What are the best short-term loans for bad credit? Short-term loans are types of personal loans that offer a huge amount of money to borrowers to cover car repairs, medical expenses, and other types of expenses. Although there is no specific definition for short-term loans, you may come across loans ranging from one to three years. While finding short-term loans for bad credit can be hard, some lenders offer this loan to borrowers with bad credit.
Generally, borrowers with bad credit tend to face high insurance rates. However, finding the best affordable insurance rates for short-term loans makes affordability better. Short-term loans typically come with shorter repayment terms than other loans. It offers a fixed insurance rate throughout the loan repayment years. Regardless of whether you have good or bad credit. It is advisable to review the lender’s rates and terms before getting a short-term loan.
Best Short-Term Loans for Bad Credit
Generally, it is not advisable to opt for the first lender that comes your way; instead, it is advisable to compare interest rates and repayment terms of different lenders. Doing this will help you find the best lender as well as repayment terms that fit well into your budget. The following are some of the best short-term loans for bad credit:
Upgrade
Upgrade is a personal loan lender that offers short-term loans alongside loan amounts ranging from $1,000 to $50,000 along with a repayment term of two to seven years. It offers short-term loans to borrowers with bad credit, making it easy for them to apply, get approved, and pay off bills. Using the Upgrade mobile application, borrowers can monitor their loan payments as well as the balance left.
LendingPoint
This is an online lender that also offers short-term personal loans to borrowers with bad credit. Borrowers who are eligible get an easy application process online as well as benefits from quick funding. LendingPoint offers personal loan amounts ranging from $2,000 to $36,500 with a repayment term ranging from 24 to 72 months. This makes it a good option for borrowers who intend to borrow a lump sum amount of money.
Avant
Avant offers both secured and unsecured personal loans through a third-party bank called WebBank. This lender offers short-term personal loans to borrowers with bad or good credit and requires only a minimum credit score of 580 to be eligible. It also has the lowest maximum loan amounts compared to other lenders, but it has a repayment term of two to five years, making it a considerable option for borrowers with bad credit.
Universal Credit
This is an online lending platform that offers short-term personal loan amounts ranging from $1,000 to $50,000 through its partners. Aside from this, Universal Credit has a three- to seven-year repayment term, making it a good option for borrowers with bad credit.
Upstart
Upstart has been rated the best personal loan lender due to its affiliate intelligence approach to borrower qualification. It offers a flexible range of loan options with loan amounts ranging from $1,000 to $5,000, so borrowers do not need to borrow more than they need. It also has a repayment term of three to five years after approval, making it a good option to consider.
FAQs:
Should You Borrow Money with Bad Credit?
It is a bad idea to borrow money knowing fully well you cannot repay the loan. Irrespective of whether you have good or bad credit, as long as you cannot repay the loan, do not take it. However, if you qualify for an affordable short-term personal loan with bad credit, it may be a good idea to take the loan to cover unforeseen emergency expenses. In cases where you do not have the means to repay the loan, you can consider other means to get the money instead of a short-term loan.
What is the fastest loan I can get with bad credit?
Joint loans are most times the easiest loans to get approved for with bad credit. With this loan, co-borrowers who have a good credit score can co-sign and share equal responsibility for the loan with the borrower. Aside from that, secured loans are also types of loans you can easily get approved for with bad credit. However, for this type of loan, you will need to provide collateral such as your home, car, or savings account, which the lender can use to recover the loan taken if you default.
What is the Minimum Credit Score Required for a Bad Credit Loan?
The minimum credit score for a bad credit loan is different with every lender. Some lenders’ bad credit loan minimum score is 600, while others may have no minimum credit score criteria. However, you need to check with the lender to know what their minimum credit score is for bad loans.