Often offered by non-bank companies, these loans let you borrow enough funds to help you last through your next payday. This is then the time the interest and loan become due.
The target market of payday loans are people who find it hard to make ends meet every month. Let’s have a closer look at pay day loans Canada in case you’re planning to get one.
How Do Pay Day Loans Canada Work?
Think of payday loans as short-term loans. They can be available through payday lenders who operate out of storefronts, while others, like us, are available online.
They’re great for individuals who need cash in an instant. This is because the whole application process only takes a few minutes.
Your income and a bank checking account will be verified by pay lenders to know your ability to repay.
The fund is then deposited to your account once your pay day loans Canada are approved. We will then require you to issue a postdated check as payment for the total amount.
Issuing a postdated check guarantees us that we will be repaid by the scheduled date. We also ignore credit history that’s why the postdated check agreement is tolerated by borrowers.
We usually require your paycheck be deposited automatically into the verified bank. We’ll then set the postdated check to coincide with the payroll deposit to make sure it clears the amount.
That’s why payday loans are called that way.
Why You Should Get Pay Day Loans Canada
In a nutshell, people resort to pay day loans Canada as we offer a quick way out of a financial emergency. This includes not being able to pay bills, celebrating special events, etc.
Most of these situations often only need a small amount which you can easily pay back on time. The fact that you’re employed and receiving a monthly salary make you eligible for payday loans.
If you need money quickly due to an emergency, getting pay day loans Canada is your best bet.
Here are the five benefits of payday loans and why they’re a great idea. We’ll also try to explain why some choose them over borrowing money from family and friends or traditional loans.
Pay Day Loans Canada Don’t Require a Credit Check
Worrying about your current credit score is a thing of the past.
You’ll only need to provide documents proving you’re employed and receiving a monthly salary. These, and if you’re above 18 years old, make you more likely to get a payday loan.
Not only pay day loans Canada, but any payday loans all over the world. While some agencies may check your credit, this is only the case when negotiating higher loans.
For normal payday loans, we won’t bother looking at your credit score. We won’t even check if you owe someone any form of debt whatsoever.
Pay Day Loans Canada Don’t Ask for Upfront Fees
Yes, payday loans can be more expensive compared to traditional loans. However, we don’t charge you upfront fees.
This means the starting debt, alongside the interest, will all be paid at the end of the turnaround period. This has made payday loans even more popular in Canada.
Application is Easy for Pay Day Loans Canada
Now that the internet has taken over, searching for the best payday loan agencies in an area has become easier. Some even let you scan the needed documents and just apply online.
Conventional loans will require you to fill out lengthy forms before being processed. This isn’t the case for payday loan agencies.
Applying for pay day loans Canada normally doesn’t take more than five minutes. You can apply online, in person, or through the phone of your local payday loan agency.
You’ll also be notified within an hour if your payday loan has been approved or not. This is helpful because you can immediately apply to another agency in case your application declines.
Pay Day Loans Canada Offer Fast Processing
Regular loans will typically have you wait for a few days or weeks before getting your funds.
This won’t happen with payday loan agencies. We’ll quickly send your funds so you can use them after a few hours or by the next business day.
This is great especially if you’re dealing with a situation that needs to be solved as quickly as possible. Processing documents is pretty quick, too, so you won’t be wasting precious time.
You Can Qualify for a Higher Amount with Pay Day Loans Canada
We’ve mentioned earlier that we limit the loan amounts one can borrow. You can only borrow amounts that are within our range and of course, your salary range.
But, when your first payday loan is paid on time, we can increase the amount you can access in future transactions.
For example, you applied for a $750 loan and paid it on time. Depending on your salary, we can gradually increase the limit given we had no issues in the past.
You Can Protect Your Credit Rating with Pay Day Loans Canada
A payday loan’s short repayment period seems like a shortcoming. But, it can be an advantage when it comes to protecting your credit rating.
Applying for an installment loan means you’ll have a year or two to repay it. However, you can’t control what can happen during that time.
For example, you can fall sick or lose your job before you finish repaying the amount. Without an alternative source of income, you’ll miss some of the installments as you look for another job.
This will then worsen your credit score. Your total loan will eventually increase due to incurred fines and penalties.
Credit cards seem convenient but you need to control how you spend to protect your credit rating.
Some cardholders say that this can be challenging. They end up spending more than they can afford which worsens their credit rating, especially if they have more than one credit card.
The Payment is Automatically Transferred to Pay Day Loans Canada
Once the due date arrives, we’ll just deduct the loan plus the interest fees from your account. This means you don’t have to make transfers yourself and spend time at the bank.
The benefits we have outlined increased the popularity of pay day loans Canada even more. These make them perfect for those in need of quick cash who don’t want to borrow from family, friends, or the bank.