Learning All About Financing

« Back to Home


Payday Loans and APR: What Borrowers Need to Know

Posted on

In the media, payday loans are often cited as having extraordinarily high annual percentage rates, or APRs. This is true. The average APR on a payday loan often approaches 400%. When you compare that figure to the average APR on a traditional credit card—which is typically lower than 30%—payday loans seem like a losing investment for the borrower.  However, as it often is with statistics, the APR on a payday loan is extremely misleading. Read More»