Short-Term Loans For Bad Credit

At times, we need quick money to pay off urgent debts, and this is where loans come into play. So, in case you are in need of cash fast, then a short-term loan is the choice for you. Even more so if you have a bad credit score.

These credit loans are ideal for people who need to borrow a loan amount of up to around $1500 and pay it back fast.

A short-term loan does not stand for a substantial financial commitment. Once applied, a customer will receive the loan money in just a few hours after the application.

This is what we recommend (2023-09-23): A score from 550 and lower, our recommendation is OnlineLoanNetwork (up to $50,000). If you have a credit score over 580, we recommend you start your search with Lifeloans (up to $50,000). 

Most lenders are ready to provide short-term loans to consumers with poor credit. If your plan is to apply for a loan, you need to make sure to carry out extensive research prior to applying.

With that said, let us jump right in and learn more about short-term loans, what it has to offer, and so on.

What are Short-Term Loans for Bad Credit?

Regular loans normally offer payment terms that last from 12 months up to 20 years, which depends on the loan type.

On the contrary, short-term loans are loans that must be paid off within one year. One example of such a loan type is payday loans. Here, the total sum of money needs to be repaid in one large payment after the upcoming income.

A short-term loan usually has a high interest rate in comparison to a long-term loan. This is because of the expense as well as the risk that comes with financing short-term loans.

Consumers having a bad credit history can acquire loans. However, they normally receive them with extremely high interest rates as compared to consumers with an excellent credit score.

In addition, a short-term loan amount is generally smaller compared to a long-term amount. This is because of the hassle of repaying one huge payment within a short period of time. Therefore, if your plan is to get a short-term loan, you need to be ready to pay a higher interest rate.

How to Qualify for a Short-Term Loan?

As stated, people with bad credit scores can apply for a short-term loan. That said, it will depend on the lenders whether they will approve the consumer’s loan request or not.

Lenders perform no credit check, so short-term loans like payday loans can be approved quickly. However, there are certain basic requirements that need to be met if you want to qualify for a short-term loan.

To be eligible, applicants must:

  • Be of age 18 or above
  • Own a valid identification
  • Receive a monthly payment of a minimum of $800, while lenders usually prefer at least $2000 prior to tax
  • Provide income verification
  • Have a full-time job
  • Own a functioning bank account

These requirements vary among the lenders. So, it is highly recommended that consumers confirm the eligibility requirements to qualify for a short-term loan with the lenders.

Note: Look into the credentials of the company or institution offering you a short-term loan, and ensure it is legit and reliable.

What about Same-Day Deposit?

In some cases, a customer may require their loan amount transferred to their bank account urgently.

While guaranteeing same-day loan deposits is off-limits to lenders, they can still make arrangements for quick loans. However, this is provided that you apply for the short-term loan on time.

Applying on time will make sure the approval goes through early, and you receive the loan amount within usual bank working hours.

Pros and Cons

Below are the advantages and disadvantages of applying for short-term loans:


A short-term loan is an excellent way of receiving finances to pay off urgent or unpredicted expenses. It offers various benefits, making it the ideal option as compared to other credit options.

  • A short-term loan does not take a lifetime to repay. You may need around one year to pay off the additional repayments, and that is it!
  • In general, a short-term loan is unsecured. Therefore, you do not need to provide the lenders with collateral such as car loans, mortgages, etc., for taking out loans. In the case that a customer defaults on their loan, they need not stress about losing their home, properties or assets.
  • Lenders offering short-term loans do not have strict criteria in comparison to long-term loans. This gets the application procedure moving fast.
    In certain cases, you will know if your request has been approved the day you apply. And if approved, you will get your loan money the next business day.
  • Some lenders do not mind negotiating payment plans that meet the customer’s requirements, in case you can’t pay.


Despite the many advantages a short-term loan offers, it does come with drawbacks as well. It is possible to have a negative impact on your finances in the long run, so careful consideration is a must.

Some disadvantages of short-term loans are:

  • A short-term loan is for emergencies. Its overpriced fees and high interest rates are not the solutions for your long-term financial problems.
  • This loan type comes with high rates of interest without considering a customer’s poor credit history. A loan with a higher interest rate is costlier to repay, and besides that, customers have to pay extra monthly.
  • Taking out short-term loans means a customer is required to pay a high fee. It includes standard expenses like fees for administration. Not only that, they may have to pay late fees too, in case they miss payments.

All the extra fees take your debts to a whole new level since you have to repay a considerable amount monthly.


Short-term loans help customers make it through their challenging financial times. Even with a bad credit history, many lenders may accept your request for a loan. That said, make sure you are well aware of the high rates of interest a short-term loan comes with.

What’s more. You need to take some factors into consideration prior to taking out the loan. They are:

  • Repayment terms and conditions
  • Criteria for eligibility
  • Timing for funds
  • Company charging fees
  • Privacy policy

All the lenders have their own specific requirements. Do make sure you meet them if you want your loan approved.

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