Designed for helping people with no additional financial means until their next payday, 30 day payday loans are small, short-term loans which are easy to qualify for. Payday lending establishments are abundant, so choose several to research. Always check with the Better Business Bureau and other consumer reporting agencies before applying.
How it Works
Each lender charges a different fee, but the average is between 15 and 20% of the total amount. The larger the loan, and the longer it takes to pay back, the higher the fee charged. The majority of offices operate entirely online, so find businesses with upfront costs listed clearly for consumers to read. When doing a search, look for experienced and reputable businesses, and then double check their reputation.
Once the lender is chosen, the application process is done on the website, over the phone, or if it happens to be a store location, on-site. Only basic information is required, including social security number, proof of employment and wages, proof of citizenship and age, and the number of a valid checking account.
Wage requirements vary depending on the size of the loan. In general, earnings of $1000-$1200 dollars are sufficient to obtain a loan, but each office can set their own minimums. Consider your personal financial situation before requesting money; even if their loan is approved, each individual is the best judge of their ability to pay the funds back on time.
The minimum age requirement is eighteen, and the bank account is necessary because this is where the funds will be deposited. The application is short and processed immediately. Turnaround times vary from a couple of minutes to a couple of hours, with funds being delivered within 24-48 hours. In general, speed is a hallmark of this industry; the faster loans can be processed, the faster the borrower and the business can get their cash.
Payback Time
Loans are expected to be paid by the next payday or thirty days from the day of receiving the funds. As mentioned earlier, the longer it takes, the higher the fee to the borrower. On the common maximum loan amount of $1500, one establishment charges over $300 if the full thirty days is taken to make good on the debt.
Although they are called payday lenders, a non-paying borrower who requests additional time can be a good source of cash flow for them. The debt now becomes a long term loan with regular payments and high interest. For this reason, the savvy borrower is careful to pay the money back on time.
Is it Worth it?
An argument for this type of lending might say payday lenders are providing a valuable service to a needy public. Someone who opposes the practice will indicate the similarities to credit cards which start off as small debts, but grow exponentially if allowed to accumulate interest. A 30 day payday loan does not have to become an oppressive debt, however. As with a credit card, the debtor will keep interest from growing by paying the money on time, in full.
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