How Much can Payday Lenders Charge UpTo?
Millions of people in the US use payday loans to meet their short term cash short falls. The payday loans serve as a blessing for individuals that are not able to secure alternative source of finance. These loans are different than traditional loans in that the loan requirements are not that strict.
However, the catch is that the payday loans comes with a relatively higher interest rates that you must consider very carefully before making decision to apply for the loan. In this article we will look at the rates that lenders are allow to charge in various states in the US.
Payday Loan Rates in the US States
When it comes to payday loans, there are no fixed rates that the lenders charge. The exact rate that the lenders charge to the borrowers differs from state to state in the US. Additionally, the maximum rate that the lenders can charge is also limited by state regulations.
Note that the rate on payday loan is not quoted similar to the traditional loans. In most cases the lenders only specify finance charges that may include administration fee, late payment fee, origination fee and others. These fees, along with the duration and loan amount, determine the annual percentage rates, or APR, of the loan.
Most of the payday loan lenders in the US charge a fee of about $15 to $30 per $100 loan amount. You can use a payday loan APR calculator to determine the APR of the loan. For instance the APR of a two-week payday loan of $1,000 with a $15 fee per $100 loan amount is 391%. Knowing about the APR can help individuals to compare between different loan lenders and make an informed decision regarding the amount they borrow from the payday loan lender.
Disclaimer Notice: The article/blog is intended for informational purposes only. You should not make any financial decision based on the information provided in this article, and without consulting with a financial expert.