Premier Bank provides different types of loan products. Interest rates on payday loans are tied tightly to the consumers' credit score. In general, we use a consumer's credit score and debt-to-income ratio to determine interest rates and the loan amounts they are eligible to make. The interest rate of the loan depends on the borrower's credit score, among other factors, and loan terms may range from 14 days to 30 days.
Secured consumer loans typically provide the borrower with more funding, longer payback periods, and a lower interest rate charged. Personal loans carry a lower interest rate than credit cards, so they may help consumers save money on interest charges while paying the loan. If a consumer is struggling with credit card debt, personal loans offer the ability to consolidate the debt and receive better terms.
Consumer Loans are Available
Consumer loans and lines of credit are forms of finance that allow for purchases at higher prices you cannot make in cash today. Consumers typically borrow to fund purchases of homes, education, debt consolidation, and general living expenses. Businesses take out loans for many of the same reasons consumers do: to fill gaps in short-term funding, pay day-to-day expenses, and buy real estate.
Payday Loan Alternatives
While mortgages, auto loans, and student loans are meant to be used for specific purposes, personal loans can be borrowed to consolidate debt, pay daily living expenses, take a vacation, or build credit, among other purposes. Most small business loans can be used for general business expenses, but there are also special business debt products, such as a commercial real estate loan, which is like a home mortgage, and a business line of credit, which is similar to a credit card. A closed-end consumer loan, also known as a bundled loan, is used for financing a particular purchase.
An open-end consumer loan, also known as revolving credit, is a loan that a borrower may use for any kind of purchase, but he or she must repay the open-end consumer's loan principal, plus interest, by a specified date. With an open-end or revolving loans are made continuously while the purchase is being made, with periodic bills for making at least a partial payment.
Unless you repay your debt in full every month, you often must pay high-interest rates or other types of financing fees to take advantage of the loan. Common examples of fees include origination fees for mortgages, or late fees if you fail to make your credit card or other loan payments on time.
Terms and Conditions
Consumers can receive lower rates than with many other lending options, such as credit cards or unsecured loans. Fixed rates remain constant throughout the life of your loan, with the exception of most credit cards, which can have their rates changed as long as a bank gives you the required notice. This type of loan may be distributed by a bank, credit union, online lender, or a car dealership, but you need to realize that although loans from a dealership might be more convenient, they usually have higher interest rates and end up costing more. Mortgages are loans distributed by Premier Bank, credit unions, and online lenders that enable consumers to purchase homes.
Interest Rates at Premier Bank
Premier Bank charges rates of up to 780% annual percentage rate (APR), and an average loan is almost 400%. High-interest credit cards can charge borrowers an APR between 28 and 36%, but payday loans typically have an average APR of 398%. Payday loans can be considered predatory loans because they carry extremely high-interest rates, they do not take into account borrowers' capacity to pay, and they have hidden provisions charging the borrowers additional fees.