Best Short Term Loans

Best Short Term Loans | CitrusNorth

A short term loans can be used to pay for an emergency, finance a significant expense, or stop a massive bill from getting past due. Lenders have minimum requirements for the loans they offer, and some can reach the four-figure mark.

You might have to borrow more than you need if you only have $1,000. Extra debt is not a good idea, especially if you are paying interest.

Don’t take out more finance than you need. Instead, find a flexible lender. We’ve done extensive research to find the top small-personal loan specialists. This will help you get started. These are our top five picks; although they have different strengths, all will loan you amounts in low to mid-four figures.

BEST ONLINE LENDER

Upgrade

Upgrade offers a wide range of loans, with rates starting at $1,000 and reaching as high as $50,000. They are available for those with good credit scores. Upgrade transfers funds quickly: Once approved, Upgrade will transfer your funds within one business day.

Pros

  • Prequalification is available: This allows you to get an idea of the rates and terms without applying or dipping your credit score.
  • Minimum Borrowing Limit: As low as $1,000

Cons

  • There are several fees: Late or failed payment fee, the origination fee (from 2.9% to 8.0%).
  • Higher APRs: Maximum of 34.97% is the maximum among all lenders

Additional important information

  • Maximum/minimum amount that you can borrow: $1,000 to $50,000
  • The APR range is 5.94% to 35.97%
  • Fees: Late or failed payments, 2.9% to 8.0% Origination Fee
  • Minimum requirements not listed
  • Repayment terms: 36-60 months
  • Time for funds: In one business day

BEST FOR BAD CREDIT | SHORT TERM LOANS

Avant

If your credit score is not perfect, you might be limited in your options for small personal loans. Avant provides flexible loans for borrowers with low credit scores, as low as 600. The best part? You could have the money within one business day.

Pros

  • Avant will quickly fund the funds within one business day after approval
  • Soft credit inquiry: Prequalify for prequalification

Cons

  • High fees: Avant charges an administration fee of up to 4.75% deducted from loan proceeds.
  • Avant does not offer co-signing with other applicants

Additional important information

  • Maximum/minimum amount that you can borrow: $2,000 – $35,000
  • The APR range is 9.95% to 35.99%
  • Fees: Maximum 4.75% Administrative Fee, $25 Late Fee; $15 Dishonoured Payment Fee
  • Avant’s website suggests that borrowers should have minimum credit requirements of 600 to 700.
  • Additional qualifications: Applicants must provide proof of income.
  • Repayment terms: 24- to 60-months
  • Next business day: Time to receive funds
  • Restrictions: You can only refinance a loan a restricted number of times

BEST FOR HARDSHIP PROTECTION | SHORT TERM LOANS

Alliant Credit Union

Alliant is a credit union that offers short-term loans at very competitive rates. It is available online. Its greatest asset is its repayment terms. If you cannot pay your bills due to an emergency (layoff, disability), you can suspend your monthly payments or the entire loan amount without penalty or additional interest. Alliant calls it the optional Debt Protection Program. However, it does come with a monthly fee.

Pros

  • There is no origination fee nor prepayment penalty
  • Low APRs: Rates are as low as 10.24% compared to rates at other lenders that can reach almost 36%
  • Rapid process: Same-day deposit in many cases

Cons

  • Credit union membership is required, but it’s easy to join.
  • Additional fees may apply for debt protection based on the loan amount.
  • Long-term loans are not allowed. Maximum length five years

Additional important information

  • Maximum/minimum amount that you can borrow: $1,000 to $50,000
  • APR range: 6.24%-10.24% (with Autopay)
  • There are no origination fees or prepayment penalties
  • Minimum requirements not available
  • Additional requirements: The Debt Protection program requires that you pay a monthly fee.
  • Repayment terms: 12- to 60-months
  • The time it takes to receive funds: Usually, the same day
  • Restrictions: Credit union membership required

BEST REPAYMENT TIME TERMS | SHORT TERM LOANS

PenFed Credit Union

PenFed is the largest credit union in the United States. It offers mortgages and checking accounts, among other services. It also offers personal loans at affordable rates. After you are approved for a loan, funds could be in your account within hours. Repayment terms range from six months to five years.

Pros

  • Minimums as low as $600
  • No origination fee
  • There are many repayment terms available: From six months up to five years

Cons

  • Credit union membership required
  • Low loan limit (maximum 35,000)

Additional important information

  • Maximum/minimum amount that you can borrow: $600 – $35,000
  • The APR range is 5.99%-17.99%
  • Fees
  • Minimum requirements recommended
  • Additional qualification requirements: Income, debts, credit scores, and income of co-borrowers will all be considered, if applicable
  • Repayment terms: 6-60 months
  • Time to receive funds is as fast as the next day
  • Membership is required to be subject to certain restrictions

BEST FOR LOWEST LOCAL BORROWING AMOUNTS | SHORT TERM LOANS

Navy Federal Credit Union

His entire list is dedicated to small loan sources. Navy Federal Credit Union can offer small loans as low as $250. A payday loan provider that is not reputable will usually be your only option for small amounts (see the “Payday Loan” section below). Navy Federal offers them on fair terms at competitive interest rates.

Pros

  • There are many repayment terms available: You can get shorter loans up to 36 months and longer loans up to 37 months or five years.
  • Acceptance of co-applicants: A co-borrower is allowed if your financials or credit score are poor. This can help you get a loan at lower rates.

Cons

  • There is no prequalifying option. Application triggers hard credit inquiries, which could negatively impact your credit score.
  • Credit union membership is equired.

Additional important information

  • Maximum/minimum amount that you can borrow: $250-50,000
  • APR range: 7.49%-18.00% (APR increases for terms of 36 months or more)
  • Fees
  • Minimum requirements not listed
  • Additional qualifications: Must be a member to apply for membership in the credit union
  • Repayment terms: Maximum 60 Months
  • Time to receive funds: Often the same day
  • Only hard inquiries are allowed

BEST FOR FAIR CREDIT | SHORT TERM LOANS

Upstart

Upstart uses its artificial intelligence technology to look at applications. They consider more than your credit score. Education, income, and occupation are all factors. The average rate is between 6.76% and 35.99%.

Pros

  • A soft credit inquiry is conducted when checking the initial rate
  • You will receive your proceeds the very next day
  • You can make additional payments without a penalty

Cons

  • Origination fees up to 8%
  • You can only choose between three- or five-year terms

Additional important information

  • Maximum/minimum amount you can borrow: $1,000 up to $50,000 based on your credit and income.
  • The typical APR range is 6.76% to 35.99%
  • Fees: From 0% to 8% for origination
  • Minimum Recommended Score: 600+
  • Additional qualifications: Applicants must be at least 18 years old in most states
  • Payment terms: 36- or 60-months
  • The time takes to receive funds: Within one business day, or two business days if accepted after 5 pm EST.
  • Restrictions: Credit reports must not be affected by bankruptcies or delinquencies.

BEST CREDIT UNION

First Tech Credit Union

This lender does not have strict membership requirements as compared to other credit cooperatives. Join the Financial Fitness Association for $8. First Tech Credit Union has competitive rates and provides personal loans up to $50,000 for poor credit.

Pros

  • No origination fees
  • Maximum loan amount of $500,000
  • Joint applications available

Cons

  • A hard inquiry can only check rates
  • You need to be a member of the credit cooperative
  • Minimum loan term of three years

Additional important information

  • Maximum/minimum amount that you can borrow: $500 up to $50,000
  • APR range: 6.70%-18.00%
  • Fees
  • Minimum Recommended Score Not Listed
  • Additional qualifications: First Tech Credit Union will consider the income and debt of applicants
  • Repayment terms: 24- to 84 Months
  • Time for funds not yet stated
  • Restrictions: Credit union membership required

BEST PEER-TO-PEER LENDER

LendingClub

Lendingclub, headquartered in San Francisco, was launched in 2007 and facilitated over $60 billion in personal loans. LendingClub loans may be easier to qualify for than other lenders. However, funding times can be longer than those of different lenders. This is especially true if you submit a joint request. Rates start at 8.5%, not including the origination fees, reaching as high as 6 percent.

Pros

  • For those who need to borrow less, personal loans starting at $1,000 are a great option.
  • LendingClub allows you to apply for joint loans to increase your chances of getting approved at a lower rate.
  • There are no penalties for early prepayment

Cons

  • In some states, specific terms and amounts may not be available
  • LendingClub’s funding times are longer than other online lenders. They can take as long as a few days.
  • Origination fees apply to borrowers

Additional important information

  • Maximum/minimum amount that you can borrow: $1,000 – $40,000
  • The APR range is 8.05% to 35.89%
  • Fees: A 3%-6% origination fee, a late fee may be applicable
  • Score minimum recommended: Not Specified.
  • Additional qualifications: Borrowers must be at least 18 years old to borrow money.
  • Payment terms: 36- or 60-months
  • It takes a few days to receive the funds.
  • Restrictions: Residents of the U.S. territories are not eligible for loans

FAQs

Are you looking for small personal loans?

It would seem that borrowing small amounts of money is more accessible than borrowing large sums. Financial institutions don’t think this way. A small personal loan can be as costly as servicing a large one, roughly defined as $1,000 to $5,000. Many banks don’t want the hassle, especially with low-interest rates and slim profit margins.

Online Lenders

Because they don’t have overhead, online lending can offer smaller amounts than other lenders. Online lenders often offer pre-qualification. This means that you can fill in basic financial information to determine if you are eligible for financing.

However, the lender will pull your credit history, which could affect your credit score. Personal loan applicants at credit unions and banks are not eligible for this service.

Credit unions

A credit union is your best option for low-interest loans. This non-profit financial cooperative provides traditional banking services. You might have to join credit unions to be eligible for personal loans.

Credit unions are member-owned institutions. Once you’re a member, you can borrow the amount you need at a low APR.

Banks

It could be challenging to find a loan source from brick-and-mortar bank branches. Bank of America is one of the most well-known banks, but they don’t offer personal loan options.

Some banks set the bar high, such as Wells Fargo, where personal loans start at $3,000. A small personal loan is more likely to be available at a regional or local bank than a national lender. If you are already a client of the bank, it is also a benefit.

What are the Alternatives to Small Personal Loans for You?

Before you decide on a personal loan, it’s wise to look at all your options.

Comparison of small loans and credit cards

One reason small-scale personal loan providers are not available is the widespread acceptance of credit cards. Credit cards are accepted in many places today.

You are financing the purchase by putting money on your credit card. It is not much different than borrowing money from other sources. When your monthly statement arrives, you repay the lender (the credit card issuer), in whole or in part. You pay interest if it is in part.

Credit card issuers are more generous than banks and will lend you money by charging you for your purchases or giving you a cash advance. If you have a good credit record, they will even increase your credit limit.

However, the catch is that credit card interest rates are usually higher than personal loans. This is especially true for cash advances.

It all depends on the personal loan lender and card issuer. It is essential to calculate which option will be less expensive overall. You might also need to consider special circumstances.

You should consider a rewards card if you can pay your expenses while earning cashback or points. A card that offers a zero-APR balance transfer promotion for 24 months, roughly the amount of time it would take to repay a personal loan, could offer a better deal.

A personal loan is a good option if you want to reduce your interest rate or have no credit card.

Payday loans vs. small loans

A type of short-term borrowing where an independent small credit merchant provides you with an immediate loan against the next paycheck. It’s a kind of advance on your wages. Payday loans can be a good option for borrowers who don’t have a lot of money. These loans are usually limited to $500.

We didn’t forget a decimal point. They are 400%. You may also be charged small fees. Payday loans can often cost you more than the original amount. A small personal loan from your credit union can save you a lot of interest. You’ll be able to repay the loan over months or even years, as opposed to paying it off in one payday.

The bottom line

You don’t necessarily need to borrow large amounts of money to cover significant expenses when considering taking out a loan. You may only need to borrow a small amount of money to pay your bills or for a new one.

This will not affect your credit score. Many lenders can help with small expenses, but each lender’s terms vary, so make sure you shop around to see which ones work best for your needs.

How to Choose the Best Small Personal Loans

Investopedia provides impartial, thorough reviews of personal loan lenders to help consumers decide their borrowing options. We collected data from more than fifty lenders to help users make the best borrowing decisions, including loan amounts, interest rates, and repayment terms.

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