Short-Term and Small Personal Loans

Flexibility in your budget is key when life moves fast, and unexpected expenses pop up. Unplanned medical expenses, car repairs, broken appliances — any of these can wreck your budget, making paying every day 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 new and improved Emerald Advance^SM Loan, a short-term, personal loan option that could give you the boost you need to get through the holidays.

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 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 the price of the home after subtracting the down payment. 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 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 different than other loan types. Instead of receiving for a specific purchase, the loan amount is held with the lender. Then borrowers make loan payments on time to establish a good credit history. You can think of it as 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.

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 (how quickly you need to pay back the loan) and the interest rate you’ll pay to borrow the money.

One big factor to weigh 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 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 extra money to pay back. That said, a short-term/small loan might be a better choice.

How to get a small personal loan: What’s required?

The information needed to apply for a short-term personal loan will be different depending on the lender and its requirements.

At most banks or credit unions, as the applicant, you’ll need to provide personal details, such as proof of employment, a bank account, and a government-issued form of identification as part of the short-term loan application. Typically, you are also required to have a verifiable source of income to be eligible.

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

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

From Nov. 1 to Dec. 31, 2023, you can apply for the H&R Block Emerald Advance® Loan, and if approved, you could get up to $1,300 to help with unexpected bills, holiday expenses, and more. There are no required monthly payments — or any payments at all — until March 31, 2024. There’s no impact to your credit to apply; if you are approved and take a loan, the loan will be reported to the credit bureaus, which may affect your credit score.

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

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

H&R Block Emerald Advance® Loan originated by Pathward®, N.A., Member FDIC. Subject to eligibility and credit approval. Annual Percentage Rate (APR) is 35.9%. Loan amounts vary from $350-$1300. 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.