Have you ever been in a situation where you need some fast cash, and you don’t know where to get it? Maybe your car broke down and it’s the only way to get the kids to school, and get you to work. Maybe the fridge stopped working and you’re about to lose all those groceries you just paid for. Or maybe you’ve paid your rent or mortgage and all your monthly bills, and you just don’t have enough money left over to make it to your next payday.
These are some very common financial emergencies that many Americans deal with every day. And if you’re one of the many people in this country without much money in your savings account, you’re probably wondering where to turn.
Quick cash loans are often the solution for folks in these situations. But which quick cash loan is right for you? With so many different types of personal loans, all with their own specific terms and conditions, it’s difficult to know exactly which one to choose.
One of the most common types of fast cash loans that people choose is called a “payday loan.” But even payday loans can differ depending on the lender, and where you live. One variation of the typical payday loan is called a “3-month payday loan.”
What is A 3-Month Payday Loan?
A payday loan is a short-term personal loan that offers a small amount of cash (usually up to a few hundred dollars), with a repayment term of about two weeks. These loans are unsecured, which means you won’t be required to offer up any collateral in order to get the loan. They’re typically repaid in two weeks because borrowers use them to help extend their funds to their next payday.
Payday loans are a quick cash option that many borrowers with poor credit scores use, sometimes on a regular basis. Because they’re tailored to customers with bad credit scores, they tend to have high interest rates. But these borrowers aren’t typically approved for bank loans, credit cards, or credit union loans, so they often don’t have much of a choice.
So what is a three-month payday loan? It’s exactly what it sounds like. It’s a payday loan that is paid back in three months, rather than the normal two weeks. With most loans that last three months or longer, you repay it in monthly installments. With a three-month payday loan, you simply pay back the entire lump sum after three months, on the agreed-upon due date.
It’s important to note that there isn’t necessarily any cost advantage to using a three-month payday loan, over a normal two-week payday loan. The interest will likely be the same, and you’ll be repaying the same amount. You just have a little bit more time to do it.
Is the 3-Month Payday Loan Right for You?
If you’re struggling financially, and you’re in desperate need of some fast cash, then you may be considering taking out a payday loan. Before you do, make sure you learn everything you can about them, how they work, and what to expect when taking one out.
If a payday loan is your only personal loan option due to your credit history, then you may also be considering a three-month payday loan. And if extending the loan to three months rather than two weeks would help you pay it off on time, then it may be a better option. Part of what makes payday loans so difficult to repay is the fact that they have to be paid in full within two weeks. It makes sense then that extending that timeframe may mean it’s more likely that borrowers can repay the loan.
There’s no real financial benefit to taking out a three-month payday loan however. You won’t save money by choosing this option. The only foreseeable benefit is that you have more time to gather the funds to repay the loan. And since this is one of the common difficulties with payday loans, it may be better to opt for a longer repayment period.
At CreditNinja, we always recommend choosing a personal installment loan if you’re able to get approved for one. You’ll get better interest rates, longer repayment terms, and a more favorable loan product overall. These loans, like the ones offered by CreditNinja, are catered to borrowers with bad credit histories. So even if you’re having trouble boosting your credit score, you may still be able to get approved for a personal installment loan with CreditNinja. Apply today to find out!