Most people know what ‘APR’ stands for, as they’ve seen it with home loans, and other sort of big pieces of money – but often times, a payday loan APR can be a very daunting thing, and for good reason.
There are many states that have regulated the maximum APR for payday loans and this is a really good thing. It’s not going to be close to what you are thinking for an APR though. Try looking a lot higher because a short term loan often has a very high APR.
What is an APR?
Many people don’t know what an APR really is, or what a payday loan APR is at all.
APR stands for Annual Percentage Rate, which is basically the annual interest rate on the loan itself. With large loans, like a home loan, or small business loan, the APR is usually very low, mostly because the loan is paid back over a long period of time.
However, with Payday Loan APR, it works a little differently.
How Does This Work?
Payday loan APR is a much, much bigger number than a home loan APR is – it has the highest interest rates on any sort of loan, but that’s because it is a very short term loan. Usually between 7 and 14 days, these loans don’t span much at all – so you usually end up only paying between $10-$40 in interest.
Normally, you will find APRs that are between 250% – 390%, which is really large except that you are just borrowing a small amount and are planning to pay it back in a fast rate of time.
There are some states that have put a cap on the highest possible APR that a Payday loan company can use. They regulate how long the loan can be and if it can be renewed or extended in any way. Some states have hugely strict laws and some have none at all.
When You Are Looking For A Payday Loan
When you go looking for a payday loan APR, there are a few things that you should keep in mind. That’s the APR. The lower it is, the less you will need to pay when you are getting ready to pay your loan.
Watch out for fees, too – while the APR might look attractive at first glance, finance fees will end up costing you twice what you’re paying in interest. Keep your eye out for the best companies that offer the lowest fees, and interest rates.
Remember…
Remember to borrow wisely, and don’t go with a company that has too high of a payday loan APR – you’ll feel the crunch later!
Looking for a payday loan? Then payday loan APR should be something that should be your topmost priority. The lower the APR, the lesser you have to pay when you’re going to pay back your loan. Payday Loans Online with Instant Approval
For All of your INCORPORATING needs contact Samuel Wierdlow Inc. (www.SamuelWierdlowInc.info)
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