How Much Does It Cost To Get A Payday Loan?


Payday loans are a quick measure of getting loans for those who do not have access to loans due to their bad credit. The size and amount of payday loans is usually small and they usually account for $500. However, having said that, pay day loans are generally a very expensive way of getting money because if you do not pay the loans on the first pay day, there will be a new finance charge and the cycle will continue to repeat.

Payday loans can be categorized as cash loans which might be very difficult to get and it might also cost you a lot to get them.

Cost Of Getting A Payday Loan
The cost of the payday loan varies by the lender and the state. States that give out the payday loans cap the maximum allowable interest to be between $10 and about $30 per $100 borrowed.

Moreover, according to a research from the federal Consumer Financial Protection Bureau, the cost of the loan is $15 for about every $100 borrowed. Moreover, for a $350 loan, the amount of the median storefront loan will cost you $52.50. So therefore, when it will be time to repay the loan, it will take about two weeks and the total amount that will be owed will be $402.50.

It is also believed that the online payday lenders tend to charge a higher rate for their loans and these claims are exempted from the state rate caps. According to the CFPD, the median online payday loan will cost you about $23.53 per the total $100 borrowed.

The Typical Costs Involved
The amount that is borrowed for payday loans varies from $100 to $1500. However, most payday loans usually account for $100-$500. Moreover, the fees charged for these loans is $15-$30 for the total of 15% to 30% charged. Moreover, if the borrower has to borrow $300, the fees will be $15 per $100 charged. Therefore, the borrower will have to write a check of $345 and he will receive $300 in cash.

It is also believed that a borrower who cannot pay the entire amount of the loan can choose to pay about $45 fee to roll over. Moreover, for those who cannot pay the entire loan off, the fees of extending the loan will increase every two weeks.

The payday lending fees for these pay day loans is also different in every state. For instance, the check into cash charges are $10 per $100 borrowed in Oregon, $17.5 per $100 borrowed in California and $30 per $100 borrowed in Delaware and the charges in other states are different.

Moreover, if the borrower does not have money in his checking account when the lender has deposited the personal check, the borrower will be charged a bounced check fees of about $20 to $40 per check by the bank and the pay day lending company.

Payday loans or cash loans are pretty difficult to deal with and the total costs of getting a payday loan have been identified above.

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