Best short-term loans for bad credit in October 2024
If you need a loan to pay for an unexpected expense, short-term personal loans are available. These loans are safer and less costly than payday loans and may still be accessible even if you have bad credit. Typically, personal loan terms span from one to seven years.
CNBC Select has identified the top personal loan lenders that provide shorter repayment terms and more relaxed qualification criteria. (For more information on our methodology, please refer to the link below.)
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Best for small loan amounts
Who is Oportun's loan range suitable for? Oportun offers loans ranging from $300 to $10,000, making it a great option for those who don't need to borrow a significant amount of money. In contrast, many personal loan lenders require a minimum funding amount of at least $2,000 to $3,000 and have funding limits as high as $50,000 to $100,000.
Oportun provides repayment term options starting at 12 months, and you can pay off the loan earlier without incurring any fees.
Best for no prepayment penalty
If you anticipate paying off your loan balance earlier than expected and wish to avoid prepayment penalties, OneMain Financial can assist you in saving money.
OneMain Financial doesn't have a minimum credit score requirement for loan approval, making it a flexible lender for those with less-than-ideal credit.
Best for payment grace period
Avant is unique in providing a 10-day grace period for payments without penalty. Although it's crucial to plan for full and timely monthly repayments, this grace period can safeguard you from unexpected payment issues.
Avant provides personal loan funding within one business day if your application is approved by 4:30 p.m. CT on weekdays.
Best for no credit history
If you have a low credit score or insufficient credit history, Upstart may be an ideal option. It evaluates eligibility based on factors beyond credit scores, such as education, income, employment history, and financial background.
While Upstart's loan terms are slightly longer than other lenders on this list, you can check your loan terms without a hard inquiry before applying. Additionally, once approved, you can receive the funds as quickly as the next business day.
Best for 6-month term
This bank provides loan repayment terms that begin at six months, which is the shortest term length on this list, and does not impose prepayment penalties, making it suitable for individuals who intend to pay off their loans promptly.
PNC doesn't specify a credit score requirement for loans, but evaluates various factors, including credit history, employment history, and citizenship, to determine eligibility. You can receive a 0.25% interest rate discount if you make automated payments from a PNC checking account, such as the PNC Bank Virtual Wallet®.
More on our picks for best short-term loans for bad credit
Oportun
Oportun is a financial services company that provides loans, a savings account, and a credit card. The company has disbursed $17.8 billion in loan funding to date. Oportun offers prequalification, which does not affect your credit score, and fast funding. However, Oportun loans are not available in every state.
Loan amounts
$300 to $10,000
Loan terms
12 to 53 months
Credit needed
No credit history required
OneMain Financial
OneMain Financial has more than 1,300 physical branches in 44 states, allowing customers to receive in-person support. The financial institution offers personal loans that can be used for a variety of purposes, including debt consolidation, large purchases, and emergency expenses.
Loan amounts
$1,500 to $20,000
Loan terms
24 to 60 months
Credit needed
Poor/Fair
Avant
Avant offers financial products including loans and credit cards with loan amounts ranging from $2,000 to $35,000 for various purposes. Customers can manage their loans or credit cards through a convenient app, and can prequalify with only a soft inquiry.
Loan amounts
$2,000 to $35,000
Loan terms
24 to 60 months
Credit needed
Poor/Fair
Upstart
Upstart evaluates borrowers based on their education, employment, credit history, and work experience to determine their creditworthiness. A minimum credit score of 300 is required for borrowers. Although Upstart does not charge prepayment penalty fees, its loans may have high costs, including origination fees of up to 12%.
Loan amounts
$1,000 to $50,000
Loan terms
36 and 60 months
Credit needed
An applicant may have a credit score of 300 on at least one credit report, but may still be considered for approval.
PNC Bank
PNC Bank, established in 1845, is one of the oldest and largest banks in the country. With over 2,300 branches across all 50 states, PNC Bank provides loans to its customers without requiring any collateral. Additionally, PNC Bank's loans come with no application fee, origination fee, or prepayment penalties.
Loan amounts
$1,000 to $35,000
Loan terms
6 to 60 months
Credit needed
Not disclosed
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What is a short-term personal loan?
A short-term personal loan is typically paid off in one to three years, while most lenders offer repayment terms ranging from one to seven years, with some outliers extending loan terms up to 12 years.
Saving on interest charges is one of the benefits of paying off your loan early.
Paying off your loan early allows you to free up funds in your budget sooner for other expenses.
How is your loan term determined?
Your credit history and the amount of money you're applying for determine the loan repayment terms you can qualify for. Typically, a higher credit score and better credit profile increase your chances of receiving a longer loan term.
Lenders may have different loan terms, with a minimum range of three years, but some may offer shorter terms.
Alternatives to getting a short-term loan
If a personal loan isn't suitable for you but you still require another funding option, a 0% intro APR credit card could be an alternative to consider. These cards typically don't have an annual fee and enable cardholders to make purchases at 0% interest during an introductory period.
It is recommended to pay off your balance within the introductory period of the card to maximize its benefits.
The Citi Simplicity® Card is a top choice due to its lack of an annual fee and 0% intro APR for 12 months on new purchases from the account opening date (then 19.24% to 29.99%), as well as 21 months on balance transfers from the date of the first transfer (then 19.24% to 29.99%). There is a 3% intro balance transfer fee on each transfer completed within the first 4 months of account opening (minimum $5), followed by a 5% fee on each transfer (minimum $5) after that.
Why trust CNBC Select?
Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each of our personal loan articles is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of loan products. At CNBC Select, we are committed to maintaining our journalistic standards and ethics, even when it comes to earning a commission from our affiliate partners on many offers and links. Our methodology outlines the process we use to select the best short-term personal loans for bad credit.
Our methodology
Analyzing various U.S. personal loans offered by both online and brick-and-mortar banks, CNBC Select determined the best short-term personal loans for individuals with poor credit.
We prioritized the following features when evaluating and ranking personal loans.
- We evaluated lenders that accommodate borrowers with low credit scores or limited credit history.
- We evaluated lenders that offered repayment terms of 24 months or less, except for one lender who required a minimum repayment term of 36 months. This lender stands out because it takes into account applicants with no credit score.
- You can choose from a range of financing options offered by each lender.
- We evaluated lenders based on their same-day approval decisions, fast online application process, and next-day funding.
- Fund disbursement: Our loans provide prompt funds through either electronic wire transfer or paper check.
- Loan sizes and creditor payment limits: The lenders offer loans ranging from $300 to $50,000.
We took into account CNBC Select audience data, including demographics and engagement with our content and tools, when possible.
The interest rate and monthly payment for personal loans may change based on the Fed rate, but once you agree to the loan agreement, a fixed-rate APR will ensure consistency throughout the loan term. Your APR, monthly payment, and loan amount are determined by your credit history and creditworthiness. To obtain a loan, lenders will perform a hard credit inquiry and require a full application, which may include proof of income, identity verification, proof of address, and more.
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