Test your knowledge

Choose wisely. There is only one correct answer to each question.

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Review your answers below to learn more.

How soon after receiving your funds from a payday loan can you spend the money?

Choose wisely. There is only one correct answer.

One week

You must wait until the next morning

You must wait 24 hours for the application to clear

Right away

Right away. You may spend the money as soon as you want.

The interest rates on payday loans are _______.

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Higher than those of banks or credit unions

Lower than those of banks or credit unions

Normal

Higher than those of banks or credit unions. Interest rates on payday loans are generally much higher than those of other loans.

If you don't pay back your payday loan, the lender could take you to court and sue you for it.

Choose wisely. There is only one correct answer.

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.

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

Choose wisely. There is only one correct answer.

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.

How long do most payday loans last?

Choose wisely. There is only one correct answer.

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.

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