Payday Loan Rates and Fees

The Fine Print



Q. What will it actually cost me in the end?

Short term payday loans are meant to be just that: short term. For that reason most loan lenders will quote a fee based system rather than annualized percentage rates (APR) with fees typically ranging from between $15 to $50 for every $100 borrowed up to $500 with fees per $100 begin dropping on loans larger than $500.00. If short term loans are repaid and completed on the scheduled date, without incurring any penalties then typically the initial transaction fee is the only extra money that you have to pay besides the principle.

Do not forget!

If loans are extended or rolled over, the equivalent annualized percentage rate for payday loans and other short-term installment loans skyrockets to have an estimated APR that ranges between 60% to in some cases over 1900%, based on the amount and the length of the loan. Ordinarily larger loans with longer payback periods have lower interest rates. While this sounds large, one must consider that these loans are only meant to be for a very small time frame, usually 2 weeks. Annualizing other fees in the same manner results in an APR of 2336% for a returned check fee of $32 against a $100 check, or a 965% fee against a $37 credit card late fee or over the limit fee, or a 1203% APR for a typical $46 reconnect fee by a utility company.

For that reason, it is imperative to only borrow the absolutely minimum necessary amount for as short a time frame as possible, despite the ease of being able to possibly borrow more, in order to reduce the risk of incurring extra fees or a higher APR.

For more detailed information contact our recommended payday lenders such as Ace Cash Express, CashNetUSA and

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