Best Short-Term Loans in March 2025

Even the best financial intentions can’t prepare you for everything. A leaky roof, emergency room visit, or a surprise trip to the vet can cause an urgent need for cash. Ideally, you can pull money from your savings to cover these costs. But when you can’t, you may need a short-term loan.

Some short-term loans have extremely high interest rates and fees. But the best short-term loans are affordable, with quick funding and positive lender reviews.

Check out our most highly-rated short-term loans below. Compare options based on your own needs, budget, and credit profile. 

Best short-term loans

You can apply for a short-term personal loan within minutes and get the money as soon as the same day, in some cases. These partner lenders offer fast funding and repayment terms that start at one or two years. But you could potentially get a longer-term loan if you need to reduce your monthly payments or borrow a larger amount.

Plus, none of these lenders charge prepayment penalties, meaning you could pay off the loan even sooner at no extra cost.

Methodology

To find the best short-term loans, Credible evaluated 31 lenders across almost 900 data points. We excluded lenders with minimum loan terms longer than two years, then considered interest rates, credit score and income requirements, availability of same-day funding, fees, customer service, whether secured loan and cosigned loans are available, and more.

We scored lenders based on the following:

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was verified by a senior editor to make sure it was accurate and up to date. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

How to compare short-term loans

There’s a wide variety of short-term loans out there with a wide range of fees. Compare the following factors to make sure you’re getting the loan you need and won’t wind up further in debt because of it. 

• Eligibility criteria: Eligibility criteria vary lender to lender, and some short-term loans require credit checks, while others don’t. If you don’t have good credit, don’t eliminate lenders that check your credit. Some lenders offer personal loans for bad credit with much lower costs than other bad credit options like payday loans. 
• Term length: There’s no fixed definition of a short-term loan, and terms can vary widely. Some short-term loans can have terms as short as two weeks, while others can have terms of a year or longer. Consider how much you need to borrow, how much time you’ll need to repay the loan, and what you can afford each month.
• Annual percentage rates: Short-term loans may charge an annual interest rate, fees, or both. To get the full story on cost, look at the loan’s APR, or annual percentage rate. It accounts for both the interest rate and upfront fees. For instance, some no-interest loans (like payday loans and cash advance apps) can have APRs over 300% because of costly fees.
• Fees: In addition to or interest of interest, some lenders charge fees. Lenders might charge application fees, origination fees, late fees, instant payment fees, and more. Use an APR calculator to understand how fees impact costs and compare different loan types.
• Lender reputation: When it comes to short-term loans, some lenders have better reputations than others. Do your research on not only loan type but also specific lenders. Check out sites like Trustpilot and the Better Business Bureau for customer reviews and ratings.
• Funding time: If you’re looking for a short-term loan, chances are, you need money fast. Compare lenders’ funding times to ensure you can get your money when you need it. Many short-term loan lenders can fund loans the same or next day after approval. But watch out for paying hefty fees to get your money the same day.

What are short-term loans and how do they work?

There’s no official definition of short-term loans, but many people refer to them as loans with terms of one year or less. Short-term loans also encompass a range of different loan types, such as personal loans, payday loans, title loans, payday alternative loans, cash advance apps, buy now, pay later apps, and more. 

The following loan types are generally recommended, especially if you’re in a bind. But you should exercise caution when taking out any loan.

Personal loans

Personal loans are a type of installment loan you can use to pay for almost any expense. Terms generally range from one to seven years, meaning only the shortest personal loans are true short-term loans. Interest rates on personal loans can be as high as 36% APR, but the best rates can be under 8% if you have excellent credit. Loan amounts often range from $1,000 to $50,000 or more. 

When you qualify for a personal loan, you’ll receive the loan proceeds in a single lump sum, which you’ll repay in equal monthly payments over the course of your loan term.

Payday alternative loans

Payday alternative loans, or PALs, are available at some federal credit unions. You have to be a member of one of these credit unions to qualify for a PAL, and some PALs are only available to members of at least one month. These loans come in amounts of up to $1,000 or $2,000, depending on the type of PAL. Terms can be as long as 12 months, and rates are capped at 28%.  

Buy now, pay later 

Buy now, pay later (BNPL) apps like Klarna, Affirm, and Afterpay let you split purchases into several payments — often four payments spaced two weeks apart. Generally, short-term loans don’t come with interest, but longer terms might. Depending on the app, you may have to pay a fee for late payments. BNPL loans are common when shopping online, but you can also use these apps in-store. Generally, these services don’t report to credit bureaus. 

Credit card cash advance

Credit card cash advances let you withdraw cash against your credit line at an ATM. Doing so isn’t always financially smart — interest begins accumulating immediately, and there’s an additional fee for this service. Plus, interest rates on cash advances can be higher than your card’s standard rate. But if you have available credit, need cash quickly, and can’t qualify for a personal loan, a credit card cash advance may be worth considering.

Small bank loans

Some banks offer low-rate short-term loans for their customers. For example, Bank of America's Balance Assist loan provides up to $500 for a $5 flat fee, resulting in a maximum APR of 29.76%. U.S. Bank offers its Simple Loan up to $1,000 with a fixed rate per $100 borrowed. Both loans are paid back in three monthly installments.

Contact your bank to inquire about similar short-term funding options.

Short-term loans to avoid

If possible, avoid the following types of short-term loans — they have very short repayment terms and high fees (especially if you need money today), which can make them very expensive. If you’re desperate and feel like one of these is your only option, at least know what you’re getting into and have a plan to get out of the loan as soon as possible.

Payday loans 

Payday loan lenders offer small loans, often up to $500, that you have to repay by your next payday. In-store payday loans may have no credit check, but often have very high fees. That paired with a two-week loan term can equate to APRs well over 400%, depending on your state. For this reason, you should only consider a payday loan as a last resort.

Compare: Payday Loans vs. Personal Loans

Pawn shop loans

Pawn shops also provide small loans for those who can offer an item of value. If you repay the loan within a certain time frame, you’ll get your item back — if not, the pawn shop can sell it. Like payday loans, pawnshop loans can be very expensive and should be avoided if possible. However, they could be an option if you have an item of value that you don’t want or need. 

Cash advance apps 

Cash advance apps offer a way to get small amounts of money quickly — to be repaid from your next paycheck, like payday loans. Amounts are based on your banking activity and usually top out around $750. 

There's no credit check and it’s possible to find cash advance apps with no fees. But the Center for Responsible Lending found that people who used cash advance apps paid an average APR of 367%.  In part, this is because you’ll generally need to pay a hefty fee if you need money quickly. Since cash advance apps tend to be nearly as expensive as payday loans, they’re not recommended..

Related: How To Get a Payday Advance Loan Online

Car title loans 

Car title loans are short-term loans that use your vehicle as collateral. You borrow money against the value of your car, but if you fail to repay the loan, the lender can seize your vehicle. 

Car title loans can come with monthly financing fees of up 25%, which translates to an APR of about 300%. Because of the risk of losing your vehicle and the high cost, car title loans are generally not recommended as a borrowing option. 

Short- vs. long-term loans

While short-term loans generally refer to loans with terms of a year or less, long-term loans have terms longer than a year. 

Long-term loans may include personal loans, auto loans, home equity loans, mortgages, and student loans. Terms can range from a couple of years to multiple decades, in some cases. Short-term loans generally include payday loans, cash advance apps, and short-term BNPL loans.

Barbara Quan, accredited financial counselor and founder of Moneyology, suggests running the numbers to help you decide between a short- or long-term loan and considering the following question: “Can I comfortably afford the payment of a short-term loan? If the payment doesn't seem feasible, then looking into a long-term loan with typically lower interest rates can be a better option.” says Quan. You can use a loan calculator to help with these calculations.

Pros and cons of short-term loans

Short-term loans can be a convenient solution for a quick influx of cash, but weigh the pros and cons first:

Pros

• Variety of options: There are several short-term loan options to choose from, each with their own benefits. Depending on your needs, you can use a personal loan, cash advance, BNPL service, or another short-term loan.
• Fast funding: Due to the nature of short-term loans, these lenders usually fund your loan quickly. For many lenders, this can be as fast as the same day you apply. Certain loan types, like cash advances, can be funded instantly.
• Good credit may not be needed: Not all short-term loans require a hard credit check when you apply, meaning you don’t necessarily need good credit to qualify. 
• Shorter commitment: Borrowing on a short-term basis can reduce the risk that comes with committing to debt for several years or decades. 

Cons

• May not help your credit: Cash advance apps and BNPL services often don’t report to credit bureaus, which means your credit score won’t improve as a result of on-time payments. To build your credit, choose a lender that reports to at least one of the credit bureaus.
• Fees and interest can be high: Payday and pawnshop loans can have very high costs (in the form of interest and/or fees). And some, like cash advance apps, charge high fees for instant funding.
• Less time to pay off loan: “Because short-term loans have to be paid back quickly, people often don't have the means to pay the loan in addition to their regular bills,” warns Quan. 

How to get a short-term loan

The process of getting a short-term loan varies depending on the type of short-term loan you want. But in general:

1. Determine how much money you need: Knowing exactly how much you need to borrow can help narrow down the lenders and loan types available to you. Plus, borrowing as little as possible can ensure you only pay interest on the money you need. 
2. Compare lenders: Once you know how much money you need to borrow, compare lenders based on interest rates, fees, terms, lender reputation, and eligibility requirements. 
3. Prequalify: If possible, prequalify with lenders to get a more accurate estimate of borrowing costs. Note that prequalifying isn’t a loan offer or guarantee, and your rate may change when you formally apply.
4. Apply for a loan: Submit a loan application along with any required materials. Personal loan lenders often require proof of income and employment, along with a form of ID.
5. Await funding: If approved, the lender will fund your loan in a single lump sum — often within a day or two. But if your loan application is missing information, this process could take longer.

Alternatives to short-term loans

Short-term loans are handy in many situations, but you may find one of the following alternatives to be less expensive — or more efficient. 

Use a credit card

If you have an available credit line, using a credit card may be a simpler way to borrow money short-term. However, be careful about carrying a balance month to month. Credit card interest rates can be higher than other loan rates, like personal loans. Ideally, plan to pay off the card the same month you borrow, or use a 0% APR credit card and pay off the balance before the introductory rate expires.

Borrow from friends or family

If you have someone in your life who’s financially stable and willing to lend you money, you may be able to borrow without the cost and hassle of going through a traditional lender. If you borrow from a friend or family member, create a written contract with your agreed-upon interest rate, loan term, and payment due dates.

Address underlying spending problems

Sometimes, it’s worth diving into your spending to see if you can avoid borrowing in the first place. Quan refers to this as focusing on more than just a “bandaid” and recommends borrowers look at “their spending habits, what subscriptions they have and could give up, how much money is being withheld from their paycheck, how much they’re contributing to retirement, even what they could sell to come up with the money they need.”