When you face an emergency and need money fast, payday loans can be lifesaving. Although they are a popular financing option for bad credit borrowers with urgent money issues, they typically come with short repayment periods, making them difficult to manage.
To provide you with more convenience and flexibility, ASAP Finance offers short-term loans that you can repay in fixed installments within up to 3 months. We perform no credit check via major credit bureaus and allow you to access quick cash within 1 business day of approval.
What Are 3-Month Payday Loans?
3-months payday loans work just like regular payday loans but with more repayment flexibility. Instead of paying back the entire amount you owe in one lump sum within 2 to 4 weeks, you have 3 months to repay the funds. These payday loans may have high interest rates, so you need to assess your ability to repay the money carefully before you get one.
How Much Can I Borrow?
Most payday loan options come with amounts between $100 and $1,000. The sum you can obtain depends on three major factors:
- Income. Lenders typically want to see you can comfortably repay the loan without sacrificing your mandatory expenses and other debt obligations, if any.
- State of residence. Each state has its own payday loan rules and regulations. Your local laws may set lower or higher borrowing limits or adjust the loan sum to a percentage of your gross monthly income.
- Lender's policy. Each loan provider may apply different rules regarding payday loan amounts as long as they don't violate federal and state laws.
Eligibility Requirements
You don't need much to qualify for a payday loan for 3 months. Here are some basic criteria for getting a loan through ASAP Finance:
- Be over the age of 18;
- Have a valid government-issued ID and Social Security number;
- Provide proof of regular monthly income;
- Have an active bank account in your name;
- Provide personal and contact information (full name, proof of address, email, cell phone number, employer's contact details).
How Do Short-Term Loans Work?
Short-term loans are lump-sum deposits you get from a direct lender and then repay the funds with interest in accordance with an agreed-upon schedule. While some options require full repayment by a borrower's next paycheck, others may be spread over several months and covered in equal monthly installments.
To get a short-term loan via ASAP Finance, you need to complete the following simple steps:
Fill out an online application form. You can complete it via the website in just 5 minutes by providing your basic personal, contact, and financial details.
Get an approval decision. Your application will be reviewed for eligibility shortly after submitting a form. The process typically takes 15 minutes to 1 hour.
Accept an offer. If approved, you will get a loan agreement via email. Review the terms carefully and e-sign the contract if you find them suitable.
Get funded. The money will be deposited into your bank account on the same or the next business day of approval, depending on the time you apply.
Cost of a Payday Loan for 3 Months
3-month payday loans typically come with the same lender's charges as regular ones, which are $10 to $30 for each $100 borrowed. However, the exact cost may vary widely depending on the lender's policy and local state laws.
Another factor that will affect the cost is your credit score. Bad credit borrowers tend to get loans at higher rates compared to those with good ratings.
Although 3-month payday loans are unlikely to help you save money on interest, they provide you with more time to repay the funds, making your debt easier to manage.
How to Find the Right Lender for Your 3-Month Loan
Choosing the right lender is half the battle when it comes to borrowing. Here are a few tips you can use to find a perfect fit and avoid payday loan scams:
Check your credit score
Knowing your rating will help you understand what options you can qualify for. The higher your score, the better loan terms you can expect to get. Request copies of your credit reports from each major bureau and ensure they contain no mistakes and inaccuracies.
Compare lenders
Even if your credit is not great, there is more than one option available. Review them all and pay attention to the interest rates, repayment terms and frequency, extra fees, eligibility requirements, funding times, and other key loan parameters. Then, choose the lender with a suitable offer.
Explore the lender's reliability
Revise the company's website and make sure it's licensed and has the right to operate in your state. Then, check with the customer reviews on trusted platforms like BBB and TrustPilot. Try to avoid loan providers with multiple repeated negative reviews.
Read the terms thoroughly
Make sure you fully understand what you're going into before taking on debt. Read the fine print and ask questions if something seems unclear. Avoid lenders that don't fully disclose their terms.
Pros and Cons of Payday Loans
Payday loans come with strong and weak points. Consider both to make an informed borrowing decision.
Pros:
- Easy application. You can complete the process online in just 5 minutes. There's no paperwork or faxing needed;
- Fast approval times. Loan decisions are made within 1 hour and involve no hard credit check via major bureaus;
- Any credit is considered. There are no minimum credit score requirements, making it easy to seek assistance even if you were already denied by traditional lenders;
- Quick funding. Most payday loans are deposited into a borrower's bank account within 1 business day of approval. Therefore, they can be used for emergencies.
Cons:
- High APRs. Payday loans often come with three-digit APRs, making them one of the most expensive borrowing options;
- Extra fees. In addition to a lender's charge, there may also be processing fees, prepayment penalties, late payment fees, and charges for bounced checks or non-sufficient funds;
- Short repayment periods. You typically have only a few weeks to repay the funds in full. Even if you take out a 3-month loan, it can still be quite pressing for those in a tight spot;
- Potential debt cycles. Four out of five borrowers end up extending their repayment terms or taking out new loans as they can't repay their existing debt on time.
Payday Loan Alternatives
If a payday loan seems not the best option for your situation, here are a few alternatives that may suit better.
Personal Loans
A personal loan is a long-term solution that allows you to get a higher loan amount for various personal needs. Traditional options come with repayment terms of up to 60 months and allow you to get up to $100,000 at an APR of 5.99% to 35.99%. However, they require you to have a credit score of at least 670 and come with longer approval and funding times.
Some lenders offer bad credit personal loans that come with shorter repayment periods and lower amounts, such as a $5,000 loan. They have more lenient credit score requirements,but may also be more expensive.
Credit Cards
A credit card may be a good option if you need a certain amount to cover your daily expenses or financial emergencies before your next paycheck arrives. You can use it to make regular purchases or withdraw money from its available balance. Then, you can either make a minimum payment or repay what you owe in full by the end of the billing cycle and avoid paying interest.
Credit cards usually have higher APRs than traditional loans, especially if you withdraw a cash advance, which involves immediate interest accrual.
Payday Alternative Loans
Payday alternative loans (PALs) are financing products offered by several credit unions. They allow members to get up to $2,000 and repay the funds in affordable installments over 2 to 12 months. In addition to longer repayment terms, credit unions set interest rate caps of 28% on these products.
To qualify for a PAL, you need to be a credit union member, which may involve living in a certain community or working for a specific employer. Also, you will most likely have to pay membership fees.
Cash Advance Apps
Cash advance apps are fintech tools that can provide you with small amounts against your next paycheck via your smartphone. They typically offer sums between $50 and $300, with some options giving up to $500. The exact amount you can get will be determined based on how much you've already earned but haven't yet received this month.
The key benefit of cash advance apps is that most of them offer interest-free options and don't perform hard credit checks. However, monthly membership fees may be applied.
Title Loans
A title loan is a secured loan that gives you up to 50% of your vehicle's estimated price by using its title as collateral. This option may offer you a higher amount compared to a payday loan, and you can still drive your car while it's used as a pledge. Most title loans need to be repaid within 30 days, making them difficult to repay. They also come with high fees and risks of losing the car in case of loan default.
Tips to Get Approved for a Loan with Bad Credit
While a low credit score can hold you back from getting approved for a loan at favorable terms, there are several ways to improve your chances. Explore the following tips offered by ASAP Finance experts:
- Get a secured loan. When you provide a repayment guarantee, you possess less risk for a lender. This way, they will be less picky when it comes to your credit score;
- Add a co-signer. A co-signer is an individual who will be responsible for repaying your loan if you default. Provisioning one with good credit and a steady income can help you seek better loan conditions and even get approved with a less-than-perfect score;
- Pay off your high-interest credit card debt. By doing this, you will decrease your credit utilization ratio, which may improve your credit score and show lenders that you're not overburdened with debt;
- Increase your income. Besides your credit score, lenders also assess your ability to repay the loan. People with bad credit will look more reliable if they have a high income and a history of recent on-time payments. Provide all your income sources to make your application look more attractive.
ASAP Finance Options for Short-Term Loans
ASAP Finance offers several financing options tailored to various customers' needs. Choose the one that suits you and enjoy our hassle-free loan process and quick money deposits.
Payday Loans
Get up to $1,000 online and repay the funds after your next paycheck arrives. You don't need to have good credit to qualify. Access the funds within 1 business day and use it for any urgent needs you have.
Installment Loans
An installment loan provides up to $5,000 with the ability to repay the money in equal monthly payments within 2 to 24 months. This loan is almost perfect if you need money for a big purchase or a long-term need but can't seek traditional financing.
FAQs
01
Is It Possible to Obtain a Short-Term Loan with Poor Credit?
ASAP Finance doesn't set minimum credit score requirements. You can get a short-term loan with poor credit as long as you have a steady income that is high enough to cover your potential loan payments.
02
Are Online Payday Loans the Right Option for Me?
It depends on your current financial situation, loan purpose, and urgency. Payday loans can be a good solution if you face an emergency and can't get financing elsewhere due to your bad credit. They should be used only as a last resort, provided that you have a solid repayment plan.
03
How Do Installment Loans Compare to Regular Payday Loans?
Installment loans are long-term solutions that offer higher amounts and lower initial interest rates. They may be used to finance big purchases or cover ongoing needs. Regular payday loans have small amounts and short repayment terms. They are designed for financial emergencies.
04
Are Credit Checks Required for All Personal Loans?
Not all personal loans involve a credit check via major credit bureaus. At ASAP Finance, we offer financing options that come with soft credit pulls only. Such inquiries don't affect your credit score but still provide information needed to determine your creditworthiness.
05
Do Direct Lenders Provide Better Terms for Bad Credit Loans?
Direct lenders usually offer better terms compared to third-party brokers due to no intermediate fees. However, their loan conditions are often less favorable compared to bad credit options offered by traditional financial institutions.
06
What Happens If I Can't Repay a Loan Within 3 Months?
Late payment typically results in extra fees that will make your loan more expensive. If you default on your loan, it may be reported to credit bureaus, decreasing your credit score. Therefore, it's recommended to contact your lender as soon as you realize you can't repay the funds on time. Your loan provider may offer you an extended repayment plan, often with no extra fees.
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