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CHECK INTO CASH
Check into Cash is one of the most popular cash advance companies that advertises on T.V. and
the Internet. I include them here in by "Belongs Below List" but all payday advance companies
could be grouped on this page.
Check into Cash and other payday advance companies take advantage of the poorest in our
society. The offices are placed in the low-income parts of the city and prey on the people who can
least afford it.
Payday loans range in size from $100 to $1,000, depending on state legal maximums. The average
loan term is about two-weeks. Loans cost on average 470% annual interest (APR). The finance
charge ranges from $15 to $30 to borrow $100. For two-week loans, these finance charges result
in interest rates from 390 to 780% APR. Shorter term loans have even higher APRs.
Let's do the math to see how that adds up for a $100 cash advance loan: A $15 fee for 14 days.
You would take 15 and divide it by 14 which equals 1.0714285. Now take that number and multiply
it by 365 days in the year and you wind up with an annual percentage rate of 391%. WOW! And
that's only for a $100 dollar loan.
Let's compare that to a credit card advance: Payday loans are extremely expensive compared to
other cash loans. A $300 cash advance on the average credit card, repaid in one month, would
cost $13.99 finance charge and an annual interest rate of almost 57%. By comparison, a payday
loan costing $17.50 per $100 for the same $300 would cost $105 if renewed one time or 426%
annual interest.
So why do so many people take out these outrageous high fee loans? They don't think in the long
term. They don't pay attention to what these loans actually cost. They are desperate for a little
cash to pay the rent or some other bill.
Most people don't take this loan out for only 14 days. When it comes time pay it off they wind up
paying the interest and taking out the loan again, and again, and again, and again. It's a vicious
cycle that most never get out of.
You've seen the numbers, now don't fall for Check into Cash or any other payday loans when you
wind up needing money for a few weeks. Ask friends, relatives or parents and you will come out
much better.
Check into Cash is one of the most popular cash advance companies that advertises on T.V. and
the Internet. I include them here in by "Belongs Below List" but all payday advance companies
could be grouped on this page.
Check into Cash and other payday advance companies take advantage of the poorest in our
society. The offices are placed in the low-income parts of the city and prey on the people who can
least afford it.
Payday loans range in size from $100 to $1,000, depending on state legal maximums. The average
loan term is about two-weeks. Loans cost on average 470% annual interest (APR). The finance
charge ranges from $15 to $30 to borrow $100. For two-week loans, these finance charges result
in interest rates from 390 to 780% APR. Shorter term loans have even higher APRs.
Let's do the math to see how that adds up for a $100 cash advance loan: A $15 fee for 14 days.
You would take 15 and divide it by 14 which equals 1.0714285. Now take that number and multiply
it by 365 days in the year and you wind up with an annual percentage rate of 391%. WOW! And
that's only for a $100 dollar loan.
Let's compare that to a credit card advance: Payday loans are extremely expensive compared to
other cash loans. A $300 cash advance on the average credit card, repaid in one month, would
cost $13.99 finance charge and an annual interest rate of almost 57%. By comparison, a payday
loan costing $17.50 per $100 for the same $300 would cost $105 if renewed one time or 426%
annual interest.
So why do so many people take out these outrageous high fee loans? They don't think in the long
term. They don't pay attention to what these loans actually cost. They are desperate for a little
cash to pay the rent or some other bill.
Most people don't take this loan out for only 14 days. When it comes time pay it off they wind up
paying the interest and taking out the loan again, and again, and again, and again. It's a vicious
cycle that most never get out of.
You've seen the numbers, now don't fall for Check into Cash or any other payday loans when you
wind up needing money for a few weeks. Ask friends, relatives or parents and you will come out
much better.
