How to calculate APR for online cash advance loan
Before taking online cash advance loan, you must calculate the interest rate or APR you need to pay against the loan. It is very important to find out that you are able to pay back the cash advance loan with its interest or not. Online cash advance loan is a short term loan that you need to payback with interest within 14 days or when you receive your paycheck. Interest rate for these loans seems to be very high but the actual interest you need to pay is minimal as these loans are only for 2 weeks or for a month. The problem creates when you don’t pay the loan back on time. In this case you will have to pay much more amount then the actual loan amount as the interest. So, the APR for online cash advance loan is one of the very important factors in choosing the loan provider.
While searching for reliable cash advance lenders, you must look for the interest rates they are providing. If you are not sure about the best interest rate then you can calculate the actual APR that you will need to pay for your loan. For this you need to know three things: exact amount of loan, interest you need to pay and the payback time. Then you can calculate the APR with the formula (Fee Ö amount financed) x (365 Ö number of days) = APR. For example, if you are paying 50$ as interest on loan of 350$for a period of 14 days then the APR will be 372.45%. So, check out the interest rates before making any loan decisions.
