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How long do most payday loans last?

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A year

A month

Two months

Two weeks

Two weeks. Most payday loans last about the length of a pay period, which is two weeks.

Which of the following best describes how payday loans differ from bank and peer-to-peer (P2P) loans in terms of repayment time?

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You can pay back a payday loan over many years.

Payday loans must be repaid within weeks.

Payday loans and bank loans both offer similar repayment periods.

Payday loans have the longest repayment time.

Payday loans must be repaid within weeks. Banks and P2P platforms let you take much longer to pay loans back.

It is possible to pay more in fees on a payday loan than the amount you originally borrowed.

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True

False

True. If you extend the loan or take out a different one to cover it, and you did this several times in a row, you might actually pay more in interest than the actual loan itself.

All credit cards are a form of predatory lending.

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True

False

False. Some credit cards have very high fees and other predatory features, but many of them do not.

How might a payday loan affect your credit report?

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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.

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