3 month payday loans bad credit

bad credit loan payday

Having poor credit can make life much more difficult than it needs to be. It makes it tough to get an auto loan, a mortgage, or just a small personal loan. And even if you do get approved for one of these loans, the interest rates and terms you’re offered won’t be as good as they could be if your credit score and credit history were improved. For example, in 2022, when looking at car loans, rates meant subprime borrowers spent around $7,000 more on interest than excellent credit borrowers.1

One of the most common loans that borrowers with bad credit turn to is called a payday loan. In fact, many Americans depend on these short-term loans.2 These loans for bad credit provide flexibility eligibility for poor credit borrowers. This seems like a good option if you’re struggling financially, but are they a good choice?

CreditNinja is here to provide the answers you need when it comes to three-month payday loans and bad credit loans. Read on to learn more about how these loans work and whether or not you can get one if your credit history is less-than-favorable. 

What Is Considered Bad Credit?

“Bad credit” refers to a credit history that lenders view as having a higher risk of default or missed payments. This perception is based on the individual’s past behavior with managing debts, such as late payments, bankruptcies, or having too much outstanding debt.

In the context of credit scores (primarily in the U.S.), which are numerical representations of an individual’s creditworthiness, the following ranges are generally considered:

  • Excellent Credit: 750 and above
  • Good Credit: 700 – 749
  • Fair Credit: 650 – 699
  • Poor Credit: 550 – 649
  • Bad Credit: 549 and below

However, these ranges can vary slightly between different credit reporting agencies and might be assessed differently by different lenders. It’s also worth noting that these are general benchmarks, and individual lenders might have their own criteria for what they consider “good” or “bad” credit.

Bad credit can make it tough to get approved for traditional options. However, there are loans for bad credit out there, including a payday loan. 

Types of Loans for Bad Credit Other Than Payday Loans

Here are some other types of bad credit loans:

Installment Loans

Longer-term loans that are paid back in set amounts (installments) over time. Bad credit installment loans may have higher interest rates compared to those offered to individuals with better credit.

Secured Loans

These require collateral, such as a car or home, which the lender can seize if the borrower defaults. They often have more favorable terms since the lender has some form of security.

Title Loans

Loans where the borrower uses the title of their vehicle as collateral. If the borrower defaults, the lender can take the vehicle. Title loans and payday loans are similar in their flexibility with poor credit. However, there are important differences between payday loans and title loans. The main difference is the security involved with title loans. 

Guarantor Loans

Loans in which another person co-signs and agrees to repay the loan if the borrower defaults.

Considerations When Inquiring for Loans for Bad Credit:

Here are some things to consider when inquiring about bad credit loans:

Higher Interest Rates

Bad credit loans typically come with higher interest rates than standard loans due to the higher perceived risk by lenders.

Fees and Charges

These loans might come with additional fees, such as origination fees or late payment charges.

Loan Amount

Borrowers with bad credit might not qualify for higher loan amounts.

Shorter Loan Terms

Loans for bad credit might come with shorter repayment terms, leading to higher monthly payments.

Potential for Debt Trap

The higher interest rates and fees can sometimes trap borrowers in a cycle of debt if they’re not careful.

Tips for Borrowing With Bad Credit:

Shop AroundDifferent lenders have different criteria and rates. Compare multiple offers before deciding.
Understand the TermsBe sure to read and understand all terms, including interest rates, fees, and repayment schedules.
Consider AlternativesBefore opting for a high-interest bad credit loan, consider alternatives.
Improve Credit ScoreIn the long term, aim to improve your credit score to access better lending terms. This includes paying bills on time, reducing outstanding debt, and checking credit reports.

What Is a Payday Loan?

A payday loan is a popular short-term loan option for customers who have bad credit. The way they work is fairly simple:

  1. The borrower applies for a payday loan if they need help making it to their next payday or if they have a financial emergency such as a broken down vehicle, malfunctioning home appliances, or unexpected medical bills.
  1. If approved, the payday lender will offer the borrower a small amount of cash (usually up to a few hundred dollars at most). 
  1. The borrower has about two weeks, on average, to repay the money. Typically, the due date is set to be on the borrower’s next payday, hence the name.
  1. On the due date, the borrower returns the loan amount, plus the interest and any additional fees or charges. This ends the loan process, and the borrower is then free to apply for another loan if needed. 
  1. If the borrower can’t repay the payday loan, many lenders will offer to “roll over” the loan into a new term. This essentially means that they will extend the repayment period while also adding more fees and interest (the interest rate that was initially charged).

What Is a 3-Month Payday Loan, and How Does It Work?

A three-month payday loan is, at its core, the same as a regular payday loan with one exception: Instead of paying back the loan after only two weeks, the borrower has three months to pay it back. 

There’s not necessarily any monetary benefit to choosing a three-month payday loan over a regular two-week loan. You probably won’t save any money, as they tend to carry the same interest rate as regular payday loans. However, you may get more time to repay your loan, which may be helpful for some budgets. 

Most loans that last three months require borrowers to make regular monthly payments or “installments” in order to pay off the loan over time. Which means you would be making several small payments over time. With a three-month payday loan, there’s only one large lump-sum payment at the end of the three months. 

Can You Get 3-Month Payday Loans Online With Bad Credit?

If you have a bad credit score and you need a quick cash loan, it may feel like you don’t have a lot of options. Getting a personal loan from a bank is challenging unless you have a decent credit score. Even being approved for a credit card isn’t a guarantee if your credit history is lacking. So what about three-month payday loans?

Payday loans, in general, whether they’re three-month or two-week loans, are some of the most popular loans for people with poor credit histories. The short answer is you can still get a payday loan even with bad credit, even online options. However, it may mean some extra work. You may have to provide plenty of information about your income and bank account, and you might have to research lenders to find one that’s willing to work with you. 

Some Drawbacks of Payday Loans

Payday loans have some disadvantages you should be aware of:

  • High-Interest Rates — Payday loans have some of the highest interest rates of any form of credit. Annual percentage rates (APRs) can be several hundred percent, vastly more than what you would find with a credit card or personal loan.
  • Fees — Many payday lenders charge fees in addition to the interest on the loan. These fees can be significant, adding to the overall cost of the loan.
  • Debt Cycle — Because of the high costs associated with payday loans, borrowers can easily find themselves in a cycle of debt. If they can’t pay off the loan on their next payday, they might take out another loan to cover the first, accumulating more fees and interest.
  • Short Repayment Terms — These loans typically have to be repaid by the next payday, which might not give borrowers enough time to get their finances in order.
  • No Credit Building — Unlike other forms of credit, responsibly managing and repaying one of these loans generally doesn’t help you build credit or improve your credit score.
  • Predatory Practices — Some payday lenders employ predatory lending practices, taking advantage of borrowers who are desperate for cash and might not fully understand the loan’s terms.
  • Hidden Terms and Conditions — Some borrowers might not know all the terms and conditions when they take out one of these loans, leading to unexpected costs or conditions.

FAQs On Payday Loans Online

What are the main differences between online payday loans and traditional payday loans?

While traditional payday loans might require in-person applications, payday loans online allow borrowers to apply, get approved, and receive funds in their bank account without leaving their homes. Some people may find payday loans online more convenient. 

How do bank account details factor into the loan request process for online payday loans?

For online payday loans, bank account details are typically required to both verify the identity of the borrower and to facilitate the transfer of funds if approved.

Are there any secured loan options available for bad credit borrowers?

The article primarily discusses unsecured loan options like payday loans. However, secured loans require collateral and might be an alternative for bad credit borrowers, though terms and conditions vary.

Is a credit check mandatory for all personal loans, even for bad credit borrowers?

While many personal loan providers perform credit checks, some direct lenders might offer bad credit loans without a credit check, though terms might be less favorable.

How do installment loans differ from regular payday loans?

Installment loans allow borrowers to repay the loan amount in multiple payments over a set duration, whereas regular payday loans typically require a lump-sum payment on the borrower’s next payday.

Why might someone choose an unsecured personal loan over a secured one?

Unsecured personal loans don’t require collateral, meaning there’s no risk of losing personal property. This makes them more appealing to some borrowers, despite potentially higher interest rates.

How do bad credit payday loans differ from standard payday loans?

Bad credit payday loans are specifically tailored for individuals with poor credit scores, and while they might have higher interest rates, they offer assistance when other options might be unavailable.

Are online payday loans considered unsecured loans?

Yes, online payday loans are typically unsecured, meaning they don’t require collateral from the borrower.

What do the best payday loans or loans for bad credit offer?

The best payday loans and loans for bad credit offer competitive interest rates, transparent terms and conditions, flexible repayment options, and a straightforward application process. Customer reviews can also provide insights into lender credibility.

Can direct lenders offer better terms for bad credit loans?

Direct lenders might offer varied terms for bad credit loans. It’s essential to research and compare multiple lenders to find the most favorable terms.

If someone has bad credit, can they still avail of assistance through personal loans?

Yes, many lenders, like CreditNinja, specialize in offering personal loans for bad credit, providing subprime borrowers with the financial assistance they need.

Do all payday lenders offer the option of rolling over the loan if it can’t be repaid by the due date?

Not all payday lenders offer this option. Borrowers should carefully read the terms and conditions or inquire directly with the lender about the possibility of rolling over the loan.

Key Takeaways from CreditNinja

CreditNinja is a premier lender for borrowers with bad credit. Our personal installment loans are designed to help people in need, even if their credit history is less than perfect. We offer more personal loans that may have better terms, conditions, and interest rates than average payday loans online. 

With CreditNinja, you can apply and make payments online. Why leave the comfort of your home to get a better personal loan? Our application is quick and easy, and if you’re approved, you can get your cash by the next business day!* Apply today to see why so many people are choosing CreditNinja.

*Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications approved before 10:30 a.m. CT Monday – Friday are generally funded the same business day. Applications approved after this time are generally funded the next business day. Some applications may require additional verification, in which case, the loan, if approved, will be funded the business day after such additional verification is completed.


  1. Payday Loans Debt Spiral to Be Curtailed | The New York Times
  2. What Is the Average Interest Rate for a Car Loan With Bad Credit? | CarsDirect

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