Everyone says short term loans are expensive, but how much will you really pay?
One of the main concerns people have with short term loans is the costs. How much will you be charged? What are the interest rates? What if you can’t pay my loan back? Many short term lenders have attempted to be transparent with their fee structures, outlining what you will and might be charged when you decide to take out a loan with them. In this guide, we’ll take you through exactly what you need to know.
- Easy online application
- Quick approval
- Fast funding
- Long repayment terms
OppLoans Installment Loans
Installment loans with competitive rates from a top-rated direct lender.
- Minimum loan amount: $500
- Maximum loan amount: $5,000
- Turnaround time: 1 business day
- Loan term: 9 to 36 months
- Must have direct deposit and meet minimum income requirements
How much do short term loans cost?
The interest rates and fees charged per loan vary depending on the lender. On top of that, each lender may have different interest rate ranges depending on your credit score. Check the comparison table below to see some preliminary information regarding what lenders charge.
Here’s an example of repaying a typical short term loan:
- Loan Amount: $500
- Loan Term: 30 days
- APR (Annual Percentage Rate): 299%
- Total Repayments: $624.58
- Cost of Loan: $124.58
How to compare lenders beyond the interest rate
Here are other ways you can compare your loan options:
- Turnaround time. When will you get your loan? Lenders are able to transfer money to you at different times — some within one business day, some within the hour.
- Additional extras. Some lenders offer extra features such as debit cards with their loans that can make the borrowing process easier.
- Ease of repeat borrowing. You might find you can easily borrow money again through certain lenders. This is through features such as member’s areas on websites and the lender keeping your details on file. You can often borrow more money than you did originally if you made your repayments on time the first time around.
- Late fees and default costs. The costs and fees associated with making late payments, rescheduling your payments and defaulting on your loan are important to take into consideration if you think there’s a chance you won’t be able to pay your loan back on time.