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The Cost of Credit -- Facts You Need To Know! Payday loans
are short-term advances that are due on your next payday,
unless your next payday is 6 days away from your loan
date. In this case your loan will be due on your second
payday. The maximum loan term is 18 days.
With a payday loan you are charged a flat fee no matter
when your loan is repaid (subject to the 18-day maximum
loan term). Because the fees are fixed per loan amount,
the Annual Percentage Rate (APR) will vary depending on
the number of days that pass between the date you receive
your advance and the day you repay the loan. There is
no refund of fees for early repayment.
Although payday loans are short-term advances intended
to be paid off quickly, various Truth-in-Lending laws
require financing disclosures to be expressed as an Annual
Percentage Rate (APR), or the cost of the credit advanced
to you expressed as an annual rate.
This requirement provides uniformity among various credit
sources, so you can compare rates and make the choice
that is right for you.
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