Payday loan
A small, short-term, high-cost loan, often $500 or less, that is due in one payment on your next payday along with a fee.
Payday lenders usually take a post-dated check or permission to withdraw from your bank account. They generally don't check whether you can repay while meeting your other bills.
Fees are often $10 to $30 per $100 borrowed for about two weeks, which works out to APRs in the hundreds of percent. Some states ban payday loans, and others cap fees and loan sizes.
Example
A $15 fee per $100 on a $400 two-week loan is $60. $60 ÷ $400 × 365 ÷ 14 ≈ 391% APR.