But there are a few major downsides:
They trap you. To get a payday loan, you have to write a post-dated check for the loan amount up front. If you fail to pay it back on time, the lender will deposit the check, or you can write a second post-dated check for another loan, trapping you in an expensive cycle.
You have to pay them back in a short amount of time. Sometimes the timeline is as short as two weeks.
They have huge fees. Interest rates can range as high as 400%, according to the Consumer Financial Protection Bureau.
However dire your financial situation may be now, it is likely to get worse when you get a payday loan. If you’re facing payments that you can’t make and feel that you’re running out of options, try these tactics instead:
Enjoy a 1.99%* intro rate and no balance transfer or annual fees.
Get Special Offers when you maximize your membership.
Consolidate with Personal Loans. Rates as low as 7.50% APR*!
Webinar: Ten Steps to Financial Success — November 5th & 21st
Make your life easier. Download the epOnline Mobile App.
More than 80,000 nationwide surcharge-free ATM's*
Save on your new, used or refinanced auto loan!