Rates & Fees, Explained
APR, finance charges, and rollovers can be confusing by design. Here's what each term actually means in dollars.
Last updated: October 13, 2026 — figures below are illustrative examples for education, not a quote. Actual rates are set by individual lenders and your state of residence.
The three numbers that matter most
- Finance charge: the flat or percentage-based fee a lender adds to your loan. Often quoted per \$100 borrowed (for example, "\$15 per \$100").
- APR (Annual Percentage Rate): the finance charge expressed as a yearly rate, which lets you compare a two-week loan against a credit card or personal loan on equal footing.
- Total repayment amount: the loan principal plus the finance charge — the actual amount due on your next payday.
A worked example
| Item | Amount |
|---|---|
| Loan principal | $300.00 |
| Finance charge ($15 per $100 borrowed) | $45.00 |
| Total repayment due in 14 days | $345.00 |
| Approximate APR | ≈ 391% |
That APR looks high compared to a credit card (typically 20–30% APR) because the finance charge is spread over just two weeks instead of a full year. This is exactly why we recommend treating a short-term loan as a last resort for a genuinely short-term gap — not a recurring source of cash.
What is a rollover, and why it can be costly
If you can't repay the full amount by the due date, some lenders allow you to "roll over" or renew the loan by paying just the finance charge and extending the due date. Doing this repeatedly means paying multiple finance charges without ever reducing the principal — a common way short-term loan costs escalate. Many states now limit or ban rollovers for this reason; ask your lender directly about their renewal policy before signing.
State-by-state overview
Payday and short-term consumer lending is regulated at the state level, so availability, maximum loan amounts, and fee caps vary significantly. The table below is a simplified overview of a sample of states — always confirm current rules with your state's financial regulator, since laws change.
| State | General status | Notes |
|---|---|---|
| Arizona | Restricted | Payday loans capped under general consumer lending law; short-term storefront lending largely phased out. |
| California | Permitted | Deferred deposit transactions capped at $300; finance charge capped at 15% of the check amount. |
| Colorado | Permitted | Loans structured as installment loans with a 36% APR cap plus limited fees under state reform. |
| Florida | Permitted | Loans capped at $500 with a 10% fee cap and a mandatory cooling-off period between loans. |
| Georgia | Prohibited | Payday lending is prohibited under state small-loan and usury statutes. |
| Illinois | Permitted | 36% APR cap applies to consumer loans, including short-term installment products. |
| New York | Prohibited | Criminal usury statute effectively prohibits payday lending in the state. |
| Ohio | Permitted | Short-Term Loan Act caps APR near 28% with additional monthly fees permitted. |
| Texas | Permitted | Credit access businesses may broker loans; costs vary widely and are not subject to a statewide APR cap. |
| Washington | Permitted | Loans capped at $700 or 30% of gross monthly income, whichever is less, with a statewide database limiting concurrent loans. |
This table is not exhaustive and is provided for general education only. It is not legal advice. For your state's current rules, consult the Consumer Financial Protection Bureau or your state attorney general's office.
Want to weigh alternatives first? Visit our Responsible Lending page for free, non-profit resources.