Test your knowledge

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A payday lender does not legally have to identify the fees charged to your payday loan.

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True

False

False. By law, a lender must spell out all fees to you in your contract.

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.

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

False

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.

What do borrowers use payday loans for?

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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.

Paying off payday loans on time, every time, is a great way to build up your credit score.

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True

False

False. Payday lenders do not report your borrowing activity to the three big credit bureaus, so the activity will not influence your credit score.

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