Test your knowledge

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Review your answers below to learn more.

How good does your credit need to be in order for you to take out a payday loan?

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Excellent

Very good

Average

It doesn't need to be good

It doesn't need to be good. You don't need good credit in order to get a payday loan. Many borrowers do not have good credit.

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.

How long do most payday loans last?

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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.

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.

If you put up your car as collateral for a car title loan, what happens to your car if you pay the loan back?

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The lender can still keep the car

You retain ownership of your car

Nothing

None of the above

You retain ownership of your car. As long as you pay the loan back, you legally must get your car back.

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