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Comparison Loan Shopping

Loan Lenders- Loan advices October 7, 2016

Comparison Shopping

If you do need to borrow money, it pays to comparison shop. When comparison shopping for loans, look at both total dollar costs and the APR. Payday lenders, for example, typically charge about $15 for every $100 borrowed. So, on a $500 loan for two weeks, you would pay $75 in interest. That might not sound like a lot of money to pay for a small loan, but it translates to a whopping 391 percent APR!

 If you renew or roll over the $500 loan for another two weeks, you would pay an additional $75 in fees. At that rate, in just 14 weeks, you will owe more in fees ($525) than the original loan!

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