Short-term loans: A guide to your options

Flexibility in your budget is key when life moves fast, unexpected expenses pop up, and you don’t have the cash on hand. Unplanned medical expenses, car repairs, broken appliances—any of these can wreck your budget, making paying everyday bills or affording the holidays for you and your family a real challenge.

That’s when a short-term loan may be the answer. If you’re considering a short-term loan, you’ll want to understand your options, so you can make the best decision for your situation.

Read on to learn more about what short-term loans are and what factors to consider. Plus, we’ll introduce you to the Emerald Advance^® Loan, a short-term, personal loan option that could give you the boost you need to get through the rough spots.

Understanding different loan types

Like many financial topics, loans can seem intimidating if you haven’t spent time exploring them. To give you a feel for this landscape, we’ll outline a few loan types so you can see where short-term loans or small personal loans fall into the mix.

• Student loans can help you or your family pay for college and graduate school. They may be issued by the federal government or private lenders.
• Personal loans can be used for any number of personal expenses, but often have a defined purpose, such as home improvement, vacations, weddings, or even holiday expenses (See holiday loans). Often, this type of financing is an unsecured loan, which means you don’t have to provide collateral to secure the loan.
• Auto loans can help you purchase a new or used car. The loan is generally the price of the car after you’ve subtracted your down payment. The car itself is the collateral for the loan and can be repossessed if you fail to make payments.
• Mortgage loans can help you buy a home. The amount of the mortgage loan is generally the price of the home after subtracting the down payment, but there are other fees and settlement costs that should be factored in as well. The collateral for the loan is the home, on which the lender could foreclose if you miss payments.
• Home equity loans and home equity lines of credit allow you to borrow against a certain percentage of equity in your home to use for various purposes. These types of credit are also secured by the home.
• Credit-builder loans are another type of loan that is often helpful for those with credit challenges such as prior unsatisfactory payment or very little to no credit history. With this type of loan, you would deposit funds in a deposit account such as a savings account, CD or share account. The loan is secured by the funds on deposit, and you benefit by establishing a good repayment history. However, if you miss payments or do not pay the loan as agreed, the lender will take the funds on deposit to satisfy the outstanding debt. Overall, credit builder loans are typically a short-term loan for those with bad credit or little credit history.

What is a short-term loan?

A short-term loan is a type of personal loan that offers a shorter repayment term compared to other personal loans. While there’s no hard and fast rule, many short-term loans have a repayment period of less than two years.  Additionally, given the shorter loan-term (repayment period), short-term loans will typically offer smaller loan amounts.

How do short-term loans work?

The process generally starts with you filling out a short-term loan application with the lender and if you’re approved, many lenders can disburse loan proceeds via direct deposit to your bank account, among other disbursement methods. With most short-term loans, you typically borrow a lump sum amount and pay it back over time in installments, often as a monthly payment.

Considerations for short-term personal loans

Short-term loans can be a useful financial tool to help with a variety of expenses. As with many money matters, it’s smart to consider the details. With short-term financing, a few questions to investigate are the loan term/repayment terms (how quickly you need to pay back the loan) and the interest rate you’ll pay to borrow the money. Think about how that interest rate will affect how much you’re paying for the loan over the length of the repayment term and be sure to watch out for any prepayment penalties or rate increases if the loan is not repaid by the due date.  

One big factor to weigh with short-term lending is the loan amount to take out considering your need as a borrower. For example, if a few hundred dollars is all that’s needed to help you get your finances through the holiday season, you may not need to borrow thousands. The extra cushion might sound good at the moment, but it can also mean more interest to pay back.

How to get a personal loan

The information needed to apply for a short-term personal loan will be different depending on the lender and its requirements. Here we’ll outline the steps relevant to most lenders.

1. Assess your needs. Considering the purpose of the loan, calculate how much you will need and how much you can afford to repay.
2. Check your credit. Review your credit report through a free credit report service and check for errors. If you can fix any issues, it can help improve your chances of approval.
3. Gather the required documents. These documents typically include proof of identity (with a government-issued form of photo identification) and income, employment verification, and bank statements.
4. Apply for the loan. Submit your application with the required documents and review the loan offer before accepting.

What are the requirements for an Emerald Advance® Loan?

At H&R Block, you can apply for an Emerald Advance® Loan if you’re a U.S. resident, have a Social Security number, have a current, valid government-issued photo ID, can show proof of income dated within the prior 31 days, and are at least 18 years old (or 19 if a resident of Alabama or Nebraska).

Why consider an Emerald Advance® Loan for your short-term credit needs?

From Nov. 3 to Dec. 31, 2025, you can apply for the H&R Block Emerald Advance® Loan, and if approved, you could get up to $1,500 to help with unexpected bills, holiday expenses, and more. There are no required monthly payments — or any payments due at all — until March 31, 2026, when the full payment of the loan is due. Plus, there’s no impact to your credit to apply.

With Emerald Advance® Loan, you could get the boost you need to make it through the holiday season.

Apply for an Emerald Advance® Loan today

Get the details about the Emerald Advance® Loan or make an Emerald Advance® Loan appointment to apply now.

Short-term loan FAQs

How quickly can you get a short-term loan?

Some short-term loans can be approved and funded the same day, or within a few days, depending on the lender and your application details. Applicants of the Emerald Advance® Loan could access funds within minutes of approval.  

Where can you find short-term lenders and loans?

Short-term loans are available through banks, credit unions, lending institutions, and online financial platforms. Be sure to compare terms and check for reputable lenders before applying.

The Emerald Advance® Loan is available at participating H&R Block Offices from November 3 until December 31, 2025.

*H&R Block Emerald Advance® Loan originated by Pathward®, N.A. Subject to eligibility and credit approval. Annual Percentage Rate (APR) is 35.9%. Loan amounts vary from $350-$1500. If approved, loan proceeds will be disbursed as directed to prepaid card or checking account at Pathward. Additional terms and conditions apply, see account agreements for details. Offered for a limited time at participating locations.