Payday loans can be classified according to varying criteria: in-store or online loans, Teletrack or no Teletrack loans, fax or faxless loans, and 15-day, 60-day, or 90-day loans. One of these types is the 30-day loan.
What is a 30-day payday loan?
A 30-day payday loan, as the name suggests, is a short-term cash advance provided by a lender to a borrower for the duration of 30 days (one month).
Compared to some of the long-term forms of borrowing, it is usually easier to qualify for 30-day payday loans. Even though most payday loan providers demand verification for employment, income, and good or bad credit, they are more than willing to offer loans to relatively lesser creditworthy borrowers.
Characteristics of 30-day loans
Some of the characteristic features of 30-day payday loans are that they are:
A 30-day payday loan is small – usually ranging from $100 to $1000. Some lenders also offer larger loans to people with good credit or appropriate qualifications. These qualifications may include affordability and the financial position of the borrower.
However, if a larger loan is what you are after, it would be better for you to consider personal loans.
Most borrowers do not run credit checks and require less verification while issuing 30-day payday loans. The application process is much simpler and faster than its long-term counterparts.
30-day payday loans are short-term investments designed to meet the emergency needs of the borrower. Therefore, it is natural that they should be swift.
Suitable for monthly income
Since most payday lenders utilize a 15-day time frame for repayment of the loans, 30-day loans are significantly more suitable if your paycheck arrives on a monthly basis.
Relative to borrower’s income
A 30-day loan is to be repaid on the borrower’s next payday. For that reason, the loan amount is usually relative to the borrower’s monthly income since the loan providers expect it to be repaid by the end of the month.
Higher in interest
Due to the riskier nature of payday loans, they have relatively much higher rates of interest compared to other forms of lending. Consequently, you must be responsible while taking out and repaying 30-day loans.
Although, in theory, the annual percentage rate (APR) for 30-day loans should be lesser than 15-day loans, this is often, not the case. The payday loan fee varies according to the number of days, so the higher the number of days, the higher is the loan fees.
If you want to opt for a 30-day payday loan to meet your financial requirements, it would be a good idea to consider beforehand if you can easily repay the amount when your next paycheck comes along. Avoid hidden costs and conditions. Read the agreements carefully and make choices wisely.
You should also have a firm idea of exactly how much you need to borrow. Do not, at any rate, renew or repurchase the loan. Otherwise, you will end up paying significantly more compared to what you originally borrowed. Read Quiddi Compare’s payday loans article for more info.