3 Places That Offer Short-Term Personal Loans

Short-Term Personal Loans Explained

Personal loans are a popular form of financing many people turn to when they need cash fast for various purposes. You can get a personal loan to cover expenses like medical bills, debt consolidation, home renovations, car repairs or purchases, and more.

While personal loans can give you one to seven years to repay what you borrow, short-term personal loans usually have repayment periods of 36 months or less. Since they have shorter repayment periods, short-term personal loans may also be smaller and used for more minor expenses.

Short-term personal loans are typically unsecured and not backed by collateral. As such, lenders look at your credit history, employment, income, etc., to make lending decisions. And since short-term personal loans may seem a bit riskier for lenders, they’ll often charge higher interest rates and fees for late payments.

While on the topic of loans with short repayment periods, here’s a look at different types of short-term loans:

• Payday loans – These risky loans usually take repayment from your next paycheck and max out at $500. Since their interest rates can hit triple digits and you need to repay the cash you borrow so quickly, you’re better off choosing another financing option.
• Cash advances – Banks and alternative lenders offer these short-term loans where you borrow cash against the line of credit on your credit card.
• Installment loans – Of the loans on this list, installment loans are your safest bet and are a type of personal loan or vice versa. They give you a lump sum of cash you repay via fixed monthly payments. Some installment loans have short repayment periods of 12, 24, or 36 months, while some go to 60 months.

Where To Find Short-Term Personal Loans

If you need cash fast, you’re better off skipping payday loans and cash advances. Where can you find a short-term personal loan? Via these three places that are the most common suppliers of personal loans:

1. Banks – If you have a bank account in good standing, you should see if your bank could give you a short-term personal loan. Some may offer loans to borrowers with less than ideal credit just for being a customer, and you could find the best rate here.
2. Credit unions – Some feel credit unions are even better than banks regarding personal loans, as they can offer the best rates. The only issue with credit unions is they can be more selective in terms of membership. If you’re a credit union member, see if they offer short-term personal loans.
3. Online lenders – If you can’t get a short-term personal loan through a bank or credit union, try an online lender. They offer quick and convenient online applications that can lead to approval in minutes and funding on the same day. To find the best online lender for your short-term personal loan needs, prequalify to see what type of loan you can get in terms of amount, APR, terms, etc., without having your credit pulled. From there, pick the best loan and apply through the lender, where they’ll pull your credit to make a formal decision. Some of the top online lenders for personal loans include Upgrade, Upstart, OneMain Financial, Discover, Universal Credit, and LendingClub.