Lots of options in the folding 3 inch blade category. This thread should blow wide open with all sorts of information.
Okay, you live in Michigan somewhere, right? So most of the time you will be dealing with heavy winter clothes.
Things like Carhartt and other heavy flannel clothing are pretty resisant to basic cutting. They are that way by design, so I would recommend AGAINST a blade that does not have at least a half serrated edge in a knife that is as small as a 3" blade.
The reason is, a serrated blade will slash and tear, where a fine blade that is razor sharp will slice, but it may not slice deep enough.
The down side is that a serrated blade might catch on something and be ripped from your hand.
It's a personal decision, but I would think a partially serrated blade would give you a better chance of getting through those outer layers.
Now, I am NO knife expert. I am basing this on what I have seen in knife videos and what I have experienced with tears and slices on my own Carhartt stuff through the years while working.
I never had a straight knife go all the way through my Carhartts, but I did have a couple of ragged tears that would be the equivilent of a serrated blade.
As for good, really good companies to search through:
They are local to me and a great company with really great, not expensive knives.
Another PNW company. Their serrated blades, I believe, are patented and they are really well done. They even have knives in pink.
Hands down, this company tortures their knives harder than anyone else in the business. I have, about, 10 of their knives and machettes and they are all hard core, high quality knives. Their handles such. They really need some help in that department, but their knives are affordable and they make really, REALLY great blades with a lifetime warranty.
Of course, you can spend A LOT more on semi custom or full blown custom knives, but I seem to remember you are on a budget and any of those three companies will treat you right.
Good luck and let us know what you pick.