These are the Top Short-term Loans that can Meet your Cash Emergency Needs

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 the best choice for people with bad credit histories.

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.

  • Prequalification application — Oportun conducts soft credit inquiries during the prequalification process. This will not affect your credit scores. This will allow you to determine which terms might be available. This could change once your application is submitted.
  • Oportun may allow co-applicants – Oportun could approve you to apply alongside another person. If you apply with a friend, you may be eligible to borrow money.
  • Your references and photo identification must be submitted. You don’t need to have a good credit score to be eligible.
  • Oportun personal loans are available in terms and amounts ranging from $300 to $10,000. Different lenders may offer Credit Karma terms.

Earnin is the fastest way to get your paycheck fast:

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.

  • Earnin isn’t for everyone, even if your job involves earning money. You must have at least 50% of your weekly paycheck deposited into your checking account to be eligible. You must have a regular workplace or use a digital program to track your hours to be eligible.
  • Balance Shield features — Earnin provides “Balance Shield alarms” that alert you when your checking account drops below a certain amount and “Balance Shield Cashouts,” which advance money if your balance falls below $100.

Best for retail purchases: Affirm

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.

  • You may need to pay a down payment. Even though you have been approved, this does not guarantee receiving the total amount requested. In some instances, Affirm might ask for a downpayment.
  • Affirm guarantees no fees – Affirm claims that it doesn’t charge any late payments, prepayment fees, or fees to close your account or open one.
  • Prequalification is possible. Affirm conducts only a soft inquiry to determine eligibility. Affirm will perform a hard credit check if you apply for a loan. This could lower your credit score. Once you receive a loan, Affirm will report your payment history to credit bureaus. Paying on time can improve your credit score.

Personify is the best option for multiple loan terms

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.

  • Personify may charge an origination fee.<span style=”font-weight: 400;”> This fee will vary depending on your location. You will also be responsible for the interest.
  • Additional fees — Personify doesn’t charge application fees or prepayment penalties fees for personal loans paid before the due date. Late fees and insufficient funds fees may apply.
  • Personify is not available for all states. Personal loans are available only in 27 states. You should verify that Personify is available in your area before you submit an application.
  • Application process and requirements — Fill out an online loan application. Personify claims funds could be available the same day as your application is approved.

These are the basics you should know about short-term loans

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.

Avoid payday loans

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%

Compare your options

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.

These loans: How did they get chosen?

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.