Payday loans can cost as much as credit card cash advances or overdraft fees from your bank. In fact, when used responsibly, these loans may actually cost less. The interest rates for payday loans are higher than those for other forms of credit because lenders are assuming a great deal of risk when they lend to individuals without performing a credit check, but since these loans are designed to be repaid quickly, the interest is minimized. You should always be sure to repay your loan on time in order to avoid any unnecessary expense associated with your loan.
How Much Does it Cost?
The total amount that you will be expected to repay is determined by several factors including your financial situation, your lender, the state in which you live, the amount of money you borrow and whether or not you repay your loan on time. Some of the fees that may be applied to your loan include finance charges, interest, late fees, rollover charges and more. Please review your offers carefully to determine exact charges.
What if I Have Multiple Jobs or I am Self-Employed?
If you have multiple jobs, you should disclose the information about your primary job on your request form and then provide additional information about second or even third jobs during communication with your lender. Similarly, if your lender asks you to send them paycheck stubs, you should send stubs from all of your employers. If you are self-employed, you only need to show that you have significant income to meet the lender’s guidelines and that your business has been established and your income has been regular for 90 days or more.