Test your knowledge

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Keep studying!

Review your answers below to learn more.

How good does your credit need to be in order for you to take out a payday loan?

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Excellent

Very good

Average

It doesn't need to be good

It doesn't need to be good. You don't need good credit in order to get a payday loan. Many borrowers do not have good credit.

As far as loans go, payday loans are generally small.

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True

False

True. Payday loans are usually $500 or less, making them small.

If you don't pay back your payday loan, the lender could take you to court and sue you for it.

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True

False

True. Legally, the lender can do that if it wants. Of course, all lenders would rather not have to go that route if they can avoid it.

A payday lender does not legally have to identify the fees charged to your payday loan.

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True

False

False. By law, a lender must spell out all fees to you in your contract.

Predatory lending can be identified by _______.

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Its high costs

Its low costs

Its high costs. Predatory lending involves a business charging higher-than-normal costs of various kinds.

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