8 Short-Term Loan Options When You Need Cash Quickly

Life can catch you off guard with unexpected expenses, whether it’s a surprise car repair, medical bill, school supplies, or a utility bill that’s higher than usual. In these moments, you might need fast access to cash to help tide you over until your next payday. 

The good news? There are plenty of short-term loan options that can provide quick financial relief, even if your credit isn’t perfect. 

What is a short-term loan? 

A short-term loan is a type of loan designed to meet immediate financial needs. These loans are typically used to cover urgent expenses or to help you get by until your next paycheck. 

Many lenders — both online and in stores — offer a streamlined application process with fast approval. In some cases, you could receive funds within 24 hours of approval. Repayment terms for short-term loans are usually flexible, ranging from just a few weeks to up to a year, depending on the loan type. 

Types of short-term loans 

There are several types of short-term loans you can explore, each designed to help different types of borrowers. 

Payday Loans (Cash Advances) 

Payday Loans, also known as Cash Advances, are small, short-term loans typically repaid on your next payday, usually within two to four weeks. These loans can be a good option if you have bad credit, as your eligibility is based on your income rather than your credit score. 

While Payday Loans can be helpful in a pinch, it’s important to assess your financial situation carefully. Only consider one if you're confident you can repay it on your next payday. 

Installment Loans 

If you need more money than a Payday Loan can offer, an Installment Loan could be a better option. These loans are typically available to borrowers with steady income and require you to provide documentation during the application process. Once approved, you’ll receive the funds in a lump sum and repay the loan in fixed monthly payments. 

The advantage of Installment Loans is that they offer larger loan amounts and consistent monthly payments, making it easier to budget for repayment over time. 

Lines of Credit 

A Line of Credit gives you flexibility by allowing you to withdraw money up to your approved credit limit as needed, similar to a credit card. You only pay interest on the amount you borrow, not the full limit. 

A Line of Credit can be kept open indefinitely, as long as you make regular payments. This makes it a great tool for managing unexpected expenses and being financially prepared for emergencies. 

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Pawn shop loans 

If you’re willing to use a valuable item as collateral, a pawn shop loan can be a simple way to get a short-term loan. Since these loans are secured, you don’t need good credit to qualify. You simply offer an item, like jewelry, as collateral. 

Once you repay the loan, you get your item back. If you default on the loan, the pawn shop will keep and sell your item to cover the cost. 

Title loans 

Title loans are secured by the title of your vehicle, such as a car, RV, or boat. In exchange for the title, the lender provides funds based on the appraised value of your vehicle, and you can still drive it while making payments. 

Title loans are often easy to qualify for, even with bad credit. However, they carry the risk of losing your vehicle if you can’t repay the loan, so it’s important to stay on top of payments. 

Credit card cash advances 

A cash advance on your credit card allows you to borrow money against your existing credit card limit without needing an additional credit check. You can withdraw the funds at an ATM or use a convenience check provided by your credit card company. 

Be cautious, though — credit card cash advances often come with high fees and interest rates that start accruing immediately. Without careful planning, you could owe more than you borrowed by the time your next billing cycle arrives. 

Merchant cash advances 

For business owners, a merchant cash advance offers a lump sum of cash in exchange for a percentage of future credit or debit card sales. This is a quick way to get funding, but it’s important to understand the repayment terms before committing. 

Invoice financing 

Invoice financing is another option for business owners. After submitting unpaid invoices to a lender, you’ll receive a portion of the invoice amount upfront. Once your customers pay, you repay the lender. 

Benefits of short-term loans 

A shorter repayment period means less time spent in debt, allowing you to regain your financial freedom faster. 

Short-term loans offer several advantages compared to long-term financing options. If you take time to compare lenders, you might find a loan that provides the following benefits: 

Lower interest rates 

Short-term loans often come with lower interest rates, making them an appealing choice for borrowers. Since the repayment period is shorter, lenders may offer more competitive rates, reducing the overall cost of borrowing. 

Less interest paid overall 

A key benefit of short-term loans is the potential to save on interest costs. With a shorter repayment period, you’ll pay less interest over the life of the loan, making it a more affordable option than longer-term financing. 

Faster debt repayment 

One of the biggest advantages of a short-term loan is that you’ll pay off the debt quickly. A shorter repayment period means less time spent in debt, allowing you to regain your financial freedom faster. 

Getting a short-term loan if you have bad credit 

Lenders like Advance America understand that having bad credit shouldn’t stop you from getting the financial help you need. When choosing a lender, look for one that: 

Focuses on your income, not your credit score 

Our loan approval process considers your income and employment history, so you can qualify for a Payday Loan, Installment Loan, or Line of Credit without needing a high credit score. We work with borrowers from all credit backgrounds to help you get the money you need. 

Doesn’t require collateral 

Unlike pawn shop loans, our short-term loans don’t require you to put up valuable assets like jewelry or sentimental items. That means you don’t risk losing your possessions to secure a loan. 

Offers a fast and easy application 

Our streamlined application process ensures you can apply for a loan quickly, either online or in-store. You’ll receive a fast decision, and if approved before 10:30 AM EST, you may even get your funds the same day. 

Has flexible repayment options 

Whatever type of short-term loan you choose, you should have flexible repayment options that fit your budget and financial needs. Advance America has a reputation for transparency, so you’ll know exactly how much your loan will cost upfront, ensuring you can cover your expenses without any surprises. 

How to get a short-term loan 

1. Choose a short-term loan 

To find the right loan, start by exploring your options with Advance America. If you need a small amount to cover expenses until your next payday, a Payday Loan might be the best fit. If you require more funds or need more time to repay, consider an Installment Loan or a Line of Credit. 

With numerous credit unions, banks, and online lenders available, thorough research is crucial. In addition to comparing rates, terms, and fees, look up customer reviews to ensure you make an informed decision. 

2. Gather all necessary documents 

Before applying, gather the required documents to streamline the process. At Advance America, you'll need the following to apply for a loan: 

• A government-issued ID, such as a driver’s license or passport 
• Your Social Security number 
• Proof of income, like recent bank statements or pay stubs 
• An active checking account 
• A working email address 

3. Fill out and submit your short-term loan application 

You can easily apply for a short-term loan online or at your nearest Advance America store. Just provide your personal and financial information in the application. Be sure to double-check your details before submitting to ensure everything is accurate. 

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4. Receive your funds 

Once your application is submitted, you can expect a fast approval decision. In many cases, you'll receive an instant decision. This allows you to quickly cover any urgent expenses. 

Short-term loan FAQs 

Are short-term loans available online?

Yes, you can easily apply for a short-term loan online. Our online process allows you to fill out an application, get approved, and receive the funds you need — all from the comfort of your home. It’s quick, convenient, and secure. 

Do I need good credit to get a short-term loan? 

No, you don’t need a good credit score to qualify for a short-term loan at Advance America. Instead, we consider factors like your income and employment history. Lenient credit requirements for short-term loans for bad credit mean you can still borrow the funds you need even with less-than-perfect. 

How long do I have to repay a short-term loan? 

Short-term loans typically have repayment terms of less than one year. They’re designed to help you cover immediate expenses and repay quickly. Depending on the loan type, repayment terms can range from a few weeks to several months, giving you flexibility based on your financial needs.