The Best Available Short-Term Loan Options

• Short-term loans are a quick way to get funds during an in an emergency especially if you don’t qualify for a traditional loan.

It is mid-November and the holidays are fast closing in. There are a lot of things to prepare for. From those Christmas decorations and holiday groceries to gifts and traveling expenses to visit family, there’s also a lot to be bought.

If you don’t have quite enough cash for all of that, then loan facilities such as small personal loans, Christmas loans and short-term loans may come in handy.

This article provides a quick overview of the best short-terms loans so that you can compare your options should you decide to use them.

Short-term loans can provide a quick funding for you particularly if you don’t qualify for a traditional loan. Short-term loans are good financial solutions that can be helpful to you over the holidays. In addition, a short-term loan allows you to save money o interest.

Short-term loans differ from long-term loans with respect to the repayment period. While short-term loans have a narrow repayment period (usually between 3 to 18 months), long-term loans are usually repaid with 24 months or more.

In terms of interest, short-terms loans are preferable over long-term loans since they are cheaper because the time spent repaying the interest is short and have lower borrowing limits.

Note that if you have a low credit score, you are likely to qualify for a short-term loan which would be harder if you were applying for a long-term loan.

So, are you looking for quick funding? Then short-term loans may just be what you are looking for. Read a long for more details.

A Comparison of the Best short-term Loans

While we have put together a comprehensive list of the best short-term loan options, it is always advisable to do your own research to find the right loan that fits your needs.

Lender	Short Description	Minimum Credit Score	Loan Limits	Loan Terms	Fees	Suitable For
Avant	May give you a loan even if your credit score is not great	550	$2,000 to $35,000	2 to 5 years	Administration	People with fair to poor credit score
	Charges more fees e.g. upfront administration fee				Late fee
					Dishonored payment
Lendingpoint	Offers loans to borrowers with lower credit scores	580	$2,000 to $36,500	2 to 4 years	Origination fee (3% to 6%)	Borrowers with lower credit scores who have a minimum income of $20,000
	Origination fee varies on your original state
OneMain Financial	Don’t require minimum credit score to qualify	None	$1,500 to $20,000	2 to 5 years	Origination fee	Borrowers who don’t qualify for a personal loan elsewhere
	High interest rates
PenFed	Offers attractive interest rates	670	$600 to $50,000	1 to 5 years	None	Borrowers who need smaller loans
	Good option for borrowers with great credit score

 

Factors to consider when choosing the best short-term loan lender

The best short-term loan lenders above have been evaluated based on several factors such as customer experience, maximum loan amount offered, funding time, interest rates, minimum fixed rate, fees and loan terms.

Other factors to consider when choosing a short-term loan lender include: the amount you can afford to borrow, loan origination fee, repayment terms, monthly repayment instalments, and the lender’s reputation.

Note that while short-term loans are can be a great way to fund your needs in an emergency, you can only benefit most from them if you can repay them in time. This way, you can ward off predatory short-term lenders, like those who offer next day loans.

Keep in mind that banks and credit unions as well as online lenders can offer you short-term loans, and with a good credit score, you can easily qualify for one.