What Type Fees Have Payday Loans
Payday loans also known as cash advance are small dollar loans that generally charge an exorbitant fixed fee on the amount you obtain. The fixed fee may vary from $10 or more depending on the payday lenders rate and the maximum amount you can borrow in your state. If you are short of cash but afraid of the fixed fee and other fees that lenders usually charge borrowers, you have come to the right page. This article talks about the typical fees of payday loans.
Cash advance is a short-term loan. It is easy to obtain when you have regular sources of income. You can obtain a loan from payday lenders online when you meet their basic requirements such as you must be employed, of legal age; have a bank account and residents of the United States. If granted a loan, expect fixed fee on your loan. How much is the fee? The amount varies depending on the amount you borrowed and the rate charge by lender.
The minimum amount you can borrow is $100 and the typical fee would be $15, which equates to an interest rate of about 400% for a 15 days loan. In case you still didn’t have the money to pay back your loan and need another loan of $300 before the next payday the cost of another loan would be $345. The cost of the loan is based on a $15 per $100 interest.
By the way, you can obtain a loan even if you have an existing loan. However, some storefront lenders do not give another loan to people with existing loan. In some state, loan roll over not even allowed. Anyway, in case you can roll over or renew your loan, the lender will charge you with another fee. The roll over or renewal fee is different from the regular fee that payday lenders generally charge borrowers.
When you default on your payment, you also need to pay a late fee or bouncing check fee. The penalty depends on where you live and obtain the loan. Take note, you can obtain payday loans online and offline, so you need to keep the state laws in mind when looking for a short-term loan.
Payday lenders will happily discuss the costs of payday loans, you just have to ask. So, when you need a small dollar loan, know that you can always obtain a payday loan.