With big, bright signs offering quick cash, storefronts for payday loans are hard to miss. But while they may offer plenty of promises for easy financial help, there’s more to them than meets the eye. Before you go down the financial rabbit hole payday loans can create, there are some things you may want to know. How Do Payday Loans Work? Payday loans are usually small, short-term loans with few approval requirements and high costs. Let’s take a deeper look at the factors that set payday loans apart from other types of loans. Amount According to the Consumer Financial Protection Bureau (CFPB), the loan size is generally around $500, although limits may be higher or lower, depending on state laws.
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