Payday Loan Interest Rates

It is true that payday loan interest rates are extremely high as compared to rates of other types of loans. Rates run as low as ten dollars to as high as twenty-five plus dollars per every one hundred dollars borrowed. This means your annual percentage rate could run you over 500%. But payday loans are not long-term and that type of interest rate will not hurt you over a matter of a few weeks. The lower the interest rates the better, of course. So do a little research and you should be able to find a lender with a decent rate.

When choosing a payday lender, please make sure you are using a legitimate business. There are fraudulent companies that will do nothing but end up taking your money. Always look for things such as a secure website so your information will stay protected and for contact numbers so you can actually speak to a representative and ask them questions about their company. You can then verify this information with the Better Business Bureau to see if they are legitimate or not. The last thing you want to do is use a lender that is a scam.

Payday loans are extremely short-term, where the longest amount of time one has to repay the loan is four weeks. Typically these loans are only for one to two weeks-that is one reason the interest rates are so high. The loan proceeds are deposited directly into your bank account and the lender also electronically debits the same account for repayment.

Even though payday loan interest rates are high, you still will come out better to get a payday loan than paying fees or charges that may occur due to late payments or services being discontinued and then reconnected. Power and water companies can have hundreds of dollars in fees if this occurs. With a payday loan, you could end up spending as little as ten to twenty dollars for this financial assistance!

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