Quick Cash Loans The Real Cost

Quick Cash Loans The Real Cost

Quick Cash Loans – the​ Real Cost
So many numbers are thrown around when talking about cash advances,​ also called payday loans,​ that it​ can be hard to​ know what the​ real cost is​ .​
What you​ actually pay for your payday loan is​ usually a​ financing fee rather than an​ interest rate .​
APR is​ used to​ compare the​ yearly cost of​ such a​ loan,​ even though payday loans are usually repaid in​ less than 17 days.
Financing Fees
Most cash advance companies charge finance fees rather than interest in​ order to​ get around some state laws .​
Finance fees are usually charged on​ a​ pay period schedule of​ two weeks,​ although some companies have a​ shorter or​ longer repayment periods.
For a​ cash advance of​ $100,​ you​ can expect to​ pay around $15 in​ finance fees .​
Some lenders charge more or​ less,​ so it​ pays to​ compare rates .​
Online lenders usually post their rates or​ APR,​ so you​ can research lenders in​ minutes.
If you​ don’t repay your loan when it​ is​ due,​ you​ can roll it​ over .​
You add on​ finance fees for the​ additional time .​
You have to​ be careful with this option .​
If you​ put off repayment too many times,​ you​ can end up owing more in​ finance fees than principal.
Understanding APR
APR is​ the​ yearly rate of​ the​ loan,​ even though cash advances are intended to​ be short term loans .​
It is​ figured the​ same way as​ credit cards,​ multiplying the​ rate over the​ year and including any fees .​
While the​ APR does not equal your real cost,​ it​ is​ a​ nice comparison tool.
An APR compares the​ same number,​ regardless of​ lender .​
If you​ go online,​ most cash advance companies will list the​ APR on​ their website .​
You can also request the​ number from them before you​ apply.
Comparing Costs
When you​ are trying to​ decided whether to​ get a​ cash advance or​ not,​ you​ should compare the​ other costs associated with your decision .​
For example,​ will you​ pay more in​ late fees or​ interest charges by missing a​ payment? Will NSF fees amount to​ more than a​ payday loan fee? What will it​ cost you​ if​ the​ car doesn’t get fixed?
If the​ finance fee is​ smaller than other costs,​ then you​ are saving yourself money in​ the​ long run.

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