All termsGlossary
What is a payday loan?
Payday loan
A payday loan is a small loan meant to be repaid in a lump sum on the next payday, usually in two to four weeks. The cost is shown as a fee per amount borrowed. Turned into an APR (definition, opens in a new tab), that fee is often very high, especially if the loan gets rolled over.
Example
At $15 per $100 over two weeks, a fee the CFPB calls common, a $300 loan costs $45, which works out to 391.07% APR.
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General education, not financial advice.