What Is A Payday Loan Anyway?
Find Out More About:
What Is a Payday Loan Anyway?
by
Andrew B. Court
You\’d have to live under the proverbial rock to not have heard of payday loans by now. They\’ve been advertised online, in radio and television commercial, on billboards and anywhere else ads are shown.
They are certainly popular, but they\’ve also had their share of bad press and warnings to stay away. Like with most things of a financial nature, there are those who think payday loans are helpful, and those who think they are far more trouble that they\’re worth.
What is It?
Basically, a payday loan is a short term financial loan that\’s designed to help out if you find yourself short of cash between pay cheques. In Canada, for a loan to be considered a payday loan it must be worth no more than $1500 and have a term of no more than 62 days.
The idea is to use your pay cheque as a sort of collateral against the amount of the loan, then pay it back the next time you get paid, or at least before the term is up. If you follow the rules and pay back the loan when you\’re supposed to, you shouldn\’t have to pay too much more than the loan amount. However, if you\’re late for whatever reason, you may end up paying very high interest rates or even hidden fees as described in your contract.
What\’s the Point?
People use payday loans for a whole variety of different reasons. Sometimes, they are short on an important bill payment that just can\’t wait, or they may have made the payment but don\’t have anything left for groceries. Car repairs and other emergency situations are other reasons that payday loans are sought.
When someone takes out a payday loan, they don\’t have to wait until payday to make that payment or get the car repair done. In essence, it just makes it so you don\’t have to wait, and you don\’t have to face any of the possible negative consequences of waiting.
Can I Get One?
Not just anyone can stroll into a lender and get a payday loan. There are always certain requirements that must be met in order to qualify. Different lenders may have different requirements, but most want you to be at least 18, have a steady job and a valid bank account. Some will require a decent credit score but that isn\’t always necessary. In most cases, if you use a payday loan as it is supposed to be used and pay it back on time, it can be quite helpful and won\’t pose any threat whatsoever.
A customer focused, loan lender offering payday loans online for Canadians residing in Ontario and British Columbia. For more information, make sure to visit
zaplo.ca/
Article Source:
ArticleRich.com