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Understanding the Cost of Credit for a Payday Loan
Payday Loan Amount Sample Chart
Credit in the form of a payday loan is not inexpensive--it can be prohibitively costly when compared to other forms of credit over a period of time. Below we have provided a sample cost of credit table to demonstrate the expenses and fees associated with a payday loan over a period of just 15 days. For example, if you take out a payday loan or cash advance for $300 and then almost immediately pay it back (plus fees--in this case $30 per $100 loaned), you have paid back $390 for $300. The $90 "finance charge" is equivalent to an annual percentage rate of just over 2,737 percent. You read that correctly: Two-thousand-seven-hundred-and-thirty-seven percent.
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Loan Amount Financed |
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$100.00 |
$150.00 |
$200.00 |
$250.00 |
$300.00 |
$350.00 |
$400.00 |
$450.00 |
$500.00 |
Term
(Days) |
APR |
Finance Charge |
| 4 |
2737.50% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 5 |
2190.00% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 6 |
1825.01% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 7 |
1564.29% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 8 |
1368.76% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 9 |
1216.67% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 10 |
1095.00% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 11 |
995.46% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 12 |
912.51% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 13 |
842.31% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 14 |
782.15% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
| 15 |
730.01% |
$30.00 |
$45.00 |
$60.00 |
$75.00 |
$90.00 |
$105.00 |
$120.00 |
$135.00 |
$150.00 |
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When Applying for a Payday Loan or Cash Advance, Read the Fine Print
We strongly urge you to look for "Cost of Credit" or "APR Rate Sheet" information on any Web site where you will be applying for a payday loan. By law (depending on where the payday loan or cash advance company is incorporated), these companies may (or may not) be required to disclose the APR to you. Inquire and examine the Cost of Credit sheet from any company where you intend to apply--you can determine the true cost of credit on your payday loan accordingly and before you apply. See our Payday Loan and Cash Advance Information Page for more tips.
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