The Best 3 Month Payday Loan Alternative

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Have you been in a situation where it seems like bills keep coming out of nowhere — and there’s no cash left in your wallet? Payday loans might seem like an option if you’re out of cash flow ideas. After all, they’re easy to understand, don’t require a credit check and you can get them the same day you apply. But the truth is that these loans often involve more expenses than most people think.

We’ll give you an insider’s look at the inner workings of payday loans. We’ll show you the dangers of payday loans and why you should consider payday loan alternatives. Finally, we’ll show you how you can get up to $250 instantly with MoneyLion’s innovative Instacash option and their Credit Builder Plus low APR loan.

Overview: What is a 3 Month Payday Loan?

A payday loan is a very short term loan that’s not usually offered by a bank or credit union. The name “payday loan” comes from the loan’s strict term limits — you’re only supposed to take out a payday loan until your next payday, when you’d theoretically have the cash to pay it back. There is no set definition of a payday loan; most payday loans have short terms, high fees and very high interest rates. The legality of payday loans varies by state. Fifteen states have bans or limitations in place on payday lenders under local usury laws.

As the name suggests, a 3 month payday loan is a payday loan with a three-month term. Depending on where you live, you may or may not be able to take out a 3 month payday loan. Many states have laws in place that limit the amount of time that you may have a payday loan out.

To get around term limitations, your payday lender may offer to rollover your loan. A loan rollover is when you pay only the interest and fees on your loan on the due date. The lender allows you to hold onto your original principal and issues your loan a new term and due date. The loan will continue to collect interest and fees until you pay off your original balance. You may or may not have the option to roll your loan over, depending on your state. Some states also have limitations on the number of times that you can roll over a payday loan.

Many payday loan borrowers end up rolling their loans over because they cannot afford to pay back the entire balance on the due date. About 80 percent of people who take out a payday loan end up rolling over their loan at least one time, according to data from the Consumer Financial Protection Bureau. Rollovers can make payday loans significantly more expensive for the borrower. Make sure that you can afford to pay off your balance on the due date.

Things to Look for in a Payday Loan Alternative

Know that there are alternatives available to high-interest payday loans if you need quick cash. Here are a few things that you should look for in a payday loan alternative to keep yourself safe. 


High interest rates can make it difficult to pay back the money you borrow. This can be especially true if you’re taking out a loan for a significant amount of time. Make sure you know exactly how much interest your loan will accumulate over time when you consider payday loan alternatives. Do the math and make sure that you’re not overpaying for interest charges.

Some payday loan alternatives like Instacash from MoneyLion even have 0% APR. Don’t be afraid to shop around and compare interest rates before you commit to a loan. 

Low or No Fees

Most payday lenders charge a high flat-rate fee that you must pay to borrow money on top of your interest. You’ll usually pay the same fee whether you borrow $50 or $5,000. Like high interest rates, high fees can make it difficult to pay back your loan. Make sure you understand all fees associated with your loan before you sign and take the money. 

Quick Sign-Ups

You might not have time to wait days or even weeks for an underwriter to underwrite your loan. Look for a lender like MoneyLion that offers quick sign-ups and a simple application process. 

Instant Deposits

You also may not have time to go to the bank or schedule a visit with a loan officer if you’re considering a payday loan. Look for a lender that offers instant deposits into your account. This will allow you to get your money faster and meet your financial obligations without the wait. 

No Impact on Your Credit 

Some banks require you to undergo a credit check before they’ll give you a loan. This can be frustrating if you have bad credit or you’re still in the process of building up your credit score. Avoid banks that require a “hard check” on your credit before you can get a loan. Hard checks pull your credit report and temporarily lower your score. 

Meet the Payday Loan Alternative: Instacash from MoneyLion

Are you looking for a safe and affordable alternative to a payday loan? Look no further than Instacash from MoneyLion. Instacash allows you to get up to $250 in your account instantly at 0% APR. You don’t need to wait for underwriting or for your loan application to go through. As soon as you submit your application, you’ll see your money in your account. No credit check, fees or interest charges are required. 

Click on the “Finance” Tab

Just open the MoneyLion app, go to the tab labeled “Finances”, and click on the button labeled “Instacash.” 

Choose the amount of money you need and confirm your transaction. You’ll see the money deposited into your account instantly — you won’t need to wait hours, days or weeks for a loan officer to approve you. You’ll pay back the money you borrow on your next payday.

You can use Instacash however you’d like. You might need to pick up a last-minute textbook for a college course or cover an unexpected car repair bill — there are no limits to how you might want to use your Instacash. 

Get the Money You Need Safely

Think that an expensive payday loan is your only option for escaping debt? Unfortunately, the truth is that these loans are often much more expensive than most people think — and you may not even realize the true cost until it’s too late. Think long and hard before you take out a payday loan and consider all of your alternatives — including Instacash from MoneyLion — before you commit.

Do you think that Instacash is right for your needs? Download the MoneyLion app from the Google Play or Apple App store today and get going toward a healthier financial future. 

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