Repaying your payday loans after they are due can cause the total cost of your payday loan to increase substantially because most of our lenders add several finance charges, interest rate fees and late charges that can add as much as 25 to 40 percent to the total cost of your loan. These fees can appear 15 days after your payday loan was originally scheduled for payment.
Moreover, the total cost of your loan can continue to increase as long as your payday loan remains overdue. This is not surprising because most banks charge fees for overdrafts and bank account maintenance charges. These fees can add up to 25 percent to the total cost of your payday loans
Debtors who fail to repay their payday loans in a timely manner can face possible legal actions including debt collection proceedings and civil lawsuits. All lenders who attempt to resolve customers’ overdue payday loan accounts using these legal proceedings must use fair collection practices that adhere to the standards set forth by the Fair Debt Collection Practices Act of 1977.
Credit Rating Ramifications:
Failing to repay your payday loans in a timely matter can have a negative impact on your long-term credit rating. This is the case because most of our lenders report negative account histories to each of the three major credit bureaus until the debt is settled.
This problem can hamper your ability to obtain other payday loans in the future because most lenders do not offer payday loans to consumers who have overdue payday loans that remain unpaid.
Some Lenders Offer Loan Renewals in States That Allow Modified Payday Loan Contracts:
Some of our lenders offer loan renewal options that can help you reschedule your payday loan’s due date in exchange for a loan renewal fee. These options are available only in states that allow lenders to modify the terms of a payday loan contract. Therefore, please visit our payday loan resource page to discover which states allow payday loan renewals.
Information About Payday Loan Interest Rates:
Most of our lenders use a payday loan’s annual percentage rate to determine the amount of interest that is charged for using payday loans. This interest rate determines the amount of the loan that would be charged as interest during the course of a calendar year.
This interest rate can vary between 200 and 1,950 percent because most lenders use different risk assessment models to determine how much interest to charge to consumers. However, most people who obtain payday loans typically pay much less than these quoted annualized interest rates. This is the case most people repay their payday loans when they are due.
Disclosure: Our lenders may offer you a loan with an APR ranging from 390% to 780% based on a two-week loan.
The APR on a short term loan represents the amount of your loan, cost of the loan and term of the loan. Example: You borrow $100 for two weeks. A lender can charge you a $15 fee, which means you will have to repay $115 to the lender at the end of the term. The cost of the $100 loan is a $15 finance charge, which anounts to an annual percentage rate of 391 percent. Loans on the lower end of the APR range may be for a larger loan amount and for a longer term. Loans on the higher end of the APR range may be for a smaller loan amount and for a shorter term. Depending on your credit needs, and desire to pay your loan off quickly, your lender may only offer you loans with an APR near the high end of the range displayed.
NOTICE: THIS IS AN EXPENSIVE FORM OF CREDIT. A SHORT TERM LOAN SHOULD BE USED FOR SHORT-TERM FINANCIAL NEEDS ONLY, NOT AS A LONG-TERM FINANCIAL SOLUTION. CUSTOMERS WITH CREDIT DIFFICULTIES SHOULD SEEK CREDIT COUNSELING OR MEET WITH A NONPROFIT FINANCIAL COUNSELING SERVICE IN THEIR COMMUNITY.
If you do not pay your loan according to its terms, your lender may: • Charge you late fees • Send your account to a collection agency • Report your information to a consumer reporting agency, which may negatively affect your credit score • Offer to renew, extend or refinance your loan, which may cause you to incur additional fees, charges and interest
We are not a lender. Only your lender can provide you with information about your specific loan terms and APR and the implications for non-payment of your loan. Ask your lender for their current rates and charges and their policies for non-payment.