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4 Top reasons why you should prefer 3 month loans over payday loans?

The concept of 3 month loans is slowly substituting payday loans. This article lists four prime reasons why one should prefer 3 month loans over payday loans for the knowledge of readers of this article.

Urgency of cash always drives people to the walls. In such times, normal tendency suggest that one should go for payday loans. However, opting for payday loans in such situations might not be the right decision in such situations. Hence, what to do then? In such cases, if better sense prevails, focus should be on finding a deal that gives ample chance to repay the loan but not without putting much stress on sources of income of the borrower. Obviously, finding a short-term alternative of this type isn’t that easy but then as the popular adage goes, ‘Where there is a Will there is a Way’.

3 months loans are known to be the best alternative to modern-day payday loans. Reason: There are plenty but few have been listed here.

Point No.1 – Longer Repayment Tenure

Yes! 3 month loans become an obvious choice for people who need an instant credit help but are not in shape to repay it back almost the same way. As the name suggests, the time-period offered is sufficient to repay any sort of short-term debt. Clearly, longer repayment tenure makes them the most sought-after loan product in the industry today.

Point No. 2 – Comparatively Low APR

Another place where 3 month loans earn brownie points is on APR front (also known as Annual Percentage Rate). Normally, as everyone knows, payday loans are secured against next month’s paycheck of the borrower. But even then the APR is on the higher side. However, in case of 3 month loans, APR is far more relaxed then its payday loan counterpart because of the time duration.

Point No. 3 – Larger amount can be quoted!

Under 3 month loans banner, one can quote a comparatively higher sum as loan amount than in case of payday loans.

Point No. 4 – Room for negotiation with lender!

In case if you have missed the deadline or you are set to miss the deadline of payment of instalment. 3 month loan give you an option to talk to your lender and explain things to him/her and ask for an extension. But remember, the decision to extend the deadlines or granting such favours rests with the lender only. Although the same chance is also available to lenders under payday loans but then you don’t have much time at your disposal to ask such things.

Meanwhile, the fourth point is applicable if the borrower wishes to seek waiver for certain fraction of interest or amount.

If one will gave a close look to these differences, he/she will surely be able to figure out why one should prefer 3 month loans over payday loans.