A payday loan (also called a
paycheck advance or payday advance) is exactly as it sounds... a small,
short-term loan that is intended to cover a borrower's expenses until his or
her next payday.
Payday loans are only set up to
cover the borrower until they receive the next paycheck from their job. It is
typically only for a short term period of 7 to 14 days before payment in full
is due. Legislation & Laws regarding payday loans can vary widely between
different states and even different cities within a state.
There are some states and
jurisdictions impose strict usury limits and limit the amount of interest a
payday lender can charge. Some jurisdictions outlaw payday loans all together.
Then some have very few restrictions on payday lenders.
Due to the extremely short-term
nature of payday loans, the interest and APR can seem very extreme when
compared to a traditional personal or signature loan that is normally spread
out over a year or more.
In very simple terms for each $100
borrowed a typical payday loan could cost anywhere between $15, $20, $25 to as
much as $35 depending on the company. So if you borrow $100 dollars today you
are required to pay $115 dollars or as much as $135 dollars two weeks from
today. This is why it is good to shop around and compare companies.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น