Just because you have bad credit doesn’t mean you’re exempt from financial emergencies hitting at inconvenient times in life. But because of your credit history, you may find your options more limited, making it hard to cover those temporary cash flow needs.
While you may be tempted to charge your expenses on a credit card (if that’s even possible) or take out a payday loan, both of those options come with a lot of disadvantages. Most notably, it’s easy and common to get stuck in a debt cycle with either product.
With a credit card, you may simply make the minimum payment each month while continuing to accrue additional interest on your balance. With a payday loan, you could quickly end up rolling over the loan into a new one and racking up extra fees each time.
That’s where a short-term loan can help you gain a little more breathing room while still spreading out your payments longer than a payday loan. Even with poor credit, there are plenty of options available to choose from. In fact, most of the options we recommend are actually an online marketplace of lenders, meaning you can submit just one online application and potentially get offers from more than one lender.
Ready to find out the best way to get a short term loan? Check out our list of lenders that offer short term personal loans for bad credit.
Best Short-Term Cash Advance Loans
A short-term cash advance loan can supply you with a small amount of cash that is repaid over a shorter period of time. Interest rates are typically above average, particularly if you have poor credit. Eligibility requirements generally include that you have a consistent income each month (whether through employment or government benefits) as well as a checking account.
Many short term loans offer a repayment period of just a few weeks. The networks listed below offer slightly longer repayment periods, starting at just a few months. This flexibility gives you more time to ensure you can make your payments.
$500 - $5,000
3 to 60 months
Bad Credit Loans is a lender marketplace, allowing you to connect with multiple lenders through a single application. Because these are short-term loans, they recommend using the funds only for an emergency, rather than financing something optional like a vacation or home remodel project.
Features and Benefits
- No obligation or fee to check loan approval
- High approval rate despite credit history
- Funds available as soon as next business day
- Assisting people with bad credit since 1998
Up to $2,500
MoneyMutual is another marketplace where one application can potentially get you multiple loan offers. Clearly, a major player in the industry, however, they are not available in the state of New York.
Features and Benefits
- Fill out online form in less than 5 minutes
- Get a decision on your loan within minutes
- Loan deposited in little as 24 hours
- Trusted by more than 2,000,000 borrowers
While many short-term lenders require a lump sum payment, that’s not always the case. As you consider different loan options and structures, be realistic about your financial situation. If you can’t afford your emergency sum now, will you be able to repay it by the time your loan comes due?
In this situation, you may prefer to actually spread out your payments over a few months. Also, consider all the costs involved with a loan. Compare whether your interest is charged each month or if it’s lumped together as a one-time fee. Look at the total cost of the loan, since terms may be presented differently.
Plus, lenders may charge different fees even beyond your interest rate. Is there an origination fee? How about late fees? Take a truly holistic look at all possible fees and charges you could be subject to. That way, you’re not hit with any unexpected consequences in case you face another curveball during your repayment term.
Best Short Term Installment Loans
For a personal loan with longer repayment terms than just a few weeks or months, consider a short-term installment loan. Installment loans can be short term or last as long as several years and come with a few extra benefits compared to a cash advance loan. First is that you can qualify to borrow a larger amount of money.
Also, your payments could potentially be more manageable since they’re spread out over a longer period of time. Finally, most installment lenders report to one or more credit bureaus. That means as you repay the loan and exhibit responsible habits like paying on time and in full, you’ll start to successfully rebuild your credit score.
Remember to look at the total cost of the loan over time. If you just focus on affording your monthly payment amount, you could end up paying an arm and a leg in interest over time, since your repayment schedule could be substantially longer.
When planned wisely, however, installment loans can be an effective tool in bridging your cash flow gaps when you face unexpected hurdles in life. Here are our top picks for online lenders that can quickly get you the loan you’re looking for.
$500 - $10,000
6 to 72 months
CashUSA.com matches you with their loan partners so that you can compare offers if you qualify. The loan application process is fast and you may even be able to get your funds as quickly as the next day.
Features and Benefits
- Flexible borrower requirements
- Loan request can be approved within minutes
- Money deposited as early as 1 business day
- All credit types accepted
$500 - $35,000
3 to 72 months
PersonalLoans.com can connect you with lenders that offer three different types of loans: bank, peer to peer, and installment loans. It’s a beneficial way to compare offers from various sources to see if one suits you better.
To qualify for any loan, you can’t have any late payments longer than 60 days or have a recent charge-off or bankruptcy. You must also have a minimum monthly income of $2,000 – $3,000 per month.
Features and Benefits
- Multiple loan types available
- Fast loan decision
- Funds deposited as soon as you accept offer
- Nationwide availability
$1,000 - $10,000
6 to 60 months
NorthStarCash has flexible requirements when it comes to your credit score. You will, however, need to make sure you don’t have any recent bankruptcies or pattern of delinquent payments currently on your credit report.
Features and Benefits
- Instant access to a national network of lenders
- Submit loan requests 24/7
- Money deposited as soon as next business day
- Free to use with no obligation
Because each lender network offers clear guidance on most eligibility requirements, it’s relatively easy to plan your path forward. Use this list to find the lenders that are best suited for your situation, whether it’s income requirements, credit requirements, or any other borrower qualifications that are published.
From there, you can apply online in just a few minutes. And since you could very well receive more than one offer, you can quickly and efficiently compare loan offers in order to find one that actually works for you. Remember to look at all costs included, plus how all that interest adds up over time. You want to strike the balance between affordable monthly payments and being aggressive with your payoff strategy in order to minimize what you’re paying over time.
Making the Most of Your Bad Credit Short-Term Loan
Once you’ve selected a short-term loan, whether it’s a cash advance or an installment loan, be prepared to start making your payments. But first, understand what happens once you sign your loan agreement. Many lenders can deposit your funds quickly, making it easy to recover from your financial emergency.
Don’t forget, though, that if your lender charges an origination fee, they simply deduct it from your loan funds before you even receive them. Let’s take a look at how that actually works.
If you borrow $3,000 and get charged a 3% origination fee, that amounts to $90. When your funds are deposited into your banking account, you’ll receive just $2,910. It may not seem like a huge amount, but it can be a game-changer if you need that exact amount in order to cover your emergency expense.
Also, read the terms and conditions to find out what kind of payment options are available and whether or not any fees are charged. Some lenders, for instance, may charge a fee if you want to pay by check. Others, as we talked about earlier, may require automatic withdrawals from your checking account.
You may also find lenders that offer convenient payment options via their online website or mobile app. And some may provide payment vendors in select stores so you can make a cash payment in person.
These details and more are an important part of the loan selection process. It may be hard to focus when you’re also dealing with a life emergency, but definitely bite the bullet and perform your due diligence. In reality, you’re only adding a few extra minutes to a process that could either make or break your finances over the coming months and, potentially, years.