Short Term Loan For Bad Credit

Short-term loans, also known as personal loans, are characterized by a brief repayment period. Typically, a lender provides a lump sum that you must repay on a monthly basis at a fixed interest rate.


Even if your credit is poor or nonexistent, you may still qualify for a short-term loan. However, expect to encounter higher interest rates compared to borrowers with fair or better credit scores.

Regardless of your credit standing, it’s crucial to thoroughly assess the lender, rates, and terms prior to obtaining a short-term loan.


By comparing loan terms and evaluating the pros and cons of various lenders, you can make an informed decision tailored to your specific short-term financial requirements.


Upstart itself doesn’t offer short-term loans specifically, but their personal loans can be a good option for short-term needs. Here’s a breakdown of Upstart’s personal loans that might be relevant to you:

  • Loan amounts: They offer loans from $1,000 to $50,000.
  • Terms: You can choose between 3 or 5 year terms.
  • Interest rates: Rates are fixed and range between 7.8% – 35.99% APR, depending on your creditworthiness. They consider factors like education, work experience, and credit history when determining your rate.
  • Speed: Upstart is known for its quick and easy process. You can check your rate in minutes without affecting your credit score, and approval can be instant. In some cases, you can get your funds in as little as 24 hours.

Here are some things to consider to see if an Upstart personal loan is right for you:

  • Interest rates: Upstart’s APR range is wide, so it’s important to compare rates with other lenders before making a decision.
  • Repayment terms: Short-term loans typically have higher interest rates to compensate for the shorter repayment period. Consider if a 3 or 5 year term fits with your short-term needs and budget.
  • Alternatives: Are there other ways to cover your short-term expenses, such as dipping into savings or asking a friend or family member for a loan?

Upstart offers a pre-qualification process that doesn’t affect your credit score. This can be a good way to see what rates you might qualify for and if the monthly payment fits into your budget.


Upgrade doesn’t offer short-term loans specifically, but their personal loans can potentially be used for short-term needs. Here’s how Upgrade’s personal loans might work for you:

  • Loan amounts: Similar to Upstart, Upgrade offers personal loans ranging from $1,000 to $50,000.
  • Terms: Repayment terms are longer than typical short-term loans, with options from 2 to 7 years.
  • Interest rates: Rates are fixed and vary depending on your creditworthiness, ranging from 5.99% to 35.99% APR [Upgrade personal loans ON Upgrade].

Things to Consider:

  • Interest rates: Short-term financing typically comes with lower interest rates. Since Upgrade offers longer terms, you might end up paying more interest overall compared to a true short-term loan.
  • Repayment terms: A longer repayment term translates to lower monthly payments, but you’ll be in debt for a longer period. Evaluate if a longer term aligns with your short-term needs.
  • Alternatives: Consider exploring options like a credit card cash advance or a pawn loan for a true short-term solution, though these often come with even higher interest rates.

Upgrade’s Pre-qualification Advantage:

Similar to Upstart, Upgrade allows you to check your potential rates with a pre-qualification process that doesn’t impact your credit score.

This can be a good way to assess if a personal loan from Upgrade makes sense for your short-term needs without any risk to your credit.


Avant doesn’t advertise short-term loans specifically, but their standard personal loans can be used for short-term needs. Here’s how Avant personal loans might apply to your situation:

  • Loan amounts: Avant offers loans between $2,000 and $35,000, which could cover various short-term needs.
  • Terms: Repayment terms range from 12 to 60 months, offering some flexibility for short-term repayment compared to lenders like Upgrade.
  • Interest rates: Interest rates are on the higher side, ranging from 9.95% to 35.99% APR, depending on your creditworthiness [Avant personal loans ON]. So, short-term repayment is crucial to minimize interest charges.
  • Speed: Avant is known for its fast approval process. You can check your rates without affecting your credit score and potentially receive funding as soon as the next business day if approved.

Here’s why Avant might be a good fit for short-term needs:

  • Faster repayment options: The 12-month term allows you to repay the loan quickly and minimize interest compared to longer terms.
  • Accessible for moderate credit: Avant considers borrowers with a credit score as low as 580, which might be helpful if you have a less-than-perfect credit history.

However, consider these drawbacks before applying:

  • Interest rates: Interest rates can be high, so ensure you can comfortably afford the monthly payments within your short-term timeframe.
  • Alternatives: Explore other options for short-term needs, such as credit card cash advances (be mindful of high APRs) or borrowing from friends or family (consider a written agreement for clarity).

Avant’s Pre-qualification Benefit:

Avant allows you to check your rates through a pre-qualification process that doesn’t affect your credit score.

This is a good way to see if their rates and terms work for your situation before committing to an application.

Universal Credit

Universal Credit itself doesn’t offer short term loans, but there might be an option called a Budgeting Advance that could help depending on your situation. Here’s what you need to know about Budgeting Advances:

  • Purpose: Budgeting Advances are meant to help cover short-term expenses related to finding a job, moving, or unexpected essential household costs.
  • Eligibility: You can only apply for a Budgeting Advance if you’re already receiving Universal Credit and have been getting it for at least a month. There may also be a waiting period before you can qualify for another advance.
  • Amount: The amount you can borrow depends on your circumstances and your usual Universal Credit payments. You can find more information about estimated amounts on the government website [Universal Credit advance payment ON].
  • Repayment:¬†Budgeting Advances are not free money. The advance will be deducted from your future Universal Credit payments. You typically have up to 12 months to repay the advance.

Alternatives to Consider:

  • Depending on your situation, there might be other government assistance programs or charities that can help.
  • You could also consider talking to a credit union or bank about a small personal loan.

OneMain Financial

OneMain Financial doesn’t offer short-term loans specifically. Their personal loans are designed for longer repayment terms, typically 24 to 60 months.

However, depending on your needs, a OneMain personal loan might be an option if you can repay it within that timeframe. Here’s a breakdown of OneMain personal loans:

  • Loan amounts: OneMain offers loans ranging from $1,500 to $20,000, which could cover various short-term needs.
  • Terms: Repayment terms are between 2 and 5 years, which isn’t ideal for short-term financing but offers more flexibility than some lenders.
  • Interest rates: Interest rates are on the higher side, ranging from 18.00% to 35.99% APR [OneMain personal loans ON OneMain Financial], so interest costs can add up quickly.

OneMain might be an option if:

  • You need a larger amount: If your short-term need requires a higher amount than what typical short-term lenders offer (around $1,000), OneMain can accommodate that.
  • You can afford the monthly payments within a few years: While not ideal for short-term needs, making payments over a few years can be manageable compared to shorter terms with very high interest rates.

Here’s why OneMain might not be the best fit:

  • Interest rates: The APR range is high, so short-term repayment is crucial to minimize interest charges. There might be better options for short-term financing with lower interest rates.
  • Not truly short-term: The shortest repayment term is 2 years, which isn’t ideal for a true short-term solution.

Alternatives for Short-Term Needs:

  • Credit card cash advance: This can be an option, but be aware of typically high APRs and fees.
  • Pawn loan: If you have something valuable to pawn, this can be a quick way to get cash, but interest rates on pawn loans can be very high.
  • See if you qualify for a Budgeting Advance from Universal Credit (if applicable): This might be a better option for short-term needs with a lower interest rate than a personal loan.

Explore all options carefully before taking on any loan. Consider the interest rates, repayment terms, and any potential fees before making a decision.

Remember, you can always check your rates with OneMain through their pre-qualification process to see if it works for you, but this won’t impact your credit score.

When You Might Consider a Short-Term Loan for Bad Credit

Short-term loans tailored for individuals with poor credit can offer a lifeline during significant emergency expenses, such as unforeseen medical bills or vehicle repairs. Unlike high-interest credit cards with fluctuating rates, installment loans feature fixed rates throughout the loan term, often rendering them more cost-effective.

Additionally, personal loans boast speed and flexibility, swiftly depositing funds into your bank account to cover various expenses, frequently within a single business day via direct deposit. Making timely payments on an affordable short-term loan could even bolster your credit profile.

However, it’s important to recognize that a bad-credit loan isn’t suitable for everyone. If the monthly repayments associated with a personal loan exceed your financial means, it’s prudent to avoid it altogether.

Defaulting on a new loan would only exacerbate damage to your creditworthiness. Prior to committing to a short-term loan, it’s advisable to seek guidance from a low- or no-cost credit counselor if you harbor concerns about the affordability of the repayments. Local nonprofit organizations may offer counseling services, or reputable credit agencies can be found online.

How To Get a Short-Term Loan With Bad Credit

Securing approval for a short-term personal loan despite having poor credit is achievable. Follow these steps to ensure you’re equipped to make a well-informed decision that can contribute to your financial progress:

  1. Assess your credit health: Prior to applying for a loan, examine your credit report and score to understand your standing and how it aligns with lenders’ criteria. Identify any errors on your report and address them promptly by filing a claim.
  2. Prequalify with multiple lenders: Explore prequalification options with various lenders online to gauge the interest rates and repayment terms available to you. This process typically doesn’t impact your credit score, and it provides insight into your personalized rate, which may differ from advertised rates.
  3. Estimate monthly loan payments: Utilize a personal loan calculator once you’ve received several loan offers to estimate your monthly payment. If the repayment amount exceeds your budget, consider passing on the loan and seek guidance from a low- or no-cost credit counselor.
  4. Select the most suitable offer: If you encounter an affordable offer, proceed by submitting a loan application and fulfilling any verification requirements promptly. Responding promptly to requests can expedite the final approval process, ensuring you receive your funds swiftly.

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