“Quick and easy” cash is a trap.

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MORE $ IN FEES THAN $ BORROWED

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ROLLING OVER AND OVER

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SEEMS IMPOSSIBLE TO PAY OFF

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NOT BUILDING CREDIT

💰 MORE $ IN FEES THAN $ BORROWED 📆 ROLLING OVER AND OVER 📈 SEEMS IMPOSSIBLE TO PAY OFF 🕵️ NOT BUILDING CREDIT

There’s a better way.

Request information on alternatives from a CDFI near you, or, if you are in Tennessee and have a concrete expense or a predatory loan that you are paying on, apply with BetterFi.

Why are predatory loans bad? Here are a few reasons:

A Consumer Finance Protection Bureau study found that most United States payday loan borrowers pay more in interest and fees than they borrowed.
An APR over 100% means a loan will cost more than 100% the amount borrowed over a term of a year.
A biennial report by the Tennessee Department of Financial Institutions has shown that the average title loan borrower renews more than 9 times.
If someone rolled over a $500 tittle or flex loan nine times before paying it off, they would pay over $1500 to pay off a $500 loan.
Tennessee payday loans can carry an annualized interest and fee rate of 460%.
This means that for $500 in payday loans, a borrower must pay more than $191 per month to even pay the loan down by $1.
At that rate how much does it cost to pay off?
The Consumer Finance Protection Bureau reports that most payday lenders do not report to credit bureaus.
On time payments to predatory lenders are not usually reported and do not generally help a borrower’s credit score — but if the loan goes to collections you can bet it will show up and hurt a defaulted borrower’s score.