If you are looking to take out a payday loan it is definitely a good idea to consider 3 month loans and the many other options available, with several different payback timescales open to us now you can get either an instant payday loan that has to be repaid within 30 days, a 3 month payday loan that obviously you have 3 months to payback and now there is also the option of a 12 month loan.
Generally speaking the longer you have to pay back the loan the larger the amount you pay back will be however it is obviously spread out over a longer period so the monthly repayments are far less. This is why many people are now opting to 12 month loans as not only is the payment spread out for longer you can also borrow more money, often up to £2000. So it really does depend on what you are using the loan for and as you can probably work out for yourself if it is for a large amount spreading the cost over 12 months is the best idea, if it is just a small loan then an instant 1 month payday loan could be the best choice and for anything in between then the 3 month option is going to be best.
As always the interest rates will be based on the repayment schedule but it has been known that with the 3 month and 12 month options you can reduce the APR by taking out what is called a ‘Secure loan’ which basically means you provide an asset as collateral so if you fail to make a payment there is something to fall back on. This should only be used if you are 100% sure you can make the payments as not doing so could potentially mean your house is reclaimed or something just as severe.
Other Borrowing Options
Although we highly recommend payday loans with the three month pay back time scale, it has to be said there are many other borrowing products th
at could be very useful depending on your own personal situation. In the past most people have simply opted for the quickest method of getting their hands on cash w
hich generally speaking is an instant payday loan that is paid back after
just 1 month at a pretty high interest rate. Another popular option is 12 month loans which we have talked about before, they work in the same way as an instant loan and can be received in just a matter of hours however they are generally for larger amounts and the interest rates are much lower as the payments are spread over the course of the year. Often if you were say trying to buy a new car for
a few thousand pounds the 12 month option is much better however if you just needed a few hundred pounds to pay for an unexpected bill then certainly a three month pay day loan would work well or even a 1 month loan if you knew you had enough money coming in.
We always recommend you do your homework before taking out a loan as the only way to get the best rate for your individual situation is to shop around!