Grace Enfield, Content Writer
Some examples of short-term loans are personal loans, payday loans, auto title loans, and refund-anticipation loans. Each type of loan can offer quick repayment periods, often as short as a few weeks, but some can only be used for specific purposes.
Examples of Short-Term Loans
- Personal loans. Some personal loans have repayment periods as short as 6 months. Plus, personal loans hardly ever charge pre-payment fees.
- Refund anticipation loan. A refund anticipation loan is secured by your expected annual tax refund so you can get quicker access to funds instead of waiting for your full tax refund. You can apply for a refund anticipation loan through a professional tax preparation service.
- Bridge loan. A bridge loan is a temporary loan that you can take out before you get a larger loan or longer-term loan. They’re typically used in real estate transactions. For example, they can be used to purchase a new home before you sell your old home. These loans have repayment timelines of 6 months to 1 year and are usually backed by collateral.
- Payday loans. Payday loans typically have repayment periods of 2 to 4 weeks and fees equivalent to an APR of 400%+. They should be avoided.
- Auto title loans. Auto title loans let you borrow money against the value of your car. They typically have to be repaid within 30 days. If you don’t repay the loan, you risk losing your car.
- Pawn shop loans. Pawn shop loans let you bring in items and get a portion of their value in return. If you don’t repay the loan within a certain amount of time, typically a few months, the shop can keep and sell your items.
- Loans from friends or family members. You may be able to get a short-term loan from a friend or family member. They may offer more flexible terms than a major lender.
You should also consider some alternatives when researching short-term loans. For example, one alternative to getting a short-term loan is simply to use a credit card. You could make a normal purchase or do a cash advance. A cash advance is an expensive way to get cash quickly, thanks to a high interest rate and cash advance fee.
If you’re set on getting a short-term loan, check out WalletHub’s picks for the best short-term loans and estimate your rates with our free pre-qualification tool.
Best Short-Term Loans of 2023Compare Offers
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