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Personal Finance Courses: Predatory Lending

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1.
All credit cards are a form of predatory lending.
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False. Some credit cards have very high fees and other predatory features, but many of them do not.
2.
As a general rule, which of the following will charge the LEAST amount of interest if you take out a loan?
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A loan from a bank or credit union. As a rule, these loans have the lowest interest rates and charge the least amount of interest.
3.
To qualify for a payday loan, what must your income be?
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There is no minimum. You just need to earn sufficient money to cover the loan.
4.
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.
5.
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.