Quid Loan Fees Cheaper Than Late and NSF Fees

There are many people out there a small short on cash needing to pay a bill or two before their next payday. They just need a short-term loan to carry them to their next payday. Enter the Quid Loan.

For those of you who are unknown with this type of product, a payday loan is a short-term loan that is intended to cover a borrower's fixed cost until his or her next payday. The distinctive loan amount ranges from between $100 to $1,500.

There are usually fees connected with these loans. The fees vary between lenders but are usually around $15 for every $100 borrowed. The fee may seem high but when compare to the alternatives, it can be a cheaper means to obtaining the greatly needed money.

The following examples compare the cost of the payday loan versus the costs of the alternatives (costs expressed here as an APR for a two-week term):

• $100 payday advance with $15 fee = 391% APR;
• $100 bounced check with $48 NSF/merchant fees = 1,251% APR;
• $100 credit card balance with $26 late fee = 678% APR;
• $100 utility bill with $50 late/reconnect fees = 1,304% APR.

The $15 fee for the payday loan is less than the alternative fees ($48, $26 and $50). Also, the APR for the loan is lower than the alternatives.

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