How Much Does a Payday Loan Cost?

There are many different fees and types of interest rates on the loan, so in order for you to understand how much it will cost you, lets look at American regulation on the matter and the real customers examples of our partner companies.

The Fees and Conditions

All the payday loan companies we work with fully comply with American regulation on the loan fees.

The fee for using your loan depends on its amount and the time period. When taking the loan the borrower pays the established fee (the price for using the credit service) which can’t be more than 20% of the loan amount by American laws + the interest rate on the amount borrowed (can’t be more than 48% APR or 4% monthly).

Since we offer short time loans online, the interest rates on them are generally higher than on the long-term loans. But that is compensated by the fact that short-term loans are much smaller in amounts than the long-term ones.

All the loan rates are compared in APR – annual percentage rate, which means that the fee is calculated for the period of 12 months, 1 year. But, for example, if we are talking about a 24% APR, since you are taking out the loan for less than a year, the fee you pay will in fact be much lower than the stated 24%.

Let’s say you are borrowing $100 for 16 days at the stated above conditions. The amount you will have to repay will equal to loan itself + established fee (20%) + monthly fee (4%)

100 + 20 + 4 = $124

If you were to borrow $500 then it would be:

500 + 100 + 20 = $620

Want to borrow $1000 for the period of up to 30 days?

1000 + 200 + 40 = $1240

Also keep in mind that by the American regulation every loan is subject to Ezi Debit Transaction Fee of $1.25.

CUSTOMER LOAN EXAMPLES

Example #1. Ashley M. applied for a $400 loan with PayDayPro from direct lender. The cost of using the loan is 24%. She could have chosen to repay the loan in 16, 21 or 30 days – the fee would stay the same in all these cases.

So her finances look like this:

400 + 24%= 400 + 96 = $496

So at the end of a 21 day-period she paid the lender $496

Example #2. Steve B. applied for a loan with Dollars Direct. They offer the biggest payday loans, but they also require you to withdraw a minimum principal initially.

So let’s say he got $2,425. Subtracting the establishment fee of $400, he is able to withdraw $2,025. He can repay it in 65 days if his payments are scheduled more frequently, or in 100 days if he stretches out his payments.

He also has the possibility to change his mind and return the loan within 1 day. For that he has to call Dollars Direct customer service line.

Example #3. Emma R. took out $500 with Ferratum. She chose to repay it in 32 days (the possible options are 16, 22 or 32 days). At the end of the period she will pay $640 dollars.

Additional Services For Your Money

Emergency Due Date Adjustment allows you to extend your loan pay date. You can only use it once per each loan.

Customer Support. All the clients can take advantage of the live online support provided by the loan company during working hours (Monday to Friday 8 am through 6 pm).

Loan cancellation.If you had a change of heart – some companies will let you cancel your loan if you contact them within 24 hours

What happens if you don’t pay on time?

Sometimes you miscalculate your fiscal powers and need more time to repay the loan. That option is also possible with almost all the private loan companies. The additional fees will be applied in this case, so if you don’t pay the amount due at the specified date, the additional fees that will be applied at once are $38.50 Dishonoured Fee, $38.50 Missed Payment Fee, $47 Collection Transfer Fee and a $50 Debt Management Fee.

Another fee that will apply to the late payment is the Letter of Notice Fee and its $10 per for each one. These letters will be sent to your mailbox each 7, 14, 21 and 30 days in case you don’t repay the debt after the first time.

Still have questions and looking for information? Contact us by the channels provided in the Contacts section
We can help with bad credit loans as well.