The best short-term installment loans are from Oportun because the company offers loan amounts of $300 - $12,000 with repayment periods of 6 - 46 months. Oportun also has APRs of 36% maximum and a funding timeline of 1 - 2 business days.
Best Short-Term Installment Loans
Oportun: Loan amounts of $300 - $12,000 with repayment periods of 6 - 46 months and APRs of 36% maximum.
Integra Credit: Loan amounts of $500 - $3,000 with repayment periods of 6 - 18 months and APRs of 99% - 300%.
Jora Credit: Loan amounts of $500 - $4,000 with repayment periods of 8 - 30 months and APRs of 185% - 350%.
OppLoans: Loan amounts of $500 - $4,000 with repayment periods of Up to 18 months and APRs of 59% - 160%.
PenFed Credit Union: Loan amounts of $500 - $50,000 with repayment periods of 12 - 60 months and APRs of 5.99% - 17.99%.
LightStream: Loan amounts of $5,000 - $100,000 with repayment periods of 24 - 144 months and APRs of 3.99% - 19.99%.
Additionally, during your search for the best short-term installment loan, you should consider some alternatives. Using a credit card or asking for a small loan from a friend or family member may actually work better in a lot of situations. Also, keep in mind that if you get a conventional loan, you can repay the loan sooner than required, often without penalty.
A short-term loan is a type of loan that requires full repayment within a few months to a year. The best short-term loans offer low minimum APRs and a wide range of dollar amounts, and some lenders do not charge an origination fee to get a loan.
However, there are a few types of short-term loans that you should avoid, like payday loans and auto title loans.… read full answer
Short-Term Personal Loans
Personal loans are your best option if you're looking for a short-term loan. These loans can be used for almost anything, and they have APRs as low as 2.49%, minimum term lengths as short as 6 months and funding as soon as the day you apply.
To see what lenders may approve you and which rates may be available to you, check out the free pre-qualification tool on WalletHub.
Short-Term Business Loans
Short-term business loans are a little different than short-term personal loans. They offer a wide range of loan amounts and have repayment periods of up to 18 months, but they also typically have a higher APR and may require more frequent payments. Some lenders require payments to be made daily or weekly, but the payments are usually smaller than a normal monthly payment.
Short-Term Loans to Avoid
Payday lenders offer very expensive, short-term loans. These loans are usually small ($500 or less), and you have to pay them back within a few weeks. Lenders will typically charge outrageous fees, equivalent to a 400%+ APR.
Auto title loans
Auto title loans are secured by the title of your car - the document that grants you ownership of the vehicle. The lender will give you a portion of the car's value upfront, and you're expected to repay the loan within 15 to 30 days. If you don't repay the loan, you risk losing your car.
Pawnshops allow you to bring in your items and get a portion of their worth in return. You then have to repay the money with interest within a certain amount of time to get your items back. If you don't repay the loan, the shop will take ownership of the items and sell them.
Ultimately, unlike payday, auto-title, and pawn-shop loans, a short-term personal loan can be great if you have temporary borrowing needs and the ability to repay the loan quickly. If you're ready to start comparing loan offers, check out the top-ranked short-term loans on WalletHub.
The main types of installment loans are personal loans, mortgages, home equity loans, car loans, student loans and credit-builder loans. Each type of installment loan has different requirements, APRs, fees, payoff periods, and amounts of funding. Some are also used for specific purposes.
Personal loans are installment loans that can be used for nearly anything. They typically range from … read full answer$1,000 to $100,000, with payoff periods of 12 to 84+ months, depending on the lender. Personal loan APRs are usually between 4% and 36%.
The credit score requirement for a personal loan is usually between 585 and 700. You can see if you are pre-qualified without hurting your credit score using WalletHub's free pre-qualification tool.
Mortgages, or home loans, allow people to finance a house without having all of the money up front. The issuer of the mortgage continues to partially own the house until the borrower pays the mortgage off fully. If you can't pay the mortgage off, you risk foreclosure.
Mortgages typically last for 10 to 30 years, and the average APR is around 2% to 4%. Mortgages usually require a credit score of around 620 if they're private or 580 if they're government-insured.
Home equity loans allow people to borrow a portion of the difference between the value of their home and the amount left to pay on the mortgage. The loan is secured by the house, however, so there's a risk of foreclosure if you can't pay what you owe.
Home equity loans usually last for 5 to 30 years, have APRs of around 2% to 6%, and tend to require a credit score of at least 680.
Auto loans help you finance the purchase of a new or used car. They usually last anywhere from 24 to 72 months and have APRs of around 2% to 6%. While there isn't a minimum credit score to get an auto loan, the higher your score is, the better your terms are likely to be.
The big downside to auto loans is that since they are usually secured by the car, your vehicle could get repossessed if you can't pay back what you owe. There are also loans for other types of vehicles, such as motorcycles and boats, that function the same way.
Student loans are loans for the purpose of paying for education and related costs like housing and food. Some are federally backed, while others are private. Federal student loans tend to have interest rates around 2% to 5%, while private loans have rates around 1% to 12%.
Student loans usually last around 10 years, but some can last for up to 30 years. You can use WalletHub's student loan calculator to help you calculate how much your monthly and total payments will be.
Credit-builder loans are probably the most unique type of installment loan. They work the opposite way of a normal loan. You make monthly payments to a lender, which puts the money (minus the interest charged) in a savings account. Once you have finished your required payments, you get access to the money in the account. The purpose of a credit-builder loan is to have positive payment information reported to the credit bureaus each month and to establish or improve your credit history.
Ultimately, choosing which type of loan to get is up to you depending on what you qualify for, what your financial standing is and what you need the loan for. You can visit WalletHub's best installment loans page to see the top ranked offers.
Three common types of loans are personal loans, auto loans and mortgages. Most people buy a home with a mortgage and new cars with an auto loan, and more than 1 in 5 Americans had an open personal loan in 2020.
There are a number of differences between these types of loans, including what they're used for, loan amounts, APRs, payoff periods and collateral required. But one thing most loan types have in common is that the borrower gets a lump sum of money up front and pays it off over time.… read full answer
Three Common Types of Loans Compared
Purchasing a car
To purchase a house
1 to 12 years
2 to 6 years
Up to 30 years
The vehicle being financed
The home’s title
2.5% to 36%
3% to 7%
3% to 6%
$1,000 to $100,000
Varies by vehicle
Depends on your income and credit
Credit score required
No universal minimum
620+ for conventional loans
If you're interested in a personal loan, check out the free pre-qualification tool on WalletHub. This tool allows you to see which lenders may approve you and what rates may be available to you.
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