The full explanation
It generally does not check whether you can repay it and still cover your other bills. Its fees, expressed as an annual percentage rate (APR), can be much higher than a credit card's. Some states do not allow payday loans or cap them, and in others you may be offered a rollover in which you pay only the fees.
An example
Carmen is short on rent money. Before taking out a payday loan, she asks her credit union about a cheaper small loan and talks to her landlord about more time.
You will see it in…
- Storefronts and online ads for fast loans with no credit check
- The loan agreement, with the due date and the fees
- Your bank statement, if the lender takes the payment from your account
