If you want a fast emergency loan you need to know about the fees you will be hit with.
Here’s the deal. Lending institutions are required by law to show their fees and interest earned in terms of APR. That’s the annual percentage rate. That’s the amount of interest charged over a full year.
This is important with emergency payday loans that will take longer than a year to pay off, like car loans or mortgages. But what about short term fast emergency loans designed to be paid back within a couple weeks? Cash advance loans like Payday Loans. So when Payday Loan Lenders list their rates and fees it’s going to higher than other quick cash lenders.
Small short term loans carry a greater risk to the lender because they are unsecured, and therefore much more expensive to provide. But wait until you here the rest of the cash advance loan story.
Say you get a payday loan of $100 with a $15 fee, that’s an apr of about 390%. Or you can just be a little late with your credit card bill and live with a $35 late fee. That’s an APR of about 965%.
Now what if you wrote a bad check to pay a bill for the same amount?
You could get charged a $50 fee for the bounced check and a return fee.
That’s an APR of 1409%!
Now you do the math. Emergency cash, cash advance loan and payday loans are good in certain situations but you have to be careful and you much have a solid repayment plan.
