FinanceNook.com™
Your One-Stop Quality Finance Article Source 		 
Submit Your Articles On Auto-Pilot
Automatically submit your articles to thousands of publishers - save time, and get massive publicity for your website! CLICK HERE!

Payday Loan Companies - Are Their Rates Too High?

Authored By: Carrie Reeder

Payday loan companies do provide cash at higher rates than other types of credit programs. But these rates are for short periods, so fees are often small. While payday loans are not for every credit situation, they can help during a financial emergency.

Are Rates Too High?

Payday loan rates are higher than other forms of credit for a couple of reasons. First of all, payday loans are for a small amount for a short period. Lenders have to cover the cost of processing such transactions. Unlike mortgage companies, payday companies don’t add up interest charges for 30 years.

Secondly, payday loans are at a higher risk of defaulting. Since there are no credit checks, people are more likely to fail to pay back these types of loans. That cost is passed onto everyone else.

Understanding The Numbers Rates

Most people get excited about APRs, annual percentage rate. If you compared the APRs of payday loans and mortgages, you will find the payday loan will have the larger number. But, that is misleading.

For one, payday loans are held for days, not a year. So you never pay that percent. With mortgages and other types of loans, you take years to pay the interest and principal. So with a payday loan, on average you would pay 15% of the loan in fees. With a mortgage, more than likely you will pay over 100% in interest charges.

Rates Lower Than Late Fees

Taking a look at late fees on some bills or credit cards, they can be significantly higher than the fee for a cash advance. Fees can also really add up with bank and merchant charges for bounced checks.

On average, a cash advance of $100 will have a $15 finance fee. Often bank fees average around $25 for each NSF check. Merchant fees are often higher. So while it will cost you for a payday loan, they are cheaper than paying late charges. You should also consider the impact on your credit report.

In the end, you have to decide if a payday loan is in your best interest. With instant service and fast cash, payday loan fees can be insignificant compared to other costs.

See my recommended Cheap Payday Loan companies online with the lowest rates. Carrie Reeder is the owner of ABC Loan Guide, which offers help with loans for people with bad credit.

Article Source: http://www.FinanceNook.com
Your One-Stop Quality Finance Article Source

Home | Loans | Payday-cash Advance Loans

Read Additional Related Articles from the Payday-Cash Advance Loans Category

Listed below are more articles related to the above article.

People interested in the above article "Payday Loan Companies - Are Their Rates Too High?" are also interested in the related articles listed below:

Read more related articles in Home | Loans | Payday-cash Advance Loans
Return Home
FinanceNook.com Home
Featured Sites
Internet Marketing
Website marketing strategies and tips for promoting a business online

Small Business Marketing
How to get more customers or clients than you ever dreamed possible
Social Bookmarking
Bookmark on del.icio.us
Bookmark on Furl
Bookmark on Digg
Popular Articles
Article Listings
RSS Feeds
Article RSS Feeds

FinanceNook.com Home  |  Top of Page
Copyright © 2006 - by Larry Lim, Singapore - FinanceNook.com™: Finance Article Search Engine Directory.
All Rights Reserved. All Trademarks and Servicemarks are the property of the respective owners.

United States of America . United Kingdom . Canada . Afghanistan . Albania . Algeria . American Samoa . Andorra . Angola . Anguilla . Antarctica . Antigua & Barbuda . Argentina . Armenia . Aruba . Australia . Austria . Azerbaijan . Bahamas . Bahrain . Bangladesh . Barbados . Belarus . Belgium . Belize . Benin . Bermuda . Bhutan . Bolivia . Bosnia-Herzegovina . Botswana . Brazil . British Virgin Islands . Brunei Darrusalam. Bulgaria . Burkina Faso . Burundi . Cambodia . Cameroon . Cape Verde . Cayman Islands . Central African Republic . Chad . Chile . China . Colombia . Comoros . Congo . Congo (Dem. Rep.) . Cook Islands . Costa Rica . Côte d'Ivoire . Croatia . Cuba . Cyprus . Czech Republic . Denmark . Djibouti . Dominica . Dominican Republic . East Timor . Ecuador . Egypt . El Salvador . Equatorial Guinea . Eritrea . Estonia . Ethiopia . Falkland Islands and Dependencies . Faroe Islands . Fiji . Finland . France . French Guiana . French Polynesia . Gabon . Gambia . Georgia . Germany . Ghana . Gibraltar . Greece . Greenland . Grenada . Guadeloupe . Guam . Guatemala . Guinea . Guinea Bissau . Guyana . Haiti . Honduras . Hong Kong . Hungary . Iceland . India . Indonesia . Iran . Iraq . Ireland . Isle Of Man . Israel . Italy . Ivory Coast . Jamaica . Japan . Jordan . Kazakhstan . Kenya . Kiribati . Korea (North) . Korea (South) . Kuwait . Kyrgyzstan . Laos . Latvia . Lebanon . Lesotho . Liberia . Libya . Liechtenstein . Lithuania . Luxembourg . Macau . Macedonia . Madagascar . Malawi . Malaysia . Maldives . Mali . Malta . Marshall Islands . Martinique . Mauritania . Mauritius . Mexico . Micronesia (Federated States) . Moldova . Monaco . Mongolia . Morocco . Mozambique . Myanmar (Burma) . Namibia . Nauru . Nepal . Netherlands . Netherlands Antilles . New Caledonia . New Zealand . Nicaragua . Niger . Nigeria . Niue . Norfolk Island . Northern Mariana Islands . Norway . Oman . Pakistan . Palau . Palestine . Panama . Papua New Guinea . Paraguay . Peru . Philippines . Poland . Portugal . Puerto Rico . Qatar . Reunion . Romania . Russia . Rwanda . Sahara . Saint Helena . Saint Kitts and Nevis . Saint Lucia . Saint Pierre & Miquelon . Saint Vincent & The Grenadines . Samoa . San Marino . São Tomé & Príncipe . Saudi Arabia . Senegal . Serbia . Seychelles . Sierra Leone . Singapore . Slovakia . Slovenia . Solomon Islands . Somalia . South Africa . Spain . Sri Lanka . Sudan . Suriname . Swaziland . Sweden . Switzerland . Syria . Taiwan . Tajikistan . Tanzania . Thailand . Togo . Tongo . Trinidad & Tobago . Tunisia . Turkey . Turkmenistan . Tuvalu . Uganda . Ukraine . United Arab Emirates . Uruguay . Uzbekistan . Vanuatu . Vatican City (Holy See) . Venezuela . Vietnam . Yemen . Zaire . Zambia . Zimbabwe


Template Design by Larry Lim | Powered by Article Dashboard

Powered by Article Dashboard