instead, they only require that you be at least 18 years of age, be a U.S. citizen or legal resident, have a steady source of income, and have an open checking account to receive the funds.

If you’re interested in learning more, check out our full review.


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PersonalLoans.com is another popular loan marketplace geared towards helping those with bad credit scores find the fast cash they need.

The lenders in their network offer three types of short term loans:

  • Peer-to-Peer Loans: ideal for consumers with a credit score of 600 or higher, and verifiable income of $2,000 per month.
  • Personal Installment Loans: available to those with a credit score of 580 or higher and a minimum monthly income of $2,000.
  • Bank Personal Loans: geared towards borrowers with a minimum credit score of at least 580 and verifiable monthly income of $3,000.

The annual percentage rate (APR) on most personal loans is between 5.99% and 35.99%.

This is substantially lower than what you’d pay in interest for a payday loan, and you’ll have anywhere between 6 and 72 months to pay the loan off.

If you are successfully matched with a lender and offered a loan, you’ll be prompted to review the loan documents and accept the terms.

Once the loan agreement has been executed, the loan proceeds will be deposited into your account within one to five business days.

Before moving forward, read our in-depth review.

Short-Term Personal Loans from Bad Credit Lenders

Here are some options for applying directly with a reputable lender instead of using loan marketplaces:

Lending Point

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If you have a credit score in the 600s and need fast cash, LendingPoint may be the online lender for you. They offer short-term personal loans of up to $25,000 with annual percentage rates from 17.46% to 35.99%. And the funds may be available to you by the next day.

Besides a 600 or higher credit score, you must be 18 or older with a valid bank account and an annual income of at least $20,000 to qualify. You must also reside in one of the 32 states they serve.

You can check your eligibility without impacting your credit score by using the online tool. Start by providing your desired loan amount, the purpose of the loan, your annual income, and a few personal details to confirm your identity.

Upon approval, the loan verification process is completed online, so you can receive the cash you need in a jiffy. Loan terms are from 24 to 48 months, depending on what you qualify for.

Read our full review of LendingPoint


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You may be eligible for a short term loan from Net Credit of up to $10,000 if you reside in one of the following states:

Alabama, Arkansas, Arizona, California, Delaware, Florida, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Mexico, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, Washington, DC, and Wisconsin.

Loan terms and interest rates vary by state, but you may be offered an interest rate as high as 155% with a five-year term. However, that beats taking out a payday loan and only having until the next payday to pay it back.

You can check your eligibility by completing the online form found on their website. If you qualify for a personal loan, NetCredit offers a tool to help you customize your loan amount and repayment terms.

Upon approval, funds will be deposited into your account in as little as one day.

NetCredit offers a tool called My CreditBuilder. In a nutshell, it reports monthly payment history to both Experian and TransUnion. So, by making timely payments each month, you will improve your credit.

Read our full review of NetCredit

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Understanding Credit Scores and How They Affect Your Loan Options

Your credit score directly influences the types of loans you can access and the terms of those loans. Individuals with higher credit scores often have access to a wider range of loan products, including those with lower rates and more favorable repayment options.

For individuals with poor credit, loan options may be more limited. They might face higher rates and less favorable terms. In some cases, bad credit can result in loan applications being denied altogether.

However, it’s essential to note that a bad credit score isn’t a permanent state. With consistent, responsible financial behavior, you can improve your credit score over time. This includes making on-time payments, keeping your credit utilization ratio low, and managing your debt responsibly.

Despite a low credit score, several options can help you secure a loan in a time of need. Understanding these options and how to utilize them can help ensure that you don’t get stuck in a cycle of high-interest debt. Always remember that a low credit score is not a life sentence. With diligent and strategic planning, you can rebuild your credit and expand your financial opportunities.

Risks and Benefits of Short-Term Loans for Bad Credit

Short-term loans for bad credit are typically sought by those facing financial emergencies or cash flow issues. While these loans can provide immediate relief, they also carry significant risks that can exacerbate financial problems if not handled correctly.

Benefits of Short-Term Loans for Bad Credit

  • Immediate cash availability: One of the main advantages of short-term loans for bad credit is the speed at which you can receive funds. Many lenders offer immediate or same-day loan approval and fund disbursement, which can be crucial in emergencies.
  • Accessible to those with poor credit: As the name suggests, these loans cater specifically to individuals with poor credit who might struggle to secure loans from traditional financial institutions. In many cases, the approval process for these loans places less emphasis on your credit history and more on your current income and ability to repay the loan.
  • Unsecured loans: Many short-term loans, such as payday loans and personal loans, are unsecured, meaning they don’t require collateral. You won’t risk losing personal assets if you’re unable to repay the loan, unlike secured loans such as auto title loans.

Risks of Short-Term Loans for Bad Credit

  • High interest rates: A major downside to bad credit loans is the high interest rates they carry. Because lenders view those with bad credit as high-risk borrowers, they charge higher rates to offset that risk. This means that the cost of borrowing is significantly higher than it would be with a traditional loan.
  • Potential for debt traps: The combination of high interest rates and short repayment terms can lead to a cycle of debt, where borrowers must continually take out new loans to pay off existing ones. This can make it difficult to fully repay the loan principal and can lead to a worsening credit score.
  • Strict repayment terms: Many unsecured personal loans require lump sum repayment, often as soon as your next payday. This can create a financial strain if you’re not prepared, leading to potential late fees and further damage to your credit score.
  • Potential for predatory lending: It’s essential to be cautious when seeking short-term loans, as the sector is known to have some predatory lenders. These lenders take advantage of borrowers’ financial distress through deceptive lending and collection practices. Always ensure you are borrowing from a reputable lender and fully understand the loan terms.

How to Evaluate Your Short-Term Loan Options

Before applying for bad credit loans, you should:

  • Confirm that the lender is licensed to do business in your state. It also doesn’t hurt to look around and see what others are saying about them. This could include independent consumer reviews and those from the Better Business Bureau.
  • Inquire about the lender’s credit reporting practices. If the lender reports to the three major credit bureaus, you’ll kill two birds with one stone. You’ll cover your financial emergency and strengthen your payment history with responsible loan-management.
  • Compare the loan terms and fees across the board. Don’t settle for the first offer you receive. You may be able to qualify for a more competitive loan offer elsewhere.
  • Be mindful of penalties and fees. These could make the loan more costly and result in unaffordable monthly payments.

Finally, it would be best if you read the fine print before signing on the dotted line.

How to Choose the Best Loan for You

Choosing the best personal loans involves evaluating your financial situation, understanding the terms of the loan, and taking into account the potential risks and benefits. Here are some factors to consider:

  • Interest rates: Loans for bad credit often have high interest rates. Always aim to find the loan with the most affordable interest rate to reduce your loan costs.
  • Loan terms: Understanding the repayment terms is crucial. Some loans, like payday loans, require a lump sum payment, while others, like installment loans, allow for monthly payments.
  • Fees: Look out for origination fees, prepayment penalties, and late fees that could add to the cost of your loan. Not all lenders charge these, so it pays to compare lenders.
  • Loan amounts: Ensure that the lender can provide the loan amount you need. Most lenders list their minimum and maximum loan amounts, so make sure the amount you need is within these parameters.

Frequently Asked Questions

What is a short-term loan?

A short-term loan is a loan that has a shorter repayment period than a traditional loan; usually within a couple weeks to a year. Short-term loans provide quick cash when you’re in need of cash flow.

Typically, when someone refers to a short-term loan, they are talking about short-term installment loans. However, there are several types of loans that could be considered short-term loans, such as lines of credit, title loans, pawn shop loans, or payday loans.

What are the benefits of short-term loans?

Short-term loans offer an opportunity to cover unexpected costs without cutting into your budget. Typically, the application process is quicker, and the qualification process is relatively easy.

Some short-term personal loan lenders don’t perform a hard credit check to avoid damaging your credit history. Some also don’t charge an origination fee.

Can I get a short-term loan with bad credit?

It’s certainly possible to get a short-term personal loan with no credit history or bad credit scores. However, people with good credit scores typically get offers with lower rates and better terms.

Do banks give short term loans?

Yes. You can get a short-term loan from banks, credit unions, online lenders and other types of lenders. However, it’s more difficult (but not impossible), to get a short-term loan with bad credit from banks and credit unions.

Bottom Line

Understanding your options is crucial when dealing with bad credit. Remember, every loan option, from payday loans to secured loans and cash advances, carries unique advantages and challenges.

It’s essential to research thoroughly, compare lenders, and understand the loan terms before making a decision. The loan’s interest rate, origination fees, amounts, and repayment terms should all factor into your decision.

Above all, managing your finances responsibly is the best strategy. Effective budgeting, building an emergency fund, reducing unnecessary expenses, and making on-time payments can gradually improve your credit score.

Even though the journey towards financial stability might be challenging, every step forward counts. Stay informed and make the best choices for your unique circumstances. With this approach, you’ll not only weather any financial storms, but thrive amidst them.

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Crediful is your go-to destination for all things related to personal finance. We're dedicated to helping you achieve financial freedom and make informed financial decisions. Our team of financial experts and enthusiasts brings you articles and resources on topics like budgeting, credit, saving, investing, and more.