https://padlet.com/kris_walters/k306z5nexc3y3usw Differences between a loan from a bank and one from a Payday lender en-us 2020-09-21 23:37:32 UTC 2024-10-09 12:21:31 UTC hello@padlet.com kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766284853 2020-09-21 23:48:37 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766284853 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766287841 A loan that gives people the money they need to make it until their next paycheck. This is a short-term, high-cost loan.]]> 2020-09-21 23:50:36 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766287841 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766303676 A loan with a fixed interest rate and repayment period. This is also a short-term loan, but not so much high-cost.]]> 2020-09-22 00:00:49 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766303676 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766312396 A lender doesn't check your credit score with this loan, so it will not be affected.]]> 2020-09-22 00:05:57 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766312396 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766315975 A lender does check your credit score with this loan and each loan lowers your credit score a little bit.]]> 2020-09-22 00:07:49 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766315975 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766325591 You will have to pay more fees if you don't pay off this entire loan on payday.]]> 2020-09-22 00:13:15 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766325591 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766331527 Credit unions, local banks, and credit card companies are all sources of these loans.]]> 2020-09-22 00:16:38 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766331527 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766334533 2020-09-22 00:18:10 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766334533 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766413326 Let's say I needed a loan of $425. If I went to a payday lender I would need to pay a 15% fee upfront, which would be $75. After that, I would write the lender a $500 check that they would cash on my payday at the end of that month and they would give me $425 in cash. If I could not pay that $500 in full at the end of the month, I would also have to pay additional fees. The Personal Finance iBook states, "Payday loans are incredibly expensive compared to personal loans" (Credit, 3). If I applied for a personal loan, I would have an APR of about 15% based on a good credit score (https://www.valuepenguin.com/personal-loans/average-personal-loan-interest-rates). If I paid this loan back by the end of the month I would only be paying $5.31 in interest, and personal loans tend to be more flexible with the time you have to repay them. Based on this information, I would choose to get this loan from a bank. In the end, I would be paying $500 if I chose a payday lender and $430.31 if I chose to get the loan from a bank, which is a $69.69 difference. According to the Personal Finance iBook, "Because of the high fees and finance charges associated with payday loans, there's a risk of falling into a long cycle of debt" (Credit, 2-3). Just from the price differences in my example, I can definitely see how payday loans can be so dangerous. ]]> 2020-09-22 00:55:19 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766413326 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766466630 2020-09-22 01:18:17 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766466630 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766468431 2020-09-22 01:18:53 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766468431 kris_walters https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766469401 2020-09-22 01:19:16 UTC https://padlet.com/kris_walters/k306z5nexc3y3usw/wish/766469401