Short Term Installment Loans

Writer and editor - Joseph Smith | Updated on 2020-05-27
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What Are Short-Term Installment Loans?

Borrowers pay back short-term loans in installments over a short period of time. Due to their short nature, this type of loan is typically more pressing than a personal loan, which may extend over two years or more. Short-terms, on the other hand, may require payment within one to three months. Unlike payday loans, you will not need to pay back this amount in a matter of weeks.

Short-term loans deal with higher interest rates than other loans. These loans have higher interest rates so that the lender can recoup their investment safely and at a profit. The higher the loan, the higher the interest rate. The amount of time it takes for the lender to deposit the loan into your account will also depend on factors like how quickly they can do your paperwork, how much the loan is worth, what hour of the day your loan is approved, and more.

Best Short-Term Installment Loans Alternatives

Loans Amount Cost / APR ? Bad Credit Features
QuickLoanLink (Personal loan) $300 - $35,000 APR:
Starting at 6.90% ?
Bad credit allowed
Allowed
  • Loan term 2 months to 7 years
  • Credit check type: Soft ?
  • Next-day deposit: In some cases ?
  • Min creditscore: 550
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
CashUSA
$500 - $10,000
Individual rates
Bad credit allowed
Allowed
  • Loan terms start at 3 months.
  • Next-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
HonestLoans
$400 - $5,000
$30 - $750 ?
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
GazelleLoans
$300 - $5,000
Individual rates
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
LifeLoans (Personal loan) $500 - $40,000 APR:
Starting at 5.99% ?
Bad credit allowed
Allowed
  • Loan term 2 months to 5 years
  • Credit check type: Both ?
  • Next-day deposit: In some cases ?
  • Min creditscore: 580
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
CreditLoan (Personal loan) $100 - $40,000 APR:
Starting at 5.34% ?
Bad credit allowed
Allowed
  • Loan term 2 months to 7 years
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
OppLoans (Direct Lender)
(Personal loan)
$1,000 - $5,000 APR:
Starting at 99.00% ?
Bad credit allowed
Allowed
  • Loan term 9 months to 3 years
  • Next-day deposit: In some cases ?
  • Low approval rates ?
  • Time for decision: 1.5 min ?
RubikLoan
$100 - $1,000
$1,000 - $5,000
$15 - $300 ?
APR from 6.9% ?
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
Personal Loans (Personal loan) $500 - $35,000 APR:
Starting at 5.99% ?
Bad credit allowed
Allowed
  • Loan term 3 months to 6 years
  • Credit check type: Soft ?
  • Next-day deposit: In some cases ?
  • Min creditscore: 580
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
BadCredit.com
$100 - $5,000
Individual rates
Bad credit allowed
Allowed
  • Next-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?
OpenCashAdvance
$200 - $5,000
Individual rates
Bad credit allowed
Allowed
  • Same-day deposit: In some cases ?
  • High approval rates ?
  • Time for decision: 1.5 min ?
  • Type of service ?

Common Features of Short-Term Installment Loans

You must meet several requirements to receive approval for a short-term installment loan. These requirements may include:

  • You must be over the age of 18
  • You will need to prove that you are employed, which can be done by showing a W2, pay stub, or direct deposit. The ways you can verify employment may vary depending on the lender
  • You have to maintain an active bank account that has your legal name on it
  • You must have a minimum income of $800 before taxes. This income is smaller than the minimum for personal loans, which they prefer to be $2,000

You typically pay these installment loans by the month. You will have your set loan amount, and you will pay it back alongside the interest rate. If you get a $5,000 loan with a 10 percent interest rate over two months, you would eventually owe an extra $500 over the length of the loan due to the interest. The higher the loan amount, the more money you will ultimately owe in interest

To qualify for these installment loans, you may need to answer a variety of questions, which could include:

  • How long you have worked for your employer
  • The name of your employer
  • Where you live
  • Amount of monthly income
  • And more, depending on the lender

These questions, along with your ability to meet the requirements, will determine how much they will comfortably loan you. If you are looking for a loan, a short-term installment loan can be more beneficial than a payday loan, which typically carries a higher level of interest and requires you to pay the loan back in a much faster timeframe. If you need money, but you do not need to risk your financial well-being, a short-term installment loan can be a viable option. Especially considering that you have a decent amount of time to get your finances in order and pay it back.

Some short-term loans can be deposited into your bank account the same day you are approved; however, this same-day deposit cannot be guaranteed due to industry standards. A variety of factors may affect the timeframe of your deposit, including the loan amount and the time of day the loan is processed. Many lenders say that you can get your money as quickly as the next business day, so they do not break any promises.

Pros and Cons

Pros

  • You get predictable payments that you can count on
  • You can get a fixed-interest-rate loan so that you know exactly how much money you need to pay back by the time the loan ends
  • You get peace of mind knowing that you will have it all paid back within a few months
  • You can use the money for emergencies and payments on other lines of credit, as to avoid unnecessary late fees and penalties

Cons

  • You can still accrue penalties and late fees if you don’t pay the money back in time
  • Your interest rate will be based on your credit
  • The larger your loan, the higher your interest, which can add up with monthly payments

Alternatives to Short-Term Installment Loans

If a short-term installment loan doesn’t sound like the best option for you, then personal loans, payday loans, adding new credit cards, and debt consolidation loans may work best for you. If these loans still don’t work, you can consider rebuilding your credit so you can theoretically get any loan you want. The type of loan you need all depends on the amount of money you need. There are also more risky options like title loans and subprime mortgages if you really need a financial boost, which can ultimately be hard to pay back if you are in financial trouble.

If a short-term installment loan doesn’t give you the amount of money you need, feel free to shop around your loaning needs to other companies. The best loan for you will likely depend on your credit score. The worse it is, the more limited your options may be. Overall, the structured nature and flexible timeframe of short-term installment loans make them a popular option.

Joseph Smith

Joseph Smith
Writer and editor

Joseph Smith is an experienced freelance writer with over 11 years of experience. His area of expertise includes finance, loans and lending. His work has been featured on various large websites including this one.
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