Best Short Term Loans for Bad Credit (2022): Top 4 Online Loan Lending Companies

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There are situations in life when you think you have hit the bottom line. You desperately need money in a pinch. You may have many reasons: a wedding, a new vehicle, an unexpected medical condition, home renovations, or closing another urgent debt.

Sometimes it may feel as though you are trapped in a hole with no way out, but short-term loans for bad credit may offer you a hand up. Forget about waiting in line or wondering whether your bad credit will keep you from being approved for a loan. Many lenders will not place much weight on your credit score and are able to transfer money to you quickly. We have curated this list of the best short-term loans for those with bad credit scores to give people a place to start when they do not know where else to turn.

If the situation you’ve found yourself in feels like a matter of life and death, don’t worry because you may be approved and resolve your emergency quickly.

Top 4 Short-Term Loans for Poor & Bad Credit Score:

  1. MoneyMutual - Overall Best Short-Term Loans With Bad Credit
  2. Bad Credit Loans - Top Lenders of Small Payday Loans
  3. CashUSA - Popular for Fast Approval of Short-Term Loans
  4. Personal Loans - Trusted Personal Loans for Bad or No Credit Check

#1. MoneyMutual - Overall Best Short-Term Loans With Bad Credit

Features

MoneyMutual offers the customers a painless loan experience. More than two million customers have trusted this lending platform to help them find short-term loans. MoneyMutual helps borrowers find loans of up to $5,000 by connecting them with secure lenders. Furthermore, MoneyMutual works with lenders that charge competitive interest rates and offer flexible repayment terms

Application Requirements
  • Applicants must be 18 or older
  • Must be a U.S. resident
  • Must have an active checking account
  • Must have a regular monthly income of at least $800
Terms and Conditions

Requesting a loan through MoneyMutual is easy and only requires a simple application form. If you do have any problems with this process, you can reach helpful customer care service representatives who are prepared to walk you through the application. You can reach them through the mail, phone, or email.

MoneyMutual facilitates short-term loans up to $5,000. Short-term loans are typically much smaller than this maximum amount; however, it might be helpful to know that higher loan amounts may be a possibility. Typically, if your application is approved, the funds may be transferred in as little as 24 hours.

Keep in mind that MoneyMutual is not a direct lender, but rather connects borrowers and lenders. Therefore, all terms and conditions are determined by the lender. MoneyMutual cannot influence these terms. Short-term loans are typically repaid within a week or two; however, everything depends on the consensual contract between the borrower and the lender. Each lender will specify their APR and repayment terms in the extended offer. Make sure you agree to these terms before accepting the loan.

Types of Loans: Payday Loans, Cash Advance, Bad Credit Loans

Pros

  • Loans of up to $5,000
  • Free-to-use platform
  • Multiple loan types available
  • Fast and easy application
  • May receive multiple loan offers

Cons

  • Not available in Connecticut or New York

Customer Experience

MoneyMutual offers lifelines to individuals affected by bad credit. Their networked lenders look beyond credit status to take other factors into account and approve loans with flexible terms and conditions. Their overall rating with badcredit.org is an extremely high 4.8 out of 5 stars.

#2. Bad Credit Loans - Top Lenders of Small Payday Loans

Features

Broadly known as the best site for those with poor credit scores, Bad Credit Loans offers short-term loans for clients no matter the state of their financial portfolio. Potential loan amounts range from $500-$10,000. With an estimated APR of 5.99% - 35.99%, this lending platform is another online loan market you should check out.

This brand bridges the gap between borrowers and short-term lenders. Bad Credit Loans isn’t a direct lender but it helps people find loan offers according to their needs. The application is an easy and straightforward process for borrowers at any age.

Application Requirements
  • Applicants must be at least 18 years old
  • Must have a bank account under your name
  • Must show proof of citizenship or legal residency
  • Must have regular income
Terms and Conditions

Bad Credit Loans offers one of the simplest user interfaces of any lending platform and requires no additional fees. When you fill out the application, you must specify the loan type that you are looking for. Each lender will determine their own terms and conditions, but the majority of offers fall between a 5.99% and 35.99% interest rate depending on the loan amount. Bad Credit Loans is a leg-up for those who have bad credit or are just starting their credit history.

Types of Loans: Personal Loans, Mortgage Loans, Auto Loans, Home Loans, Student Loans, and Business Loans

Pros

  • Loans of up to $10,000
  • Easy application and approval process
  • Customer service available through mail, phone, email, or contact form
  • Offers additional services, like credit repair and debt relief
  • Makes lender information available to clients

Cons

  • Some borrowers may be subject to higher APRs

Customer Experience

Clients of Bad Credit Loans praise the platform for its straightforward approach to the lending industry. No matter the status of their credit history, all customers have an equal chance to submit a loan request and receive offers. Bad Credit Loans’ prime target is producing satisfied clients and lenders.

Customers are also pleased with the transparent policies of the networked lending partners. Users can consult the platform as a mediator that promotes financial well-being. Bad Credit Loans has a 4.6/5 on badcredit.org.

#3. CashUSA - Popular for Fast Approval of Short-Term Loans

Features

CashUSA comforted the American people for over twenty years by connecting users with personal loans, no matter their financial situation. With their secure and convenient platform, you can be approved for a loan within minutes. You may be able to resolve your financial emergency in a business day.

CashUSA has a unique role as a middleman between borrowers and lenders. It is considered one of the most trusted online platforms for secure loans in America. Using CashUSA services you can submit a loan request for between $500 and $10,000. The funds after the approval are usually transferred within one business day.

Application Requirements

  • Applicants must be at least 18 years old
  • Must possess an active checking account in your name
  • Must be a U.S. citizen or permanent resident
  • Must provide work and home phone numbers
  • Must possess a valid e-mail address
  • Must be employed for at least 90 days before the loan request
Terms and Conditions

Like other platforms on our list, CashUSA does not charge a fee for its service. To get a loan, you will need to provide your birth year, zip code, and the last three digits from your Social Security Number. After you have been recognized as a suitable applicant you must give your full name, residence address, credit score range, and your reason for requesting an emergency short-term loan. You should then enter specific data about your income, give them your employer’s contact information, state the source of the income, and how long you have worked there.

Near, at the end of the application, you must provide information about active loans, give your full Social Security Number, your driver’s license number, and the type of bank account you have.

Type of Loans: Debt Consolidation, Bad Credit Loan, Auto Loans, Secured Loans, Unsecured Loans, Business Loans, Personal Loans, and Student Loans.

Pros

  • Loans of up to $10,000
  • Repayment periods average from 3 to 72 months
  • APRs average 5.99% to 35.99%
  • Guaranteed privacy and data security
  • Fast approvals
  • Multipurpose loans

Cons

  • Available only for U.S. citizens

Customer Experience

Clients love CashUSA’s low eligibility requirements and helpful educational center. With their services, you can get a loan while also educating yourself on how to improve and maintain your credit. Approved funds are wired directly to the borrower’s bank account in less than a day.

The site is helpful and understanding; it doesn’t discriminate or put extra pressure on clients, especially for those with a low credit score. CashUSA offers low-interest rates that can not be found on other lending platforms. CashUSA’s rating on badcredit.org is 4.7/5.

#4. Personal Loans - Trusted Personal Loans for Bad or No Credit Check

Features

This lending platform has a mission to provide an easy and convenient way for customers to look for short-term loans through a large network of lenders. Personal Loans provide loans starting at $1,000 and up to $35,000, with an APR range from 5.99% to 35.99%.

Personal Loans has a perfectly executed user interface. Its application makes it easy for customers from all financial backgrounds to find loans that suit their needs. The loans are typically approved in a blink of an eye. Like the other platforms on our list, Personal Loans is not a direct lender but connects borrowers with highly reputed lenders.

Application Requirements
  • Applicants must be at least 18 years old
  • Must have an active bank account in your name
  • Must provide proof of a steady monthly income of over $2000
  • Must provide your Social Security Number
Terms and Conditions

Unlike some lending platforms, Personal Loans does not place restrictions on how you use your loan. The platform also does not charge any hidden fees and places no obligation on users to accept an offer. Interest rates can vary from 5.99% to 35.99%. Loan repayment periods may cover up to 72 months.

The borrower and the lender will determine and agree to the loan terms and conditions. After the contract is signed, the funds are transferred quickly. If you make your repayments on time, you will improve your credit record portfolio also.

Types of Loans: Peer-to-Peer Loans, Personal Loans, Installment Loans, Unsecured Loans, Bad Credit Loans, and Signature Loans.

Pros

  • Loans of up to $35,000
  • Extensive network of online bad credit lenders
  • Platform only performs a soft credit check
  • No loan purpose restrictions
  • Competitive interest rates
  • Transparent process
  • Fast funding

Cons

  • Failing to repay on schedule may increase the overall repayment amount

Customer’s Experience

Personal Loans has a 4.4 out of 5 rating on badcredit.org, partly because of the polite and straightforward customer care service. Clients don’t hide their excitement when talking about Personal Loans, commenting on how simple the process is.

Those with bad credit feel especially appreciative about the loan opportunities they’ve been given through Personal Loans. According to them, this platform is a safe and secure site, the terms are always predetermined, and the client gets a fully honest and transparent working process.

Beginner’s Guide to Short-Term Loans for Bad Credit

Short-term loans provide a quick source of funds to help you smooth out your cash flow and help you bridge the gap from your actual financial situation to future investment. Typically, these loans range from $500-$10,000 with an APR from 5.99% to 35.99%. These loans are tailored specifically for people who need emergency funds deposited fast.

But finding a short-term lending platform is not easy. That is why, we will guide you through criteria that you must keep close to your mind, before deciding what to go for.

  • Avoid Payday Loans

People who are on the edge of a financial collapse may be tempted to apply for a payday loan. But be careful as these types of loans are very costly. The amount included is usually less than $500 and requires a fast repayment. Interest rates may be as high as 400%, which is higher than any type of financing.

  • Compare Your Options

Compare multiple lending platforms to be sure you get the best offer available to you.

Check the APR

Short-term loans usually have an APR from 5.99% to 35.99%. Depending on the amount of your loan and your repayment period, your lender will set an APR specific to their offer. Often, the maximum amount of a loan has the highest interest rates and has other special requirements. But, on the other hand, as we said before, payday loans offer loans lower than $500 but have an incredibly high APR rate. It is always good to read all terms and conditions carefully so you aren’t caught unaware.

  • Listen to Customer Experience

Reading what experienced users have to say is always a good start. There are multiple sites where you can check what other people have to say about a particular lending platform. That was one of the vital factors that took us to the top four sites for short-term loans. This is the safest way to ensure that the site has the reputation it claims.

  • Payment Conditions

Repayment periods usually cover a maximum of 72 months. Our advice is to pay exactly on schedule and not prolong your repayment period more than necessary.

Types of Short-Term Loans

There are multiple types of short-term loans, which we review below:

  • Lines of Credit

A line of credit is similar to using a credit card. The financial institution sets a credit limit, and the borrower can use as much or as little of this limit as they require. The installments are paid monthly, and the cost of the monthly payments is determined by how much money has been withdrawn from the limit.

  • Payday Loans

These loans are relatively easy to obtain, but a major drawback is that the borrower must repay the whole loan in one lump sum when the agreed payday comes. Many payday loans also have a very high interest rate.

  • Installment Loans

As a type of personal loan, installment loans help borrowers get the cash they need quickly but without the outrageous interest rates and very short repayment periods of Payday Loans. These loans have a pre-agreed repayment period during which the borrower will make monthly or bi-weekly payments toward the total amount of the loan. These loans are famous for their flexible conditions and the extra fast transaction of funds. They are also very user-friendly for people suffering from bad credit.

  • Cash Advances

Cash advances are available to credit card owners for a service fee. Instead of using the credit card for a transaction, borrowers can request a cash advance at an ATM and receive the funds against their credit limit. However, most credit card companies charge a higher interest rate for cash advances than for other credit card transactions.

Benefits of Short-Term Loans

  • Quick Transfer

With most short-term loans, you will have your money wired to your bank account on the following business day. Neither the approval process nor the transfer takes very long. Also called emergency loans, their purpose is to be quick and expedient, so the money sometimes will arrive on the same day you have applied.

  • Simple Applications

The applications for online loans have a very simple interface. They do not require special computer skills, so everyone can access the lending platform. It is not more complicated when compared with traditional lending procedures. You will need to provide the operator with your basic personal information and solid evidence of your finances.

If extra information is needed, the lender will just contact you. But sometimes you only need to fill out the application, read the terms and conditions and every contract clause carefully, and the money will be transferred the day after the approval.

  • Bad Credit Clients Are Approved

Online lending services are open to collaborating with people who suffer from bad credit histories. The majority of them specifically work with bad-credit-friendly lenders rather than unfriendly banks or credit unions. Lenders need only one guarantee of a steady monthly income to prove that you can repay the loan.

  • Broad Array of Opportunities

The simple and quick process of online lending is attractive for people who need immediate funding. Waiting in line was once a major inconvenience for borrowers. Plus, on top of this add the anxiety and the possibility of being rejected and having to start all over again. Consumers are more willing to collaborate on a loan agreement from an online source because of the easygoing and straightforward process but also because of the more flexible terms and rates.

  • Highly Regulated

Online matching sites for lending money are regulated by the Financial Conduct Authority (FCA). They are required to adhere to federal and state regulations or risk facing legal consequences. The lenders must behave ethically in their communication with customers. They must be transparent and honest about the conditions they offer.

FAQs About Short-Term Loans

Q.1 How quickly are short-term loans deposited?

Short-term loans are considered the quickest loans on the market when we talk about transferring money. Usually, the funds are paid out in as little as one business day.

Q.2 Could my credit score affect the loan amount I am eligible for?

We previously mentioned that short-credit loans are available for people with bad credit, so these loan platforms can help find a willing lender. But on the other hand, clients with bad credit records may pay higher interest rates to reflect the risk that lenders take.

Q.3 Why are interest rates higher for short-term loans?

Short-term loans statistically have a higher rate of default than traditional loans; therefore, interest rates protect lenders and make them more willing to extend loans to less financially secure applicants. Applicants with bad credit are also more likely to be subject to higher interest rates because of the implied risk for lenders.

Q.4 Will I need collateral for a short-term loan?

Short-term loans do not require making collateral. But if a lender is persistent about inserting collateral in your agreement, think twice before accepting such a huge risk. If you are late with the repayment you may lose your car or other property, depending on what you have offered as collateral.

Q.5 What if my financial status changes during the repayment period?

It all depends on what you mean by changing. If it is a positive change then you should continue making payments as usual or even determine whether you would be charged a fee for paying the loan off early. Some lenders tend to invent such acts in the agreement because if you repay your loan before the due date, they will lose a great amount in interest payments.

If your financial state worsens then you should contact the lender and see if you can agree to changes in the loan agreement. If your lender does not wish to adjust your repayment period, you may be forced to attempt a debt settlement or declare bankruptcy.

Q.6 Do short-term loans restrict the use of loan funds?

Unlike banks, private lenders do not care where the client spends his money. Their only concern is that the borrower keeps his word and makes repayments. Most online lending networks do not have a restriction policy about how the money is spent, but they will ask you to name the reason why you need the loan in the first place.

Q.7 What eligibility criteria can I expect?

Short-term loans are designed for all people, no matter what financial portfolio they have. Typical requirements include that the applicant is at least 18 years old, has a steady income (the amount differs with different platforms), and be a U.S. citizen or permanent resident. You can also expect to have to provide several forms of contact information and proof of income.

Concluding Note

There are times when taking a loan is simply a reality of our modern lives. Whether you are looking for financing for your car or home or you have faced an emergency, loans can be a positive force to keep your life running smoothly. The most important thing is that you approach these loans with a clear head.

Do not make rash financial decisions like accepting a loan with an unreasonable interest rate. This could result in you needing a new loan to repay the first, trapping you in a debt cycle. Always repay a debt before jumping into a new one. Alternatively, if the reason you are requesting a loan is for a luxury or otherwise unnecessary purpose, you would be better off waiting and saving your money.

If you think it over and decide that you do need a loan, educate yourself about the loan you want to borrow. Choose a reputable platform with transparent agreements that can serve both borrowers and lenders equally. Avoid payday loans because of their high-interest rates, and make a strategy for how you will repay the loan on time. Take a deep breath and get serious. If you are smart and discerning, you will get through your emergency and may even improve your credit score in the process.


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