Life’s little emergencies don’t just strike on payday. It can often be difficult to know where to turn when you’re hit with an unexpected cost and don’t have the spare money to cover it. Thankfully there are options available to cash-strapped UK borrowers, including short term 3 month loans.
At Little Loans we work with lenders that offer flexible credit options including loans of between . Whether you need to pay for a train ticket, replace essential household goods or just need to get your broken down car back up and running, we can help you to find a loan that meets your needs.
Unlike typical payday loans, which as per their namesake are often due for full repayment on your next payday, a 3 month loan is short term credit that is stretched out over a longer period.
It’s as simple as choosing how much you need to borrow and over how long, in addition to providing information about your regular income and expenditure. If your application is accepted, money could reach your account in just minutes*. You are of course free to do as you wish with the cash you borrow and will just need to keep up with the monthly repayments for the term you have selected.
When we say that our lenders offer flexible short term credit, we mean it. If you feel that repaying your loan within 3 months will be unaffordable, you can choose to stretch it out over a longer timeframe of either 6 or 12 months. Keep in mind that whilst this will reduce the total sum of each monthly repayment as compared to a 3 month loan, the total cost of your borrowing will be higher since interest will have accrued over a longer period.
There’s no doubt that a 3 month loan can be a huge help when money’s tight. For one thing, it means that you can spread the cost of making an essential purchase over a longer period so that you don’t have to struggle along until the next payday when you really need something.
That being said, short term 3 month loans are not appropriate solutions for longer term financial issues. To help borrowers understand exactly where they stand, we’ve set out some of the key advantages and disadvantages of 3 month loans in the table below.
Advantages of a 3 month loan
Disadvantages of a 3 month loan
It can be easier to qualify for short term loans than for more traditional credit solutions. What matters most is whether a loan is affordable based on your current circumstances.
As with any debt, it can be risky to take out a short term loan if it is not affordable to do so based on your personal circumstances. You should only apply if you are confident that you can make repayments on time and in full.
Because a short term loan is spread over several months or more, you may find that the lower monthly repayments make it easier to budget for.
A longer repayment period means that more interest is applied to your loan, increasing the total cost of borrowing.
The short term loans offered by our panel of lenders are unsecured. This means that if you run into difficulties and are unable to repay on time, you won’t immediately face seizures of your property.
With a short term loan, you'll have to make regular repayments each month and if your monthly income is unpredictable (for instance if you’re self-employed) it can be difficult to plan ahead.
*Once approved, your cash could be sent within minutes. The time that it takes for the cash to be received in your account will depend on your bank’s policies and procedures, along with the total sum borrowed.
Representative example: Amount of credit: £1000 for 12 months at £123.40 per month. Total amount repayable of £1,480.77 Interest: £480.77. Interest rate: 79.5% pa (fixed). 79.5% APR Representative. We’re a fully regulated and authorised credit broker and not a lender