Best Short Term Loans for Bad Credit are NOT Payday Loans!

ElitePersonalFinance
Last Update: May 12, 2021 Loan Reviews Loans

When people look for short-term loans, especially if they have a bad credit score, they often end up with payday loans. This is because of how payday loans (which are the worst kind if you ask us) promote their business. It usually sounds like this: short-term loans, fast cash, no credit required. Those are all predatory lending alerts, and if you end up with a payday loan, you can easily fall into a loop of never-ending huge interests. A typical APR for a payday loan is 400%! For that reason, we highly recommend you to avoid payday loans and auto title loans (which take your car as collateral). Those are true examples of predatory lending.

Below we will give you a lot of alternatives to payday loans. However, before that, we recommend watching our video to see how people with bad credit can get a personal loan.



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You should also read our complete bad credit loan guide.

But, to make it easy for you, we have created this table, which will review some of the great companies that will lend you the money through short-term personal loans.

The lending market is much more flexible these days, and people with bad credit have a much higher chance of getting approved for a loan. And if we add that you are looking for a small amount of money, it’s easy to get. Let’s face it, loaning $1,000 is not the same as loaning $100,000.

Loan Company: Min Terms: Min Amount: APR: Min Credit Score:
ZippyLoan 1 month $100 Vary 0
SecondChanceLends 1 month $100 Vary 0
VivaLoan 1 month $100 Vary 0
LendJetFunds 1 month $100 Vary 0
BadCreditLoans 3 months $500 5.99% – 35.99% 0
CashUSA 24 months $1,000 5.99% – 35.99% 0
OppLoans 9 months $500 99% – 199% 0
PersonalLoans 3 months $1,000 5.99% – 35.99% 580
Upgrade 36 months $1,000 5.94% – 35.97% 580

BadCreditLoans

Loan amounts $500 – $10,000
Typical APR 5.99% – 35.99%
Min Credit Score 0
Time to funding 1 Day
Loan terms 3 – 36 months
Origination fee N/A
Debt-to-income ratio N/A
Check rates

This is a unique and huge marketplace that offers personal loans for people with bad credit. You can get an offer of up to $1,000 in a few minutes. People with really bad credit can get up to $3,000. Requirements are quite basic: you need to be over 18, and you need to have a regular income, plus the essentials such as US citizenship, email address, phone. If you meet those criteria, you have a good chance to get approved.

Pros:

  • Easy to get.
  • Smaller amounts available (starts at $500).
  • No application fees.

Cons:

  • Interests are high but much better than payday loans, that’s for sure.

Best for: Really Bad Credit

PersonalLoans

Loan amounts $1,000 – $35,000
Typical APR 5.99% – 35.99%
Min Credit Score 580
Time to funding 1 Day
Loan terms 90 days – 72 months
Origination fee 1 – 5%
Debt-to-income ratio N/A
Check rates

This company is not for everyone, as they require a somewhat healthy credit rating. If you have a credit score of 580 and a min income of $1,000, you can get a loan from this huge marketplace. Terms start at three months, which works for most people. If you meet the criteria, you will be quite satisfied with PersonalLoans, as it is a reliable company.

Pros:

  • Good APR 5.99 – 35.99%.
  • A flexible 3 – 72 months loan period.
  • Not that hard to get a loan as it used to be.

Cons:

  • $1,000+ minimum.

Best for: People with Fair Credit Score

Upstart

Loan amounts $1,000 – $50,000
Typical APR 7% – 35.99%
Min Credit Score 620
Time to funding 1 – 3 Days
Loan terms 3 – 5 Years
Origination fee 0% – 8%
Debt-to-income ratio 45%
CHECK RATES

Upstart works both for people with bad credit or no credit history (young adults). What makes them different is that they look beyond your credit score when approving loans. Things like your background, education,  play a part, and if you look reliable, they are likely to approve.

Pros:

  • Up to $50,000.
  • The highest interest rate is 35.99%.

Cons:

  • $1,000+ minimum.

Best for: People with Thin Credit

PayOff

Loan amounts $5,000 – $40,000
Typical APR 5.99% – 24.99%
Min Credit Score 640
Time to funding 1 – 7 Days
Loan terms 2 – 5 Years
Origination fee 0% – 5%
Debt-to-income ratio 50%
Check rates

This company’s goal is to help people get rid of their debt, and they are well-known for that. They have slightly higher requirements.

Pros:

  • Up to $40,000 loan amount.
  • Low APR of 5.99% – 24.99%.
  • Good for paying off debt.

Cons:

  • $5,000+ minimum.

Best for: Credit Card Debt

Upgrade

Upgrade Disclaimer: Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. The lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower, and your loan offers may not have multiple term lengths available. The actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges may increase the cost of your fixed-rate loan. There is no fee or penalty for repaying a loan early. Upgrade’s lending partners issue personal loans. Information on Upgrade’s lending partners can be found at https://www.upgrade.com/lending-partners/.

Loan amounts $1,000 – $35,000
Typical APR 7.99% – 35.97%
Min Credit Score 600
Time to funding 1 Day
Loan terms 3 – 5 Years
Origination fee 2.9% – 8%
Debt-to-income ratio 40%
CHECK RATES 

While Upgrade offers some good options for people with a bad score or those who lost their job, they have some shady small text, so you need to be extra careful with them.

Pros:

  • $1,000 – $35,000 unsecured loans.
  • Good APR 7.99% – 35.97%.

Cons:

  • Huge late fees.

Best for: People who recently lost their jobs

LendingTree

Loan amounts $1,000 – $50,000
Typical APR 3.99% – 35.99%
Min Credit Score 500
Time to funding 1 Day
Loan terms 1 – 5 Years
Origination fee 0 – 3%
Debt-to-income ratio N/A
Check rates

This is an online loan marketplace through which you can get multiple credit options offered to you. That makes them very convenient.

Pros:

  • Easy to set up, as you only need to do it once.
  • Flexible APR.

Cons:

  • $1000 +.

Best for: People who want to see multiple offers at one place

OneMain Financial

Loan amounts $1,500 – $30,000
Typical APR 16.05% – 35.99%
Min Credit Score 0
Time to funding 1 Day
Loan terms 24 – 60 months
Origination fee Vary
Debt-to-income ratio N/A
Check rates

This company offers excellent interest rates. They offer both secured and unsecured loans, making them suitable for different purposes. The downside is that they only offer long term loans.

Pros:

  • Both secure and unsecured loans.
  • Excellent APR of 5.99% – 29.99%.
  • Up to $35,000.

Cons:

  • $5,000 minimum.
  • 3 – 5 years of loan duration.

Best for: People with Bad Credit

LendUp

Loan amounts $100 – $1,000
Typical APR 30% – 1252%
Min Credit Score 0
Time to funding 1 Day
Loan terms 7 – 30 days
Origination fee Vary
Debt-to-income ratio N/A
CHECK RATES

Again, alternative payday loans. Not as bad as real payday loans, but only get them if you have to. But, if you are dedicated, you can get a better deal with LendUp than with other similar companies.

Pros:

  • Unique ladder system.
  • Loans start at $100.

Cons:

  • Interest rates up to 1252%.

Best for: Really Bad Credit

OppLoans

Loan amounts $500 – $5,000
Typical APR 99% – 199%
Min Credit Score 0
Time to funding 1 Day
Loan terms 9 – 36 months
Origination fee N/A
Debt-to-income ratio N/A
CHECK RATES

OppLoans is an alternative to payday loans. These fall in between personal and true payday loans, with interest rates somewhere in the middle. Again we don’t recommend sites like these. But if you have no other options, go for it. It is an expensive loan type, but still much better than payday loans.

Pros:

  • Easy to get.
  • $500 minimum.
  • Flexible.

Cons:

  • Interest rates up to 199%.

Best for: Really Bad Credit

Which One to Get?

In case you are looking for short-term loans, your chances of getting approved are high, even with bad credit.

The loans that we recommend are unsecured personal loans, which means a loan of 5% to 35.99%, and for people with bad credit, the typical APR will be from 15% to 35.99%. That is not cheap but much better than the 400% APR of payday lenders you usually get.

And if you indeed can’t get approved for a personal loan, try alternative loans. Yes, they are more expensive than personal loans but have many benefits and are still way better than payday loans. We have an article that will help you to understand them completely.

https://www.elitepersonalfinance.com/best-payday-loans-alternatives/

And if you can’t get approved for unsecured, try secured personal loans. That means you need to place collateral, like your car, as insurance. Typically we don’t recommend secured personal loans if they are short-term and low amounts. But in some cases, you really can’t get approved for an unsecured loan. This is an option that you have to consider. Everything is better than those payday loans! Just make sure to get a secured loan only if you are sure that you pay it on time, so your collateral stays yours.

Which Type of Online Short Term Loans to Avoid?

  • Payday loans

Avoid these!  Yes, having a bad credit score is rough, but there are much better solutions than getting stuck with a payday loan. You don’t need that APR of 400%, and you should avoid it unless it’s an absolute necessity, and it rarely is.

Personal loans have an APR of 15% – 35.99%. It is still a lot, but it is undoubtedly a much better option than 400%. Getting drawn into a payday loan can lead to an endless debt cycle you never get out of. Plus, getting a personal loan with bad credit is easier than you might think.

  • Auto title loans

These are quite similar to payday loans, and the only difference is that you need to put one of your assets as collateral if you don’t pay, for example, your car. While the APR is slightly lower than with regular payday (but still high, at about 300%), you risk more, as your car is involved. Avoid these whenever possible.

  • Secured short term loans

These work for people who want to get more money approved or want to lower their APR. They also require you to put collateral (your car, again) as insurance. But, they have much lower interest rates than auto title loans or payday loans. Still, putting your vehicle as collateral is not exactly pleasant, especially considering that it is usually worth 5-10x more than the actual loan. That is rarely necessary if you ask us, and personal loans are a much better option, as you are likely to get them even with bad credit.

  • Cash advance

Although easily accessible, cash advance loans are costly options. You need to pay initial fees, and their interests are quite high. Plus, you will have to start repaying immediately. There is no grace period. And taking cash advance can further damage your credit score.

Short term loans near me / Payday loans near me / Short term loans without checking your credit / Payday loans online / Fast cash / Easy approval

Scam alert! That is how predatory lenders lure people struggling financially, trapping them into endless loops of never-ending interests. These are usually payday loans. Sometimes, even personal loan companies advertise this way, as you often get approved for a loan within a business day.

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