How much does a $1,200 payday loan cost?
With $1,200 payday loans, you can be charged an application fee of up to 20 per cent (or $240) and a monthly account-keeping fee of up to 4 per cent ($48) – although you can’t be charged interest.
If the lender charges a monthly fee, the longer your loan term, the more you’ll have to pay. Here’s how the fees can add up:
- 1 month = $48
- 2 months = $96
- 3 months = $144
- 4 months = $192
- 5 months = $240
- 6 months = $288
- 7 months = $336
- 8 months = $384
- 9 months = $432
- 10 months = $480
- 11 months = $528
- 12 months = $576
What's the interest on a $1,000 payday loan?
Payday lenders aren’t allowed to charge interest on $1,000 payday loans (or any other payday loans). However, they are allowed to charge high fees, which may include:
- An establishment fee of up to 20 per cent (or $200)
- Monthly fees of up to 4 per cent (or $40)
Depending on the length of your loan, here is the maximum amount you would have to repay with a $1,000 payday loan:
- 1 month = $1,240
- 2 months = $1,280
- 3 months = $1,320
- 4 months = $1,360
- 5 months = $1,400
- 6 months = $1,440
- 7 months = $1,480
- 8 months = $1,520
- 9 months = $1,560
- 10 months = $1,600
- 11 months = $1,640
- 12 months = $1,680
How much does a payday loan cost?
Payday lenders can’t charge interest on payday loans. But you might be charged these fees:
- A one-off establishment fee of up to 20 per cent of the loan
- A monthly account-keeping fee of up to 4 per cent of the loan
- A government fee
- A penalty fee (if you default on the loan)
For example, imagine you took out a $1,500 payday loan with a 12-month loan term and fortnightly repayments. Here’s how much you might be charged:
- An establishment fee of $300
- An account-keeping fee of $60 per month (or $720 over 12 months)
As a result, your repayments would be:
- $96.92 per fortnight
- $2,520 in total (equivalent to an interest rate of 68 per cent per annum)
How long do you have to repay a $1,200 payday loan?
Depending on the lender, you’ll generally be given between 16 days and 12 months to repay a $1,200 payday loan.
As a general rule, the longer your loan term, the more the loan will ultimately cost you, because most payday lenders charge monthly account-keeping fees.
Why do no credit check loans have a bad reputation?
There are two reasons why no credit check loans have a bad reputation:
- They usually have high fees
- Some people believe the loans are exploitative
Payday lenders aren’t allowed to charge interest, but they are allowed to charge an establishment fee of up to 20 per cent of the loan amount ($200 on a $1,000 loan) and a monthly fee of up to 4 per cent ($40 on a $1,000 loan).
Some people feel it’s wrong to charge such high fees, especially because some borrowers may have a low income and may be struggling with debt.
How do I get a $500 payday loan?
The most common way to get a $500 payday loan is over the internet, although some lenders also take in-store applications. The application process may take as little as five minutes and, in some cases, your loan may be assessed and approved within the hour.
When you apply for a $500 payday loan, you will probably have to provide:
- Name and address
- Proof of identification
- Employment details
What are payday loans?
Payday loans are loans of up to $2,000. Loan terms are generally between 16 days and 12 months, although they can sometimes be longer. Payday loans usually have these three characteristics:
- Borrowers need money in a hurry
- Applications are assessed rapidly
- Loans are expensive (high fees)
How do you get a $1,200 payday loan?
Most payday lenders take applications for $1,200 payday loans over the internet, although some lenders also allow you to apply in-store.
The application process varies from lender to lender, but you will probably have to provide your:
- Employment details
- Driver’s licence number