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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.

The interest rates of payday loans are very high.

True

False

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

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.

Predatory lending can occur with which of the following?

Tax refunds

Payday loans

Rent-to-own stores

All of the above

All of the above. All of these and many more can be involved in predatory lending. You should evaluate all of them carefully.

What do borrowers use payday loans for?

Medical emergencies

Regular bills

As an alternative to other loans

All of the above

All of the above. People take out payday loans for many different reasons.