Did you know that almost 2 million Canadians get a payday loan yearly?
That so many choose to access this quick-cash option is telling. Bank loans are difficult to get for many people due to bad credit, low income, or a wish to protect their privacy. Payday loans offer a fast, easy option to get small amounts of money when needed.
If you have debt repayment obligations, have lost your job, or a payday loan can help. So long as you read the fine print and have a plan to pay back your payday loan on schedule, it won’t harm your finances long-term.
Read on to learn why Canadians turn to payday loans to solve their financial woes.
You Were Made Redundant
Losing your job can be a shock, emotionally and financially. If you don’t get a redundancy payout or have savings or an emergency fund, you’ll need to find a way to pay for everyday expenses.
While the figure may fluctuate based on location and field, it takes most job seekers around 8 or 9 weeks to find a new job. Online loans offer a way to cover your bills, debt repayments, and other essential outgoings while you hunt for another position.
It also offers some relief from the stress of being in a negative financial situation that’s out of your control.
You Need Money in the Short Term
If you need money fast, no-credit-check loans are the solution.
These loans can be applied for quickly online because they require little to no background information. So long as you can prove you can pay it back, you’ll get approval almost instantly.
Some reasons you might need money fast include:
- Paying for medical expenses after an accident
- Covering emergency house repairs, like a leaking roof or burst pipe
- Taking your sick pet to a 24-hour veterinary clinic
- Losing your job unexpectedly (we talk about this above)
- Repairing a vehicle that you need for work or school
- Paying an unexpectedly large tax bill
- Covering funeral costs
Best of all, online loans can be renewed if you need more money than expected.
Ease of Approval
Are you wondering if fast loans in Canada are suitable for you? You can apply for one even if you have bad credit or are stuck at home.
Get Approved With Bad Credit
Because you’re only borrowing a relatively small amount of money, most payday lenders won’t consider poor credit history in the application process.
Though lenders differ slightly in their terms and conditions, most providers require you to:
- Be a Canadian citizen
- Be over 18 years old
- Have held a stable job for a certain number of months
- Meet a minimal earnings threshold
- Have a record of sufficient funds transfers
- Not be bankrupt
As you can see, having a bad credit score isn’t on this list! That’s good news for people barred from traditional loans due to their poor credit history.
Apply Online
Another reason someone might apply for a payday loan is that the process can be done anywhere. For example, people who are bedridden, with a disability, or suffering from a psychological aversion to interacting with others or leaving their home can simply and quickly apply using their phone or computer.
In most cases, the application process takes less than thirty minutes and requires minimal personal information. Before you know it, the money you need will be in your bank account.
Choice of Lenders
If you apply for a traditional loan, you’re limited in who you can work with. You can borrow from your bank or maybe a mortgage or business lender.
These institutions are risk-averse, so they only lend to people with excellent credit histories and high incomes. They also won’t typically loan small dollar amounts.
On the other hand, there are many lenders to choose from with payday loans. This means you can select the lender best suited to your needs.
Of course, not every provider is made equal. Before applying for a loan, peruse the company’s website to ensure they’re legitimate, understand the interest rates and other fees, and read customer reviews.
Debt Consolidation
Say you have a lot of small credit card debts—all with high-interest rates. Managing payments for so many debts is challenging, and you’re falling behind with payments.
One of the benefits of payday loans is that it offers an opportunity for debt consolidation. You can borrow a single sum to pay off all those small loans. Then, you only have one loan with one interest rate to pay back instead of trying to juggle dozens.
You Don’t Have a Support Network
Many feel uncomfortable asking friends and family for money if they are in a financial pickle. In other cases, some people don’t have anyone else to ask for financial help.
This is where payday loan options can help.
You can apply for a loan discreetly and avoid awkward conversations or permanently damaging your relationships.
Go on, Get a Payday Loan Today
Even the quickest bank loans take around a week to receive, and that’s only after a lengthy approval process where the bank asks for all kinds of personal information.
In many cases, people needing a small amount of money to pay bills or schedule an urgent home repair—say, following a storm—just can’t wait that long. If you value your privacy, have a bad credit score, can’t (or don’t want to) ask your family or friends, or just need money quickly, get a payday loan.
The process can be done online in most cases, and the interest rates aren’t as high as you think. Just make sure you have a plan to pay back the load on schedule, and you’ll be fine.
Cash loans of $500 to $750 from Kingcash can be applied for from home, are instant, and you can slowly pay them back over 120 days. So what are you waiting for? Claim your cash today!
