Many state laws set a maximum amount for payday loan fees ranging from $10 to $30 for every $100 borrowed. A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400 percent. By comparison, APRs on credit cards can range from about 12 percent to about 30 percent. In many states that permit payday lending, the cost of the loan, fees, and the maximum loan amount are capped. read more
What’s clear, though, is that payday loans are one of the most expensive ways to borrow money, with annual percentage rates up to a staggering 6,000%, compared with a typical credit card APR of 20%. read more