Most personal loan terms have a one-year minimum, but that may still be too long for your liking. If you need a loan you can pay back quickly, such as for an unexpected expense, there are short-term loans available. Short-term personal loans are generally safer and less costly than payday loans and may still be available if you have bad credit.
While short-term personal loans aren't an official term and generally don't have published requirements, CNBC Select rounded up the top personal loan lenders offering shorter repayment terms and easier qualification requirements. (Read more about our methodology below.)
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
7.99%–35.99%
Up to $50,000
9.95% to 35.99%
$2,000 to $35,000
Best short-term loans for bad credit
Compare personal loan offers
Best for small loans: Oportun
Who's this for? Oportun offers loans as low as $300 and as high as $10,000, making it ideal for those who don't need to borrow a ton of money. By comparison, many personal loan lenders require you to apply for a minimum funding amount of at least $2,000 to $3,000 and have funding limits as high as $50,000 to $100,000.
Standout benefits: Oportun offers repayment term lengths starting at just 12 months. You can also pay off the loan quicker since there are no early payoff fees.
Open to borrowers with no credit history, especially if needing only a small loan.
- Open to borrowers with no credit history
- No early payoff fee
- Same-day funding available
- Loan amounts as small as $300
- May charge an administrative fee of up to 10% of the principal
- Not available in all states
Best for no prepayment penalty: OneMain Financial
Who's this for? OneMain Financial can help you save money if you think you'll pay off your loan balance earlier than expected and don't want to be hit with a prepayment penalty.
Standout benefits: OneMain Financial doesn't have a published minimum credit score requirement for applying for and getting approved for a loan. This makes it a fairly flexible lender ideal if you apply with less-than-ideal credit.
Approves applicants with bad or fair credit and offers secured loans.
- Approves applicants with bad or fair credit
- Relatively low $1,500 loan minimum
- Same-day funding available
- Option to apply with collateral for a lower rate
- Co-applicants allowed
- High origination fee
- High interest rates
- No autopay discount
- No co-signers
*You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant's state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.
Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant's name with valid insurance. APRs are generally higher on loans not secured by a vehicle.
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.
OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount.
For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.
Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.
Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.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.
Time to Fund Loans: Funding within one hour after loan 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 closing.
Best for grace period: Avant
Who's this for? Avant stands out for offering a 10-day grace period to make payments without a penalty. While it's important to plan to make your repayments in full and on time each month, this grace period can help protect you from those one-off moments where things go awry with your payment.
Standout benefits: Avant offers personal loan funding as early as the next business day as long as your application is approved by 4:30 p.m. CT Monday through Friday.
Lends to applicants with poor credit and offers next-day funding.
- Lends to applicants with poor credit
- No early payoff fee
- Can prequalify with a soft credit check
- Funding often available next day
- Late-payment grace period of 10 days
- Origination fee
- Potentially high interest
- No autopay discount
- No direct payments to creditors for debt consolidation
- No co-signers
Best for no credit history: Upstart
Who's this for? Upstart can be ideal if you have a low credit score or your credit history is so insufficient that you don't have a score yet. It considers factors beyond credit scores to determine eligibility, including your education, income, employment history and financial background.
Standout benefits: Upstart's loan terms start at 36 months, which is a bit longer than the other lenders on this list. You can check your loan terms without a hard inquiry before you apply. Once approved, you can get the funds as quickly as the next business day.
Upstart offers accessible personal loans for people with fair or average credit.
- Accept applicants with low or no credit
- No early payoff fees
- Most loans funded the next business day
- High late fees
- Origination fee of 0% to 10% of the target amount
- $10 fee for paper copies of loan agreement
Best for a 6-month term: PNC Bank
Who's this for? PNC Bank offers loan repayment terms that start at just six months — the shortest term length on this list — and no prepayment penalties, making it ideal for those who plan to pay off their loans as quickly as possible.
Standout benefits: While PNC doesn't disclose a specific credit score requirement, it considers several factors to determine eligibility for a loan, including your credit history, employment history, citizenship and more. You can get a 0.25% interest rate discount if you make automated payments from a PNC checking account, such as the PNC Bank Virtual Wallet®.
PNC Bank Personal Loans
Annual Percentage Rate (APR)
5.99% to 28.74% APR (0.25% APR discount when you sign up for autopay)
Loan purpose
Debt consolidation, home improvement, wedding, moving and relocation or vacation
Loan amounts
$1,000 to $35,000
Terms
Up to 60 months
Credit needed
Not disclosed
Origination fee
None
Early payoff penalty
None
Late fee
10% of the payment or $40, whichever is greater
Terms apply.
Pros
- No origination fees, no early payoff fees
- Fixed rate APR
- Flexible repayment terms
- Loan amounts start at $1,000
- No collateral needed
Cons
- Charges a late payment fee
- Not the fastest funding (can take up to 10 business days)
- Rates and terms can vary based on your ZIP code
What is a short-term personal loan?
While most personal loans have repayment periods of one to seven years (or even longer), a short-term personal loan is usually paid off within three years.
There are advantages to shorter-term loans, including saving on months or even years of interest payments and, potentially, receiving a lower interest rate. They allow borrowers to become debt-free faster and often feature a simpler approval process with lower credit requirements.
What are the different types of short-term loans?
There are different types of short-term financing.
- Personal loans. Offered by banks, credit unions and online lenders, personal loans can have repayment terms of only six months.
- Payday loans. Notorious for being predatory, payday loans must be repaid by the next pay period and can have exorbitant fees and rates.
- Auto title loans. Usually aimed at borrowers with poor credit, an auto-title loan requires you to put up your car as collateral in the event that you default on the loan. Typically, terms last just 15 to 30 days.
- Pawn loans. These are similar to auto title loans, except you put up another item of value as collateral. Repayment terms are usually one to three months.
How is your loan term determined?
Lenders consider factors like your credit history and how much money you're applying to determine the loan repayment terms you can qualify for. Generally, the higher your credit score and the better your credit profile, the more likely you are to receive a longer loan term.
Of course, loan terms also depend on the lenders. Most lenders have a minimum term range of three years, but it is possible to find lenders that offer even shorter terms.
Pros and cons of short-term loans
Before applying for a short-term loan, consider these pros and cons, especially if you have less-than-ideal credit.
- Many lenders offer quick funding
- Loans can be used for just about anything unless otherwise stated (read terms of use)
- Some lenders consider applicants with lower credit scores, so you may still get approved if you don't have great credit
- You can pay off the loan quickly since short-term loans can offer repayment timelines as short as 6 months
- Typically offers lower interest rates than credit cards
- If you apply with bad credit, you'll receive higher interest rates
- Because it's a short-term loan, your monthly payment might be a bit high
- Your credit score can temporarily dip when you apply due to the hard credit inquiry
Alternatives to getting a short-term loan
If a personal loan isn't the right option for you but you still need another funding option, you might consider a 0% intro APR credit card as an alternative. Many of these cards don't come with an annual fee and allow cardholders to make purchases at 0% interest for an introductory period.
Just keep in mind that the card works best when you can pay off your balance within that introductory period.
The Citi Simplicity® Card is one of the strongest options since it has no annual fee and has a 0% intro APR period of 12 months for new purchases from date of account opening (then 17.49% - 28.24%) and 21 months for balance transfers (then 17.49% - 28.24%). There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
The Citi Simplicity® Card may not earn rewards, but it can still save you money due to its amazing intro-APR offers.
- One of the longest intro APR offers for balance transfers
- No annual fee
- No rewards
- No welcome bonus
FAQs
Can you get a short-term personal loan?
You can get a short-term personal loan from traditional banks, online banks and lenders and credit unions. Your loan terms are generally dependent on your credit profile and how much money you're borrowing but each lender has its own repayment range.
Do short-term loans hurt your credit?
As with any other form of credit, your credit score can be damaged if you fail to make on-time payments in full each month, or if you have frequent late payments. This is not exclusive to short-term personal loans.
What is the minimum credit score for a personal loan?
The minimum credit score depends on the lender. Some lenders require a credit score of at least 300 while others have minimums in the 500s or even in the 600s. Double-check with your desired lender before applying.
What is the best short-term loan?
Everyone's situation is different so the best short-term loan for you will depend on your specific circumstances. The best short-term loan is one that offers you the lowest interest rate you can get for your credit profile, your desired funding amount and a monthly repayment amount that fits within your budget.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal loan article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best short-term personal loans for bad credit.
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Our methodology
To determine the best short-term personal loans for bad credit, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks.
When narrowing down and ranking the best personal loans, we focused on the following features:
- Credit score requirements: We considered lenders that accept applicants with poor credit or insufficient credit history.
- Loan terms: We considered lenders with minimum repayment terms of 24 months or less, except for one lender with a minimum repayment term of 36 months since this lender uniquely considers applicants with no credit score.
- Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can select from.
- Streamlined application process: We considered whether lenders offered same-day approval decisions, a fast online application process and next-day funding.
- Fund disbursement: The loans on our list deliver funds promptly through either an electronic wire transfer to your checking account or in the form of a paper check.
- Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $300 to $50,000.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.
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