Over 50% of Canadians are just $200 or less away from not affording their bills. With barely any allowance for emergencies or other things that may come up in life, you may unexpectedly find yourself in heavy financial need.
Perhaps you don’t have any family or friends you can rely on for some quick cash; they may very well be part of the statistic too. So what can you do to get money promptly?
If you need money fast, then you may benefit from payday loan services. Read on to find out what they are and how they can help.
What Are Payday Loan Services?
As the name suggests, payday loans are loans you take out to supplement your income in a short-term fashion if you can’t afford your bills or a sudden financial hit.
For instance, let’s say you live paycheck to paycheck and your wiggle room is around $150. Your car suddenly breaks down, and you need it to get to work. The repairs are going to cost $1,000, but you don’t have that kind of cash.
This is where a payday loan would get you back on the road in a flash.
This short-term loan is generally a small amount, around $500 or so. It’s meant to get you back on your feet and repaid when you get your next paycheck.
What Do I Need to Get One?
Like with any other loan, there are some requirements for getting a payday loan. However, they’re not as stringent, which makes this type of loan easier to get than others.
The criteria for qualifying for payday loan services are:
- Be over 18 years old
- Be a Canadian citizen
- Have a job for over 3 months
- Have an active Canadian bank account
- Have a monthly income of over $1,200
- Get your paychecks through direct deposit or cheques
- Not be on the verge of bankruptcy
- Have a relatively low short-term debt ratio
How It Works
First, you’d apply for a payday loan. Once you’re approved, you have two choices.
The first one is writing out a postdated check to the loan company, which guarantees you’ll pay them back with the next paycheck you receive. The total will be the amount you’ve borrowed, plus any fees they charge you.
The other choice is authorizing the lender for a direct debit when your next paycheck is deposited into your bank account. This may be a lot simpler to do, seeing as paper cheques are mostly a thing of the past now.
Since most people get paid every 2 or 4 weeks, this is when your payment is due. If your next paycheck won’t cover the full loan amount for whatever reason, then the loan rolls on and the lender will most likely charge a late fee, plus whatever interest is generated.
Because of this, you want to make sure you pay off your payday loans as quickly as possible. Or else, your debt may spiral out of control.
With payday loan services, you get cash fast. But there are some downsides to this convenience.
For example, the interest rates for payday loans are generally much higher than with regular loans.
What Are the Benefits of Payday Loans?
Here are some ways payday loans can benefit you and why they’re better than traditional loans.
You Get Cash Quickly
Imagine yourself in the scenario we posed above; you have a vehicular emergency, and no money to cover it. You need your car to get to work, or else, you’ll lose your source of income.
You look to traditional loans, but they just take too long to get approved. After you fill out your application, it can take a day to a few weeks to get cash in your hands. When it comes to a financial emergency, this is simply too long.
With payday loans, applications are short and simple. They’re also lightning-fast when it comes to approval. You can have the money in your account in less than a day sometimes!
That way, you can take care of your emergencies without missing a beat. This may mean all the difference between being out on the streets or having a roof over your head.
It’s Easier to Qualify For
Most traditional loans will have a myriad of requirements, including a good credit score. If you don’t have an excellent credit score or have no credit history, then this may disqualify you from many of the loans you’re looking at.
Payday loans are great in this respect since lenders don’t judge you based on your credit score. Simply hit all the requirements above and you’re pretty much guaranteed a payday loan!
You Don’t Have to Ask Loved Ones for Money
If you’re a prideful person, it may be hard to ask your family and friends for money. Plus, as we’ve said previously, they may not be in the best of financial situations either. You won’t have to rely on them when you fall on hard times.
In addition, even the best of relationships can become strained when there are money issues involved. Avoid ruining relationships and just go with a payday loan.
You’ll Protect Your Credit Score
If you apply for a traditional loan, you’ll have longer to repay it. While that may seem like an advantage at first, it may actually cause you trouble. When you have a longer period to repay your loan, there’s a higher chance something may happen and you’re not able to pay it back.
Because payday loans are on such a short-term basis, there’s less of a chance you’ll fall ill and not be able to repay the loan. In turn, this protects your credit score.
Get a Payday Loan Today
Payday loan services may have higher interest rates than normal, but they’re fantastic for helping you out in a pinch when you need cash fast. So don’t panic the next time you need money quick; just apply for a payday loan!
If you want to apply for a payday loan, then fill out our form now. Claim your cash today!