Bad Credit Loans – Direct Lenders

Direct lenders for bad credit loans charge a lot more than conventional lenders at the bank or other financial institutions. As a matter of fact your credit card interest rate seems a lot more attractive than an interest rate charged by payday lenders. In majority of cases you can pay up to 30% annually in credit card payments. When it comes to payday loans the interest rate is in the neighborhood of 1000%.
Example of direct payday lender charges:

  • To borrow $500.00, you will pay a $175.00 finance charge plus the amount borrowed.
  • Your total repayment will be $675.00.
  • The annual interest rate for this loan is 912.50% APR.

The above calculation is based on a $35 fee (for each $100) and a 14 day repayment. If a borrower decides to go with a 70-day repayment, the calculation is as follows:

  • To borrow $500.00, you will pay a $175.00 finance charge plus the amount borrowed.
  • Your total repayment will be $675.00.
  • The annual interest rate for this loan is 1,825.00% APR.

When applying for a loan on sites like this one, submit your application and when you’re approved, talk to the lender about a lower fee. If you lower the fee to, let’s say $25 (for each $100 borrowed), the calculation for a 14-day term looks as follow:

  • To borrow $500.00, you will pay a $125.00 finance charge plus the amount borrowed.
  • Your total repayment will be $625.00.
  • The annual interest rate for this loan is 651.79% APR.

In fact it doesn’t matter whther you take out a payday loan for a week or a month. The fees are the same – it will cost you the same. The problem is when you want a loan for two months, then you will have to pay another fee of $175. This is a true killer, because your $500 loan costs you $350.

  • To borrow $500.00, you will pay a $350.00 finance charge plus the amount borrowed (14 days)
  • Your total repayment will be $850.00.
  • The annual interest rate for this loan is 1,825.00% APR.

Bad credit loan direct lenders will love you for that. Any further extensions will make the matter much worse.

 

NOTICE: PLEASE BORROW RESPONSIBLY. A SHORT TERM LOAN SHOULD BE USED FOR SHORT-TERM FINANCIAL NEEDS ONLY, NOT AS A LONG-TERM FINANCIAL SOLUTION. CUSTOMERS WITH CREDIT DIFFICULTIES SHOULD SEEK CREDIT COUNSELING OR MEET WITH A NONPROFIT FINANCIAL COUNSELING SERVICE IN THEIR COMMUNITY.

We are not a lender. Only your lender can provide you with information about your specific loan terms and APR and the implications for non-payment of your loan. Ask your lender for their current rates and charges and their policies for non-payment. Our lenders may offer you a loan with an APR between:200% and 2281%. The APR on a small dollar, short term loan represents the amount of your loan, cost of the loan, term of the loan and repayment amounts and timing. Loans on the lower end of the APR range may be for a larger loan amount and for a longer term. Loans on the higher end of the APR range may be for a smaller loan amount and for a shorter term. Depending on your credit needs and desire to pay your loan off quickly, your lender may only offer you loans with an APR near the high end of the range displayed.

If you do not pay your loan according to its terms, your lender may: • Charge you late fees • Send your account to a collection agency • Report your information to a consumer reporting agency, which may negatively affect your credit score • Offer to renew, extend or refinance your loan, which may cause you to incur additional fees, charges and interest. Ask your lender for their current rates and charges and their policies for non-payment.