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Personal Finance Courses: Predatory Lending

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1.
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.
2.
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.
3.
If you put up your car as collateral for a car title loan, what happens to your car if you pay the loan back?
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You get your car back. As long as you pay the loan back, you legally must get your car back.
4.
How soon after receiving your funds from a payday loan can you spend the money?
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Right away. You may spend the money as soon as you want.
5.
It is possible to pay more in fees on a payday loan than the amount you originally borrowed.
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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.