Best Short-Term Loans for Bad Credit: Compare Top Lenders

You can get a short-term loan with bad credit, with options available from online lenders and credit unions. Depending on your situation, alternatives like cash advances and PALs may also be worth considering. While these options can provide fast access to cash, borrowers should balance funding speed with cost by comparing APRs, fees and repayment terms carefully.

• What it means: A short-term personal loan provides a lump sum of money that's typically repaid within a few weeks to five years. Borrowers with lower credit scores may still qualify, though rates and fees are often higher.

• Types: Online personal loans and credit union loans, plus alternatives like cash advances and PALs

• Typical APRs: 6% to 36%, though some lenders charge much higher rates

• Repayment term: A few weeks to five years

• Loan amounts: Vary by lender and loan type

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms and fees from different lenders and choose the best offer for you.

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Best Short-Term Loans for Bad Credit at a Glance

Whether you're covering an unexpected repair, medical bill or another time-sensitive expense, compare the cost and repayment timeline of short-term loans before choosing a lender.

OppLoans

OppLoans is a financial lending platform that partners with lenders in over 35 states. OppLoans doesn't require a minimum credit score. It may be a good fit for those looking to build credit through on-time payments.

• Minimum credit score: No minimum

• Loan terms: Nine to 24 months

• Loan amount: $500 to $5,000

• Interest rate: Up to 195% APR

• Fees: None

• Time to fund: As quickly as one business day

Pros and Cons of OppLoans

PNC Bank

PNC Bank has the longest application-processing time of any lender in this roundup, but this traditional lender offers a wide range of loan terms.

• Minimum credit score: Not disclosed

• Loan terms: 12 to 60 months

• Loan amount: $5,000 to $35,000

• Interest rate: 6.99% to 25.29% APR

• Fees: None

• Time to fund: Immediately after signing documents in person

Pros and Cons of PNC Bank

Possible Finance

Possible Finance is an alternative to payday lenders. The difference is that you repay the loan in four biweekly installments instead of all at once from your next paycheck, and the interest rates aren't quite as high as payday lenders charge. In addition, Possible Finance charges no penalty or late fees.

• Minimum credit score: No minimum

• Loan terms: Eight weeks

• Loan amount: Up to $500

• Interest rate: Up to 248.67%

• Fees: $15 to $25 per $100 borrowed, depending on state

• Time to fund: Loans are instantly funded in many cases

Pros and Cons of Possible Finance

PenFed Credit Union

You'll have to join the credit union if you accept a PenFed loan, but it's an automatic process. PenFed opens a savings account pre-loaded with the $5 membership fee when you receive your loan. There's no origination fee, and you can apply with a co-borrower who has stronger credit to improve your chances of being approved.

• Minimum credit score: Not disclosed

• Loan terms: Up to 60 months

• Loan amount: Up to $50,000

• Interest rate: 6.39% to 17.99% APR

• Fees: None

• Time to fund: As soon as the next day

Pros and Cons of PenFed Credit Union

Personify Financial

Personify Financial offers unsecured personal loans to high-risk borrowers in a number of states throughout the U.S. Loan amounts and APRs will vary based on your state.

• Minimum credit score: None

• Loan terms: 12 to 48 months

• Loan amount: $500 to $15,000 in most states

• Interest rate: 36% to 199% APR

• Fees: 5% to 5.99% origination fee in most states

• Time to fund: As soon as one business day

Pros and Cons of Personify Financial

Who Each Lender Is Best For

Not every lender is the right fit. Use the guide below to find the option that best matches your borrowing needs.

• Choose OppLoans: If you need fast funding and want to build credit

• Choose PNC Bank: If qualifying for a lower APR is your top priority

• Choose Possible Finance: If you need a smaller loan amount and quick funding

• Choose PenFed Credit Union: If you qualify and want higher loan amounts with lower APRs

• Choose Personify Financial: If you don’t want to meet traditional credit score requirements

How Is a Short-Term Loan Different From a Regular Personal Loan for Bad Credit?

A short-term loan can be a type of personal loan for bad credit, but the main difference is the repayment timeline. Short-term loans aren't a standardized category, so exact terms vary by lender.

• Short-term loans: Generally designed for faster repayment and may offer smaller amounts or higher APRs.

• Traditional personal loans: Often offer longer repayment terms, potentially larger loan amounts and more time to spread out payments.

What Counts as a Short-Term Loan for Bad Credit

A short-term loan provides a lump sum that's typically repaid relatively quickly, although exact terms vary by lender. Borrowers with bad credit may still qualify, but eligibility and costs also vary.

• Loan amounts usually vary by lender and loan type.

• Repayment periods may range from a few weeks to several years.

• APRs can range widely from nearly 6% all the way up to 249%.

• Approval decisions can happen on the same or next day.

• Lenders may consider income, bank activity or employment in addition to your credit profile.

How To Compare Loan Offers

Getting approved is only part of the process. Before accepting a loan, compare your options carefully to make sure you're choosing the lender that offers the best overall value.

1. Compare APRs: Look beyond the advertised rate and compare the APR, which includes interest and certain fees.

2. Look at your total cost: Calculate how much you'll repay over the life of the loan, including fees and interest.

3. Watch for fees: Check for origination fees, late fees, application fees and any prepayment penalties.

4. Compare repayment terms: A longer repayment period may lower your monthly payment but increase your total borrowing costs.

5. Choose the shortest term you can afford: Assess your budget and pick the shortest term that works with your entire financial picture.

What To Watch Out For

Fast funding can come at a price. Before you borrow, compare the risks associated with these common short-term loan options.

If you're borrowing because of an unexpected expense rather than an ongoing financial need, it may also be worth comparing options for emergency loans for bad credit before choosing a high-cost short-term loan.

How To Apply for a Short-Term Loan With Bad Credit

Applying for a short-term loan with bad credit isn’t hard to do. Here’s a step-by-step guide:

1. Determine how much money you need: Borrow only what you need so that repayment is manageable.

2. Pull your credit report: If there are any errors on your credit report, you should address those before applying for your loan online or in person.

3. Have an APR ceiling in mind: Whenever possible, aim for an APR of 36% or less. If you're considering a higher-APR loan, compare all available alternatives first and borrow only if you have a clear repayment plan.

4. Research lenders that will consider your credit score: Look for lenders whose eligibility requirements fit your credit and financial profile.

5. Prequalify with lenders who will do soft pulls on your credit: You want to compare several lenders with different rates and terms.

6. Compare total costs: Include all the costs and fees across lenders.

7. Submit the formal application to the lender: Keep in mind that once you apply, this will trigger a hard inquiry on your credit.

8. After approval, review your terms: Carefully review the terms of your loan and sign the documentation.

Alternatives Worth Considering

If a short-term loan feels too expensive or doesn't fit your situation, you may have other ways to access the money you need. Consider these alternatives before taking on high-interest debt:

• Ask your credit union about PALs or small loans

• Negotiate directly with your creditor

• Borrow from a trusted friend or family member

• Ask about hardship or community assistance

Need More Flexibility With Rent Payments?

If covering rent is your primary concern, MoneyLion Split offers another way to manage the timing of your payments.

With MoneyLion Split, you pay your rent in two payments each month. It’s designed to make rent payments easier to manage. You don’t need a MoneyLion One membership to use Split. You pay your landlord directly, so there’s no need for them to sign up or participate. There’s a 3% total fee across the two payments — 1.5% of the total monthly rent per payment. The fee may be waived when qualifying direct deposit or account balance requirements are met.

Here’s how it works: Set aside up to 50% of your monthly rent in a MoneyLion Split Reserve account. You pay $0 out of pocket for rent on the first of the month. MoneyLion Split provides funds toward your rent payment, and you’ll use those funds to pay your landlord directly. You’ll repay the funds in two payments later in the month.

Final Thoughts

• If you have bad credit, you can still qualify for a personal loan.

• Aim for loans with APRs at or below 36%, and know that many bad-credit lenders charge much higher — sometimes into the triple digits — so compare the full cost before you borrow.

• Loan amounts among these lenders can range between $500 and $50,000.

• The typical repayment schedule is a few months to five years.

Key Terms

• APR: APR shows a loan's yearly cost, including interest and certain fees. It helps you compare offers more accurately than interest rate alone.

• Origination fee: An origination fee is a lender charge for processing and setting up your loan. It raises your total borrowing cost.

• Short-term loan: A short-term loan gives you a lump sum and usually requires repayment within a few weeks to about five years.

• Predatory lending: Predatory lending uses unfair or deceptive loan terms that can trap people in costly debt they may struggle to repay.

Sources

• Consumer Financial Protection Bureau: What is the difference between a loan interest rate and the APR?

• Consumer Financial Protection Bureau: What are mortgage origination services? What is an origination fee?

• Consumer Financial Protection Bureau: What is a debt-to-income ratio?

• Consumer Financial Protection Bureau: Payday, Vehicle Title, and Certain High-Cost Installment Loans

• National Association of Consumer Advocates: Predatory Lending

Daria Uhlig contributed to the reporting for this article.

Photo Credit: damircudic / iStock.com

Data is accurate as of Oct. 26, 2026, and is subject to change.

Parts of this article were created with AI assistance. MoneyLion editors reviewed, fact-checked and edited the final version and are responsible for its accuracy.