6 Short-Term Loans for Bad Credit for 2022

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You need cash, and you need it now. The only problem is that your credit score is in shambles, making it tough to qualify for most traditional forms of credit. And you’re not necessarily attracted to the idea of taking out a payday or title loan because they’re too costly or put your assets at risk.

So, how are you supposed to cover that urgent car repair, medical bill, or some other unexpected bill without resorting to a loan from a relative or friend?

Well, there are several short-term loan options out there for people with bad credit. You may pay a steeper APR than what you’d qualify for with a traditional personal loan, but it beats the triple-digit high interest rates that come with payday and car title loans.

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Short-Term Loans from Online Loan Marketplaces

It’s important to choose a reputable lender for your short-term 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:

MoneyMutual

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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. While they do run a credit check, it’s possible to be approved for a loan even if you’ve been filed for bankruptcy or have had other serious credit issues.

They 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.

BadCreditLoans.com

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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.

PersonalLoans.com

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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 Loans from Bad Credit Lenders

If you’d prefer to skip the loan marketplaces and apply directly with a reputable lender, here are some viable options to consider:

Avant

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Avantis an established loan provider with a customer satisfaction rating of 95 percent. In addition, they have a straightforward loan application process. Following loan approval, the funds will be deposited into your personal bank account in as little as one business day.

Loan amounts range from $2,000 to $35,000 with repayment terms from 2 to 5 years. If you have a bad credit score, your interest rate will cap out at 35.99 percent. It may seem high, but it’s relatively low compared to other cash advance loans that cater to those with bad credit history.

But if your credit score is higher, you could qualify for an interest rate as low as 9.95 percent. A small loan administrative fee between 1.50% and 4.75% also applies.

There is no minimum credit score requirement to qualify, but most borrowers have credit scores that range between 600 and 700.

Even better, they offer an online tool that allows you to see which personal loan products you may qualify for without impacting your credit. And if you’re able to get back on your feet sooner than expected and pay the loan off early, there are no prepayment penalties.

Read our full review of Avant

Lending Point

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

Beyond the 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. To get started, you’ll need to provide your desired loan amount, the purpose of the loan, your annual income, and a few additional 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. After that, you’ll have anywhere from 24 to 48 months to repay the loan, depending on the loan term you qualify for.

Read our full review of LendingPoint

NetCredit

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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 tailor your loan amount and repayment terms to accommodate your financial situation. 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

How to Evaluate Your Short-Term Loan Options

Before applying for short-term loans for bad credit, 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.

Short-Term Loans for Bad Credit FAQ

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 interest rates and better loan terms.

Do banks give short term loans?

Yes. You can get short-term loans 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

Before resorting to high-interest payday loans, credit card cash advance, or title loans, consider applying for a short-term loan for bad credit. You’ll qualify for lower interest rates and enjoy flexible repayment options that span beyond the next payday.

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