Rates and Fees

Who Sets Rates and Fees?

Interest rates, fees, and all other loan terms are set by individual lenders based on:

• State regulations where you live
• The loan amount
• The loan term (length of time to repay)
• Your individual credit profile and risk assessment
• The lender's own business policies

Because these factors vary, the rates and terms you may be offered will be specific to your situation. We cannot predict what rates or terms any lender may offer you.

Understanding APR

APR stands for Annual Percentage Rate. It represents the yearly cost of borrowing, including interest and certain fees, expressed as a percentage. APR helps you compare the cost of different loans on a standardized basis.

Key points about APR:

• Higher APR means higher cost of borrowing
• Short-term loans often have very high APRs because the fees are calculated on an annual basis, even though the loan may only be for a few weeks
• APR includes interest plus certain fees, but not all costs may be included
• Lenders are required to disclose the APR before you accept a loan

APR Range for Short-Term Loans

Short-term loans, including payday loans and cash advances, typically have higher APRs than traditional bank loans or credit cards. APRs for these products commonly range from approximately 200% to 600% or higher, depending on the state and lender.

Why are short-term loan APRs so high?

APR is calculated on an annual basis. When a small fee is charged for a short period (like two weeks), the annualized rate becomes very high. For example, a $15 fee on a $100 loan for two weeks equals approximately 391% APR when calculated on an annual basis.

Illustrative Examples

Note: These examples are for illustration only and do not represent actual offers or typical terms. Your actual terms may vary significantly.

Loan Amount	Term	Finance Charge	APR	Total Repaid
$100	14 days	$15	~391%	$115
$300	14 days	$45	~391%	$345
$500	30 days	$75	~182%	$575
$1,000	6 months	$300	~60%	$1,300

*These are hypothetical examples only. Actual rates, fees, and terms vary by lender and are not guaranteed.

Types of Fees

Depending on the lender and loan type, you may encounter various fees:

• Finance Charges: The cost of borrowing, which may be a flat fee, a percentage of the loan, or interest.
• Origination Fees: A one-time fee charged when the loan is issued.
• Late Payment Fees: Charged if you miss a payment or pay late.
• NSF/Returned Payment Fees: Charged if a payment is returned due to insufficient funds.
• Prepayment Penalties: Some loans may charge a fee if you pay off the loan early (though many short-term loans do not).
• Rollover/Extension Fees: If allowed, extending or rolling over a loan will incur additional fees.

Before You Accept a Loan

If you receive a loan offer, the lender is required to provide you with disclosure of all terms before you accept. You should receive and review:

• The loan amount (principal)
• The Annual Percentage Rate (APR)
• The finance charge (total cost of borrowing in dollars)
• All fees and when they apply
• The repayment schedule (when and how much you must pay)
• The total amount you will repay
• Consequences of late or missed payments

Do not accept a loan until you have reviewed and understood all terms.

State Regulations

Loan regulations, including rate caps and fee limits, vary by state. Some states have more protective regulations than others. The rates and terms available to you depend in part on where you live.

Your state attorney general's office or state banking/financial regulator can provide information about lending regulations in your state.

Consider the Total Cost

Before borrowing, consider not just whether you can afford the monthly or bi-weekly payment, but the total cost of the loan. Ask yourself:

• How much will I repay in total?
• Is this expense necessary?
• Are there less expensive alternatives?
• What happens if I can't repay on time?

For more information about responsible borrowing, visit our Responsible Lending page.

We Don't Control Rates