Sometimes when you live paycheck to paycheck, the distance between each check is just too much and you find yourself without enough money for necessary things. In these situations, obtaining a payday loan online can be one of the most logical solutions. If you have never obtained a payday loan and are like most first-time borrowers, the fees involved in the process will be what your most pressing questions will be about. Here is a look at the answers to some of these common questions about payday loan fees that you should know as a first-time customer.
What kind of fees should you expect to pay with the first loan?
Occasionally, you can find payday loans online that are offering promotions for first-time customers where no fees will be charged on the first loan, which is an incredible opportunity as long as you are responsible and only borrow what you can fully repay on your next payday. However, in general, you should expect to pay interest charges and a financing fee by the lender, which will be due upon repayment.
What is the typical interest rate for a payday loan?
The interest rate that will be charged on your loan can vary from state to state because every one has its own statutes and limitations on how much a borrower can be charged. For example, in California, the APR, or annual rate, cannot exceed 459 percent on a loan of $100. Therefore, it is a good idea to talk to the lender about the interest rate you will be charged before you accept the loan to make sure you can afford the interest charges you will be expected to pay back.
Will there be late fees if you cannot pay back the loan on time?
If you are ever unable to pay back your loan on time, you should make sure you let the lender know right away. In most cases, they will work with you so you have a little extra time. However, there may be additional interest due or late fees involved if you have to go beyond the initial term of the loan.
When you just need a little cash to carry you over until payday, obtaining a payday loan can really make your life a lot easier. Make sure you thoroughly discuss any concerns you have about the fees involved with a lender before you accept a loan.
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