5 Best Short Term Loans for Bad Credit in 2021

From medical emergencies to car repairs, unexpected expenses may knock on the door before your upcoming payday. And if they arise when you’re struggling with poor credit, getting a much-needed loan might be challenging. Good news is there’s an immediate and viable solution. As long as you borrow responsibly, short-term loans can be just the financial lifebelt you need.

Many lenders offer this type of service, so it may be hard to find the right one for you. To help you narrow down the search, we’ve listed the best short-term loans for bad credit. We’ve based our reviews on several crucial aspects:

  • Annual Percentage Rate (APR)
  • Maximum loan amount
  • Maximum loan term length
  • Origination fee
  • Type of collateral
  • Funding time
  • Credit check
  • Loan fees

Of course, we’ve also considered the vendors’ trustworthiness and reputation to present you with legit options only.

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Top 5 Short Term Loans for Bad Credit in 2021

1. BadCreditLoans.com

BadCreditLoans.com is very suitable for those who want to borrow a small amount. The lending platform charges no fees and runs only a soft pull to present you with suitable loan offers. Full Review

  • APR: 5.99%-35.99%
  • Loan amount: $500-$10,000
  • Loan term length: 3-72 months

BadCreditLoans.com is very suitable for those who want to borrow a small amount. The lending platform charges no fees and runs only a soft pull to present you with suitable loan offers. Full Review

2. PersonalLoans.com

PersonalLoans.com is an online service that cooperates with reputable direct lenders to secure some loans for bad credit. It offers prospective borrowers a fast and convenient way to obtain emergency funds. Full Review

  • APR: 5.99%–35.99%
  • Loan amount: $1,000-$35,000
  • Loan term length: 3–72 months

PersonalLoans.com is an online service that cooperates with reputable direct lenders to secure some loans for bad credit. It offers prospective borrowers a fast and convenient way to obtain emergency funds. Full Review

3. CashUSA.com

CashUSA.com provides borrowers who seek short-term loans for bad credit with same-day funding options. The application form is simple but creates an accurate borrower profile. Full Review

  • APR: 5.99%–35.99%
  • Loan amount: $500–$10,000
  • Loan term length: 3–72 months

CashUSA.com provides borrowers who seek short-term loans for bad credit with same-day funding options. The application form is simple but creates an accurate borrower profile. Full Review

4. Monevo

Monevo is a loan aggregator connecting lenders with borrowers looking for short-term loans online. The maximum loan amount is among the highest on the market. The platform also provides the most accurate offers, updated in real-time. Full Review

  • APR: 5.99%–35.99%
  • Loan amount: $500–$100,000
  • Loan term length: 3–144 months

Monevo is a loan aggregator connecting lenders with borrowers looking for short-term loans online. The maximum loan amount is among the highest on the market. The platform also provides the most accurate offers, updated in real-time. Full Review

5. Avant

Avant is an excellent alternative for borrowers looking for short-term loans for poor credit. It has flexible terms and requirements that are ideal for applicants denied by other lenders. Full Review

  • APR: 9.95%–35.99%
  • Loan amount: $2,000–$35,000
  • Loan term length: 24–60 months

Avant is an excellent alternative for borrowers looking for short-term loans for poor credit. It has flexible terms and requirements that are ideal for applicants denied by other lenders. Full Review

Detailed Reviews

BadCreditLoans.com
BadCreditLoans.com

BEST FOR

smaller loan amounts

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  • APR: 5.99%-35.99%
  • Loan amount: $500-$10,000
  • Minimum credit score: Not specified
  • Loan term length: 3-72 months
  • Origination fee: Varies by lender
  • Funding time: 1 business day

BadCreditLoans.com is a platform that matches borrowers seeking small loans for bad credit with their prospective lenders. Founded in 1998 in Nevada, the service caters to people struggling with a bad FICO score. In addition to personal loans, the company offers mortgages and student loans, as well as auto and home equity loans.

What you should keep in mind is that BadCreditLoans.com is just a loan aggregator that helps applicants find the best offers. As it is all up to direct lenders, the platform cannot grant guaranteed approval for bad credit loans.

BadCreditLoans.com Loan Requirements

BadCreditLoans.com requires its applicants to be older than 18 years, US citizens or permanent visa holders. Other requirements are a Social Security Number (SSN) and a steady stream of income. The minimum required amount may vary depending on the lender.

As BadCreditLoans.com specializes in providing short-term personal loans for people with bad credit. The website states that all credit scores are welcome. It also notes, though, that each lender from its network may have specific requirements and offer different terms for short-term loans for bad credit.

BadCreditLoans.com Loan Agreement Terms

APR: BadCreditLoans.com offers a fixed APR that ranges from 5.99% to 35.99%. The lender will define the exact figure based on several factors, including the loan amount and term length, your income and credit. Bear in mind that individuals with a lower score will be offered a higher rate.

Loan amount: The short-term personal loan amount offered by BadCreditLoans.com is a bit limited, ranging from $500 to $10,000. Yet, the lender will determine the final amount. Individuals with very bad credit are likely to get just above $1,000.

Loan term length: BadCreditLoans.com allows borrowers to repay their short-term loans in as little as three months. The maximum term to repay small personal loans for bad credit is 72 months. Mind that short-term loans bear much higher APR.

Origination fee: BadCreditLoans.com doesn’t charge any fees. But affiliate lenders may charge an origination fee ranging from 1% to 8%. So, before you accept any offer, you should thoroughly go through the respective lender’s terms and conditions.

Type of collateral: The short-term loans that BadCreditLoans.com and its partners provide are unsecured, so there is no collateral involved.

Funding time: Typically, BadCreditLoans.com may secure your money in just one business day after you apply for online loans for bad credit. Yet, how long it will take until the money reaches your bank account depends on the direct lender and the bank. It’s not uncommon for the funding to take several days.

Credit check: Since BadCreditLoans.com is just a loan aggregator, it only performs a soft pull to check your general eligibility. Such an inquiry doesn’t affect your score. Direct lenders, on the other hand, may perform a hard pull once you accept their offer. Unlike the soft inquiry, this will lower your score by approximately five points.

Loan fees: BadCreditLoans.com doesn’t charge for providing you with offers for installment loans for bad credit. But lenders have late payment fees, so it’s critical to repay everything on time to avoid extra expenses.

What We Liked & Didn’t Like

BadCreditScore.com is a first-rate solution for people with poor credit. The platform’s mission is to link prospective borrowers in need with lenders that offer the best short-term loan options. It’s completely free, so you shouldn’t expect any extra unpredictable charges or fees. You also don’t need to worry about damaging your credit by viewing offers. The lending platform performs a soft pull only to check your eligibility and provide you with suitable options. Bear in mind, though, that if you proceed with the application process, the prospective direct lender may run a hard inquiry with an impact on your FICO score.

The biggest downside is the fairly limited loan amount, particularly for borrowers who have terrible credit. To add to that, they are likely to be offered the highest APR of 35.99%. The combination of a small sum and a high-interest rate may not be attractive to some prospective borrowers.

PersonalLoans.com
PersonalLoans.com

BEST FOR

emergency loans

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  • APR: 5.99%–35.99%
  • Loan amount: $1,000-$35,000
  • Minimum credit score: Varies by lender
  • Loan term length: 3–72 months
  • Origination fee: Varies by lender
  • Funding time: 1 business day

PersonalLoans.com is a lending platform established in 2017. It caters to individuals who need emergency cash for bad credit. Its application process is pretty straightforward — the website will guide you through the entire process, providing detailed explanations. Bear in mind, however, that PersonalLoans.com  matches borrowers with prospective lenders, so it can’t guarantee your loan approval.

The platform focuses on short-term and long-term personal loan options. It also offers payday loans, online loans, tax loans, and debt consolidation.

PersonalLoans.com Loan Requirements

To borrow money with bad credit from PersonalLoans.com, you must meet the platform’s eligibility criteria.

First and foremost, you must be an 18 or older US citizen or permanent resident. Second, you must have a valid SSN. Finally, you must make at least $2,000 per month and have a stable income.

The minimum credit score depends on the lender. Surely, the higher your FICO score is, the better are your opportunities to get a higher amount at a lower interest rate.

PersonalLoans.com Loan Agreement Terms

APR: The fixed rate that PersonalLoans.com and its lenders offer for online short-term loans for bad credit varies from 5.99% to 35.99%. Borrowers with very bad credit will get the highest rate, while those with a good FICO score will qualify for more affordable rates.

Loan amount: The short-term loan amount provided at PersonalLoans.com ranges from $1,000 to $35,000. The direct lender will define the ultimate amount, according to its limitations and your credit score.

Loan term length: PersonalLoans.com offers personal loans for bad credit that you could repay in only three months. In case you opt for a long-term loan, you can pay it off within 72 months.

Origination fee: As a loan aggregator, PersonalLoans.com doesn’t charge origination or any other fees. But direct lenders may do so. Their origination fees range from 1% to 8%. So, make sure to always inspect the lender’s terms and conditions before you accept its offer.

Type of collateral: Unlike other lenders that offer guaranteed installment loans for bad credit and require collateral, PersonalLoans.com will never ask for any, as it provides unsecured short-term loans.

Funding time: Once the lender approves your loan, you may receive the money within one business day. But some providers may take several days longer to deposit money into your account. Likewise, it might take a while until banks complete the transaction.

Credit check: When you apply for short-term online loans via PersonalLoans.com, the platform will run a soft pull only to check your credit details. When you accept an offer, the respective lender will run a hard inquiry at some point in your application.

Loan fees: PersonalLoans.com doesn’t charge any loan or prepayment fees. Still, lenders are most likely to impose late payment fees. To avoid incurring extra costs, make all your payments on time.

What We Liked & Didn’t Like

If you’re in dire need of quick cash, PersonalLoans.com is an excellent tool for finding short-term bad credit loans. It takes just a few steps for the platform to match you with a suitable lender.

You don’t need to fear extra fees as PersonalLoans.com won’t charge you anything. It will also not perform a hard inquiry to present you with offers, so you shouldn’t be concerned about damaging your credit score. The loan amounts the platform secures are decent, while interest rates are within the typical range for low credit score loans.

The main disadvantage of PersonalLoans.com, and of loan aggregators in general, is that they require too much personal and confidential information not everyone would like to share. Additionally, the obtained info is forwarded to direct lenders that may use it to spam you with their offers and promotions.

CashUSA.com
CashUSA.com

BEST FOR

flexible repayment

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  • APR: 5.99%–35.99%
  • Loan amount: $500–$10,000
  • Minimum credit score: Varies by lender
  • Loan term length: 3–72 months
  • Origination fee: Varies by lender
  • Funding time: Same business day

CashUSA.com is a lending platform that secures quick and flexible short-term loans for people who are struggling with bad credit.

The website’s user interface is simple and easy-to-navigate so that individuals seeking the best small loans for bad credit can effortlessly fill in and submit an online application form.

CashUSA.com Loan Requirements

CashUSA.com only accepts US citizens or permanent visa holders who are 18 or older. To apply for personal loans for people with bad credit, you must also have a regular minimum income of $1,000 per month and a checking account in your name.

Other factors, such as debt-to-income (DTI) ratio, job history, and credit score, may also help determine your eligibility and the loan terms you are offered by direct lenders.

CashUSA.com Loan Agreement Terms

APR: CashUSA.com offers an APR that varies from 5.99% to 35.99%. The exact rate for quick loans with bad credit depends on the lender and the applicant’s credit. The worse it is, the higher the interest rate will be.

Loan amount: The amount you can apply for ranges from as little as $500 to $10,000. Two factors may affect the sum that you’ll be approved for — the direct lender and your state of residence.

Loan term length: You can repay your short term loan for bad credit in only 90 days, or up to 72 months.

Origination fee: As a lending platform, CashUSA.com won’t charge origination or application fee. Direct lenders, on the other hand, may charge a fee of up to 5% of the loan amount.

Type of collateral: Given that it offers unsecured loans, CashUSA.com will never ask for any collateral, as opposed to some competitors that grant secured loans.

Funding time: CashUSA.com is one of the best loan places for bad credit if you need cash urgently. The funding can reach your account within the same day you’re approved for the loan.

Credit check: CashUSA.com doesn’t require a hard credit pull, so you don’t need to be concerned about damaging your FICO score when viewing loan offers. Note, though, that direct lenders may perform a hard inquiry once you accept their terms. This will lower your credit score by approximately five points.

Loan fees: CashUSA.com charges no fees for poor credit personal loans. Yet, direct lenders’ conditions may include late payment fees. Make sure you’re well-informed and read the loan agreement before accepting any offer. It’s also recommended to pay everything on time to avoid incurring unnecessary costs.

What We Liked & Didn’t Like

CashUSA.com is an outstanding marketplace if you need a fast loan for poor credit. It will provide you with the quickest and most convenient offers in just a few steps. The platform itself doesn’t perform a hard credit check, so you shouldn’t worry about ruining your FICO score by simply exploring your loan options. What’s more, it doesn’t charge any application or other fees, so you can shop around for the best loans for bad credit without fear of unpredictable costs.

On the flip side, the loan amounts CashUSA.com grants are rather limited, even for applicants with fair credit. Taking into account that the lender defines the final amount according to the credit score, individuals with terrible credit are in for smaller sums.

Monevo
Monevo

BEST FOR

High loan amounts

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  • APR: 5.99%–35.99%
  • Loan amount: $500–$100,000
  • Minimum credit score: No minimum credit score requirement
  • Loan term length: 3–144 months
  • Origination fee: Varies by lender
  • Funding time: Varies

Monevo is a loan marketplace founded in the UK in 2008. In 2017, the service was expanded to the US market.

The platform takes only a minute to find the best short term loan for you. This makes Monevo one of the fastest loan aggregators out there.

Another factor that makes Monevo rise above the competition is that it works in real time. All its rates and offers are always accurate and up to date.

Monevo Loan Requirements

Like all reputable short term loan companies, Monevo accepts applicants who are US citizens or permanent residents, at least 18 years old, and who have a valid SSN.

To obtain a loan, you must also have a bank account and a stable income. The minimum annual income isn’t specified, but borrowers typically make $25,000 or over. In addition, your debt-to-income ratio shouldn’t be too high — the majority of lenders prefer a 45% DTI ratio.

Even though Monevo has no minimum FICO score requirement, your credit history may affect the terms you are offered. Borrowers looking for a short term loan with bad credit may not qualify for the highest amounts and lowest rates.

Monevo Loan Agreement Terms

APR: Monevo interest rates start at 5.99% and go up to 35.99%. As the credit score significantly affects APR, borrowers with a low FICO score will have higher interest rates.

Loan amount: Considering that it secures loan amounts that range from as little as $500 to $100,000, Monevo undoubtedly provides some of the best online loans for bad credit. The exact amount, however, will depend on your credit, income and DTI.

Loan term length: Borrowers may return their short-term loans in only three months. But the longest repayment period available on Monevo is 144 months, i.e., 12 years. Keep in mind that longer loan terms typically involve significantly higher APR.

Origination fee: Since it’s a loan aggregator, Monevo doesn’t charge any application or origination fee. Direct lenders from the platform’s network, however, may charge an origination fee of 1% to 6%.

Type of collateral: While upon your application for a short-term loan for low credit, Monevo will ask you whether you own a car, the company won’t require any collateral.

Funding time: Monevo is famous for instant access to the borrowed money. Still, funding time generally depends on the lenders. Some may deposit the loan into your account within the day of your approval, while others may take longer.

Credit check: Monevo won’t affect your credit score when you apply for a loan as it performs a soft credit inquiry. Yet, direct lenders run a hard pull when you proceed with your application for personal loans with poor credit.

Loan fees: Monevo pledges not to charge any fees whatsoever. Yet, in addition to origination, direct lenders do charge late payment fees. Therefore, to avoid extra costs, make all payments on time.

What We Liked & Didn’t Like

Monevo takes only a minute to process your application, which makes it the fastest loan aggregator. Within that time, the platform will check rates with its partner lenders to come up with the best option for you. Since Monevo provides real-time offers, you don’t need to worry about the rates’ and amounts’ accuracy — everything is up-to-date thanks to the technology that allows adequate communication with underwriters.

The loan amount scope is among the widest in the market — you can borrow from $500 to as much as $100,000. If you have bad credit, the highest amount won’t be available to you, though.

One of Monevo’s main disadvantages is that it works with just 30 lenders. So, you might consider shopping around to check whether other companies offer better loans for people with poor credit.

Another drawback that some people may find disturbing is lender solicitation. Namely, all the info you provide when applying for a loan is shared with direct lenders. This creates a premise for a lot of spam mail.

Avant
Avant

BEST FOR

debt consolidation

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  • APR: 9.95%–35.99%
  • Loan amount: $2,000–$35,000
  • Minimum credit score: Not specified
  • Loan term length: 24–60 months
  • Origination fee: up to 4.75%
  • Funding time: 1 business day

Avant is a direct lender that aims to provide some of the best personal loans for bad credit. You can use the loan for a range of purposes —  emergency expenses, home improvements, and renovation, or debt consolidation. Avant’s decision-making and funding processes are rather fast. You can expect the money as soon as the next business day after approval.

Avant accepts borrowers with damaged credit but offers them higher interest rates. If you were considering applying with a co-signer in order to obtain better rates, you may want to look elsewhere, as Avant doesn’t provide joint loans for low credit.

Avant Loan Requirements

Avant accepts borrowers who are 18 or older and who are US citizens or permanent residents. Applicants must also have a valid SSN and a solid income flow.

While Avant doesn’t have a minimum FICO score requirement its FAQ section reveals that most borrowers who receive loans have a credit score of 600 to 700.

As opposed to other lenders, Avant gives a chance to applicants who haven’t been approved for unsecured personal loans for terrible credit. They can apply for secured personal loans.

Avant Loan Agreement Terms

APR: Avant charges a fixed APR that is among the highest on the market, even for borrowers with good credit. It ranges from 9.95% to 35.99%. Expectedly, more favorable interest rates will be offered to applicants with good to excellent credit. Those with a terrible FICO score will have the highest rate.

Loan amount: When applying for unsecured bad credit short-term loans, you can request between $2,000 and $35,000. If you’re seeking a secured loan, the sum you can ask for is somewhat different, ranging from $5,000 to $25,000.

Loan term length: Having obtained a loan from Avant, you should repay it within 24 to 60 months. But, as the lender doesn’t charge a prepayment fee, you have an alternative to pay your loan off earlier without additional costs.

Origination fee: If you’re considering applying for loans with Avant, keep in mind that you may be charged an origination fee, referred to as “administrative fee” by the lender. This amounts to as much as 4.75% for unsecured loans and 2.50% for secured loans.

Type of collateral: Avant won’t require any collateral for its unsecured loans. Yet, if you apply for a secured loan, the lender will ask for your vehicle.

Funding time: Avant boasts of its effort to secure the best loans for poor credit in as little time as possible. Thus, if you’re approved, chances are that you’ll have your account funded within the next business day.

Credit check: When you apply to check whether you’re eligible for the loan, Avant will perform a soft inquiry to present you with the rates and the loan amount. If you accept the offer for a short-term bad credit loan and proceed with your application, a hard pull will be performed.

Loan fees: In addition to an administrative fee, Avant charges a $25 late payment fee, as well as an unsuccessful payment fee of $15. To avoid incurring extra costs, make sure that all your payments are on time.

What We Liked & Didn’t Like

Avant is one of the companies offering the best short-term loan options. As the lender accepts applicants with bad credit, approval chances are very high. Still, in case your application is denied, you may qualify for a secured loan. Funding time is very fast, so you can expect your money to be transferred within one business day.

Avant allows you to improve your credit, provided that you make all payments on time. Specifically, the lender reports all your activities to the three major credit bureaus. On top of that, another reason to make timely payments for your online short-term loans for bad credit is to avoid paying extra fees.

On the downside, Avant has a very high APR, even for individuals with good credit. Additionally, it charges an administrative fee whose size depends on a range of factors, such as your FICO score, loan amount, and loan term length.

How to Get a Short-Term Loan With Bad Credit

Obtaining a short-term loan with poor credit isn’t that unlikely as it may seem at first glance. Still, it requires thorough research to discover the best lender and offer. Here are several steps you should consider when looking to obtain a bad credit loan.

Check your credit

Before you apply for a short-term loan, try to get as much information about your situation as possible. To find out your credit score, you can ask for a free credit report. It should be noted that you’re entitled to one report per year from all credit report agencies.

Make sure you can pay your loan off

It’s not a good idea to apply for loans for terrible credit if you can’t pay them off. We recommend assessing your income and debts to check whether your budget could take yet another monthly payment.

Consider secured loans

There are lenders that offer secured loans. Borrowers with terrible credit have a better chance to get a secured loan than an unsecured one, as the former is supported by collateral such as a vehicle or house.

Consider applying with a co-signer

Adding a co-signer with at least good credit may increase your chances of getting approved for a bad credit short-term loan. Besides, they may help you qualify for lower interest rates and higher loan amounts.

Compare short-term loans for poor credit

The internet is full of lending platforms that offer various personal loans for bad credit. But not all of them offer favorable terms and conditions. To avoid making a terrible mistake and getting into serious debt, or even worse — a scam, research lenders, lending platforms, and their short-term loans for poor credit offers. Always read the fine print, as well as independent reviews.

Wrap Up

Having a bad credit score may prevent you from getting a bank’s approval for a personal loan. Fortunately, loans for low credit scores are here to help individuals whose credit is damaged or limited get the much needed money in cases of emergency. Even though the APR will be high due to the low credit score, it’s still lower compared to that you’ll be charged for a payday loan.

Finding the best short-term loan for bad credit is possible, but it requires you to do some research. To avoid extra charges, fees, and expenses, it’s critical to choose the lender with the best terms. Therefore, explore your options thoroughly and without hurry. You don’t have to accept the very first offer you get. Instead, keep searching until you find the one that suits you best.

FAQ

Do short term loans affect your credit?

Just like any other lending product, short-term loans may affect your credit rating. Whenever you borrow money from a lender and pay it off timely and in accordance with the agreed terms, your credit history will improve — if the lender reports to the credit bureaus. And vice versa, if you are late or miss your payments because you’re tight on a budget, your credit will be damaged.

What's the minimum credit score required for a personal loan?

The minimum credit score varies by lender. Luckily, there are loan providers that accept people whose credit is less-than-perfect.

Some of the companies we have reviewed require a minimum FICO score of as low as 500. But to get the most affordable rates and loan amounts, as well as low or no origination fees, your credit score must be good to excellent.

Which loan company is best for bad credit?

Considering your particular situation, you can turn to one of the aforementioned companies for short-term bad credit loans. For example, BadCreditLoans.com is best for small loans, while Monevo offers some of the highest loan amounts.

PersonalLoans.com and CashUSA.com can be the quickest to provide you with the much-needed funding, while Avant is suitable for debt consolidation.

Notably, when researching lending companies that offer loans for bad credit, it’s essential to take several criteria into consideration. These include APR, loan amount, loan term length, and funding time.

Although borrowers with bad credit will typically be offered higher interest rates, they shouldn’t be too high either. Likewise, your credit score may affect the loan amount you can borrow, as not all lenders will let you qualify for the greatest amount.

Also, if you need your money urgently, you’ll typically choose a lender that can fund your account in a day or two.

Where to get a short-term loan?

The fastest and most convenient way to obtain a short-term loan is by applying with one of the reliable online lending companies. The application process is fast and straightforward, while funding typically takes just one or two business days.

In addition, you don’t even need to leave the comfort of your home to find the best short-term loans for bad credit. The solution to your temporary money problem may be just a click away.