Facts about Payday Loans
Unlike other financial services, payday loans charge a flat fee and do not have interest accruing. The fee for a Payday Loan is $15 per $100 borrowed. This fee is a set fee and does not increase over time. Our customers appreciate that a Payday Loan, with a one-time fee, can be less expensive than taking on the costs of bouncing a check, missing a credit card payment or neglecting a bill.
The Federal Truth in Lending Act (TILA) requires all financial institutions to disclose loan fees as Annual Percentage Rates (APR). In order to comply with TILA, MicroLoan Express reports the implied APR of a payday loan (the amount you would pay in fees if you renewed your advance every two weeks for a full year). However, the average loan term is only two to four weeks. APR is a more appropriately a measure of costs associated with loans that last for at least a year, such as a mortgage loan or a car loan.
As you can see below, using APR as a measure of the cost of various options for short-term loans, Payday Loans are still the least costly option compared to bank overdraft, bounced check, late payment and utility reconnection fees. When you have an urgent need for cash, Payday Loans are a good option that should not be overlooked and MicroLoan Express is here to help!
APR Comparison of Average Overdraft & Payday
Payday Loan Fee vs. Alternatives
Dollar Amount per $100