What should you know before a payday loan?
You receive a small loan now and usually repay principal plus the fee near the next payday.
A common $15 fee per $100 means a $300 loan costs $345 in about two weeks. The hard part is the lump-sum repayment, not the size of one fee.
- The lender must disclose the finance charge and APR.
- State law controls availability, limits, and rollover rules.
- A rollover can add a fee while principal stays due.
- The catch: repayment can consume cash needed for rent, food, or utilities.
Cash arrives now and one large payment follows
Read the finance charge, APR, due date, and debit authority before signing.
Receive the principal
The lender sends the amount borrowed.
Add the finance charge
A fee per $100 becomes part of the amount due.
Repay or extend
If state law and the contract allow an extension, another fee may apply.
Borrow $300 for about two weeks at $15 per $100. The $45 charge is almost 400% APR.
Same-day access creates a hard payday
The underwriting may be fast
The loan can cover cash that cannot wait.
The full amount returns at once
If $345 does not fit, an extension can add cost without shrinking $300 of principal.
Use payday credit only after cheaper paths fail
The repayment must fit without another loan.
More likely to fit
- You verified the lender and state rules.
- The written repayment fits beside essentials.
- A larger harm truly costs more than the loan.
Stop and use a safer path
- The biller can move the payment.
- A federal credit union or earned-pay option costs less.
- You expect to roll over or borrow again.
Short answers for the next move
How much does a payday loan cost?
The CFPB says $10 to $30 per $100 can apply; $15 per $100 is common.
Can you roll it over?
State law and terms vary. A rollover can add another fee while principal remains due.
Can a lender arrest you for not paying?
No. The CFPB says default on a payday loan is not grounds for arrest.
What should you try first?
Ask the biller, check a credit union, compare earned pay, and use the same-gap tool.
Sources and method
Sources checked August 28, 2026. Provider prices, rankings, and individual eligibility are outside this page’s scope.
- CFPB: Payday-loan costs and fees. A common $15 charge per $100, the $300 repayment example, rollover costs, and state-law limits.
- CFPB: Choices before a payday loan. Lower-cost steps, bill negotiation, and the effect of a lump-sum payday repayment.
- FTC: Payday and car-title loans. Loan mechanics, disclosure duties, title-loan fees, rollover costs, repossession risk, and state-law variation.
- MyCreditUnion.gov: Payday Alternative Loans. Federal credit-union PAL amounts, terms, application-fee limit, membership rule, and alternatives.
- Rung cash-gap comparison method. Same-gap dollar-cost and next-payday method emergency-cash-compare@2026-08-28.4.
Claim record: emergency-cash-system@2026-08-28.1. No individual approval, access, or savings result is predicted.