Read the fine print. In many states, payday loans are unregulated and can have interest rates at 500% or higher.
It's a vicious cycle to get into. If you need money that quickly, chances are you won't be able to repay it on time (esp. with the high interest), so you take out another one to pay the first one. If you need the cash, try asking a family member or friend for it.
Thank,but my family borrow from me,.I should say gift because they don't pay back. I can get cash from my CC
Not mines,but I closed the bank!!!!,the only one who gets money out of me, now is my Mom .Who give me life
There are a couple of threads not too long ago where I explain in detail why payday loans are bad. Someone paid "only" 10% interest as opposed to 21% on a credit card. Then paid the payday loan back early so it was "only" 8%. The problem is that it was for about 10 days, and the true interest was about 250%. I explained that borrowing at 21% for that period of time would have actually cost about 1/10 of what was paid. If you search for my posts you shouldn't have to go back too far to find it.
These people also depend on the fact that most people in need of payday loans aren't aware of the UCC articles in state laws. A friend of mine (and ex-payday loan worker) told me how quick they act on default. Many will push them through small claims for default judgment, knowing that most won't answer (no knowledge of how or too scared). He told me that several repossessions on title loans were done illegally, just to get them done quickly. And they were never fought.
Pay day loans are the hugest rip off! You'd be better of pulling a cash advance from your credit card. As said before, stay far far away!!!!
Wow, this is timely, as I just had to borrow a hefty sum of money to pay-off a number of payday loans. Pretty bad when you have to take a loan to pay off several. First off, if you can show restraint, a payday loan is not a bad deal. If you just need $50 to get you through the week, then paying ten or fifteen bucks interest isn't really that bad a deal. But if you're already living paycheck to paycheck, you can find yourself in a deep pit. I did. The internet lenders are the worst because it is so easy. It's anonymous, you don't have to leave the house, and it's convenient. Most will charge around $30 per $100 borrowed. That equals a payback of $390 on $300. But the thing that's the killer is the automatic renewal. Can't pay it back this week? No problem! Just pay the finance charge of $90 and your loan will be extended another two weeks, but you'll still have to pay $390 to pay it off. It can go on and on. If you have to use a payday lender, there is really only one internet lender that I would recommend, and that is paydayok. Their rates are 1/3 of everyone else's. So if you want to borrow $100 for 14 days, it'll cost you ten bucks. But if you can find a way to avoid payday lenders altogether, do it. It can lead to a vicious cycle.
Ten bucks for two weeks on $100. That's 10% for two weeks. That's 260% a year. If you need it that badly, why not take a cash advance on your credit card? They may charge 5% fee, but then what is your interest? Probably max of 40%. Doesn't that sound high? But it's REALLY CHEAP compared to that 260%. These places make it sound cheap. You pay us 10% as opposed to 30% on your card. What they don't tell you is that the 30% is per YEAR, the 10% may be per WEEK or two weeks or month, but it's still a lot higher. If you truly only need $50 for a week or two, and you're really going to pay it back, why not borrow from a family member and maybe you'll get it for no interest at all.
Sorry I didn't finish the post - The Credit Union that I belong too does them (I have direct depoist), they put it on your credit report as an installment loan and it looks good - you are never late. I think I paid them back $75.00 every 2 weeks.
$15 for what period of time? It depends on how long the loan is for whether or not it's a good idea. You can get a loan against shares from a credit union at a fairly low rate, pay it back and build credit. In fact, that is one of the techniques that is often recommended. But payday loans are payday loans, usually high interest. Are you sure you had a payday loan, or just a personal (signature, no collateral) loan? There's a world of difference.
It was a payday loan - but on my credit reports they listed it as an intallment loan. They gave me the 3 month (pay them every 2 weeks) option.
