It’s very important to know about the interest rates of payday loans. If you don’t know how they accrue interest, you run the risk of becoming blindsided and paying more than expected. Payday loans can help a lot, but you must be responsible and understand how the interest is calculated before signing up for one.
Lending Bear makes the process of obtaining a payday loan clear and transparent so that you know exactly what you’re doing when you borrow through us.
Payday loans are short-term, instant cash loans that allow the borrower to access credit despite a lower credit score. These have become very popular in the U.S. in recent years. While they are smaller sums of cash, the interest rates are often higher than traditional credit.
For example, in Alabama, a loan of $100 carries a fee rate of 17.5% with a 14-day APR of 456.25%. While the APR looks high due to the short term of repayment, it’s half the cost of an NSF fee from your bank.
Also, when we say “small loan,” we refer to anything up to $500. In Alabama and other states, the law caps how much you can borrow with a single payday loan.
You might be thinking that the higher interest rates of payday loans make them less attractive financial instruments. This is not so!
It all hinges upon how you use them and whether you can avoid the compiling effect of the higher rates. As a rule of thumb, debt instruments are nothing to fear as long as you respect them and pay them off when the bill is due.
Once you understand this, payday loans can be instrumental for short-term borrowers. There are so many advantages to taking out a payday loan.
If these sound appealing and you’re looking for a small but quick boost of cash, then you should strongly consider talking with a Lending Bear representative to discover more.
Payday loans are intended to serve as quick access to cash that you pay back promptly. These are not the same as traditional loans that you can amortize over months or years. With that in mind, we offer a few suggestions on how to repay them fast and avoid the potentially high interest of payday loans.
Lending Bear issues Payday loans in four different states: Florida, Alabama, Louisiana, and Tennessee. We’re a licensed lender with an excellent track record, which we can prove, having earned the designation as #1 Rated Payday Loan Company from BloggerLocal.
We know payday lending has met some criticism from detractors who call it unsafe or usurious. However, this is only true if you borrow from a non-licensed, unheralded lender. Lending Bear has earned the trust of its many customers, which you can see with our Google Review rating of 4.9 out of 5.0 from well over 5,000 reviewers.
So, if you think you need a payday loan and only want to get it through a trustworthy institution, contact us today at Lending Bear, and we’d be happy to help you get the cash.