Choose wisely. There is only one correct answer to each question.
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1.
How good does your credit need to be in order for you to take out a payday loan?
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.
2.
If you are behind on a non-payday loan, why should you talk with the creditors about it?
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.
3.
Although people who take out payday loans use them for many different purposes, what is the most common use?
Regular living expenses. Most borrowers use payday loans for regular living expenses.
4.
If you take out $1000 from a payday lender, a credit card, and a credit card cash advance, which will charge the most interest?
The payday lender. By far, the payday lender will charge the most interest. The dollar amount difference between it and the credit cards will be immense. It should be noted that there are also options that are even lower in interest than the credit cards.
5.
If you put up a guitar at a pawnshop in return for a loan, what usually happens if you can't pay the loan back?
The pawnshop can keep the guitar. This is the general rule for how these loans work.