3 and 6 Month Payday Loans – Understanding the Benefits

Representative APR 91%*

Amount of credit £500 borrowed for 180 days. Interest: £160.27 Interest rate: 65% per annum (fixed). Representative APR: 91% Total amount payable: £660.27

“Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.”

Carefully consider whether a loan is right for your individual financial situation. Depending on the amount borrowed and the duration of the loan you may find that borrowing of this type is an expensive form of credit and not appropriate for much longer term borrowing or if you are in financial difficulty. All loan applications are subject to status, terms and conditions and to satisfactory passage of checks on creditworthiness and affordability.

3 and 6 month loans are an alternative form of payday loans that provide a range of benefits to the consumer. Paydays loans provide you quick access to cash when it is most needed. As they have fewer qualifying criteria than personal loans they can provide a lifeline for people with a less than perfect credit history. However, paying back a payday loan, in its entirety on your next payday is not always feasible and could lead to financial difficulties. This is a lot less likely when the loan can be repaid over 3 and 6 months.

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Greater Financial Control

Payday loans provide a lifeline when you require emergency funds. Access to them gives you, at least in the short term, greater control over your finances. However, this control can seem to slip away when it comes to repaying the loan. When using 3 and 6 month payday loans you are able to budget better for your repayments. You know the full cost of your loan upfront and how much will be taken from your salary over the three months. This means there is less chance of you not being able to make the loan repayments and adding late payment fees or additional interest.

Ability to Borrow Larger Amounts

Payday loans, including 3 and 6 month loans, should only be used occasionally to cover unexpected expenses. When you need to pay the full amount, plus interest, back in one go this can severely limit the amount you are able to borrow. This can mean that you are left not being able to fully cover the expense. When you have the ability to pay back over 3 and 6 monthly installments this is not an issue. The smaller repayments are more sustainable, and you can plan for the repayments more easily.

No Need for Roll Overs

If you take out a standard payday loan and find you are unable to make the full payment on time you often have the option of rolling over the loan. This gives you an additional month to pay the loan back, but it is not without additional cost. You have the amount of the original loan, the original interest, and in addition, interest on this full amount for a further month. All of this is removed when you consider 3 and 6 month loans. You have set payments for the 3 installments and no further interest or charges, as long as the payments are made in full and on time.

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Applying for 3 and 6 Month Payday Loans

Applying for 3 and 6 month loans follows the same process as applying for a traditional payday loan. You will need to provide basic information about yourself and your income. You will need to be 18 or over and hold a UK bank account with a valid debit card. While it is easier to be accepted for payday loans up to 1000 pounds than it is for personal loans, you should still be prepared for a credit check to be carried out. Companies providing these services are obliged to check that you can afford the repayments, and that using their service is not likely to cause long term financial difficulty.

If your loan is approved before 3 PM on Monday to Friday then the money can usually be sent to your bank account on the same day. If you apply after 3 PM or on a weekend then you may have to wait until the next working day for the money to be sent.

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