If you are in a situation where you need a 500 payday loan we can help. At ez1000loans.com we specialize in matching borrowers with the best lender for their situation. We offer a fast, secure online application to help you get the cash you need. Of course, before you decide to take out a 500 loan we hope that you read through our education center and learn as much as you can about how payday loans work, what you need to know before you take out this type of loan, and what you need to do afterward.
What You Need To Know About $500 Loans From Payday Lenders
The first thing you need to know is the purpose of these loans. These types of loans are meant to help you out in a short-term financial crises. For example, maybe your car broke down and you can’t get to work without it, or you have an unexpected medical bill that comes due. Other very common reasons people take out small payday loans are:
- To pay the minimum payments due on your credit card
- To pay another bill that is due in order to not have to pay a late fee (a utility bill is one of the most common examples given by our customers)
- To avoid a bounced check fee from your bank
How Fees and Interest Rates Work
With payday loans you don’t have to worry about extremely complex payment periods. While the interest rates are higher than other types of personal loans, there are only two main number you need to pay attention to:
- APR – this is the annual percentage rate, and loan companies are required by law to disclose there loans in these terms upfront. However, this number can actually be a little misleading. Can you imagine a bank telling you the cost of the bounced check fee is 500% APR? All that would do is confuse you, yet payday lenders are forced to do so. Average APR’s is above 450%, but that doesn’t mean you have to pay back 5 times the loan in interest rates and fees. What this means is that you would pay that much if you kept the loan for an entire year, which is not allowed, as cash advances are due by the time you receive your next paycheck.
- Total Interest – this is the number you need to pay attention to. Again, for $500 payday loans you will pay around $85 (see above) total. I like to look at this number because it give a better representation of what you are actually paying – AS LONG AS YOU PAY IT BACK ON TIME.