Home > Personal Finance
How Much Does A Payday Loan CostObtaining a payday loan isn't normally that difficult a process. As long as you are 18 years of age and meet some basic requirements. Though it's not exactly the cheapest form of cash advance you can get, loan sums range from a minimum of $100 to over a thousand dollars.
The actual costs paid for such advances are made up of several combined rates and fees and these cost totals typically exceed advance amounts from credit cards.
Short Term APR's for the Cash AdvanceThe APR's aren't always proportionally scaled with the loan amounts being advanced. Noting the following average interest rates for 2017;
- For a $500 advance, taken on a 14 day term; APR's that span 230% plus, all the way to those above 630% are not that uncommon.
- Greater loan amounts such as for $1,000 can actually gain in APR. With 60% to 70% increases in APR and greater.
- A hundred dollar loan fee can spike 360% numbers at the low side while repeating the same high upsides.
In short, according to some pricing structures, that also account for the risk factor, it does not seem to take much to raise interest rates at certain loan amounts. And the charged interest can become excessive.
Additional Rates and FeesNormally there is a credit investigation fee that depends on the amount being sought.
But Advance America charges $26.19 for a hundred dollar online loan while Cash America charges a $3.00 origination fee plus a $10.00 credit investigation fee for the same amount (only available in some states). Rates may differ by loan amount applied for.