Best Short-Term Loans in December 2025
Save money by paying off your loan in less than three years
| Lender | User rating | APR | Term | Amount | |
|---|---|---|---|---|---|
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7.23% – 24.00% (Test) | 12 to 84 months | Up to $125M |
| Lender |
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|---|---|
| User rating | |
| APR | |
| Term | 12 to 84 months |
| Amount | Up to $125M |
Short-term loan lenders at a glance
Best for: Short-term loans for bad credit – Upstart
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 21.58% and a 9.84% origination fee of $984, for an APR of 26.82%. In this example, the borrower will receive $9016 and will make 60 monthly payments of $275. APR is calculated based on 5-year rates offered in December 2023. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
QA Test
- 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
- Charges 5% of past due amount or $15, whichever is greater for late payments
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 24.00%. And Upstart charges upfront loan processing fees as high as 12%, 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: + (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
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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
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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.
How to compare short-term loans with LendingTree
Fill out one form
Answer a few questions about yourself and your loan.
Compare your rates
We’ll send you loan offers from up to five of our trusted lending partners.
Get your money
Sign your loan agreement and your lender will send you the money you need.
Your credit score is more than just a number — it will make or break your ability to get a loan. Check your score for free with LendingTree Spring. You can even test scenarios, like how taking out a short-term loan will affect your score.
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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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.
Our methodology
According to our comprehensive rating system, the best short-term loans come from Avant, LightStream, PenFed Credit Union, PNC Bank and Upstart.
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 prioritize lenders based on the following factors:
Accessibility. Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
Rates and terms. We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
Repayment experience. For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.