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By Jacques Argent
Life is uncertain, therefore, the need for money can arise to anyone at any time. Some of the events like medical emergencies, salary delays can knock on your door anytime. At this moment, approaching a friend or family can raise a finger on your financial conditions. Whereas choosing a payday loan is a perfect option to get instant money without many formalities. Canadian citizens widely use this option to clear instant due or settle emergency needs.
What are the essential features of a payday loan?
Less documentation: The key feature of a payday loan is that it requires very less paperwork formalities like other personal loans. All you need to do is submit proof of age that you must be above 18, a salary slip, a valid identification number, a stable bank account, and a passbook statement. Canadian payday loans online do not bother about your bad credit score. You will get cash in your account within a couple of an hour.
Payday Loan Amounts: The amount for approving payday loans depends on your borrower’s income and capacity to payback. One can apply for a $100 to $1000 amount of loan depending on state laws. Bear in mind, the interest rate for these loans are a little high compared to other loans but keeps you on the safer side with instant approval without taking additional security.
Online Presence of Payday Loans: One of the eases that everyone is looking for the online presence of payday loans. The good news is that payday loans are available online too, even there is wide network access to these lenders in Canada. While applying for online payday loans in Canada, you just need to fulfill basic requirements and you will get a confirmation in a short time.
Processing Timings: As the name defines payday loans, means you can get access to your funds in a day. You can use them, the way you want to use them. Whereas other short-term loans take a couple of days for process completion. And very few lenders offer their debit cards to use certain funds. Even after the process completion, you need to wait for an ATM to use your funds.
Bad Credit Score: A bad credit score surely affects your borrowing power. A credit score involves your credit history, like the report of check bounce charges, other unpaid liabilities, or credit card outstanding amount. Due to a bad credit score, many lenders can deny, still, there are some who complete certain formalities and offer you a loan in a bad time. So, look for the lender who is ready to give a loan even after considering your bad credit score.
Important Factors You Must Take Into Account
How hard the situation could be, but do not forget to consider certain factors while applying for a loan. Consideration of these will help you when you will repaying it;
- What will be the minimum and maximum length of borrowing amount?
- What will be the length of the loan?
- What are different types of loans available with lenders?
- What are fees and other charges associated with the loan?
- What will be the hidden charges? if any?
- What will be the penalty for non-payment of the amount on the due date?
Knowledge about these in advance can save your future hassle of payment.
What are the advantages of payday loans?
Payday loans offer many advantages to users. Some of them are discussed below;
- Instant money transfer: The biggest advantage of applying for a payday loan is that you will get command for instant money. Once your loan is approved, your money is transferred into an account within a couple of hours.
- Freedom to use: As payday loans are not liability bound like a car or other personal loans. You can take the loan for any personal purpose and can use it the way you want. There is no obligation and checks to use money.
- Bad credit is OK: Many financial institutions deny the loan process of borrowers due to bad credit scores. But lenders in payday loans also accept the bad score to fulfill your emergency needs.
Some of the most asked questions
Are payday loans available in all provinces?
This is one of the most asked questions whether everyone in Canada can apply for a loan under any province. The answer is “yes, payday loans are available for provinces and territories in Canada”. But there are certain laws that regulate borrowing amounts and fees for processing. Before going to apply, you just need to read state payday rules.
How Long Payday application takes for processing?
Generally, the processing for payday loans takes 5 to 10 minutes. You will be informed by the lender once your application will be completed. But, in some cases, it can take a couple of hours to complete processing. Therefore check your vendor’s regulations before applying for a loan.
What are the eligibility requirements for applying for payday loans?
The general eligibility requirements involve you must be 18 years old. Rest involves income proof, bank statement, and valid ID proof. If you have all these, you can apply for a payday loan. Rest requirements are based on lenders, therefore, you must check the lender’s website before applying for a loan.
When and how you can repay your loan amount?
The repayment of the loan amount based on your lender. Some offer a 60 days grace period and others take 30 days when the amount transfers into your account. As discussed above, it will be great if you are able to discuss with the lender at the time of applying for a loan. You will get complete information about their repayment. If you are looking for how to repay the amount, remember, some lenders accept credit cards, MoneyGram, and other western union methods for loan repayment.
Is an early repayment option available?
If you want to clear your liability as soon as possible, it is a great way. But do not forget to check whether there are additional charges involved with money transfer or not?
Summary!!
Payday loans are a great option to get access to money but do not forget to read their policies. And make good research work while applying.
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