What you need to know about how these short-term loans work before you apply.
Three-month short-term loans can be an attractive option when you need money fast and can’t qualify for a personal loan. They’re more manageable than your traditional payday loan, which you have to pay back in full with your next pay check. However, a longer term makes your loan more expensive — especially since these rates often hit the triple digits. It can also be difficult to find a lender that offers installment loans with such a short term.
- Safe, secure application.
- Use the money for any purpose.
- Receive funds as soon as next business day.
Check into Cash Payday Loan
With 1,000 branches in 30 states, get $50 to $1,000 in days from this direct lender.
- Minimum loan amount: $50
- Maximum loan amount: $1,000
- Turnaround time: 1–2 business days
- Loan term: Varies by state
- You must be at least 21 and an American citizen and have a bank account, email address and phone number.
A selection of loans you can apply for
How do 3-month payday loans work?
Three month payday loans work like any kind of installment loan: You borrow money upfront and pay it back plus interest and fees over three months. Typically they range from around $500 to $5,000, though some three-month short-term loan providers offer loans as large as $10,000.
Many three-month short-term loan providers have online and in-store applications. If you apply in-store, you could get your funds during your visit. With online applications, you can often get your funds in as little as the next business day.
How much do 3-month payday loans cost?
Short-term loans are expensive and three-month payday loans are generally no exception. Many installment loans come with APRs that can get as high as 400%. However, some states like California have restrictions on how much your lender can charge on loans under $5,000 so costs often vary by state. In fact, some lenders might not offer installment loans with three month terms due to state regulations.
However, it is possible to get a three-month short-term loan with reasonable rates. For example, online connection service CashUSA works with providers that offer loans with terms that run from 90 days to 72 months with rates ranging from 5.99%–35.99%.
Am I eligible for a 3-month payday loan?
Different lenders have different requirements — and it can sometimes vary by state. However, lenders typically require borrowers to:
- Be at least 18
- Be a US citizen or permanent resident
- Have an active checking account
- Have a steady job or source of income
- Live in an eligible state
How can I find the right 3-month short-term loan for me?
Ask yourself the when comparing short-term lenders to make sure it’s a right fit:
- Is it available in my state? Since many states have regulations on loan rates and terms, your lender might not offer three-month short-term loans in your state.
- How much does it cost? Many short-term loans providers charge fees instead of interest, usually for every $100 borrowed. Some might charge interest. It varies based on the amount you borrow and the regulations of your state.
- Are applications from people with bad credit accepted? Lenders who offer three-month payday loans are more relaxed in their requirements and are willing to give you a chance even if you don’t have the best credit history.
- What kind of repayment flexibility is there? Some lenders allow you to repay the loan amount ahead of time without charging penalties so you can save on the cost of your loan.
- What is the processing time? Applying for a three-month payday loan is usually a quick process, but some lenders are faster than others. With in-store applications, you could receive your loan immediately after approval. If you apply online, your loan should be available the following business day.
How do I apply for a 3-month payday loan?
You can usually apply for an 3-month payday loan online or in the store, depending on your lender. If you apply online, make sure that your lender is licensed to offer that type of financing in your state. Many lenders display their licenses on the rates and terms page for states that require it.
Filling out the application typically only takes a few minutes, as does approval. Most lenders ask for the following documents and information:
- State-issued ID
- Bank account and routing number
- A recent pay stub or other proof of income
Benefits and drawbacks of 3-month short-term loans
- Quick approval. If you’re applying for a 3 month short-term loan at a store, you’ll get your approved funds as soon as you accept the loan’s contract. If you’re applying online, you’re likely to get your money transferred into your bank account the next business day.
- Bad credit is OK. Being approved for a 3 month short-term loan with bad credit is possible because most short-term lenders don’t run credit checks with the three major credit bureaus. They often look for your ability to manage repayment.
- Online and in-store options. You can apply for a three-month installment loan from your bedroom or go in person if you need money right away.
- High APR. Payday loans are known to have a high APR, meaning you have to pay much more in fees and charges than you would with a traditional loan from a bank.
- Automatic payments. While lenders like to list debiting directly from your bank account as a positive, if you don’t have the money to pay back your loan, it could lead to overdrawing–that means more fees.
- Disreputable lenders. Although short-term loans can be a good solution to financial emergencies, you should be on the lookout for lenders who don’t obey state law. Some states don’t allow payday loans, and those who do usually have regulations. Make sure your provider follows all the rules so you stay safe.
How does repayment work on a 3-month loan?
Once you get your funds, you’re on the hook for repayments. Some loans come with monthly repayments while others might come with bimonthly, weekly and even biweekly repayments. Since there’s more than one payment, three-month short-term loans don’t always face the same legal restrictions that you might find with payday loans due within 30 days.
Most lenders allow you to sign up for automatic repayments from your bank account. However, others might accept manual repayments online, in-person repayments at a physical location or wire transfers. You might want to check out our guide to getting a loan without a bank account if you don’t have a checking or savings account — they can be hard to find.
Getting a short-term loan that you can repay in three months can give you enough time to streamline your finances. But taking on a high-rate loan with a longer term can sometimes be more expensive than your traditional payday loan. You can learn more about your short-term loan options by visiting our payday loans guide.
Frequently asked questions
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