Are the loans that you can get through 3YearLoans.com really as great as the website makes it sound? We’ve done the research have some interesting answers.
Life is unexpected.
A 2013 report from CNN Money said that three out of every four Americans is living paycheck to paycheck. If something goes wrong, you could be in serious financial trouble within a matter of hours.
3 Year Loans says they can provide you a solution for your short-term money problems. Their website connect you with more than 100 lenders who can provide you with loans up to $35,000. In fact, they say if you get approved for a short-term loan, you could have the money in your account on the same day you apply for it.
Seems like an amazing service, and it would be such a relief to know there’s a company out there who is willing to help you out when you’re in financial distress. But, like many companies who promise you quick money, there are strings attached.
We want to help you see exactly what you’re getting into when you sign up for 3 Year Loans’ service. Our hope is that by reading this review you’ll have a clear idea of whether or not this website is the best solution for your financial situation.
What types of loans do they offer?
3 Year Loans’ website says they connect you with lenders who offer you loans between $500 and $35,000 that range in length of time from six months to five years. They don’t actually give you any loans themselves.
Think of them as a middle man between you and financial institutions that want to lend you money. You give them basic information about your job, income, address and social security number and they pass that along to their lenders.
You find out within minutes about how much you’ll get and who can give it to you. Each lender is different, which means the terms of their offer could be different. The main three factors you want to watch for are the length of the loan, the total amount of the loan and the APR (which can be as high as 36 percent).
You have the option of choosing which loan best suits you, assuming that you get more than one offer. Once you choose a loan and talk with the lender, 3 Year Loans is out of the picture. They basically introduce you to the right match; that’s it.
What are the drawbacks to using a service like 3 Year Loans?
Over the past few years, sites similar to 3 Year Loans have popped up all over the place. The idea is pretty simple. Instead of having to go around to a bunch of banks and lending centers to apply for a loan, you can go to one site, enter your information once and get a bunch of offers in return.
You don’t know who is getting your personal information
LendingTree is a site that works like 3 Year Loans, as is Quicken’s Rocket Mortgage and New York-based Better Mortgage. The idea of going to one place for many loan offers is a great one, but it definitely has its drawbacks.
The main downside to using a service like this is that you don’t know:
- Who the lenders might be…are they reputable? Predatory? Shady? Reliable?
- Which lenders get your info
- Who contacts you after you submit your information
As we mentioned earlier, the site is going to ask you for your address, date of birth, social security number and the reasons for the loan.
What’s happening here is that you’re handing over your information to an invisible sea of lenders who can do what they want with your information. They can use it to call you, check your credit, offer you a loan or pressure you to take their loan.
Pro tip: run away from any lender that demands an up-front payment in order to get your loan. This is a classic tactic used by scammers who will ask you to transfer money to them, and once they have it, they disappear.
If you want to learn more about these advance fee loan scams, check out an article we wrote about warning signs that you’re about to be swindled out of your hard-earned cash.
Your APR Could Be Really High
The way that lenders make their money off of a loan is through APR, which is a certain percentage rate charged to you for borrowing money from them.
APR is an “annual” rate that’s used to calculate how much extra you pay each month. So, if you borrow $6,000 with 20 percent interest, you’re going to pay $1,200 in interest ($6,000 x 0.12). That $1,200 is divided up into monthly payments, which means you’ll be forking over an extra $100 a month to borrow $6,000.
How much APR will you pay on the loan you get through 3 Year Loans? You won’t know until you actually get an offer from one of the lenders in their network. Those lenders are required by law to tell you the APR before they give you the loan. Do not sign for a loan before you know what the APR is.
Now, just because you won’t know what your APR is until you get an offer, you can expect that your APR will be higher the shorter your loan term is. So, if you’re looking for quick cash, you can expect to pay pretty high interest. Why? Because the shorter your loan is, the less time the lender has to make money off interest. So, they charge you a higher rate to get more money out of you.
If you borrow $1,000 for six months and you’re charged the max of 36 percent, you’re paying a whopping $360 fee for a thousand bucks. In our opinion, it’s just not worth it.
You Could Get Stuck With a Bunch of Short-Term Offers
Both on the home page and the Rates and Fees page of their site, 3 Year Loans says most people who apply for loans on their site “have only qualified for a short-term product.” In fact, their site even says that most applicants won’t even get the 3-year loan their website is named after!
So, imagine you need $5,000 to pay off your unexpected medical bills. Your credit isn’t that good and your bank won’t lend you the money. You head to 3 Year Loans and give the site your personal information. Within minutes, you get several offers but all of them are for $1,000 or $2,000 and their APR’s are super high.
Those results are disappointing enough, but, on top of that, you’ll most likely get annoying phone calls or emails for lenders who will try and pressure you to accept their loan offer. Remember how we said that you’ll be required to tell 3 Year Loans why you need the cash?
Lenders will most likely use that answer against you if they can, in the form of a statement like, “I noticed that you need the money for an adoption. We want to help you with that and we can offer you $X,XXX right now.”
Whether the money is enough or not doesn’t matter to them – they want you to sign the proverbial dotted line regardless of the high interest rate they’ll probably charge you.
Keep this in mind as you apply for a loan on this site – just because you for a certain amount of money doesn’t always mean you’ll get it.
What are people saying about 3YearLoans.com
3YearLoans.com doesn’t have a good reputation among the consumer-review websites we checked out during our research.
At the time of our research, review website Trust Pilot says 3 Year Loans had a 2.5 out of 5 rating and a score of 5.2 on a scale of 1 to 10.
Some of the common complaints were about high APR’s:
- “The fees are ridiculous.”
- “Are you kidding me? Borrow $1,000 and pay back $1,600?”
- “I wanted a $3,000 loan and all I got was a small, very high interest payday loan offers.”
- “This is simply a ploy to get you into a payday loan.”
These claims that customers were getting a bunch of offers for payday loans concerns us because payday loans are something we’ve reviewed in depth and have warned consumers about.
Before you make your decision about 3 Year Loans, check out our articles about payday loans. Through our research, we’ve found that these short-term loans aren’t designed to help you out, but to keep you in debt.
We’ve found that these types of loans are meant to be paid in two weeks’ time and with crazy fees. However, the lending companies know that 75% of their money comes from people who take longer than two weeks to pay their loan. The longer it takes you to pay, the more fees they rake in and the poorer you become.
Our Final Thoughts on 3 Year Loans
3 Year Loans might seem like a great website for people in a financial jam. The process is simple and the results are pretty immediate. In fact, sometimes you can get your loan the same day you apply.
However, there are a lot of unknowns you should be aware of before deciding to use this site to find a lender. Your APR could be sky high, you won’t know how much money you’ll be offered and you have no idea who is going to get your personal information.
If you’re in a real emergency, we understand that these are risks you are willing to take. However, remember that 3 Year Loans’ own site and the customers who’ve reviewed their site say the loans they provide are often smaller than expected and resemble payday loans.
Getting mixed up with a payday loan is dangerous business – you can be on the hook for all kinds of fees (sometimes $20 for every $100 borrowed) and the system is set up to keep you in a cycle of debt.
In an ideal world, your credit would be good enough to where, if financial disaster struck, you could score a credit card with a 0% APR on purchases for a year or more. But we know that not everyone is in that position. Like we said earlier, unexpected things happen all the time.
So, as you look toward your financial future, remember that there are practical things you can do to repair your credit score to get better loan offers. The best part is, you don’t have to pay a dime to do it. We wrote a really helpful guide about repairing your credit, so read it when you get a chance.
We help you understand the factors causing a bad score, how (if possible) you can fix some of those factors and what you can do in your daily habits to raise your score.