With a payday loan collateral used is a postdated check. The check is postdated to the borrowers next payday. If the borrower needs, they can pay just the interest and postpone full payment until the next paycheck. APR on these types of loans in Boise is generally around 520% APR, or 20% per 2 weeks.
Title Loans/Vehicle Installment Loans
These loans are usually done on vehicles that are owned outright. The lender takes the title as collateral for the loan. Payments are due every month. These types of loans rarely last longer than a year. In Boise the interest rate on these types of loans is around 300% APR
Pawn shops will lend money on collateral that they hold at their pawn shop. The collateral can be just about anything: a TV, tools, antiques, jewelry etc… The loan must be repaid in full plus interest in order to redeem your item. If you are unable to pay it off in full, a pawn shop generally allows for just the interest portion to be paid to buy you another month. Most pawn shops in the Boise area charge a flat 20% per month, or 240% APR.
Ideal Lending Loans
The loans issued by Ideal Lending are different. First, all of our loans are fully amortizing. We believe that interest-only loans have a tendency to promote abuse. Secondly, we only charge 150% APR. This is half as much as the typical title loan. We believe we are the best option for those who do not have access to traditional credit.