Experts Talk


Bad Credit? Short Term Loans are the Best Solution

Michael Fletcher February 25, 2024
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People with outstanding debt and bad credit frequently find that short term loans are their best option.  Short term loans can help quickly cover an unexpected bill or repair until the borrower's next pay check.

Individuals with no, or even bad credit, who can provide employment and bank account information can qualify.

What is a Short Term Loan?

Short term loans are also called a cash advance loan or payday advance. They are unsecured loans offered primarily by alternative lenders like

They provide financing to individuals with no or bad credit.  Borrowers can apply for short term loans on-line with no paperwork, and typically get a response within an hour.  

The process…. Short & sweet

The process of applying for a short term loan is easy.  Lenders take applications on-line and require no hard copy paperwork or faxing. Potential borrowers provide basic information about themselves, including:

  • Proof of a checking account that is at least 1 month old
  • Proof of three consecutive payroll deposits
  • A net income of at least $2,000 per month or $800 per month in Social Security or other benefit income
  • Proof of identity

SHORT VERSION – TL:DR: If you can use some money to get on your feet or take care of expenses- the best option is

The lender will analyze your information. In about an hour, they will let you know if they approved the application and how much they will loan you. 

Benefits of Short Term Loans

Short term loans can offer several benefits to borrowers with bad credit:

  • Fast approval
    • Your application is typically approved within an hour of submission.  The lender will contact you shortly after approval with updates on the status of your loan, and where it is in the process.
  • Funds received quickly
    • Money will be deposited in your account by the next business day.
  • Easy application process
    • You submit your loan application online, with no faxing or hardcopy documents required.
  • No credit check.
    • Lenders typically do not require that you have good credit or any credit history at all.
  • No collateral
    • Unlike traditional loans, short term loans are unsecured, and do not require collateral.  Borrowers must have been working for their current employer for a few months and have a checking or savings account. The account has been open for more than three months. Borrowers need a net income of at least $2,000 per month.
  • Easy repayment
    • When applying for a short term loan, the borrower authorizes the lender to deposit the loan directly into their checking or savings account. At the next pay period, lenders withdraw the repayment.  The repayment amount consists of the original loan amount plus the loan fee.

Managing a Short Term Loan

Fees on short term loans vary greatly.  If the borrower doesn't have enough funds to cover the repayment, lenders will typically arrange an extension. 

Extensions ideally should be made as far in advance as possible, at least two days before the loan's due date.

Prepaying a Short Term Loan Early

Borrowers can also prepay the loan before its due date.  When a loan is paid early, borrowers may be entitled to a refund of a portion of the fee.

Short term loans can offer a great solution to an immediate cash needs for people with bad or no credit.  Lenders, like Dollar Premier, provide an easy application process and low requirements to qualify.

There are no credit check or collateral necessary.  Be sure to reach out to for all of your loan needs.