How Charges Vary Between Lenders And A Few Things To Look Out For
Payday Loan charges differ from the typical APR you may see on the homepage of many lenders websites
. Charges refer to the cost of a loan or rather how much someone will be due to repay once the loan reaches its maturity date. Seen as a payday loan is a short term loan option lasting anywhere, generally speaking, between 1 day and up to forty-five days, it is not conceivable to apply a rate that has been designed to measure the yearly cost of loan products (APR) to payday loans nonetheless, by law all lenders must display this rate in prominent positions in the marketing materials and on their websites.
A payday loan charge is the exact amount that you will be due to pay on your loan over the course or duration of the loan. For example, the typical and industry standard rate charged on loans is 25% on every 100 borrowed this means that typically a borrower will be due to repay 125 on every 100 they borrow from a payday lender. However, this charge can vary greatly between lenders with some payday loan companies charging anywhere up to a value of 35% on every 100 borrowed. Always check a particular lenders fee structure before applying for a payday loan factor in any additional charges that may apply and you could end up paying over 150 only every 100 borrowed, particularly if you choose the wrong lender. Always ensure that you check the terms and conditions on a lenders website for any additional fees that may be incurred.
The important thing to look for when evaluating payday lenders is how they structure their fees and over what period you will be due to repay the loan some newer lenders charge based on the duration of the loan and in some cases, particularly towards the end of the month, this can prove more beneficial in terms of securing the best deal on a payday loan.