APR Disclosure

PaydayLoanUnion.com understands that the average borrower may not fully understand how payday loans work and how the interest rates on these loans are calculated. Annual Percentage Rate (APR) is the percentage used to figure out the total cost of your payday loan because it takes into account all additional fees charged on your loan. APR is an interest rate that is different from the standard interest rate charged on a loan. APR can be useful for you as a basis of comparison between lenders because it can help you to evaluate different rates and loan options offered by various lenders.

Personal loan lenders are required under the Federal Truth in Lending Act to disclose all terms and rates of the loan, such as the APR rate, in order to protect your rights as a consumer. APR does not have any effect on the actual amount of your payday loan payment, instead your payment is calculated based on the actual interest rate and the length of your loan term.

Payday loans are small cash loans and short-term advances that are due on your next payday, unless your next payday is 4 days away from your loan date interest is charged at flat fee. In this case your loan repayment will be due on your second payday. The maximum loan term is 14 days.

With a payday loan you are charged a flat fee no matter when your cash loan is repaid (subject to the 14 day maximum loan term). Because the fees are fixed per loan amount, the Annual Percentage Rate (APR) will vary depending on the number of days that pass between the date you receive your advance and the day you repay the loan. There is no refund of fees for early repayment.

Although payday loans are short-term advances intended to be paid off quickly, various Truth-in-Lending laws require financing disclosures to be expressed as an Annual Percentage Rate (APR), or the cost of the credit advanced to you expressed as an annual rate. This requirement provides uniformity among various credit sources, so you can compare rates and make the choice that is right for you.