Unfortunately, emergency expenses can strike without warning. You might need money to pay for car repairs, home improvements or medical bills. You might just need money to pay the monthly bills. A payday loan can provide you with immediate access to cash. You will then have the money you need to make it to your next payday. However, payday loans are more expensive than traditional loans, so before you agree to the loan, you need to pay attention to the APR.
You can normally get a payday loan up to $2,000. Because these loans are for less than 30 days, you will be paying 400 percent or more in interest. The annual percentage rate is the interest rate that you will be paying for the year. Since you will be repaying your payday loan within the month, your payday loan APR rates in the USA will be very high. There is a limit to the amount of fees that lenders can charge you, so lenders have guidelines that are required by law.
The payday loan APR should include any fees you are charged for the loan. The loan will depend on your pay cycle, so the average life of a payday loan ranges from 14 to 30 days. With installment loans, you will have a payment that you are required to make each month; therefore, because the loan will be paid over a few years, the annual percentage rate will be lower.
Payday loans are short-term, so the fees are based on one payment period. If you extend the loan, you will be paying more in interest. Lenders are required to provide you with the amount you will be paying in interest. It is important that you read the terms and conditions very carefully, so you will know exactly how much you will be paying in interest.
One of the reasons that the interest rate on a payday loan is high is because you are considered a high risk customer. Some credit check is required, so obtaining a payday loan is easy and hassle-free. You just need to be at least 18 years of age, a citizen of the USA and have a steady source of income. You must also possess a valid checking account.
Payday loans can get you out of a financial bind; however, they can also get you in more debt if you are not careful. You can find a payday loan APR calculator online, so you will know how much you will be paying in interest. If a payday loan is right for you, you will then have the money in your bank account before the day is complete.