Best Short-Term Personal Loans Of 2024

Best Short-term Personal Loans of 2024

BEST OVERALL SHORT-TERM PERSONAL LOAN

SoFi®

4.0

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

650

APR range

8.99% to 29.99%

with autopay

Loan amounts

$5,000 to $100,000

Compare Rates

Via Credible.com’s Website

650

8.99% to 29.99%

with autopay

$5,000 to $100,000

Editor’s Take

SoFi is an online lending platform that offers unsecured fixed-rate personal loans in every state. Founded in 2011, SoFi has extended over $50 billion in loans and stands out for allowing high loan amounts and its availability of extended loan terms.

Loans are available from $5,000 to $100,000, making SoFi a great option for those with excellent credit who need to borrow a large amount of money. Loan amounts available may vary by the state you live in. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 650) and annual income (at least $45,000). SoFi also lets prospective borrowers submit joint applications—although co-signers are not permitted.

Approved borrowers are rewarded with comparatively low APRs. What’s more, SoFi doesn’t charge origination fees, late fees or prepayment penalties—a stand-out feature because personal loan lenders often charge origination or late payment fees at a minimum.

However, if you’re considering a debt consolidating loan from SoFi, keep in mind that the lender does not offer direct payment to a borrower’s other creditors. This means the loan proceeds will be deposited to your bank account and you’ll have to pay off your other lenders individually. The platform does offer customers a number of other perks and discounts.

Pros & Cons

• Prequalification with soft credit check
• Funding in as little as one to two days
• High loan amounts and lengthy terms

• Does not offer direct payment to third-party creditors for debt consolidation
• Some applicants report difficult qualification standards
• Co-signers are not permitted

Details

Eligibility:

• Minimum credit score required: 650
• Minimum annual income: $45,000
• Co-signers not permitted

Loan uses:

• Medical expenses
• Credit card consolidation
• Home projects
• Moving costs

BEST FOR LOW INTEREST RATES

LightStream

4.0

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

660

APR range

6.99% to 25.49%

with autopay

Loan amounts

$5,000 to $100,000

Compare Rates

Via Credible.com’s Website

660

6.99% to 25.49%

with autopay

$5,000 to $100,000

Editor’s Take

LightStream offers loans with both a low minimum and maximum interest rate, along with a rate-beat program. LightStream’s unsecured personal loans range from $5,000 to $100,000 with loan amounts varying based on the loan purpose. In addition to offering appealing and flexible terms, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50% rate discount for borrowers who enroll in autopay.

Pros & Cons

• No origination, prepayment or late fees
• Low, competitive rates
• Fast approval and funding

• No prequalification process
• No due date flexibility
• Limitations on use of loan proceeds

Details

Eligibility:

• Applicants should have several years of credit history
• Minimum credit score: 660
• Can’t prequalify

Loan uses:

• Large expenses
• Finance land, timeshares and tiny homes
• Home project

BEST FOR FAST FUNDING & BELOW-AVERAGE CREDIT

LendingPoint

4.0

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

600

APR range

7.99% to 35.99%

with autopay

Loan amounts

$2,000 to $36,500

Compare Rates

Via Fiona.com’s Website

600

7.99% to 35.99%

with autopay

$2,000 to $36,500

Editor’s Take

LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.

LendingPoint personal loans range from $2,000 to $36,500; Georgia loans have a minimum loan amount of $3,500. Repayment terms range from 24 to 72 months—or two to six years.

There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a high credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.

Pros & Cons

• Quick funding
• Low credit score requirements
• No prepayment penalty

• Origination fee up to 10%
• Co-signers or joint loans not permitted
• Not available in Nevada and West Virginia

Details

Eligibility: 

• Minimum credit score: 600
• Must live in a state other than Nevada or West Virginia
• Doesn’t allow co-signers or co-applicants

Loan uses:

• Debt consolidation
• Home project
• Medical expenses

BEST FOR EXISTING U.S. BANK CUSTOMERS

U.S. Bank

3.5

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

650

APR range

8.74% to 24.99%

with autopay

Loan amounts

$1,000 to 50,000 to existing U.S. Bank customers (up to $25,000 for noncustomers)

Depends on the area you live in

Compare Rates

Via Fiona.com’s Website

650

8.74% to 24.99%

with autopay

$1,000 to 50,000 to existing U.S. Bank customers (up to $25,000 for noncustomers)

Depends on the area you live in

Editor’s Take

With a U.S. Bank personal loan you can gain quick access to funds for your one-time financing needs, whether that is consolidating your debt or covering a large expense. U.S Bank offers unsecured personal loans ranging from $1,000 to 50,000 to existing U.S. Bank customers (up to $25,000 for noncustomers). Loan terms run between 12 and 60 months.

U.S. Bank’s loans carry low interest rates depending on your creditworthiness, which includes a 0.50% autopay discount. Borrowers with higher credit scores are more likely to qualify for interest rates on the low end of the spectrum. Similar to other top providers, U.S. Bank charges no origination fees, and there is no prepayment penalty, meaning you can always make loan payments before they are due.

Applying for a U.S. Bank loan is easy and can be done online; however, you must be a current U.S. Bank customer. Some customers may need to visit a U.S. Bank branch if additional information or documentation is required.

Pros & Cons

• 0.50% autopay discount if payments are made from a U.S. Bank checking or savings account
• Funding in as little as one day after approval
• Competitive rates for borrowers with excellent credit

• Must refinance at least $5,000
• Charges early closure fee if you close your account within one year
• Refinance loans only available in 26 states

Details

Overview: U.S. Bank is one of the largest banks in the country. In addition to banking, wealth management and business services, it also offers several lending products, including auto refinancing.

In order to qualify as a U.S. Bank customer, you must have a U.S. Bank checking account. Non-U.S Bank customers must apply in person. U.S Bank has branches in 26 states: Arkansas, Arizona, California, Colorado, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Minnesota, Missouri, Montana, North Carolina, North Dakota, Nebraska, New Mexico, Nevada, Ohio, Oregon, South Dakota, Tennessee, Utah, Washington, Wisconsin and Wyoming.

Eligibility:

• Minimum credit score: 650
• Doesn’t disclose minimum income requirements
• Can apply with co-borrower

Loan uses:

• Medical bills
• Debt consolidation
• Home project

BEST FOR BAD CREDIT

Upgrade

3.5

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

580

APR range

8.49% to 35.99%

Loan amounts

$1,000 to $50,000

Compare Rates

Via Credible.com’s Website

580

8.49% to 35.99%

$1,000 to $50,000

Editor’s Take

Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.

Loans amounts, which range from $1,000 to $50,000. Upgrade has two- to seven-year terms  available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.

Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.

Pros & Cons

• Low minimum credit score requirement
• Borrowers can use loans to cover business expenses
• Offers direct lender payoff for debt consolidation loans

• High APR range
• Charges fees for origination, late payment and insufficient funds

Details

Eligibility: 

• Minimum credit score: 580
• No minimum income requirement
• Allows co-applicants

Loan uses:

• Debt consolidation
• Home projects
• Large expenses
• Business expenses

BEST FOR CURRENT WELLS FARGO USERS

Wells Fargo

3.5

Our ratings take into account loan cost, loan details, eligibility and accessibility, customer experience and application process. All ratings are determined solely by our editorial team.

Minimum Credit Score

No requirement

APR range

7.49% to 23.24%

with autopay discount

Loan amounts

$3,000 to $100,000

Compare Rates

Via Fiona.com’s Website

No requirement

7.49% to 23.24%

with autopay discount

$3,000 to $100,000

Editor’s Take

Wells Fargo offers fixed-rate personal loans with limits between $3,000 to $100,000 and repayment terms from 12 to 84 months. While longer term lengths, such as 84 months, will decrease your fixed monthly payment, you will pay more interest over the life of your loan compared to a loan with terms of, let’s say, 12 months.

Wells Fargo personal loans boast interest rates from 7.49% to 23.24% for customers who qualify for the 0.25% relationship discount. To qualify, you need to have a Wells Fargo checking account and make automatic payments from a Wells Fargo deposit account.

Although Wells Fargo is available to anyone in the United States, only current Wells Fargo customers will be able to apply online. New customers will need to visit a branch location. Wells Fargo does not have branch locations in Indiana, Kentucky, Louisiana, Ohio, Oklahoma, Maine, Massachusetts, Michigan, Missouri, New Hampshire, Vermont or West Virginia.

Pros & Cons

• Receive funds the next business day, if approved
• 0.25% discount when you enroll in autopay
• No origination fees or prepayment penalty

• Must have a Wells Fargo checking account to receive 0.25% discount
• New Wells Fargo customers will need to visit a branch to apply
• No option to prequalify

Details

Overview: Wells Fargo offers fixed-rate personal loans with limits between $3,000 to $100,000 and repayment terms from 12 to 84 months. Although Wells Fargo is available to anyone in the United States, only current Wells Fargo customers will be able to apply online.

New customers will need to visit a branch location. Wells Fargo does not have branch locations in Indiana, Kentucky, Louisiana, Ohio, Oklahoma, Maine, Massachusetts, Michigan, Missouri, New Hampshire, Vermont or West Virginia.

Eligibility:

• Doesn’t disclose minimum credit requirement
• Doesn’t disclose minimum income requirement
• Doesn’t allow co-signers or co-borrowers

Loan uses:

• Debt consolidation
• Home improvement
• Medical bills

Summary: Best Short-term Personal Loans

Company	Company - Logo	Forbes Advisor Rating	Forbes Advisor Rating	Minimum credit score	APR range	Loan amounts	Learn More CTA text	Learn more CTA below text	Learn More
SoFi®		4.0		580	8.99% to 29.99%	$5,000 to $100,000	Compare Rates	Via Credible.com's Website
LightStream		3.5		660	6.99% to 25.49%	$5,000 to $100,000	Compare Rates	Via Credible.com's Website
LendingPoint		4.0		600	7.99% to 35.99%	$2,000 to $36,500	Learn More	Read Our Full Review
U.S. Bank		3.5		650	8.74% to 24.99%	$1,000 to 50,000 to existing U.S. Bank customers (up to $25,000 for noncustomers)	Compare Rates	Via Fiona.com's Website
Upgrade		3.5		580	8.49% to 35.99%	$1,000 to $50,000	Compare Rates	Via Credible.com's Website
Wells Fargo		3.5		No requirement	7.49% to 23.24%	$3,000 to $100,000	Learn More	Read Our Full Review

Tips to Compare Short-term Personal Loans

Before selecting a personal loan offer, it’s a good idea to shop around and compare your options. Here are some features to consider as you browse short-term personal loans:

• Length of the repayment term. If you’re looking for a short-term loan, find out what the lender’s minimum term lengths are. Some offer terms as short as one year while others start at two or three years.
• Annual percentage rate (APR). Compare APRs, which include both the interest rate and fees, so you can find a loan with the lowest costs of borrowing. Some lenders let you check your rates online through prequalification, which won’t impact your credit score. Borrowers with the strongest credit tend to qualify for the lowest rates.
• Fees and penalties. Read all the fine print to see if the lender charges an origination fee, administrative fee, late fee or other charges. Find out if it imposes a prepayment penalty, too, in case you want to pay your loan off ahead of schedule.
• Loan amounts. Every lender sets its own borrowing limits, so make sure yours offers the amount you need. Short-term loans may come in lower amounts than long-term options.
• Time to fund. Some lenders can process loan applications and disburse funds in as little as one business day while others take longer. Consider how long it will take to get your loan when comparing options, especially if you need the funds right away.
• Customer support. A lender’s customer service can make or break your borrowing experience. Make sure there are avenues for getting in touch with a customer service representative, whether through email, web chat or over the phone.
• Lender reputation. Before picking a lender, read over some customer reviews on reputable sites like TrustPilot to see what other borrowers have to say about their experience.

What Is a Short-term Personal Loan?

A short-term personal loan is a loan with a short repayment period, typically one to three years. It’s usually unsecured, meaning you don’t need to pledge any collateral to borrow it. Instead, a lender will review your credit and income when evaluating your application for a loan.

Short-term loans may come in smaller amounts than long-term loans, which may have repayment periods of five to seven years. However, a short-term loan may come with a lower interest rate than its long-term counterpart.

You can use a short-term loan for almost any purpose, including debt consolidation, home renovation, medical bills, wedding expenses and more. The loan may have a few restrictions, though—for instance, you often can’t use a personal loan to pay for education expenses.

How Do Short-term Personal Loans Work?

Short-term personal loans provide a lump sum amount upfront that you pay back over a set period of time, usually on a monthly basis. By opting for a short term, you’ll have a higher monthly payment but will pay less interest on your loan.

Let’s say, for example, that you borrow a $3,000 personal loan at a 10% rate. If you pay back your loan on a one-year term, you’d make monthly payments of $263.75 and pay $164.97 in total interest charges. If, on the other hand, you opted for a five-year term, your monthly payment would be just $63.74, but you’d pay $824.47 in interest charges.

If you can afford a shorter term, you can save a significant amount on interest and get out of debt faster. As mentioned, many lenders don’t charge a prepayment penalty, meaning you could pay off your loan even faster than your loan terms dictate if you have the means to do so.

How to Get a Short-term Personal Loan

If you’re looking to borrow a short-term personal loan, take these steps to find an offer that works for you:

1. Check your credit. Since personal loans are typically unsecured, lenders require good to excellent credit to qualify. Check your credit score with a credit monitoring service so you know what you’re working with. You can also review a copy of your credit report from AnnualCreditReport.com and dispute any reporting errors you find.
2. Prequalify with multiple lenders. Compare quotes from at least three lenders to find the best offer. Prequalifying only takes a minute or two and won’t ding your credit score.
3. Compare rates, terms and other loan features. Look for a loan with the lowest annual percentage rate (APR) and an amount and loan term that fits your budget. The Forbes Advisor personal loan calculator can help you estimate your monthly payments and long-term borrowing costs.
4. Submit a full application. Once you’ve found an offer you like, you can fill out the full loan application. You may need to provide verifying documentation, such as pay stubs or tax returns. At this point, the lender will run a hard credit inquiry, which could temporarily decrease your score by a few points.
5. Receive your loan funds. Assuming the lender approves your application, it will disburse your loan into the account you provided. Read over your loan agreement carefully so you understand when payments are due. Consider setting up autopay so you never miss a bill.

Pros and Cons of Short-term Personal Loans

Before borrowing a short-term personal loan, it’s worth considering both the pros and cons. Here are some benefits of opting for a short-term loan, along with some potential downsides to keep in mind.

Pros

• Qualify for a better interest rate: Lenders may offer more competitive interest rates on short terms than on longer ones, even if the amount you borrow is the same.
• Pay less interest over the life of your loan: Not only could a lower interest rate save you money on interest, but paying your loan off quickly means less interest will accrue than it would on a longer term.
• Get out of debt faster: By paying off your debt over a short period, you’ll say goodbye to those monthly payments sooner, keep more of your paycheck and have more funds to devote to other financial goals.
• Boost your credit: “Amounts owed” is a major factor in your FICO credit score. By paying off your loan swiftly, you can reduce your unpaid debt and may see an improvement in your credit score as a result.

Cons

• Lower loan amounts: While some personal loan lenders fund loans up to $50,000 or $100,000, they might set lower limits on short-term loans.
• Higher monthly payments: Because you’re paying your loan off on a truncated timeline, you’ll have to make higher payments than you would over a longer period of time. Make sure you can afford the monthly bills before opting for a short-term personal loan.
• May not be able to extend the terms if you change your mind: If you’re struggling to keep up with loan payments, the lender may not let you change your loan terms after you borrow. Do your best to confirm the terms work for your budget upfront before you sign your loan agreement.

Methodology

We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:

• Loan cost: 35%
• Loan details: 20%
• Eligibility and accessibility: 20%
• Customer experience: 15%
• Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.

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