Online payday loans are commonly availed by consumers seeking for immediate cash assistance. Here are some of the frequently asked questions about payday loans and how to apply online:
What is a payday loan?
Payday loans are short-term loans that help you cover your immediate cash needs. It is called “Payday” because it usually only lasts for 14 days and is aimed to be paid close to when you receive your next paycheck. This can be availed online or through physical stores. It is a very risky type of loan since it charges high-interest rates since you are expected to pay within two weeks. Before you apply for Canada payday loans, you must be sure about your ability to pay this loan on time. It will cost you more than you think if you cannot repay it on the given date.
Those who avail of payday loans are people who may not have any option or people who value how fast they can acquire the loan.
I have bad credit, can I qualify for a payday loan in Canada?
Yes, you can. For those who have bad credit scores, payday loans may be the only option for them. Additionally, by availing payday loans and paying them on time, individuals who have bad credit scores can rebuild it again through this loan.
What are the requirements in applying for a payday loan in Canada?
There are only three requirements that you need to have or accomplish in applying for a payday loan in Canada. These are:
- You must be at least 18 years old with a valid ID
- You must have an active checking account
- You must provide proof of steady income
Why are online payday loans good?
Online payday loans are preferred by many because of the convenience and efficiency it brings. The very purpose of online payday loans is to provide immediate cash assistance to people in need. Thus, the most important value it creates with its customers is the fastness of the process or transaction especially when it is done online. Just by filling out online application forms and submitting the needed requirements via financial intermediaries online which connect you to lenders or directly through lenders or lending institutions, your request will immediately be submitted by just a click and approval will be sent to you faster than when you avail of traditional loans.
More so, start-up businesses and people with bad credit scores are more likely to be approved online payday loans than from traditional loans and lenders.
What is the interest rate for online payday loans?
Most commonly, for every $100 borrowed, it carries a typical two weeks payday loan fee of $10 to $30. The typical annual interest rate of a payday loan is 400%. If payday loans are not paid on time, it will be rolled over and have a new charge which can cost you a lot.
How can I apply online?
You fill out a form with your complete information. Make sure everything is accurate. The firm or financial intermediary you have chosen will then submit your form securely to their lending networks. Approval will be available to you within minutes or within the day.
How easy is the application for a payday loan?
The application is as easy as answering an application form for three to five minutes. The company of your choice will be the one to handle the rest of the process such as submitting it to lenders. You won’t have to go to a physical store. The approval is also sent to you as fast as only minutes after you have submitted your application form.
How can I assure that the online payday loan is legit?
Millions of consumers avail of online payday loans every year. Make sure to find an intermediary or a lender that is registered and licensed. Legit lenders have their license posted on their websites. Also, you can confirm this through the website of the attorney general or the state. You can also verify them through online reviews and testimonials.
Can I apply for multiple payday loans in Canada?
It is possible to apply for multiple payday loans at once in Canada. The Financial Consumer Agency implemented rules which strengthen protection for borrowers and limit how people can access payday loans.
How can I pay off an online payday loan?
If you availed an online payday loan, lenders or intermediaries, you most likely have provided information or the Automated Clearing House authorization that may be used to automatically and electronically withdraw from your checking account on the due date. You can also go to the physical store of the lender to repay your payday loan. It is important to know how much your total payment to the lender should be so you can monitor how much money they will be withdrawing from your account.
Can an online payday loan affect my credit score?
Typically, your credit score isn’t affected by an online payday loan when you can pay it on time. It can even improve your credit score. However, it can be detrimental to your credit score when you roll over your payment to a later date because you are not able to repay it. More so, even though you pay on time, there are still cases where payday loans may be bad for your record since some companies have a stereotype that payday loans are mostly availed by bad credit borrowers.
I am having a hard time paying back my online payday loan, what can I do?
When it becomes a struggle for you to pay back your online payday loan, the first thing you must do is to contact your lender. According to the law, the lender must refer you to free and independent debt advice. They should also give you more time to work out a repayment plan by suspending the recovery of the debt. They must also accept small token payments as initial repayments. You are entitled to all this when your money may not be enough for your basic needs, rent, and such if you pay the payday loan immediately.