How much are payday loan fees? A lot of people wonder how much are payday loan fees, either because they heard they are astronomical, or because they want to know if it’s worth getting or not. Payday loan fees might not sound high when you first hear what they are, but when you do the calculations they can be a bit much.
Since the fees vary from state to state, and from lender to lender, it’s hard to pin down exactly how much they’ll be, or if you can even get a payday loan in your state. Some states have outlawed them, others have regulated them so heavily that they can’t turn a profit, essentially banning them. Other states set caps as to what percentage can be charged, while other states leave it completely unregulated and let the market handle it.
The fees are non negotiable in most instances, and with everything else being equal they’re really inconsequential, as most lenders in your local area will be charging very similar rates and fees. It’s only when you start comparing online loans with offline loans that the differences start to emerge, but online loans have ways of disguising how much you’re really going to end up paying.
How Much Are Payday Loan Fees? No Solid Answer
If you want to know how much are payday loan fees you need to check with the individual lender you are considering. Some of them have a set chart that they go buy, only offering certain dollar amounts with fees already pre-established. Some charge a set percentage, allowing you to borrow whatever amount you need and then charging you an amount based on that.
Many brick and mortar lenders will not want to disclose their rates over the telephone, so the best way is to go in to the location to find out. More and more lenders are being forced to tell people what they charge, since many online lenders will put their rates right on their website, so full disclosure is getting to be the norm.
One Thing You Can Be Sure Of
The one thing that you can be assured of when inquiring about payday loans is that you’re going to be slightly shocked when you hear the answer. They’re not in the business of helping people, as they’d have you believe. They’re going to charge either A) the highest amount that they’re legally allowed to by the state B) whatever the market will allow i.e. whatever they can get away with considering all of the market conditions or C) some ridiculous rate online since they are located off shore and not regulated by state or federal usury laws.
So basically you know you’re getting the short end of the stick when you’re taking out a payday loan, which is why you’ve got to calculate whether it’s the right decision or not. Take into consideration that you’re probably not going to take out one, pay it back and be done with it. As you continue the loaning and re-loaning process the fees start stacking up and that initial few hundred dollars you borrow turns into hundreds of dollars in fees.
Fees and Charges – Any Difference?
Some lenders have gotten into the practice of calling things service charges instead of fees so that they can circumvent laws with loopholes and make it seem like they are not charging a high APR. But it’s the overall cost of the loan that you need to consider, including the service charges and late fees, and even bounced check fees if you are unable to pay your loan on time and they either present the check you wrote to them, or run a charge through your account on your payday when there isn’t enough to cover it.
The more important thing to focus on, instead of the fees, is now long you have to pay the loan back, and how well their customer service is when dealing with them. Since the fees are pretty much straightforward, and almost always excessive, they’re not really worth shopping around for. If you think you’ve found a low-priced payday loan, definitely do your due diligence and find out what the catch is in their terms and conditions. Payday lenders always win, so it should never look like a good deal to you.