Best Short-Term Loans in January 2026
Save money by paying off your loan in less than three years
| Lender | User rating | APR | Term | Amount | |
|---|---|---|---|---|---|
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9.95% – 35.99% | 24 to 60 months |
$2k – $35k |
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6.24% – 24.89% (with autopay) | 24 to 84 months |
$5k – $100k |
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6.74% – 17.99% (with autopay) | 12 to 60 months |
$600 – $50k |
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7.69% – 26.44% (with autopay) | 6 to 60 months |
$1k – $35k |
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8.74% – 35.49% (with discounts) | 24 to 84 months |
$5k – $100k |
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6.50% – 35.99% | 36 to 60 months |
$1k – $75k |
| Lender |
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|---|---|---|---|---|---|---|
| User rating | ||||||
| APR | ||||||
| Term | 24 to 60 months | 24 to 84 months | 12 to 60 months | 6 to 60 months | 24 to 84 months | 36 to 60 months |
| Amount | $2k – $35k | $5k – $100k | $600 – $50k | $1k – $35k | $5k – $100k | $1k – $75k |
Read more about how we made our picks for the best short-term loans.
Short-term loan lenders at a glance
Best for: Short-term loans for fair credit – Avant
- APR
- 9.95% – 35.99%
- Available to borrowers with fair credit
- Offers approval in minutes
- No fees for paying off loan early
- Other lenders offer lower rates
- Charges an upfront fee
- Not available in all states
Avant is the best short-term lender for fair credit because it offers short loans to borrowers with scores as low as 580. If you want an even shorter loan, you can pay off your Avant loan early without paying fees called prepayment penalties.
If you have good or excellent credit, you’ll likely qualify for better rates with another lender. Note that Avant does charge late fees and an upfront loan processing fee called an origination fee.
To get a loan with Avant, you’ll need to meet the following minimum requirements:
- Residency: Not available to residents of Hawaii, Iowa, Maine, Massachusetts, New York, Vermont or West Virginia.
- Administrative: Must have a bank account. May need to submit bank statements, pay stubs or tax documents to prove your income. Avant may also call your employer to verify your employment.
- Credit score: 580+
Best for: Short-term loans for customer satisfaction – LightStream
- APR (with autopay)
- 6.24% – 24.89%
- Rate Beat program
- Low rates
- No fees
- Must have good or excellent credit to qualify
- Can’t see rates without applying
- Can’t change monthly due date
Few lenders offer to beat competitors’ rates, but LightStream may beat any competitor’s loan offer by 0.10 percentage points. Stipulations apply, so read about LightStream’s Rate Beat program for more information.
LightStream repayment terms start at 24 months. But if you need a shorter loan, don’t sweat — you can pay off your LightStream loan early without worrying about prepayment penalties. Note that LightStream only approves borrowers with at least good credit, and you can’t check your rates without submitting a formal loan application.
LightStream doesn’t specify its exact credit score requirements, but you must have good to excellent credit to qualify. Most of the applicants that LightStream approves have the following in common:
- At least five years of on-time payments under a variety of accounts (credit cards, auto loans, etc.)
- Stable income and the ability to handle paying their current debt obligations
- Savings, whether in a bank account, investment account or retirement account
Best for: Small short-term loans – PenFed Credit Union
- APR
- 6.74% – 17.99%
- Offers loans as small as $600
- Offers joint loans
- Can check rates without damaging credit
- Must become a member to get a loan
If you need a small loan, PenFed Credit Union offers loans starting at $600 and repayment terms as short as 12 months. Borrowers looking for even shorter loan terms should note that they can repay their loan early without PenFed charging prepayment penalties.
PenFed Credit Union is an excellent alternative to a payday loan because it offers small short-term loans with much lower interest rates. Note that you have to join PenFed to take out a loan, but it’s easy to become a member.
To qualify for a PenFed loan, you must meet the following requirements:
- Membership requirements: PenFed membership (anyone can join)
- Administrative: Open a PenFed savings account with $5 deposit; may need to submit documents to verify your identity and income
Best for: Loans with shortest repayment term – PNC Bank
- APR
- 7.69% – 26.44%
- Loans as short as 6 months
- Low rates
- No upfront fees or charges for paying off loan early
- Vague eligibility requirements
- Can only borrow up to $35,000 (many lenders offer $50,000 or more)
- Not available in all states
PNC Bank offers repayment terms starting at six months, making it the best choice for saving on interest with a very short loan. Borrowers with excellent credit can take advantage of PNC’s low starting rates, and you won’t pay a fee for taking out a loan or for paying off your loan early.
PNC Bank doesn’t specify what credit score you’ll need to qualify for a loan. You can only take out up to $35,000 with PNC, which may not be enough to cover your expenses.
PNC Bank considers the following when deciding whether to approve you for a loan:
- Residency: Must live in an eligible U.S. state
- Credit history
- How long you’ve been employed
- Citizenship
Learn more about personal loan requirements and how lenders like PNC make approval decisions.
Best for: Quick short-term loans – SoFi
- APR (with discounts)
- 8.74% – 35.49%
- Get money as soon as today
- Competitive interest rates
- No late payment fees
- Charges upfront fee for lowest rates
- Must borrow at least $5,000
- Not available to borrowers with bad credit
SoFi offers quick loans — it gives same-day funding to the majority of applicants. SoFi loans don’t come with late payment fees or prepayment penalties, meaning you can pay off your loan early if you want an even shorter loan.
You’ll pay an upfront origination fee to get SoFi’s lowest annual percentage rates (APRs). And if you need a small loan, choose another lender. SoFi’s loans start at $5,000, and you should only borrow as much as you need.
You must meet the requirements below in order to get a loan from SoFi:
- Age: Be the age of majority in your state (typically 18)
- Citizenship: Be a U.S. citizen, an eligible permanent resident or a non-permanent resident (a DACA recipient or asylum-seeker, for instance)
- Employment: Have a job or job offer with a start date within 90 days, or have regular income from another source
- Credit score: 620+
Best for: Short-term loans for bad credit – Upstart
- APR
- 6.50% – 35.99%
- Available to people with bad credit
- Low rates for borrowers with excellent credit
- Customer service available seven days a week (excluding major holidays)
- May charge high upfront fee
- Only two repayment lengths offered
Upstart considers more than your credit score, funding applicants who have been denied for other loans. Upstart’s AI-powered algorithm evaluates your education, income, employment status, financial history and identity.
But Upstart’s bad-credit loans don’t come cheap — rates go up to 35.99%. And Upstart charges upfront loan processing fees as high as 12.00%, when other lenders don’t charge an origination fee at all.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, reasonable number of recent inquiries on your credit report and no current delinquencies
- Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
What is a short-term loan?
A short-term loan is a personal loan that takes between six months and three years to pay back. You can apply for short-term loans online.Short-term loans generally come with higher minimum monthly payments than long-term loans, but you’ll typically save money on interest with a short loan.
Calculate your short-term loan payments
Pros and cons of short-term loans
Like any financial product, short-term loans come with pros and cons. Here’s what you need to know:
Pros
-
Save money
The shorter your term, the less interest you’ll pay over the life of your loan. -
Lower interest rates
Personal loans with shorter loan terms typically have lower interest rates. -
Less time in debt
Taking out a short-term loan means you’ll be in debt for a shorter period of time.
Cons
-
Higher monthly payments
Since you’ll have less time to spread out your balance, your monthly payments may be higher. -
Limited availability
Not all lenders offer short-term loans. -
Risky
Short-term loans come with higher monthly payments. If you lose your job or have an unexpected expense, you may not be able to make your full loan payment.
If you want to take out an ultra-short loan but don’t want to pay predatory interest rates, get a loan with a lender that doesn’t charge prepayment penalties. You can pay your loan back as quickly as you want without worrying about penalty charges.
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Short-term loans to avoid
A short-term loan can help you out of a financial bind, but watch out for predatory rates and fees. To avoid being taken advantage of, beware of short-term loans that:
- Don’t require a credit check
- Have an APR above 36%
- Come with prepayment penalties
- Have a repayment period that lasts days or weeks instead of months
- Have negative feedback on the Consumer Financial Protection Bureau’s complaint database
If your short-term loan comes with any of these red flags, choose another lender if at all possible. Predatory loans will leave you worse off financially than you were before taking out the loan.
Other types of short-term loans
Many people turn to other short-term loan options when they need quick access to money. While the following loans are convenient and easy to qualify for, you’ll pay for that convenience with expensive fees, high interest rates and very short repayment periods.
Whenever possible, choose an emergency loan or a hardship loan over the following options.
| Type of loan | What is it? | Benefits | Drawbacks and risks |
|---|---|---|---|
| Paycheck advance from employer | Borrowing part of your next paycheck from your workplace |
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| Paycheck advance app | Borrowing a couple hundred dollars from a lender using an app |
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| Cash advance from credit card | Using your credit card to withdraw cash from an ATM — the amount you take out will be added to your credit card balance |
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| Pawn shop loan | Temporarily giving a valuable item like jewelry to a pawn shop in exchange for cash |
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| Car title loan | Temporarily giving a lender your car title in exchange for money |
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| Payday loan | Taking out a small short-term loan with rates as high as 400% |
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How we chose the best short-term personal loans
We reviewed more than 30 lenders to determine the overall best short-term personal loans. To make our list, lenders must offer personal loans with a minimum term between six and 36 months. The lender must also offer competitive APRs.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best short-term loans come from Avant, LightStream, PenFed, PNC Bank and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from companies through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Why trust our methodology?
LendingTree’s writers and editors diligently vet dozens of lenders to narrow down which ones offer the most affordable rates and a customer-centered experience. We have ongoing conversations with loan companies to ensure accuracy and collect first-person feedback to understand the holistic process of getting and repaying a loan.
Using my financial health counseling certification, I’m here to walk you through the important — and sometimes stressful — process of understanding your personal finances and credit.
Amanda’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
It’s harder to qualify for an affordable short-term loan with a credit score below 580, but some lenders are willing to loan to bad-credit borrowers at higher rates. The higher your rates, the more money you’ll pay for your loan.
Traditional lenders have repayment periods that span from six months to several years, while payday loans tend to be due in a few weeks. Choose a traditional lender whenever you can, since payday loans come with high interest rates that make the loan extremely expensive.
On-time payments build your credit as long as your lender reports your payments to the credit bureaus. On the flip side, late loan payments hurt your credit.
Ask your lender whether it reports payments to the credit bureaus before you take out your short-term loan, and consider signing up for autopay so you don’t accidentally miss a payment.