Ray
I applied for 3000 dollars and am only…
I applied for 3000 dollars and am only receiving 1000 with an interest rate of 699% APR. It isn't good practice for such a high APR
Response from 45CashJul 12, 2024
Hi Ray. Thank you for sharing your concerns. We have access to a relatively large network of lenders. There was only one lender that expressed an interest in working with you, and it looks like that lender's internal policies and underwriting standards placed you in a subprime category where rates are relatively high. But please understand APR on short-term loans can be misleading. If you put $1,000 on a credit card with a 30% APR and made the minimum monthly payment (the greater of $25 or 3% of the balance), you would end up paying approximately $55/month, it would take 124 months to repay the debt, and you would pay approximately $2,549 in interest. Another interesting comparison is the APR equivalent on an overdraft fee. An overdraft fee of $35 on a $100 overdraft that is paid back in 2 weeks carries an APR of $1,690%. For loans with repayment terms of less than one year, it may be better to look at the total interest paid, versus the APR. Nevertheless, we urge all consumers to use our service as a free, no-obligation tool to make informed decisions. We respect your decision that the high interest rate you were offered is not good for you. We do not control the lenders' underwriting standards or their risk-based pricing. But we certainly understand your position.