Choose wisely. There is only one correct answer to each question.
Review your answers below to learn more.
The interest rates of payday loans are very high.
True. Payday loans have average annual interest rates of 500 percent--or more.
If you take out $1000 from a payday lender, a credit card, and a credit card cash advance, which will charge the most interest?
The payday lender. By far, the payday lender will charge the most interest. The dollar amount difference between it and the credit cards will be immense. It should be noted that there are also options that are even lower in interest than the credit cards.
If you put up a guitar at a pawnshop in return for a loan, what usually happens if you can't pay the loan back?
The pawnshop can keep the guitar. This is the general rule for how these loans work.
A payday loan is designed to _______.
Tide you over until your next paycheck. A payday loan is set up to pay short-term bills and to be repaid with your next paycheck.
How might a payday loan affect your credit report?
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.