So you want to know more about Payday Loans. Well your in the right place. Generally speaking here is how they work. You the borrower write a check to the payday lender for the amount you want to borrow plus the lenders fees. The lender in turn gives you the amount you wrote the check for minus there fees. For example, if the fee is $20 and you write a check for $150 the lender would give you back or lend you $130. Make sense? They are often called Payday Loans because the lender holds the check you write them until your next payday at which time they cash your check. Obviously these are very short term loans, usually two weeks at a time. Most of these loans can be rolled over to the next payday, but doing so will cost you another lender fee. How are the fees determined you ask? Well they are based on the amount of money you borrow. It is usually some percentage of the loan amount. The more you borrow the higher the fee!
The most important thing to know when shopping for these loans is that the Truth in Lending Act requires these lenders to disclose the true loan costs to you the borrower. If this information is not clear to you, do not take a loan from that particular lender. Additionally, these loans are an expensive way to borrow money so they should be a last resort. If you must take one of these loans, make sure you only borrow what you need and that the amount you borrow is something you can repay at your next payday. If you borrow more and are forced to Roll-Over the Loan you will have to pay additional fees further increasing the cost of these already expensive loans. If you are interested in shopping for a Payday Loan we have found the best and most reputable lenders for you. Below are links to the lenders we recommend!
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