short term loan

What Is A Short Term Loan Exactly?

Published by Captain Cash | Loan | No Comments

Short term loans are all over the place, left and right. But what is a short term loan?

In premise, a short term loan is just that, an unsecured loan that is available to you if you have a regular income source. But that’s not all.

In this article, we will cover the short term loan in-depth, so get your popcorn ready and let’s go.

Keep reading to learn more.

What Is a Short Term Loan?

A short term loan is a category of loans that are unsecured, and available to any individual who has a regular source of income. Unlike a traditional loan, in which you generally pay back the sum with interest over a course of several years, a short term loan is designed to be repaid typically within a year, but often within several weeks. 

Although the type of loan that you will get will depend on creditworthiness, it doesn’t have to, as many lenders opt-out out of that security, and look for alternatives.

In any case, most of the short term loans work like this:

  1. You apply for the loan online or in-store
  2. The lender performs a credit-check or examines your income sources/documents to evaluate financial competency
  3. If the lender approves of your request, you will get the offer, including the terms and rates. Generally, you will receive your answer quickly, and in some cases, instantly
  4. You agree to the offer and receive your money by the method of preference. The lender will typically transfer the money within 24 hours of approval for your request

And that’s about it. Of course, there are minor variations from lender to lender, person to person, from time to time, but this is the foundation for all short term loan interactions.

What Are the Benefits of a Short Term Loan?

While not the best option for borrowing money, a short term loan can be quite helpful in times of unrest. Some of the benefits are, but not limited to the following.

Quick Cash

A short term loan will provide you with quick access to money that you need at the moment. If you have unexpected expenses that need to be paid for, these loans can help you do just that.

Bad Credit OK

If you don’t have the greatest credit, you are still likely to get approved for a short term loan. As long as you have a regular income, you should have no issue in getting a loan.

No Collateral

In most cases, you will never have to provide any collateral to secure your loan. Your home, your car, or other assets are yours to keep. You can get the money without the risk of losing your possessions.

Flexibility

Most lenders will opt to provide loans that are flexible, meaning they will work with you to develop a payment plan that suits your needs and capabilities. However, this is rarely the case for payday loans.

No Commitment

With a short term loan, you don’t have to commit for several years. You can get the cash that you need, pay it off, and move on with your life.

The Drawbacks of a Short Term Loan

As mentioned, a short term loan is an option, but not necessarily the best option. For instance, a short term loan can provide access to quick cash, but it does come at a price. 

Here are some of the drawbacks.

Costly Fees

If you happen to experience origination, late payments, or other violations, the fees will quickly add up. Short term loans have excessive costly fees, so watch out.

High-Interest

A short term loan typically comes with a very high-interest rate. If you take this loan out, you might incur lots of payments, but also a greater total loan cost.

Not for the Long Term

It’s in the name. While a short term loan can help you in times of unrest, that’s because the cost and onerous terms are there to support it. It’s not a long term solution to your financial competency.

Types of Short Term Personal Loans

For a fairly small and quick cash influx that you can pay back in a year or less, you will often come across short term loans or payday loans from online lenders, credit unions or banks. 

The short term loans from credit unions, banks, and online lenders will vary significantly in interest rates, payback periods, and amounts. You can reach out to each provider to see if they provide short term loans, and find something that is suitable for you.

For instance, a payday loan might provide you with enough cash for you to use until you get your next paycheck, but it’s an expensive solution because of the fees and interest rates. 

Most provinces regulate how much you can borrow, and how much a lender can charge in fees and interest. And some locations don’t allow payday loans at all, because people often reborrow or roll their loans over, because they cannot afford the repayment. 

Payday loans are a last resort.

How a Short Term Loan Affects Credit

If you choose to take out a short term loan, it is bound to have some sort of effect on your credit. If the lender runs a hard inquiry on your check to decide whether to approve you or not, your credit score will go down several points.

And if you make a late payment on your loan, your credit score might take a serious hit. Not to mention, because short term loans add to your debt load, your credit will be negatively impacted.

If your goal is to build credit, a payday loan will not help, because these loans are not reported to the credit bureau. However, other short term loans are reported and can help improve your credit as long as you make your payments.

Cash for You

Now that you have discovered what a short term loan is, you can finally decide if it’s the right solution for you. Short term loans are great, albeit they come with their own caveats, which you are now aware of. 

If you’re interested in an instant-approval short term loan that you can get online, get in touch with us and we will happily accommodate your needs.

payday loan in ontario

PayDay Loan in Ontario: Get It The Same Day!

Published by Captain Cash | Loan | No Comments

When a cash emergency arises, sometimes you can’t wait. If you’re looking for fast loans, we’ve got you covered. Captain Cash is the premier choice for getting a payday loan in Ontario.

Are you new to cash loans? If so, don’t worry. We’ll explain how you can get quick, no credit loans within the same day! Keep reading to find out more.

What Is a Payday Loan?

If you’re new to the world of online loans, you may not fully understand what they are. Basically, cash loans are funds that you can get from a lending company. The money is given to a borrower with the expectation of repayment.

Interest is applied to the initial loan amount, so you will pay back a bit more than what you borrowed. Also, cash loans are short-term.

They’re not meant to be extended for long periods, which is why they’re referred to as payday loans. The lending company expects repayment to start on your next payday. 

Fast Loans: How to Get a Quick Captain Cash

We understand that when you need money, you need it fast. That’s why we offer same day cash loans.

If your application is approved by 2pm EST, we’ll send the money to your account the same day! Even if you’re approved after that time, you’ll only have to wait 24 hours to receive funds to your bank account. The application process can be done online or by phone. Here’s the eligibility criteria:

  • You must be 18 years or older
  • You are a Canadian Citizen
  • You earn over $1200 and get it via direct deposit or by cheque from your employer
  •  You are not in the process of filing bankruptcy or consumer proposal
  • You must have a Canadian bank account that’s been active for at least three months

Unfortunately, there are some factors that will disqualify you from getting approved for a loan. The below factors make you ineligible:

  • You’re self- employed
  • You receive disability
  • You get child tax
  • You have student loans
  • You receive social assistance
  • You have private pension
  • CPP

FAQ’s About Captain Cash Payday Loans

Now that you know how to get a quick payday loan from Captain Cash, you probably want to know more. Here are the answers to the most frequently asked questions:

Do I Need Good Credit to Be Approved?

No. Captain Cash does not do credit checks, so you don’t have to worry about having good credit. Even if you have no credit history, it’s okay.

We accept all kinds of applicants, even those who have bankruptcies. We take other factors into consideration when doing our loan application. We focus more on your ability to pay the loan back, rather than your credit history.

If I Don’t Get Approved by 2pm, Why Do I Have to Wait 24 Hours?

Your funds can take up to 24 business hours because it goes through a process. The application request is examined by the analysis team. They review your information and make the required verification phone calls.

The majority of our applications are generally completed and approved within 24 hours of receiving them. However, there are times when it can take up to 3 business days when the application volume is high or if there are issues when making the verification phone calls.

Why Can’t I Get a Captain Cash Loan If I’m Self-Employed? 

Captain Cash is a payday lender. We require that borrowers get paid regularly by direct deposit. People who are self-employed have an unpredictable income, not steady paychecks. We want to make sure that our clients are able to pay the loan back.

How Do You Verify My Employment?

Our team does job confirmation checks to make sure that clients are still employed. We’ll call your employer to verbally confirm that you work for them.

In addition to that, we’ll also ask when you were hired and how long the company plans to keep you employed.

You do not have to worry about your employer finding out that you are applying for a loan. Our analysts make sure to never divulge that information.

How Can Captain Cash Instantly Verify My Information?

Our instant verification process is quick and secure, and it allows us to view your bank statement safely. The process uses the same level of security that your bank uses to protect your personal information.

We do not log into your bank account, nor do we see your ID or password. However, we are given a copy of your bank statement during the process. Whenever you log into your bank account, your private information remains confidential.

But by logging in, it verifies your identity and gives us a 90-day read-only copy of your bank statement. Instant verification allows us to make a quick decision on whether we can offer you a loan.

Why Would My Application Not Be Approved? 

There are several factors that contribute to why your loan application would be denied, such as:

  • You have un-discharged bankruptcies on your file
  • You did not fill out your application correctly or you provided incorrect information.
  • You have too many insufficient funds on your bank statement
  • You don’t have unstable employment

Looking For a Payday Loan in Ontario? Choose Captain Cash

Captain Cash is here for you whenever you need a payday loan in Ontario. We pride ourselves on making our application process fast, easy, and convenient. 

Plus, you can renew your loan if you need assistance repaying the funds.

If you have any questions, feel free to reach out to us at 1-888-226-1026 or contact us online. One of our team members will get back to you shortly.

We’ll be here when you need us!

fsa vs hsa

FSA vs HSA: Their Importance and How The Affect Your Budget Strategy

Published by Captain Cash | Loan | No Comments

Understanding the differences between a flexible spending account (FSA) and a health savings account (HSA) can help you choose the best possible account option. Comparing FSA vs HSA is a fantastic way of learning more about them.

If you’re unfamiliar with both of these specialized tax-advantaged accounts, you may not know where to begin. Don’t worry—this brief guide can help you get caught up and moving in the right direction.

FSA Vs HSA

FSAs and HSAs are both employee benefit programs that can be used to help cover medical costs not covered by your health insurance. However, that’s where their similarities end and their differences begin.

While these accounts are both available to employed workers and designed for the same general purpose, they function in completely different ways. These variances can affect your potential to pay for unexpected health care emergencies.

Consequently, it’s necessary to take a deep-dive into both of these programs and discover more about them. The more you understand these healthcare-related accounts, the more confident you’ll feel when deciding between them.

Let’s begin by examining flexible spending accounts. 

FSA

An FSA is a pre-tax account that is typically offered by employers. However, self-employed workers are eligible to apply for an FSA.

When you decide to open an FSA, you must agree to deposit a certain amount or percentage of each paycheck into the account. This amount cannot exceed $2,500 over a single year. This means that you could invest about $200 each month.

Funds from this account become available when the account holder receives any type of uninsured treatment or care. Anything not covered by an individual’s health insurance plan can be paid for using an FSA.

However, you may want to schedule the majority of your appointments for October or November. Leftover funds that remain in the account expire at the end of the year. This could result in a huge financial loss for some.

However, an FSA also provides a little security and peace of mind. There are also several FSA eligible items that could be yours, tax-free with the help of an FSA.

HSA

An HSA is also a pre-tax account offered to employees. But a self-employed individual would not be able to qualify for or receive an HSA. Similarly, very small unincorporated businesses may fail to meet HSA criteria.

Those that are able to open an HSA aren’t required to put money aside each month like those with an FSA. Instead, they receive compensation for any care costs that aren’t covered by their insurance plan. However, they must pay out-of-pocket first.

This can be a significant disadvantage for those who find themselves consistently low on funds. If HSA holders don’t have enough immediate funds to pay for necessary healthcare, they may struggle to find a solution.

Fortunately, those with an HSA could choose to apply for a loan and receive almost instant funds. This money can be used to pay for medical treatments and services and the resulting compensation could be used to pay back the initial loan.

Of course, you could always choose to renew your loan instead. With a little extra cash in your pocket, you could enjoy some of the highest-quality, most needed HSA eligible items.

Still, you’ll need to weigh your priorities and make some hard decisions concerning your budget strategy. 

How Does an FSA or HSA Affect Budget Strategy?

An FSA or HSA can effect budget strategy in several key ways. If you decide to opt for an FSA, you’ll be investing a percentage of each paycheck into that account. That could potentially impact your monthly income.

If you’re paying $200 per month into the account, then you can rest easy knowing that any potential medical emergencies are insured. Any treatments, medications, or services that aren’t covered by insurance can be paid using these funds.

Still, your wallet could be a little thinner after choosing an FSA. Also, any funds that you haven’t used toward healthcare expire at the end of the year. You could put away a decent amount of money each month but never need to withdraw from it.

At the end of the year, you could be out by about $2,500. An HSA, on the other hand, is a little more straightforward.

If you decide to go with an HSA, you’ll receive compensation for any out-of-pocket medical costs you incur throughout the year. An employer can help determine the amount of total compensation available to employees each year.

With an HSA, you’ll need to have the funds to pay for your treatment before seeking compensation. This can limit your ability to afford necessary services or medications that aren’t covered by your insurance.

However, you won’t lose any money at the end of the year when you choose an HSA. You’ll also get to enjoy slightly more attractive paychecks. Unless you fall severely ill of course, in which case, you may spend all of your immediate savings on treatment.

Choose the Right Account for Your Needs

Now that pitted FSA vs HSA, you can choose the option that offers you the most benefits. You should take a moment to consider several crucial factors before arriving at your final decision.

Both of these savings accounts can significantly impact your budget strategy. When you pick an account, you’re not only committing to that savings plan. You’re also committing to that budget strategy for the foreseeable future.

If you’re in need of a fast cash loan, then be sure to contact us today!