Who Lends? Both banks and private companies can offer payday loans. Most services don’t request a credit check since the person requesting the loan is basically putting their next paycheque up as a guarantee. This is especially good for people with bad credits or in a really bad financial situation.
Online Options One of the easiest ways of getting a payday loan is online. Most lenders in Canada have a website and can approve of a request very shortly after you make the application. The money is then transferred to your account in about a day. However, it’s important to make sure the company you’re using is legitimate and has a good reputation. Sometimes, it’s just easier to go with a bank since you don’t have to worry about your private information being compromised.
Interest Rates The interest rates accompanying payday loans are usually high since they are unsecured. Be careful of companies that offer you more than one loan since it may be tempting to get more than one loan, then be unable to pay it back in good time later on.
Debt Collection Agencies Be prepared to face debt collection agencies if you’re late on paying back the loans. These companies are supposed to be intimidating and demand the payment in full because that is what they are hired to do. If you really can’t pay back the debt collector, the best thing to do is to ask someone you know for a loan to pay off your loan, then pay that someone back. This will save you a lot of hassle and headaches.
Fraud Some people have horror stories about debt collection agencies saying they will sue for breach of contract and fraud after defaulting on their payday loans. Even though the concept of ‘fraud’ can mean a variety of things, this is unfortunately part of that definition. The company can certainly sue you for fraud, but it will be difficult for them to prove it, since they will have to show the person had intentions to deceive. If you do go to court over it, the company will more than likely drop the charges if you can prove a legitimate reason.
Do Your Research One of the best things you can do is to research your loan specifically. Find out the interest rate and the exact dates of your payment and just how much you have to pay. Write these dates on a calendar so you know exactly when and how much.
Be on Time The most important rule to heed is to pay the loans back on time. If not, interest can be quite hefty and you’ll be left with bad credit for a very long time. Just remember that if you don’t absolutely need this loan, don’t get it. It’s easy to lose track of the money you spend and you don’t want to be plagued with a negative credit rating for awhile to come. Only apply for a payday loan if you absolutely have no other choice.
