Best Short-Term Loans for Personal Expenses

Camino Financial10 Jan 2024
Best Short-Term Loans for Personal Expenses
Short-term loans can be great for personal expenses when you need money fast. But it's important to shop around and compare rates before you borrow. Here are some of the best loans for people who need mboney quickly, followed by a comprehensive breakdown of what are, what to consider when applying for one, and alternatives that might suit your financial needs.
Table of Contents
1. Best personal short-term loans in 2022
2. How to compare short-term loans
3. Tips for comparing short-term lenders
4. How to get short-term loans
5. How to apply for a short-term loan
6. What are short-term loans?
7. What are short-term loans used for?
8. Types of short-term loans
9. Pros and cons of short-term loans
10. Where to get a short-term loan
11. Alternatives to short-term loans
12. FAQs

Best Personal Short-Term Loans in 2022

We've listed the best options for you, whether you're looking for personal expenses.

Camino Financial

If you want to get a personal loan to invest in your business, why not get a Camino Financial business loan? We offer business installment loans to entrepreneurs who need quick cash. Our loans are specifically for business expenses and the application process is straightforward.
  1. Answer questions about your small business in our short online application
  2. Review your options with a loan specialist
  3. Submit all the needed information.
  4. Accept the final offer and business loan terms
  5. Receive the funds
Loans are available for amounts ranging from $10,000 to $50,000, with 24 months to repay. You'll need a monthly income of $2,500 and have your business active and registered for at least 12 months. Apply for a startup business loan today

*Terms and requirements subject to change without notice.


If you have little to no credit history, then an Oportun loan might be your best option. The company will run a soft credit check to apply for this short-term loan. This means it won't hurt your credit score, and that's a plus. You can apply with co-borrowers to increase your chances of approval as well. However, you don't need a minimum credit score requirement to qualify. You do need personal references, though, along with an ID, proof of income, and proof of address. Loan amounts are smaller than others on this list, with Oportun short-term loans capping out at just $10,000. Interest rates are standard, coming in between 20.05% to 35.99%. The biggest drawback is that you must make biweekly payments instead of monthly.


Upgrade is well-known for offering subprime credit cards to borrowers with poor credit. However, their secured personal loans are also a great short-term loan option. While you might have to secure the loan with a vehicle depending on your financial situation, the benefits of extended loan repayment terms and good interest rates can outweigh that if you're sure you'll be able to pay the loan back. Upgrade loans for short-term come with interest rates between 7.46% to 35.97%, and you're able to access loan amounts of up to $50,000. Repayment terms depend on your financial situation and credit score but can be anywhere between 24 to 84 months (yes, that's seven whole years).


The appeal of an Avant short-term personal loan is that they promise to fund the loan within one business day once you're approved. This makes it perhaps the fastest short-term loan on this list. However, you don't need to have a credit score of at least 600 to 700 to qualify for this loan. Likewise, the application process isn't as straightforward as some others on this list. They don't lay out what the requirements for the loan are, making it difficult to know if you'll get approved or not. However, what makes this short-term loan so great is the fact that the term length for repayment can go up to 60 months. Likewise, interest rates are competitive at between 9.95% to 35.99%. How much can you take out with Avant? Between $2,000 to $35,000.

PenFed Credit Union

A PenFed Credit Union's short-term benefits include great interest rates and higher loan amounts. You can borrow up to $50,000 via PenFed Credit Union at interest rates of 7.74% to 17.99%. Like other short-term loans on this list, the application process is digital and simple. If you pre-qualify, you can get your funds in one to two business days. Likewise, if you have poor credit, you're eligible to apply with a co-borrower to increase your chances of approval. The biggest drawback is that to qualify for this loan; they require you to open a savings account at the credit union.

How to Compare Short-Term Loans

Here are a few things to consider when shopping for a short-term loan.

Interest Rates on Short-Term Loans

The interest rate is the most important factor to consider when comparing loans, as it will determine how much you'll end up paying in total. Look for a loan with the lowest interest rate you can find.

Loan Fees

Some lenders charge origination fees or prepayment penalties, so be sure to read the fine print before signing any loan agreement.


Most short-term loans are due in full within a few weeks or months, but some lenders may offer longer repayment terms. If you need more time to repay the loan, look for a lender that offers flexible terms.


Some loans are difficult to apply for and require that you provide some sort of collateral. When possible, avoid loans that require you to provide collateral such as your car title or future paychecks.

Loan Amounts

Short-term loan amounts are typically less than they are for traditional personal loans. In most cases, these are available for anywhere from about $500 to $1,000 and up to $50,000.


To avoid wasting time, only compare loans from lenders who will lend to someone with your credit score and income.

Application Process

When comparing lenders, look for one that offers a quick, easy application process. You should be able to easily apply online within minutes with minimal hassle.

Funding Time

Finally, be sure to factor in funding time. This will typically be about two or ten days. If it's going to take any longer than that, then we suggest looking for another lender.

Tips for Comparing Short-Term Lenders

There are a lot of different lenders out there, and it can be hard to choose the right one. This is even more difficult when you're seeking short-term loan companies and higher interest rates come into play. Follow these tips to make the process easier:
  • Once you know how much money you need, you can compare lenders.
  • Keep the above-mentioned factors in mind, and then walk through the following short checklist.
  • Check the fees and interest rates. Make sure you understand all the fees associated with the loan, as well as the interest rate.
  • Remember that the lower the interest rate, the less you'll have to pay in the long run.
  • Compare repayment options. Some lenders offer flexible repayment options, while others require a lump sum payment at the end of the loan term.
  • Choose a lender that offers a repayment option that works for you.
  • Read the fine print. Before you sign any paperwork, be sure to read and understand all the terms and conditions of the loan. This will help you avoid any surprises down the road.
By following these tips, you can be sure to choose the right short-term loan options for your needs.

Short-Term Loan Requirements

You'll need to have a steady source of income. Lenders will want to see that you have a reliable way to repay the loan. Be sure to include all sources of income you have. While they're not looking for profitability, they will be looking to ensure that when it comes time to pay back the loan, you have a stream (or various streams) of income available to you. You'll also need to have a good credit history. The higher your credit score, the lower the interest rate you're likely to get. This can make a big difference over the life of a loan, so it's worth taking the time to improve your credit score before you apply for financing. You can do a few simple things to do it, like paying your bills on time and keeping your debt levels low. If you take these steps, you'll be in a much better position to get a low-interest rate on your next loan.
#CaminoTip Before choosing the lender, check if they report to credit bureaus, you can improve your credit score by paying your debts on time.

How to Get Short-Term Loans

  1. First, you'll need to gather some basic information about your finances. This includes things like your income, your debts, and your assets.
  2. Once you have all of this information together, you can start shopping around for lenders.
  3. Follow our suggestions mentioned above, and be sure to pay attention to the terms of the loan.
  4. If possible, you'll want to choose a lender that offers a competitive interest rate and reasonable terms.
  5. Once you've found a lender you're comfortable with, it's time to fill out an application.
  6. The application will ask for some basic personal information as well as details about your financial situation. You'll need to show proof of income and bank account details.
  7. Once you've submitted your application, the lender will review it and decide.
  8. If they approve your loan application, they will deposit the money into your account, and you can start using it right away.

What Are Short-Term Loans?

They're typically the best option for people who need cash quickly and cannot qualify for traditional loans. You can use it to consolidate debt, make a large purchase, or even cover an emergency expense. The main difference between a short-term personal loan and a traditional loan is the repayment timeline. You're typically required to repay a short-term loan within one year (or sometimes even a few months), while traditional loans have repayment timelines of two years or more.

How do Short-Term Loans Work?

To get a short-term loan, you'll need to, at a minimum, have a source of income and an active bank account. Some lenders may also require collateral, such as a car or home equity. Once they approve the loan, they'll typically deposit the money into your bank account within 24 hours. You then have the responsibility of paying back the loan on time. If you’re unable to do so, you may be subject to late fees and additional interest charges.

How Do Repayments Work for Short-Term Loans?

You will usually have to make repayments within a few weeks or months. The precise terms will depend on the lender, but you can typically expect to make weekly or monthly repayments. When you take out a short-term loan, you will usually have to provide your bank account details. This is so that the lender can set up a direct debit for the repayment amount. The money will be automatically transferred from your account to the lender on the agreed date.

What Are Short-Term Loans Used For?

Some of the most common uses of short-term borrowing include:
  • Making car repairs
  • Covering unexpected expenses
  • Making a down payment on a car
  • Covering unexpected medical bills
  • Paying to repair a broken appliance
  • Consolidating debt
  • Paying off high-interest credit card balances
  • Covering expenses during unemployment
  • Covering gaps between income and expenses
  • Starting a business
  • Paying off debt
  • Making a large purchase

Types of Short-Term Loans

Understanding what to look for, how to qualify, and how to apply is only part of really understanding how these loans work. It also helps to understand the different types of short-term loans and which might be the best for you.

Regular Short-Term Loans

The main differences between short-term loans and traditional loans are the interest fees and repayment schedules. For example, you might have 12 months to repay a short-term loan instead of three to five years as you would for a regular loan. Likewise, average interest rates on regular personal loans are between 4% to 36%. With a regular short-term loan, you'll find that interest rates are between 30% to well over 50%. Ultimately, you're paying for quick access to the loan funds and a simple application process.

Payday Loans

People take out payday loans to cover unexpected expenses or to tide them over until their next paycheck. To qualify for a payday loan, you usually just need to have a steady source of income and a bank account. You typically have to pay the loan amount on your next payday, hence the name. While this sounds like a great way to access fast cash, short-term payday loans have incredibly high-interest rates.

Car Title Loans

A car title loan is a type of secured loan where borrowers use their vehicle title as collateral. The loan amount you receive depends on the value of your car. You typically have 30 days to repay the loan. If you cannot repay the loan, you may be able to extend it or roll it over into a new loan. However, if you default on the loan, you risk losing your car.

Installment loans

This loan allows you to borrow a set amount of money and then repay it over a period of time in regular installments. This can be a helpful way to finance a major purchase or consolidate debt.

Invoice Financing

Invoice financing is particularly helpful for small business owners. It's a type of financing that allows businesses to borrow money against their outstanding invoices. Essentially, you can use invoices as collateral to secure a loan.

Merchant Cash Advances

A merchant cash advance (MCA) is a short-term financing option for businesses. With an MCA, a business can borrow a lump sum of money against its future sales revenue. The loan is repaid through a percentage of the business' daily credit card sales receipts.

Pros and Cons of Short-Term Loans

Short-term lending has pros and cons, and understanding them can help you make the right decision.

Advantages of Short-Term Loans

  • For one, they are easier to qualify for than traditional loans.
  • Lenders typically don't require a credit check or collateral for a short-term loan, making them accessible to a wider range of borrowers.
  • Additionally, you can use them for nearly any purpose, giving you the flexibility to use the funds as you see fit.
  • This is especially true if you're having trouble staying afloat and need to invest money and use the loan to cover personal expenses.
  • Finally, they are typically quicker to process. This means you can get the money you need faster without jumping through all the hoops required for a bank loan.

Disadvantages of Short-Term Loans

  • One of the biggest disadvantages is that these term loans often have high-interest rates.
  • This means you will end up paying back more than you borrowed, which can be difficult to afford.
  • Another disadvantage is that you must pay them back relatively quickly, typically within a few months. This can be challenging if you are already struggling to make ends meet.
  • Finally, failing to repay a short-term loan can damage your credit score, making it more difficult to borrow money in the future. This is an important factor to consider, as your credit score is the foundation of your financial future.
  • While short-term loans can be helpful in a pinch, it is important to understand the risks before taking one out.

Where To Get A Short-Term Loan

You'll likely need to contact an online lender, bank, or local lending institution to obtain a short-term loan. If you have good credit, you may be able to get a personal loan from a bank, alternative lenders, or credit unions. If you have a bad credit score, you may still be able to get one from a subprime lender, but the interest rate will likely be high. Another option is to get a payday loan from a payday lender. These loans are typically easy to qualify for but come with high-interest rates and fees. Finally, you can also use a credit card to get a cash advance. However, you should only use this option should as a last resort, as cash advances come with extremely high-interest rates.

Alternatives to Short-Term Loans

There are a few alternatives to short-term loans. For example, some employers offer payroll advances, which allow employees to access a portion of their upcoming wages early. Additionally, personal loans from friends or family members may be an option, although you should consider this as a last resort due to the potential for strained relationships. When it comes down to it, we ultimately recommend avoiding payday loans, car title loans, and other types of term loans with repayment schedules under 12 months. If you really need a payday, consider an alternative payday loan. You can find these at some federal credit unions, and they come with interest rates capped at 28%. All in all, we recommend finding a lender that offers microloans at decent interest rates. By taking out a microloan for personal expenses, you can enjoy the benefits of better interest rates and more flexible repayment schedules of up to about 24 months. This gives you more time to repay the loan while also gaining access to the fast funding you need to meet ends.

Get a Business Loan

While short-term loans are a great option for those needing fast funding to cover personal expenses, if you're a business owner, then you have other options. If approved, our loans will help you access the funding you need to succeed. Our business loans allow you to receive fast funding and enjoy up to 24 months of repayment schedules. To see if this type of loan is right for you, click here to get a free quote. Apply for a startup business loan today


Which are the loans for the short-term?

A payday loan is one option, essentially a short-term, high-interest loan meant to be paid back when the borrower receives their next paycheck. Another option is a title loan, which is a loan secured by the borrower's vehicle title. And finally, there are installment loans, which are loans that are repaid in installments over time.

What is the easiest loan to get right now?

The easiest loan to get right now is a personal loan. A personal loan is a type of unsecured loan that allows you to borrow money without putting up any collateral. This makes it a good option for people who have bad credit or who don't want to risk losing their home or car if they can't make their payments.

Do banks offer short-term loans?

Yes, banks offer short-term loans. Banks typically offer short-term loans to individuals who have good credit history and meet other eligibility requirements.

What are the dangers of short-term loans?

You generally have to have a good credit score. So if you take out a short-term loan and then default on it, your credit score will take a hit, making it harder for you to get approved for other types of loans in the future. They can be very expensive. The interest rates on these loans can be quite high, so if you borrow money at high-interest rates, you'll end up paying back a lot more than you borrowed.

What is an unsecured loan?

An unsecured loan is a type of loan that does not require the borrower to put up any collateral. This can be risky for the lender, which is why unsecured loans typically have higher interest rates than secured ones.

What are the best small personal loans online?

Some of the best include Lending Club, Avant, and Upstart. These lenders have a credit limit, so you may want to consider a bank for larger loans (over $35,000).

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