A Payday Loan is a specific amount of money that is received by the borrower to fulfill certain emergencies. Payday loan is a short term loan with high interest rate. Payday loan interest rate is high because its a small, short-term unsecured loan, couldn’t be borrowed from a bank. Loans typically cost 400% annual interest (APR) or more.
If you are planning to do some research on Scandinavian history, you are all set to go but you realize that you forgot to buy certain books on Norse culture. And you don’t have time to apply for loan from the bank. You will certainly apply online for Payday Loans. But before you apply keep in consideration the interest rate that it puts on the borrower.
Sky High Interest Rate:
Payday Loan Interest Rate is high. Why? You must keep in mind that unlike any bank, the Payday Loan interest rate is different according to countries, their states and even companies. The average Payday Loan interest is 25% per month of the loan you borrow.
Many companies can even charge as much as 500% annually. So one must carefully compare the interest rate of the Payday Loans set by different online companies and direct lenders and then apply for it.
Comparing the Interest Rates:
Before you consider applying online for Payday Loan, make sure you choose the most appropriate organization or lender. How to do so? There are tons of website and app by which you can calculate your payday loan Interest Rate.
How to Calculate:
- On any internet search engine type Payday Loan Interest Rate calculator.
- Many sites will appear. Click on the site of lender/company you trust or want to apply for loan.
- A box of Loan Repayment calculator will be there. Enter the loan amount, annual interest rate and period of the loan.
- Detailed information will be shown to you. It will become very easy to decide from where you want to borrow your Payday Loan.
Payday Loans APR Rates:
APR stands for Annual Percentage Rate. Like any Credit Card, Payday Loans are also characterized with APRs. It becomes very confusing when one is calculating the Payday Loan Interest Rate. Why? Because the rate is very high. It can be as high as 1000%. The reason behind is that the Payday Loan amount is less and the companies provide the amount within 24 hours, so for instant approval of Payday loan service charges are taken.
Once you start the paperwork to apply for it or speaking with the sales staff of payday loan company, you see that your payday loan will cost only 15 percent. That doesn’t sound that bad. But what’s this other number? This “APR” of 400%? The payday lender tells you not to worry about it. He says, “APR doesn’t matter.” But it really matters. Why?
Because APR stands for “annual percentage rate,” and it’s a way to measure how much a loan, credit card, or line of credit is going to cost you. So, don’t give even damn to what lender or the person sitting on the customers desk says about APR. Think and avoid these creatures.
Avoid Worst Payday Loan Lenders:
There are many companies whose interest rate are the highest and also have very bad reputation. Although they provide Payday Loans, but for some reasons they are not very popular with the borrowers. As you are searching the net for Payday Loan Lender, you must also read the reviews of borrowers about various companies. This will help you with your search.
Payday Loan Interest Rate different for Bad Credit:
If you are having trouble paying you Loan then you will come in the category of a Bad Credit holder. Many companies and institutions charge extra if you have some previous debts left (You can also consult debt management companies if you want some useful strategies to overcome you debt). The reason behind it is that lending money to Bad credit is a risk, as the lender is not sure whether he will get the money or not. So a high interest rate will give the Lender some guaranty.
So carefully search different websites, compare the Interest Rates of companies and calculate the payment amount you will have to give. Also try to avoid Bad Credit history. Although the average Interest Rate is 25% but comparing the rate with other institutes then you will get the best Payday Loan Interest Rate and you can visit the Scandinavian countries for your cultural research.