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

True

False

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

If you are behind on a non-payday loan, why should you talk with the creditors about it?

They will forgive the loan.

They would rather work with you than have to sell your loan to a debt collector.

They will give you another loan to cover it.

None of the above

They would rather work with you than have to sell your loan to a debt collector. If they sell your loan to a debt collector, they will get very little for it. They WANT to work with you rather than see that happen.

Paying off payday loans on time, every time, is a great way to build up your credit score.

True

False

False. Payday lenders do not report your borrowing activity to the three big credit bureaus, so the activity will not influence your credit score.

Predatory lending can be identified by _______.

Its high costs

Its low costs

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

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

True

False

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