The Cost
of Credit -- Facts You Need To Know! Payday loans are short-term
advances that are due on your next payday, unless your next
payday is 6 days away from your loan date. In this case your
loan will be due on your second payday. The maximum loan term
is 18 days.
With a payday loan you are charged a flat fee no matter when
your loan is repaid (subject to the 18-day maximum loan term).
Because the fees are fixed per loan amount, the Annual Percentage
Rate (APR) will vary depending on the number of days that pass
between the date you receive your advance and the day you repay
the loan. There is no refund of fees for early repayment.
Although payday loans are short-term advances intended to be
paid off quickly, various Truth-in-Lending laws require financing
disclosures to be expressed as an Annual Percentage Rate (APR),
or the cost of the credit advanced to you expressed as an annual
rate.
This requirement provides uniformity among various credit sources,
so you can compare rates and make the choice that is right for
you. |
|
|
