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Personal Finance Courses: Predatory Lending

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1.
Predatory lending can be identified by _______.
Choose wisely. There is only one correct answer.
Its high costs. Predatory lending involves a business charging higher-than-normal costs of various kinds.
2.
As far as loans go, payday loans are generally small.
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True. Payday loans are usually $500 or less, making them small.
3.
If you have a short-term financial emergency, what is a low-cost way to obtain a loan?
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Emergency credit union loan. Many credit unions and banks offer relatively low-interest short-term loans that can help tide you over a short-term financial emergency.
4.
It is possible to pay more in fees on a payday loan than the amount you originally borrowed.
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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.
5.
Which of these lenders requires little or no credit check when loaning money to a borrower?
Choose wisely. There is only one correct answer.
Payday lender. Payday loans are fast and usually don't require a credit check.