Payday Loan

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Dictionary Says

Definition of 'Payday Loan'

A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash. The lender holds onto the check and cashes it on the agreed upon date, usually the borrower's next payday. These loans are also called cash advance loans or check advance loans.
Investopedia Says

Investopedia explains 'Payday Loan'

Although the federal Truth in Lending Act requires payday lenders to disclose their finance charges, these establishments have gotten a bad reputation for their predatory lending practices. Most borrowers using payday loans have bad credit and low incomes. They may not have access to credit cards and are forced to use the service of a payday loan company.  Even if the borrower feels the fee may be fair ($17.50 per $100 for seven days), that translates into a rate of more than 900% on an annualized basis. Most loans are for 30 days or less and can be rolled over for additional finance charges. Loan amounts are usually from $100 to $1,500.
Search results for

'Payday Loan'

  • 3 Tips For Using Payday Loans - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/3-Tips-To-Use-Payday-Loans.aspx
    ... So what exactly should individuals beware of when considering taking out a payday
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  • Payday Loans Don't Pay

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    ... October 18 2009 | Filed Under ยป Options, Students, Young Investors. If you're
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  • Bank On All Those Broken Dreams

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    Pawnshops and payday loan companies thrive when the good times go bad. ... How Pawnbrokers
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  • Car Title Loans: Good Option For Fast Cash?

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    ... discipline yourself to pay it back in a set time frame because there are a set number
    of months in which you have to pay back your loan. Payday loans: Although ...

  • Cash America Upbeat In A Down Market

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    The pawnbroker/payday loan company recently raised its Q1 earnings
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  • 10 (Costly) Tickets To Fast Cash - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0809/Dealing-With-Unexpected-Expenses.aspx
    ... But at what cost? 401(k) Debit Cards: Taking A Swipe At Your Retirement Savings.);
    Get a payday loan. Check cashing operations charge a fee to loan you money. ...

  • The Best And Worst Ways To Raise Cash Quickly - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0611/The-Best-And-Worst-Ways-To-Raise-Cash-Quickly.aspx
    ... A payday loan, for instance, is certainly one way of getting hundreds (and in some
    cases, thousands) of dollars with virtually no collateral and minimal ...

  • Different Needs, Different Loans

    http://www.investopedia.com/articles/pf/07/loan_types.asp
    ... Learn more about cash advances in Payday Loans Don ... other financial institutions
    typically require that the individual personally guarantee the loan, which means ...

  • 4 Bargain Credit Companies

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    ... Tickers in this Article: AEA, COF, DFS, NNI. As the economy starts crawling out
    of this recession, payday loan companies and credit providers could benefit. ...

  • Should You Pawn Your Valuables?

    http://www.investopedia.com/articles/pf/08/pawn-your-valuables.asp
    ... How Pawn Shops Work A pawnbroker, the person who operates a pawnshop, will loan
    you money based on a percentage of the value of the item you want to pawn. ...

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