1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair Isaac).

2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% - 30%!

3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.

Payday Loans Consumer Information For the State of New Jersey

Payday Loans Legal?	Yes
Legal Citation:	Consumer loan act applies but rates as agreed to by contract. N.J. Stat. Ann. tit. 17,§ 1 et seq. However, criminal law sets the usury cap at 30%. N.J. Stat. Ann. § 2C: 21-19. A check cashing licensee cannot cash or advance money on a postdated check. N.J. Stat. Ann. § 17:15A-47.
Small Loans Max Interest Rate:	30% per year
Where to Get Information?	-> Regulator: New Jersey Department of Banking and Insurance (Visit their Website) Address: 20 West State St. Trenton NJ 08625 Phone: (609) 292-5360 Fax: (609) 292-5461 Regulatory Contact: Ludi Hughes, Assistant Commissioner Important Links -> Complaints & Disputes -> Download Complaint Form (PDF)

i) APR (Annual Percentage Rate):

The Annual Percentage Rate (APR) is an interest rate that is different from the Finance Charge. The APR was developed to gauge the "true cost of borrowing a loan." The finance charge is a mere interest rate e.g 8% that does not provide a lot of useful information. However, the APR does. Here are the components (finance charges) included in APR:
-> Loan processing fees
-> Underwriting fees
-> Document preparation fees
-> Private mortgage insurance
-> Pre-Paid interest charges: The interest charged from the date of closing a loan to the end of the month (when payment is due).
-> Points - Discount & Origination Points

The following items are NOT included in the Annual Percentage Rate (APR) calculation:

-> Title or abstract fee
-> Appraisal fee
-> Escrow fee
-> Attorney fee
-> Notary fee
-> Document preparation fees
-> Home inspection fees
-> Recording fees
-> Transfer taxes
-> Credit report look up fees

2) Cooling-Off Period

A Cooling-Off Period is when all loan clients receive a 3 (three) business day cooling-off period during which clients can change their mind about the agreement and exit or cancel with only a specified fee. A business day is any day that is not a Saturday, Sunday or public holiday.

3) NSF Check (Non-Sufficient Funds)

An NSF check is when a check is dishonored because the Payor does not have sufficient funds in his/her bank account.

4) Loan Term

The loan term is the length of time after which the loan is due. For example, if the loan term is 30 days, the loan becomes due after 30 days of initial borrowing date.