Loans

Can You Get A 3-Month Payday Loan with Bad Credit?

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. 

One of the most common loans that borrowers with bad credit turn to is called a payday loan. But there’s a variation of the classic payday loan that some people are choosing, which allows the borrower to extend their repayment period. This seems like a good option if you’re struggling financially, but can you get approved for one with a bad credit score? 

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 a payday loan?

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

  1. A 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. One 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 “rollover” the loan into a new term. This essentially means that they will extend the repayment period, while also adding more fees and interest.

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 rates as regular payday loans. 

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 a 3-Month Payday Loan with Bad Credit?

If you have a bad credit score, and you need some quick cash, 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 personal loans for people with poor credit histories. The short answer is, you can still get a payday loan even with bad credit. 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. 

Why Choose CreditNinja if You Have Poor Credit?

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 affordable personal installment loans that have better terms, conditions, and interest rates than your average payday loan. 

With CreditNinja, you can apply, get approved, 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.