Payday Loans, Check the Fine Print

Payday Loans: Check the Fine Print

A paycheck is worthless unless someone will convert it into spendable cash for you. Many wage earners have their weekly paycheck deposited into a checking account at a local bank. On the other hand, some workers prefer to convert their check into cash as soon as possible. There are many reasons for this, but regardless of the motivation, be sure to read the fine print before visiting a payday loan establishment or applying online for a signature loan.

The Details

At DiscountAdvances.com the average percentage rate (APR) for a 7 day loan is 456.25%. In other words, for each $100 borrowed and held for one year, $456.25 in interest is owed. The total amount due, of course, would be $556.25 to pay for the use of the original $100. Obviously most patrons don't plan to hold their loan open that long. A one week loan at the rate of 456.25% will incur $17.50 in interest.

checkngo.com offers loans up from $100 to $1500. Their miniumum term is 10 days. Borrowing $100 for 14 days will cost a total of $125.95, which works out an annual interest rate of 676.55%.

e-payday-loan.com provides loans up to $1000. The company offers a sliding scale of annual percantage rates based on loan amount and term. For example, a $100 loan for a 10 day term costs $30 in interest. The annual percentage rate for this loan is 1095%.

PayDayMax.com offers loans for $100 to $1500 at a rate of 485.45% per year. A $100 loan will cost $118.62 if held open for 14 days. A $1500 loan will cost $2118.45 if held open for 31 days. New customers are given a substantial discount for their first loan.

Observations

This sampling is by no means a complete set of loan opportunities that are available online. We found many sites that did not publish their rates, or made them sufficiently difficult to locate such that we stopped searching.

Many payday loan companies will wire money directly to your bank account. Some companies are willing to provide loans without a credit check or even with bad history or no credit history. Check with each lender for their specific requirements.

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Comments 3 comments

Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV

Anyone who regularly uses payday loans is in HUGE financial trouble. 8D


Carol the Writer profile image

Carol the Writer 6 years ago from Houston, Texas

It's a shame that there is no financial education in schools. We all have to dissect a frog, but no one is taught about paying or earning interest. Good hub! - Carol


breakfastpop profile image

breakfastpop 6 years ago

Interesting hub. They really ought to educate every single child about financial matters before they end up to be adults in trouble.

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    Disclaimer

    All information provided herein is beleived to be correct at the time of publication, but always check with specific providers before making any final decisions. All trademarks and logos are the properties of their respecitve companies. Whenever possible, loan details were researched for Ohio; some site offered specific loan details per state and some did not.

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