That’s not how it works.
If you want a short term payday cash loan, it’s 10% plus $1.00.
So for $300.00, the interest and fees for an instant $300.00 loan is $31.00.(that’s $1.00 less than a single bounced bank check fee, and there is no criminal intent/exposure to commit fraud charges involved)
You write the check to the lender for $331.00.
That’s a simple 10% and a $1.00 fee.
You walk in on or before the due date, pay the fees, and get your check back.
It’s a high interest rate, but again, it beats a single bounced check fee charge, and is a more rational choice of financing options for those with no credit or bad credit, when either an accounting error or simple emergency expenses threatens to make a small cash flow problem into a life changing event.
Most people don’t “roll it over” even once.
That is frowned upon, and lowers your chances of getting another advance.Just like “real banks” do, if you don’t pay on time.
One might need to take out subsequent advances, generally of smaller amounts, if it takes a few months to get back on budget.
Still beats escalating late payment fees and/or bounced check fees.
The APR numbers you site are entirely irrelevant at this level.
Yes. In that instance, you are correct.
For my example, I was speaking specifically about people who roll over the loan for longer than the initial short term. In that case, the usury interest rates kick in.