Cash Advance Loans
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Why does the APR appear high?

At first glance the APR appears to be high. This is very deceitful, but there is a simple reason why this figure looks so high. APR is an Annual Percentage Rate, and as such is calculated over a whole year (365 days). However, a payday loan is taken usually only over a number of days or weeks.

The APR calculation was not designed to apply to very short term loans . It was designed to apply to long term loans in existence for a year or more. It is really a theoretical figure than enables people to compare similar longer term loan products, like mortgages or ongoing credit balances.

It is more advisable to look directly at the loan agreement to see exactly how much interest you will be charged for the period of your payday loan, rather than relying on the APR rate. Some companies have a standard interest charge for the amount you wish to borrow regardless of the duration of the loan. So, It is up to you to decide whether you will be able to repay both the cash advance you receive initially and the interest amount on the repayment date.


Many people just do not have sufficient savings or access to credit cards or more traditional loans because of poor credit history. So, for them using the services of regulated payday loan provides is the only way to get money you need quickly. Moreover, eligibility criteria make almost any person suitable for a payday loan.

If you need money in a hurry to cover your bills and you can not wait until payday, it’s better to take a pay day loan than to pay any expiration fees because you didn’t meet the deadline. Especially, it’s an ideal solution if you are confident that you will be able to make the necessary payments on the repayment date. Overall, payday loans are convenient, easy to access and offer a viable option for people who require money quickly for whatever reason.