Why a Short-Term Loan is an Excellent Solution for Bad Credit

By Angela Monroe - December 27, 2019

If you’ve got bad credit and are considering a short-term loan, you could benefit from immediate financial issues that you’re keen to resolve without entering into a long term loan. Options for people with bad credit don’t have to be limited to loans with hugely inflated interest rates and unfair loan terms – there are some great short term loans out there that can work really well regardless of your financial situation.

A short-term loan can be the answer to financial problems that have been causing you to worry and stress. It can help you pay for things that need quick payment or that you need as soon as possible.

What is a short-term loan?

Generally, loans that are due to be paid back within a year are classified as short term loans. Common short term loan lengths are 3 months and 5 months but you can find a short term loan to suit your needs.

Short term loans are often used for financial issues including:

  • Emergency medical expenses
  • House renovations
  • Unexpected car repairs
  • Emergency travel plans

5 Reasons Why Short-Term Loans Can Work For You

 1. Short term loans can be easy to access

Bigger, longer-term loans often require extensive paperwork and endless trips to the bank or phone calls to lenders. With a short term loan, you will quickly and easily gain access to the money that you need.

Short term loans are generally available after simply filling out an online form. An online short term loan application can be done from your home, in your own time –and then provides you with the money required.

People with bad credit don’t have to go through rounds of rejections on numerous applications (potentially damaging their credit further) but instead can enjoy a quick and easy online application – then sit back and wait for the money.

2. Short term loans are manageable

It’s easy to get overwhelmed with a long term loan where you’re often borrowing larger amounts for a  longer loan period. You may feel as though you can’t keep track of things or that you have gone out of your depth in the amount of money you’ve borrowed. As far as options for people with bad credit, this is bad news as you always want to stay on track to keep your credit score from dropping further.

You can see short term loans as manageable – helping you to quickly and effectively fix a financial problem in the short term. You won’t have to worry about interest fees and charges over a long period of time and if you aim to pay it back in full and on time, they can be a great way to borrow.

3. Short term loans can be done quickly

Did you know that you can get a short term loan within 24 hours of applying? As well as being easy to apply for with online access, short term loans can generally deliver you the money that you need within a day or so. This can make a huge difference if you’re in a tricky situation financially and need to pay urgently for expenses such as medical care or car repair.

4. Short term loans allow you to borrow what you need

This may sound silly but it’s really helpful when it comes to options for people with bad credit. You can make short term loans work for you. By only borrowing what you need, instead of a fixed amount of money, you can ensure that you can pay it back within the time scale allocated.

Customised payment plans are really helpful as you can make sure your short term loan is right for you. Decide how long you need to pay back the full amount of money and go with that loan term rather than a fixed, pre-arranged package.

5. Short term loans can be paid back quicker

If you only borrow a small amount over a short term, you’ll be able to focus more clearly on your short term loan and aim to pay it back in full, quicker than with a long term larger loan. This can mean your journey back to a better financial track is both faster and smoother.


Finding a short term loan that suits your budget means you may well be able to repay your loan in full in just a couple of months, giving you the peace of mind and security that you need both during the financial problem and in the months when you’re paying back the loan. You don’t have to feel as though things are spiralling out of control and you can have everything tied up in well under a year.

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.


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