Payday Loan
A short-term, high-cost loan intended to cover expenses until next payday.
Detailed Description
Payday Loan
What is the typical loan amount for a payday loan?
Payday loans usually range from $100 to $1,000, depending on the lender and state regulations.
What are the primary eligibility requirements for obtaining a payday loan?
Borrowers generally need to be at least 18 years old, have a steady source of income, possess a valid bank account, and provide identification.
What are the potential consequences of failing to repay a payday loan on time?
Failing to repay on time can result in additional fees and interest, and may lead to the loan being sent to collections, negatively impacting the borrower's credit score.
How do payday loans differ from traditional loans?
Payday loans are short-term, high-interest loans with quick approval processes, while traditional loans typically have lower interest rates and longer repayment terms.
What alternatives exist to payday loans for financial assistance?
Alternatives include credit union loans, personal loans from banks or online lenders, payment plans with creditors, and emergency assistance programs from nonprofits or government agencies.