The cash crisis is more common than you think because everyone faces it time and again. The biggest concern is when you are short of cash and there are expenses looming ahead. How can you ask a sick family member to wait for treatment just because there are a few days to go till the next payday? Is it possible to live comfortably when your home AC needs a fix and you have no money? These are just a few examples of unavoidable expenses that cannot wait till you get your next paycheck.
The only way to survive such situations is by borrowing money. While you can explore options like short-term loans and secured loans, payday borrowing is perhaps the smartest approach. When it comes to payday loans in Canada, there are some amazing benefits that this option offers for arranging quick cash. Still, there are some misconceptions that need to be cleared to ensure a positive mindset about this borrowing alternative. Let us highlight the upbeat facts about these loans as an option for emergency cash needs.
Payday loans in Canada: How do they work?
As the name implies, payday loans refer to the very short term borrowing that lets you get to advance on your next paycheck. You can have quick funds today and repay the loan on the next payday. Typically, these are small-dollar loans that extend to a period of a few weeks. The lender calculates the balance by adding the loan amount and interest and asks you to write a post-dated check for this amount. If you don’t pay back the loan on the due date, the lender will cash the check and get the money back. This form of borrowing is ideal for people who need quick cash and is even available to those with bad credit or no credit. Here are a few advantages that you can avail of by choosing this option to fulfill your immediate cash requirements.
Easy to access
The key advantage of payday loans lies in the fact that they are super-easy to access. The best place to apply for such loans is on a loan website. Filling a few details in a small form is just what you need to do to apply. If you are eligible for the loan, you will probably get an approval within a few minutes because the website has a lender network that will assess your application. After the approval, the amount is likely to reach your bank account within a few working days. So whenever you have a cash need that cannot wait, a payday loan can resolve it with minimal work.
Fewer eligibility requirements
With payday loans online, you get the advantage of minimum eligibility requirements. Websites are willing to extend this option to anyone who is 18 years or older and has a regular source of income along with an operational bank account. The best part about applying online is that you need not visit the bank or lender’s office personally. Further, the documentation requirements are minimal as well. These factors definitely make it a good choice for borrowers who are in dire need and are pressed for time as well.
Do not add a long-term liability
When it comes to counting the pros of payday loans, they do not account for long term liability. Since the amount you owe is to be paid back with the paycheck of the next month, the liability gets cleared sooner than you know. This is the single most important benefit that makes this option a positive one. You get the money you need right now, without being burdened for weeks or months to come. Moreover, these are often small amounts that you can pay back easily. Additionally, the short term nature of the loan makes it good from the interesting perspective. The shorter the loan period, the lesser is the interest amount you will have to pay.
You can easily get a bad credit loan
Another reason to see payday loans in a positive light is that you can get one despite a bad credit score. Though banks and private lenders may not be keen to overlook this factor, online websites offer it for the borrowers. Just access a site that provides the option of a payday loan for bad credit and apply for one. You have good chances of approval because your application goes to multiple lenders rather than a single one. Moreover, the lenders who are willing to lend despite bad credit consider your repayment capacity rather than a credit score to decide about approval.
You need not give a security
Besides a poor credit score, borrowers may face the challenge of not having collateral to get a secured loan. Traditional lenders are seldom willing to provide unsecured loans. Once again, online payday loans resolve this concern because these are unsecured in nature. You need not deposit anything as collateral but can still get a loan without any hassles. Online lenders are often willing to approve the loans, primarily because of their short term nature. They are less apprehensive to approve the application if you have a regular income and a healthy bank account.
Having a responsible attitude makes all the difference
Now that enough has been said about the pros of payday loans, you also need to know that their efficacy greatly depends on your attitude. A responsible approach towards repayment is the key because it can save you from debt in the long run. Don’t borrow just because a loan is easily available; rather, you should take a loan only when you need money genuinely because it is a liability after all, no matter how early you plan to pay it back. Additionally, you should have a proper repayment plan even before you apply for the loan in the first place. With a payday loan, you have to pay with your next paycheck and you must definitely do it. Also, be judicious about the loan website you choose and stick to one that has a good reputation in the lending landscape.