Many individuals have considered traditional payday loans when they need cash. In these circumstances, payday lenders often extend an offer of shorter repayment time frames. Generally, they will allow for terms of from a few days out to a month. This is the standard repayment period, but there are other alternatives that often prove more realistic for working people.
One of these more flexible arrangements for those in need of a lengthier repayment period is a three-month payday loan. As the name implies, customers obtain the flexibility to repay the loan within a three month window. It is important to understand the differences between these types of loans and the short term month or less payday loan.
What Type of Loan is a 3 Month Payday Loan?
Three month payday loans are short term loans. They provide more flexibility than a standard payday loan in several ways:
- Flexibility in repayment amounts
- Ability to prepay the loan early
- Potential to rollover a loan
It is important to understand whether the three month payday loan includes fees and what amounts. For example, with standard payday loans, they typically charge a preset fee for each $100 a person borrows. Depending on the state and the company, issuers of three month loans may use this method of assessing fees or another one.
These loans also may or may not come with instant approval availability. Processing times can range significantly from one firm to the next. In general, a three month payday loan is a quick process. This is why individuals who need the funds quickly should inquire about the possibility for instant approval upfront.
Three day loans are also much like installment loans. A client will borrow the funds upfront. They must be repaid with both fees and interest during the three month time frame. The amounts of these kinds of loans often range from $500 on up to $5,000. There are cases of three day loans that deliver as high an amount as $10,000.
Online applications are typical with these types of loans. These online approval processes can deliver the cash as quickly as the following business day.
How Do These Loans Work?
Every type of loan is a little different. Each lender will also have its own particular requirements. These also vary according to the laws of each state. In general though, lenders are looking for applicants who can prove they are permanent residents or U.S. citizens, are 18 years of age or older, prove an income source or regular job, maintain an active checking account, and reside in a state that is eligible for the three month payday loan.
Short term loans tend to be expensive as a rule. These types of installment loans include high APRs. They could conceivably be 400 percent over the course of a year. This varies from one state to the next though, and some states such as California have limits on the fees that lenders are allowed to charge for amounts less than $5,000.
The good news is that there are three month payday loans that come with fair interest rates. Some providers will offer loans with repayment terms ranging from 3 months to 6 years at interest rates ranging from 5.99 percent to 35.99 percent.
After clients receive funds, they have to be ready to make the repayments. Many of these loans include a monthly repayment schedule. Different loans could have weekly, bimonthly, or sometimes biweekly repayments. The advantage they offer is that recipients can repay the loan sooner than the final due date without a repayment penalty if they are able to do so.
The majority of lenders today will permit the borrowers to sign up to participate in automatic payments from their bank accounts (and may in fact require it). Others will instead prefer online payments clients make manually. Wire transfers are another means of repaying the loans, as are repayments made in person at the lender’s physical location. For those individuals who do not have either a savings or a checking account, it will be difficult to find a three month payday loan.
Pros of 3 Month Payday Loans
There are many advantages to these three month payday loans. These include the following:
- Easier to qualify for than a personal loan
- Simpler to manage than a shorter term payday loan
- Approvals are quick and funds can be disbursed the same day or next business day (if online)
- These lenders work with bad credit and do not do credit checks with the primary three credit bureaus
- Lenders are more interested in repayment ability based on income
- Both online and physical location options are often available
Cons of 3 Month Payday Loans
There are also some features to be aware of with these three month payday loans. These include the following:
- Payments are often set up via automatic repayments as a mandatory requirement
- APRs can be quite high which translates to more interest and fees
- Some predatory lenders will not follow the state law; this is more of a problem in those states where payday loans are illegal or are heavily restricted
Guide to Applying for 3 Month Payday Loans
For people who are in a hurry to gain access to funds, it could not be quicker or simpler than doing an online application from the comfort of home. A reputable lender with online applications will display the applicable licenses where the terms and rates page is located (for those states that enforce such rules). Not all lenders are licensed to operate in every state.
It only needs a few minutes to fill in an application online. Approval is even faster than this in many cases. The majority of lenders will want the following information and documents from an applicant online (or in person): proof of income like a current pay stub, the personal bank account number and bank routing number, and an official ID issued by the state of residence.
In order to get started on the three month payday loan approval process, go to our application form online and start filling it out now.