The popularity of short term pay day loans has grown substantially since the financial crisis of 2008. The reason for this sudden spurt is manifold. The tightening of lending guidelines and loan conditions by most national banks and secured lenders has driven many borrowers towards payday lenders for their short-term loan needs. The loan approval process for a payday loan is minimal and takes no more than a day from the initial application to having access to the loan funds. These convenient features associated with payday lending is attracting more consumers to seeks these loans for their urgent short term financial needs. While the fees and interest charges may be higher compared to traditional personal loans, the streamlined loan application and approval process handled entirely through the lender’s website is attracting newer borrowers to the local and online payday lenders.
Payday loans are small loans, ranging from £100 to £1,500, given on a short term, usually until your payday. They are to be paid back as soon as your pay arrives. The fantastic thing about payday loans in Canada is that you get cash within 24 hours of submitting the application!
Well, it’s simple. Just log on to the site and fill a simple online loan application. Most of you might be frowning at the mention of application. Who likes to fill them? Not anymore. With payday loan applications, you will actually stat loving filling forms!
The application asks for very little information. Other than the usual and necessary, a payday lender will ask for details pertaining to your current job, employer, salary, government ID card and bank account info. As these short term loans are small in size and carry higher interest rates, most lenders do no checks related to borrower’s credit history. To approve the loan, the also require no collateral, as required in a secured personal loan. How simple! After submitting the application, you will soon receive an approval through e-mail. What to do next? Well, simply check your account the next day. The cash amount will be there, staring at you!
This is simple too. You don’t have to go anywhere to pay back your payday loan. Your lender will arrange the payment through automatic withdrawal system. It means that the loan amount will be withdrawn from your account electronically on your payday, just as it was transferred to you while taking the loan.
Remember, it’s wise to pay back your loan as early as possible. If you don’t do so, you will have to dig deep into your pockets to pay the extra fee for extending the due date. And the wiser thing is to be penny wise the next month. Payday loans are for cash emergencies only. Hence, it is better not to make a habit of applying for them every month. Forgetting this can lead to financial ruin and may cause the borrower to get caught up in a vicious, unwinding debt spiral.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk