Getting 3-Month Payday Loans
If you ever find yourself in a financial bind or have a financial emergency, you may consider taking out a payday loan. If approved, the financier may provide you with a relatively short repayment period. In many cases, the period will be around a couple of weeks. This is the standard repayment period for this type of financial product.
Some consumers feel that two weeks is not enough time to clear the debt. They can always consider applying for a 3-month payday loan, also known as a flexible payday loan. As the name suggests, these are loans that provide the borrower with an extended repayment period. Lenders understand that financial conditions vary from one borrower to another.
3-month Payday Loans Direct Lenders
Payday loans are an excellent choice for those who are in immediate need of money. Borrowers can take out a 3-month payday loan with a direct lender and negotiate terms of repayment. Many lenders charge a high flat-rate fee for taking out a loan. You will usually pay the same fee, regardless of how much you are borrowing. This can make it challenging to pay back your loans, so be sure you are aware of all the fees and loan terms before signing the loan agreement.
Comparing 3-Month Payday Loans with Installment Loans
Installment loans are a category of investments that often come with a set payment schedule. This means that each borrower is provided with a given number of repayment dates. In actuality, many of the loans enjoyed by most Americans today happen to be installment loans; e.g., auto loans and mortgages.
Note: Although credit cards often require borrowers to make certain monthly payments, they do not fall under installment loans.
Payday loans generally have a much shorter duration than an installment loan. They also attract higher interest rates and must be repaid in the form of a lump sum payment. This is a payment that must be made on the next borrower’s payday. The installment loan can, on the other hand, can extend for many months with the payments spread out over its entire term.
Short-term loans are cash loans that are paid back in the form of installments. If you have recently found yourself in a sticky situation (e.g., your boiler is about to die, or your car is refusing to start), a short-term loan can help bail you out of such a situation.
Consumers have been known to borrow a short-term loan for the following reasons: if they overdraw, sort them out until their next payday, or for emergency purposes.
How Do These Loans Work?
When you take out a short-term loan, you will sometimes be able to pay it back in installments. Many short-term loans are valid for three months or more. You should note that if you choose to roll over the loan, you will pay more money. These loans do come with high-interest rates, so be sure to learn the terms before you commit to the loan.
Benefits of Applying for a 3-Month Payday Loans Online
If you are interested in covering a cash shortfall, you will notice that short-term loans have several attractive benefits. Additionally, they are also ideal for borrowers who are confident that they will be able to repay the loan when it is due. Advantages include:
- Flexible – you pay the loan in installments, which may make it more manageable.
- Quick – fast payday loans are effectively faster than traditional bank loans.
- Cash for the underbanked – those who have trouble obtaining bank funding may have a better chance with a short-term loan or consider payday loans with no bank account required.
It can be easier to pay back the money when the loan term is a little longer. Even just extending the time by a couple of months can make a big difference.
Before you choose to apply for this kind of loan, it will be prudent to check whether any fees will be involved in the transaction. In many cases, the investment tends to attract a fee in addition to the interest. Therefore, make it a point to inquire about repayment flexibilities.
It is always best to have a good handle on solutions that may appear when you are in an unpredictable situation. Borrowers looking for instant approvals need to ask about the availability of such a possibility well beforehand.
3-Month Payday Loans Credit Check
All creditors big and small run an applicant’s credit before making a loan decision. It is inescapable. That said, you may still find funding even if have a low score. That’s because alternative lenders (like the ones who offer loan terms under a year) tend to rely less on credit score when underwriting.
The process of borrowing a three-month cash advance loan is very straightforward. You agree with a lender to pay the loan back on your next pay date. On your next payday, you will be required to pay the lender back. Many lenders will automatically deduct what you owe (the money borrowed plus the applicable interest and fees) from your account on a specified due date.
If you are unable to pay back the lender on time, the amount may be rolled over. In this case, you will need to pay another fee. The more you roll over the loan, the higher the amount becomes, which may eventually make it harder for you to go back to the initial amount. As a result, you may find yourself stuck in a cycle of debt.