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How might a payday loan affect your credit report?

If you don't pay the loan back, it could get turned over to a debt collector.

You could get sued if you don't pay the loan back.

Small credit reporting agencies might put your payday loan on a credit report.

All of the above

All of the above. The big three credit reporting agencies don't put payday loans on your report, but there are other ways that the loan activity could show up on your report.

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

True

False

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

The interest rates on payday loans are _______.

Higher than those of banks or credit unions

Lower than those of banks or credit unions

Normal

Higher than those of banks or credit unions. Interest rates on payday loans are generally much higher than those of other loans.

If you roll over a payday loan three times, you will be charged a new fee each time.

True

False

True. You will be charged a new fee for each rollover.

The interest rates of payday loans are very high.

True

False

True. Payday loans have average annual interest rates of 500 percent--or more.