How payday loans work?
Posted on January 10, 2008
Filed Under General Debt, Payday Loans
Payday loans are short term loans made to borrowers using the borrowers personal check or electronic access to the borrowers bank accounts as security.
Payday loans are repaid on the next pay date with the original amount borrowed plus any finance charge.
Payday loans size are range typically between $250-$1500 with terms of 14 days or 30 days.
Payday loans are usually required for emergency needs, often thus requiring funds on short notice are typically of low credit standings, hence why the lender has to charge equivalent interests that are a few times the normal range of APRs of alternative forms of lendings.
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