Rollovers are arguably the most misunderstood features of payday loans. A rollover occurs when the borrower uses cash advances to pay for each other. Instead of repaying a loan within the initial term, another loan is taken to cover the balance. After doing this several times, some borrowers find themselves with a total interest payment [...]

Few areas of the financial services sector are growing. Aside from payday lending, that is. This financing has become much more popular since the economic recession restricted traditional lending. However, the joy may be short-lived because the Consumer Financial Protection Bureau (CFPB) has begun to scrutinize these operations. Richard Cordray, the recently appointed bureau director, [...]

According to some, lending to people with bad credit must carry a high interest rate. The risk of default is high and this risk is highest at the beginning of the loan. Short-term lending must feature a high interest rate because the default rate will not decline during the loan period. Small loans are also [...]

As states like Montana pass legislation capping interest rates for payday lending, many providers of payday loans are going out of business. Using Montana as an example, there were up to 150 payday lenders before ballot Initiative 164, capping interest charges and fees for Montana payday loans at 36 percent, was passed. Currently, only 18 [...]

Many people turn to online payday loans when they need money quickly. Since multiple lenders compete in this arena, it is important to find the most reputable one that offers the best rate and excellent loan terms. Some lenders offer attractive services like instant approval, overnight transfer of money, or no teletrack loans through online [...]