Short-term loans can be an excellent choice for emergencies, such as paying off a bill or fixing your car.
We’ve compiled the top four short-term loans and highlighted what makes each one unique. We have given the following definition of a short-term loan: a loan with terms shorter than 12 months.
These lenders may offer short-term loans with high-interest rates. The annual percentage rates, or APRs, are still lower than those of a traditional payday loan.
Oportun is different. If you don’t know your credit history or haven’t built credit, it can be challenging to get a loan. Oportun does not require credit scores. Oportun reports to both the main credit bureaus. You might be able to improve your credit score if you make timely payments.
Oportun offers personal loans with terms ranging from 12 to 46 months.
Earnin is a different product. Earnin promises no interest or fees and may even be an alternative to a payday loan. You can also tip an amount. Earnin members are restricted to $100 per pay period. This limit may change over time.
Earnin will take the money out of your bank account each payday to repay you for your advance.
What makes Affirm differently? Affirm may be an alternative credit line for those who need cash to buy retail products. Affirm has partnered with thousands of online retailers and stores, including furniture shops and auto parts retailers, to offer personal loans. Rates start at 0% APR. You might pay more depending on the credit of the merchant.
Affirm typically offers terms of three, six, or twelve months repayment terms. You might not receive enough time to repay small purchases. Larger purchases could be eligible for 48-month periods.
Personify stands out as an online lender that offers personal loans with various terms and amounts depending on where you live. The company offers loans in North Carolina from $500 to $15,000 The loan terms are between 6 and 48 months. Credit Karma might have words that are different.
Find out where you live to find out which options are available. Personify offers semi-monthly and bi-weekly payment options. This will allow you to create a repayment plan that is right for you.
You should carefully consider all options before you take out a short-term loan. These are some key points to keep in mind to help you get started.
If you need money quickly and have bad credit, payday loans may be tempting. Payday loans for the short term are typical $500 or less, and you’ll need to repay them when your next paycheck comes. These loans have fees and interest rates that can be as high as 400%. This is significantly more than what you would pay for other financing options such as a credit card.
A type of short-term loan that some federal credit unions offer is called payday alternative loans. This may be a better option. Although credit unions do not charge an application fee, they will charge less than $20 for a PAL. The interest rates are only 28%
Even if the loan is not long-term, shopping around for personal loans can help you save time and lower stress. Before you make a final decision, compare several loans. An existing credit card may be a better option if your APR is lower than the loan you are considering.
Both cases require that you only borrow the amount you need, and you can repay it quickly. If you are considering a short-term loan, make sure to read the contract carefully.
This list was compiled by reviewing over a dozen lenders. We narrowed down the list to personal loans that have repayment terms of less than 12 months. Then we compared the interest rates and fees for each lender.