Online payday loans have arguably become the most sought alternative to credit applications in Canada. Based on their convenient and fruitful track record, it shouldn’t come as a surprise when more people apply for payday loans compared to the conventional title loans. Despite their immense benefits, customers must ensure that their current financial predicament fits the bill for payday loans. Typically, payday loans
are primarily used to meet emergency expenses ranging from medical bills to rent. Mostly disbursed on a short-term basis, such loans hardly meet the long-term financial needs of customers.
How It Works
Online Payday Loans – 6 Guidelines You Should Know About
Unlike traditional forms of credit, securing payday loans is a much easier process courtesy of the simple steps outlined by prominent lending institutions. By systematically complying with each of the following requirements, clients can rest assured that funds will be disbursed in a few hours, if not days:
- Completion of the Online Application Form
As a prerequisite to securing loans, customers are obligated to complete the online loan application to the satisfaction of the designated lender. In effect, they must submit responses in good faith, lest any false responses are interpreted as blatant dishonesty. In most cases, the application form is widely considered to be self-explanatory with hardly any vague terms that might impede comprehension from customers. More importantly, customers are at liberty to seek clarification on any requirement from a highly efficient customer service unit.
One of the perks of seeking online payday loans is the absence of paperwork associated with conventional loans. In essence, clients can complete the application from the comfort of their home, office or even while running errands. With a simple tap on the phone, you are one step closer to securing a loan irrespective of where you are.
Having filled the application form to the best of your knowledge, the next step is essentially out of your hands as the lender initiates the approval process. This mostly entails an in-depth review of the debtor’s financial status as well as placing adequate emphasis on their credit worthiness. Such requirements are integral in the decision-making process while also evaluating fixed installments for payments. In most circumstances, creditors set a maximum of two installments for the full settlement of the loan.
Once approved, lenders have deemed it necessary to enforce a 5-day grace period before payment can resume, mostly during the next payday. In effect, clients have been granted an additional 5-day grace period to settle their loans without any extra fee. Alternatively, adequate measures have been put in place to provide a flexible payment structure for delayed payments.
- Compliance with Statutory Laws
As law abiding citizens, lenders have gone above and beyond to comply with provincial regulations and legislation as outlined by the State Department. Such laws speak volumes about the creditor’s commitment to transparency and desisting from charging hidden fees. Clients are highly advised to exercise caution when inquiring about such statutes. Basically, financial institutions that fail to adhere to such regulations raise red flags about their legitimacy to conducting business transactions. On the other hand, customers must conduct transactions within the confines of the law, especially upon the receipt of loan proceeds. In simpler terms, expenses that border on criminal offenses are immediately in breach of the contract and must be avoided at all costs.
- Flexpay Repayment Options
Apart from the standard installments, customers are also at liberty to pursue flexpay repayment options from their specific creditor. Such an alternative is basically an extension from the two to three installments after deliberation between both parties. However, clients must be willing to settle the extra interest capped on the new installment.