Understanding the true interest cost of pay day loans compared with Prudent Financial loans.

1. Pay day loans are short-term and have to be repaid in full by your following pay period. Prudent Financial loans are paid over 1-4 years.
2. Most people with pay day loans cannot repay their principle within two weeks and end up paying only interest! The cost to borrow $1000 can be anywhere from $90-$250 over two weeks depending on the company. If this original loan of $1000 takes you a year to repay, it could end up costing $4,680 to over $10,000. A Prudent loan of $1000 costs $227 over the entire year plus we will hold your cheque free of charge for up to two weeks when you are in a tight spot. This eliminates NSF charges and preserves your I1 credit rating.
3. Pay day loans do not help repair credit because they do not report to Equifax except if you go into collections! Prudent Financial reports to Equifax regularly and when you pay on time you get I1 - the highest credit rating!