The Cost of Credit -- Facts You Need To Know! Payday loans are short-term advances that are due on your next payday, unless your next payday is 6 days away from your loan date. In this case your loan will be due on your second payday. The maximum loan term is 18 days. With a payday loan you are charged a flat fee no matter when your loan is repaid (subject to the 18-day maximum loan term). Because the fees are fixed per loan amount, the Annual Percentage Rate (APR) will vary depending on the number of days that pass between the date you receive your advance and the day you repay the loan. There is no refund of fees for early repayment. Although payday loans are short-term advances intended to be paid off quickly, various Truth-in-Lending laws require financing disclosures to be expressed as an Annual Percentage Rate (APR), or the cost of the credit advanced to you expressed as an annual rate. This requirement provides uniformity among various credit sources, so you can compare rates and make the choice that is right for you.