Simplified Cash Advance by Payday Lenders
Payday loans for many years have been helping Americans survive financial storm as these types of loans easily obtain as long as you are a salaried individual. The only obstacles that prevent other people from taking advantage of cash advance loans are the high APR or interest rate as most have no idea behind the exorbitant rate. This article talks about the payday loans APR to overcome confusion, so read on.
The process of cash advance simplified by payday lenders so the average Americans will have no trouble applying for a loan, even when with bad credit score. Take note, payday loans are controversial and even banned by 13 states because of the APR that causes severe problems to some people. Fortunately, you do not have to live with the confusion since even a layman can easily understand APR.
What Is APR?
APR stands for annual percentage rate. This is the interest rates charge for a whole year by the banks or financial institutions providing the loan and of course, the fees paid off in the scheduled payment date along with the principal.
Take note, the interest rate is dependent on the salary of the borrower, even the term of the loan. You see, when the pay cycle is bi-weekly then payment is within a week, two weeks if every 14 days to a month.
Most creditors or payday loans computed on the average of 14 days; when this is the case then calculating APR for a year will certainly make payday loans extremely high for short-term loan. However, when you borrow money with monthly repayment scheme, the interest rate is a lot lower as the payment divided for an entire year, including the interest charged by a lender.
By the way, payday loans online are short term and unsecured loans, therefore the fees are higher than normal or higher than what the financial companies or banks charges their clients. This is the reason why most people applying for a loan find payday loans excessive but when you consider the simplified requirements, hassle free processes, and instant loan approval, the APR charged by payday lenders are just appropriate for the service they rendered.Share