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Personal Finance Courses: Predatory Lending

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1.
How might a payday loan affect your credit report?
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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.
2.
The interest rates on payday loans are _______.
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Higher than those of banks or credit unions. Interest rates on payday loans are generally much higher than those of other loans.
3.
What is a typical fee on a payday loan?
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15%. Fee rates range from 15-20% of the amount borrowed.
4.
Which of these lenders requires little or no credit check when loaning money to a borrower?
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Payday lender. Payday loans are fast and usually don't require a credit check.
5.
Although people who take out payday loans use them for many different purposes, what is the most common use?
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Regular living expenses. Most borrowers use payday loans for regular living expenses.