Please tell me more about the cost of the payday loans. I know that there is the interest, the loan amount, some fees. But how to know if the loan if affordable or not? I am aware that it’s relative, but still, ts there a reasonable APR related to a payday loan that you could recommend?
There is a range of acceptable APRs for payday loans, but that depends on your particular situation.
On average, a payday loan APR is around 400%. In some cases, the APR could range over 520%.
If you are lucky to find a competitive loan, you could enjoy an APR just under 400%.
What Does the APR Amount to in Dollar Terms?
You can expect that for every $100 you are borrowing, your interest will add up to anywhere from $15-$20. It is quite a bit higher than the rates you may be used to seeing for other types of loans, but it is fair.
Because the interest is so high on payday loans, they should only be used as a measure of last resort.
You should try not to make a habit of borrowing at such a high-interest rate.
Reviewed by: Casey Bond
Date Reviewed: Mar 05, 2019
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