What is a payday loan?
It’s near the end of the month and you get a call from your kid’s school. He threw up during math class. You take him to the doctor and they tell you that he has a mild flu, nothing major. You breathe a sigh of relief. You don’t have the funds to pay for something major right now. You really dodged a bullet with this one. Then you get out to the parking lot and your car won’t start. The battery’s dead.
It’s in situations like this that people take out payday loans. They are short-term low-dollar-amount loans, often for a few hundred dollars but sometimes more. They are meant to be paid back on your next payday. Their short-term nature is what led to their name: they are only meant to last you until your next payday.
Payday loans have an extremely high APR in comparison to other personal loans. They also have very short repayment terms compared to other person loans. For instance, a $100 loan with a two-week term and a $20 fee would only cost the borrower $120 if paid back on time. However, the APR on that loan is a whopping 520%. It is crucial that payday loans be paid back on time.
Payday loans are often very easy to get. Sometimes they involve no credit check at all. But the high APR means that they can be very risky for the borrower.
OppLoans offers a great alternative to payday lenders. You can fill out our simple, streamlined application today on our homepage. Our helpful team of loan advisors and customer service representatives are here to help you get the funds you need with payment terms that you can afford. We are the ideal lender for customers with less-than-perfect credit.