As a working citizen, you might have experienced financial challenges at one point or another. From hefty medical bills to tuition fee, meeting such expenses can be a tall order, to say the least. In such a situation, lodging a formal request for a payday loan can be the best solution to the current predicament. Unknown to most people, a payday loan is basically a short-term credit advance in which a person borrows a small amount at a high-interest rate. Typically, the borrower is required to write a post-dated check containing the exact amount needed in exchange for cash. Afterward, the lender cashes in the check on a date agreed upon by both parties, usually the debtor’s next payday. In simpler terms, a payday loan is also referred to a cash advance loan.
Obtaining a cash advance loan is widely considered to be the best form of raising quick cash during a financial predicament. Not only can you pay off unexpected expenses but you can also come up with a payment schedule to cover similar expenses in future.
What You Should Consider Before Seeking Payday Loans in Canada
As a debtor, the following undoubtedly serve as benefits in your favor:
Most lenders in Canada tend to approve cash advance loans almost immediately upon the provision of necessary information. In essence, the application process is a much simpler and quicker process compared to other conventional loans. Though it might take considerable time before the disbursement of the funds but make no mistake, the funds will be released on the same day. Depending on your exact location, some lenders might transfer the funds within an hour once necessary details have been verified.
Courtesy of advancement in technology, the entire application and disbursement of finances is conducted online to the satisfaction of all parties. You no longer need to make physical appointments to get in touch with a lender or receive cash. A simple application via the internet will suffice to all debtors in need. As an added security measure, loan disbursements can only be accessed via credit cards.
Obtaining payday loans has now been simplified courtesy of few essential requirements. Most importantly, a stable source of income should be enough to guarantee you an automatic ticket to a cash advance loan. Unlike traditional loans that may require collateral as security, a cash advance loan is adequately covered by a stable source of income.
Qualification for higher amounts
Seasoned debtors are in a prime position to request higher amounts based on their prompt payments. For instance, if you had applied for a $500 and paid it on time, you can access higher amounts to the tune of $1000 or even more.
Protects your credit rating
Despite its short repayment period, payday loans are an advantage if you intend on protecting your credit rating. On the worst case scenario, default on the payment schedule will adversely affect your credit score.
Requirements for a Cash Advance Loan
You must be 18 years of age or above.
You must not be associated with a pending bankruptcy case or voluntarily filed for bankruptcy relief.
You must have a valid Social Security Number or a Taxpayer Identification number.
You must present proof of income through a bank checking account.
You must reside in the preferred State for the loan application.
How to Avoid the Predacious Loan Trap
Accessing cash advance loans has become a hotbed of manipulation from fraudsters. It’s in your best interests not to let your guard down at all times. In most cases, such fraudsters target individuals with the ability to service loans such as the elderly or less educated people in society. To safeguard your interests, keep off from high-cost short-term loans or additional financial products for the loan. Additionally, exercise caution on lenders that charge ludicrous penalties on late payments.