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1.
What is a typical fee on a payday loan?
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15%. Fee rates range from 15-20% of the amount borrowed.
2.
If you don't pay back your payday loan, the lender could take you to court and sue you for it.
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True. Legally, the lender can do that if it wants. Of course, all lenders would rather not have to go that route if they can avoid it.
3.
Paying off payday loans on time, every time, is a great way to build up your credit score.
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False. Payday lenders do not report your borrowing activity to the three big credit bureaus, so the activity will not influence your credit score.
4.
Predatory lending can occur with which of the following?
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All of the above. All of these and many more can be involved in predatory lending. You should evaluate all of them carefully.
5.
What do borrowers use payday loans for?
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All of the above. People take out payday loans for many different reasons.