Best short-term loan: Compare your choices


It can be a useful financial solution in a variety of circumstances. They are often utilized by small-sized businesses and people who don’t be able to get an ordinary loan. If you’re trying to save money on interest costs, you might discover a loan with a shorter term that fits your requirements.

The most significant distinction between long-term and short-term loans is the repayment duration. Short-term loans have a shorter period of compensation, usually between three and 18 months; however, long-term loans have a repayment time of at least 24 months.

The short-term loans are generally cheaper (since you’re not making payments on interest) and come with fewer borrowing limits. If you’ve got less than perfect credit, you’re more likely to be eligible for a loan with a shorter term than one long-term loan. If you’re looking for cash fast and this seems like the right loan, continue reading to find out more.

The best short-term loans

The best loan for your needs requires some time and effort. Begin by comparing the four lenders below. Reliable lenders with whom you can trust:


ZaxLoans could offer a personal loan even if you don’t have the best credit score, but you should be aware that the lender will charge charges, such as an administration fee, upfront.

Minimum credit score: 550

Amounts of loans: $2,000- $35,000

Terms of loans: between 2-5 years

Fees Administrative, delinquent, or dishonored payment

Ideal for: People with fair to poor credit


PaydayDaze provides personal loans to people who have lower credit scores. The cost of loan origination varies depending on the state where you live.

Minimum credit score 580

The loan amount ranges from between $2,000 and $36,500

The loan terms are 2-to-4 years

Origination fees (3 percent to 6 percent)

Ideal for: Borrowers who have lower credit scores and an income of at least $20,000


PaydayChampion doesn’t require an upper or lower credit score to be eligible; however, the interest rate tends towards the top of the range.

Minimum credit score: None

The loan amount ranges from $1,500 to $20,000

Terms of loans: between 2-5 years

Fees: Origination fee

The best option is for those who don’t meet the requirements to get a personal loan elsewhere.


RixLoans provides competitive interest rates and is an excellent choice for borrowers with good credit.

Minimum credit score: 670

Amounts of loans: $600 up to $50,000

Terms of loans: 1 – 5 years

No Fees

The best option is for loans with smaller amounts.

Credible is a great tool to evaluate personal loan rates all in one location.

Other short-term loans worth considering

The three lenders listed below aren’t credible partners. Therefore they won’t allow you to compare rates with those on the platform quickly. However, they could be worth considering if seeking a loan for short-term use.


PaydayPact provides small personal loans and does not charge any fees.

The minimum credit score does not reveal

Amounts of loans: $50 up to $17,500

Terms of loan: 3 or 6 months, 12 or 36 months

No Fees

Ideal for small loans


Credible assessed the most reputable quick-term personal loan lenders based on customer satisfaction, minimum fixed rate, maximum loan amount, funding time, and fee terms and conditions. Credible’s expert team gathered details from the websites of each lender or customer service department, as well as by email. Every data point was checked to ensure that it was accurate.

With Credible, you can evaluate personal loan rates from multiple lenders in just a few minutes.

How do you qualify for a loan with a term of just a few days

Although you may obtain a short-term personal loan with a low credit score, you’ll have to pay more interest and may not be able to get as much as those with a higher credit score.

Lenders take into consideration a variety of aspects when evaluating your application, such as:

  • Credit score and history -All reputable lenders will examine their credit and credit history. You should score above 600 to improve your chances of getting approved. Certain lenders provide loans to borrowers with scores of less than 500. You can improve your credit score by paying bills on time, decreasing debts, and increasing earnings.
  • Verifiable income — Loan lenders want to ensure they can repay their money. It’s common to prove your income before applying for loans. If you’re self-employed or self-employed, the lender might want proof of regular inflows into your account.
  • An account with a bank — in most situations, you’ll require an account with a bank to access the loan money. Many lenders allow an online application and approval procedure and having a bank account that allows direct deposit will make it easier. You may also require the report to show you earn regular income.

How do you choose the right short-term loan?

Whichever option you pick to obtain your short-term loan, be sure that you compare lenders to ensure that you’re getting the best rate for your needs. Before you make an application for the loan, think about the following factors:

  • The amount you can be able to afford to lend
  • Rate of interest
  • Fees for loan origination
  • Monthly Payment
  • Repayment conditions
  • The reputation of the short-term loan

These loans are an ideal way to pay yourself for emergencies. However, you’ll benefit from them when you can repay the loan on time and avoid predatory lenders for short-term loans that provide payday loans.

Keep in mind that a bank credit union or online lender may be able to provide you with an instant loan. And If you have an excellent credit score, you might find it easier to get.

Credible can assist you with the loan application online and help you compare rates offered by several lenders.

Alternatives to a short-term loan

If you’re uncertain whether an instant personal loan is right for you, think about these options:

Credit line for personal use credit

If you have the help of a personal line of credit, you borrow an amount you have set and can use the funds whenever you want to, so long as you repay the amount you owe. Remember that you could be charged monthly charges even if you don’t use the funds.

Credit card

Spending your money on a credit card is a different way to handle an emergency. Getting a low-balance credit card is possible, even if you cannot obtain a personal loan. If you make regular payments, you might even be able to boost the amount you can spend. A credit card with an introductory 0% APR rate can allow the payment of debts with no interest charges, so if you pay it off before the end of the promotional period. However, credit cards that don’t have the 0% APR option generally have higher interest rates than personal loans. Annual charges accompany many credit cards.

Payday loan

Payday loans should be used as an option last resort. Although payday loan companies claim to provide quick money for any person who needs them, they charge outrageous costs and charges that amount to an APR of up to 300 percent. In the event of late payment, it can be harder to repay the loan. If you choose to take out an advance loan, make sure you pay it back promptly and do not agree to extend the loan’s term or pay hundreds or even thousands worth of additional dollars than you took out.


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