What is a payday loan? | Consumer Financial Protection Bureau
If approved, you get cash or a deposit, often the same day . PAYDAY LOAN
A payday loan is a short-term, high-interest borrowing option designed to bridge a financial gap until your next paycheck. While they offer "fast cash" without a credit check, they are often criticized as predatory due to their extreme costs. ⚡ How it Works What is a payday loan
Payday lenders often charge a flat fee of borrowed. While this sounds like a "15% interest rate," the short term makes the Annual Percentage Rate (APR) astronomical. Payday Loan Credit Card Personal Loan Typical APR ~400% 12% – 30% 7% – 36% Repayment Lump sum (2 weeks) Monthly (variable) Monthly (installments) ⚠️ Key Risks While they offer "fast cash" without a credit
You provide ID, proof of income, and an active bank account.
On your next payday (usually 2–4 weeks later), the lender cashes the check or pulls funds from your account. The Real Cost (APR)