In this example, the cost of initial loan is $30 and interest rate for 14 days is 10% (=30/300), So APR is 260.7% (=10% * 365/14)!

Now multiply 260.7% by the $300 loan, 2.607 * 330 = $860.31.  That is total interest charges you pay for in one year. If you add this charge to the original loan amount $330:
$330 + 860.31 = 1190.31.  That is way TOO MUCH!

If you find yourself need extra cash from the lender, consider these possibilities as alternatives to the payday loan:

1.  When you need credit, shop carefully.

2.  Compare the APR and finance charge (which includes loan fee, interest and
other types of credit cost) of credit offer to get the lowest cost.

3.  Ask your creditor for more time to pay your bills. 

4.  Make a realistic budget, and figure your monthly and daily expenditures.

5.  Find out if you have, or can get, overdraft protection on your checking account. 

6.  Contact with your local credit counseling service, if you need help working out
a debt repayment plan with creditor. 

If you cannot avoid taking out a payday loan, borrow only as much as you can afford
to pay back. Payday loan roll-overs can lead to a vicious cycle unending debt. 
It could turn your temporary setback into major financial crisis. 

1.  Good payment record

If you pay your bills on time, you’ll score major points with lenders.

If you have a lot of late payments, this can hurt your chances of getting a card, and, if the lender decides to issue you a card, it’s probably going to have a higher interest rate.

2.  Signs of stability, responsibility

Lenders perceive things such longevity in your home and job (at least two years) as signs of stability. Having a respected profession doesn’t hurt either.
 
3.  Control of debt load

Lenders generally want to see that you are a good credit risk and that you aren’t living beyond your means.

Experts say non-mortgage credit payments each month should not exceed more than 20 or 25 percent of your take-home pay.

4. Reduce credit inquiries

Whenever you apply for a credit card, the lender will pull your credit report from one or more of the major bureaus as part of the approval process.

Each time a report is pulled, it’s marked as an inquiry and stays on your credit bureau report for two years.

Lenders perceive several inquiries on your report as indications that you’re scrambling for loans and may consider you a poor credit risk.

Bt following above 4 points, your chance to get approved for the credit is much improved.

Different credit card companies have different standards. But if you are turned down by several companies, it may indicate that you are not ready for a credit card and need to do something about it.

If you’ve been denied credit because of information supplied by a credit bureau, federal law requires the creditor to give you the name, address and telephone number of the bureau that supplied the information.

If you contact that credit bureau within 60 days of receiving the denial, you are entitled to a free copy of your report. If your file contains accurate negative information, only time and good credit habits will restore your credit-worthiness.

If you find an error in your report, you are entitled to have it investigated by the credit bureau and corrected at no charge.  You should dispute any inaccuracy in your report with the credit bureau and also with the company that furnished the information
to the credit bureau.

Credit cards offer great benefits, especially the ability to buy now and pay later. But you’ve got to keep the debt levels manageable. If you don’t, the costs in terms of fees and interest, or the damage to your credit record, could be significant.

2. Choose them carefully

Don’t choose a credit card just to get freebies (T-shirts or sports items) or because there’s no annual fee. Look for a card that’s best for your borrowing habits.

Example: If you expect to carry a balance on your card from month to month, which means you’ll be charged interest, it’s more important to look for a card with a low interest rate or a generous “grace period” (more time before your payments are due).

3. Pay as much as you can to avoid or minimize interest charges.

If possible, pay your bill in full each month. Remember, paying only the minimum due each month means you’ll be paying a lot of  interest for many years, and those costs could far exceed the amount of your original purchase.

4. Always pay your bill on time

You’ll avoid a late fee of about $29 or more. But more importantly, continued late payments on your credit card may be reported to the major credit bureaus as a sign that you have problems handling your finances.

And if your credit rating gets downgraded, your card company could raise the interest rate on your credit card, reduce your credit limit (the maximum amount you can borrow) or even cancel your card.

Late payment on your credit card also can be a mark against you the next time you apply for an apartment or a job.

5. Protect your credit card numbers from thieves

Never provide your credit card numbers - both the account numbers and expiration date on the front and the security code on the back - in response to an unsolicited phone call, e-mail or other communication you didn’t originate.

When using your credit card online make sure you’re dealing with a legitimate Web site and that your information will be encrypted (scrambled for security purposes) during transmission.  Click here for more tips about how to protect yourself when you shop online.

Major credit card companies also are offering more protection by providing “zero-liability” programs that protect consumers from the unauthorized use of their card.

In general, only give your credit card or card numbers to reputable merchants or other organizations purchase.

6. Always Shop Around

Don’t apply for the first “pre-approved” offer you receive in the mail or any for that matter. Do the research for yourself. There are plenty of sites such as bankrate.com that allow you to compare hundreds of credit card offers with a simple search. You’ll get the best deal by shopping around.

5. Read the Fine Print

The terms and conditions are the equivalent of the disclaimer you hear on car lot commercials. It cuts through the hype and reveals the true terms of the credit card such as what happens when you miss a payment and what you’re really getting from the rewards. Most terms are not that long, usually around one full page, it’s worth your time to read them.

4. Ask for a Better Rate 

Once you have been a credit card customer for a few months call them and ask for a better rate. They won’t laugh at you, they get hundreds of these calls every day and if you’ve been a good customer it usually will work. Credit card companies work hard to obtain you as a customer and they will work hard to retain you.

3. Pay Off Full Balance Every Month 

All credit cards have high interest rates compared to other types of loans. You should never plan to carry a balance on a credit card. If you must make a large purchase that you do not have the money for at the time, obtain a loan or a revolving line of credit from your bank. You will save a bundle on interest rates.

2. Do not get a Cash Advance 

This is the second worse thing you can do with a credit card, short of missing a payment is getting a cash advance. The cash advances usually come with a very high interest rate.

What makes it worse is the fact that with most companies this higher rate credit will not get paid off first, or even in the order that you took it out. They will apply your payments towards all the lower rate purchases and will only begin paying off your high interest cash advance will all other items on that credit card have been paid off.

1. Never, EVER Miss a Payment 

This is the absolute worse thing you can do with a credit card. Not only will you incur a late fee, but your interest rate will also skyrocket. In addition it will be a negative blemish on your credit report which can cause the rate on any other loans or credit cards you have to increase as well as insurance rates. It also makes you less likely to get approved for future credit.

IRS-coordinated Volunteer Income Tax Assistance (VITA) program that provides free tax-preparation services for qualifying individuals.

Also, IRS has the ability to direct deposit tax refunds in up to three different checking and savings accounts at up to three different U.S. financial institutions.  It encourages you put part of your refunds into both savings and checking accounts.

If you are interested in obtaining free tax return preparation, you should call the IRS at 1-800-829-1040 or go to www.irs.gov/individuals to locate a VITA site.

In fact, many card issuers print a summary of your rights on each bill they send you.

You must notify the card issuer in writing at the address specified for billing errors when you find an error, and you must do so within 60 days after the first bill containing the error was mailed to you.

For this reason, keep your credit card receipts and promptly compare them when your bills arrive.

In your notification letter, include your name, your account number, the amount of the suspected error, and the reason why you believe that the bill contains an error.

The card issuer must look into the problem and either correct the error or explain to you why the bill is correct. This must occur within two billing cycles and not later than 90 days after the issuer receives your billing error notice.

During the period that the card issuer is investigating the error, you do not have to pay the amount in question.

Your credit score will always be stronger if you don’t have these items on your credit
reports. If they do show up, your score will drop immediately and will stay low for
seven to ten years.

Low level delinquencies are accounts that have a record of having been 30 or 60 days past due some time in the past. These types of modest late payments wouldn’t lower your score as much as you think but it’s still nice not to have any. Your score will be benefit by there not being any of these low level delinquencies on your report or, if there are any, they are old.

You can withhold payment up to the amount of credit outstanding or the purchase, plus any finance or related charges. If the card you used is a bank card, a travel and entertainment card, or another card not issued by the seller of the defective goods,
you can withhold payment only if the purchase exceeded $50 and ccurred in your home state or within 100 miles of your billing address.

If these conditions do not apply to you, you may want to consider filing an action in small claims court — an informal legal proceeding that can be used to settle disputes.

While the maximum amounts that can be claimed or awarded differ from state to state, most small claims courts hear cases involving amounts ranging from $25 to $2,000.

Some states have recently raised their limits to $5,000. Check your local telephone book under your municipal, county, or state government headings for small claims court listings.