Introduction
Payday loans are a good way to get the money you need for an emergency, but they’re also one of the most expensive options out there.
You can find better options if you know what to look for and where to look and here’s what you need to know before applying.
Payday Loans
A payday loans canada is a short-term loan that you pay back in one lump sum and the money you borrow is usually for small amounts of money, such as $500 or less. Payday loans are often unsecured, which means there’s no collateral required to secure the debt.
Payday lenders will typically ask for evidence of your income such as an employment check stub before they give you a loan, so they know that they’ll be able to collect on it if necessary.
What Are Payday Loans
Payday loans are short-term lending options that provide small, unsecured loans to borrowers and the lender does not require collateral from the borrower and typically pays back the loan in full on their next payday.
Is It the Right Choice For You
If you’re considering a payday loan, here are some things to consider:
● Is this the right solution for your financial problem? If you have an unexpected expense and don’t have the money to pay it, a payday loan could be a good option, but if your credit score is below 600 and/or if the interest rate on the loan is too high, then it may not be worthwhile.
● How much will I owe in fees? Payday lenders often charge fees for processing applications and payments as well as interest rates that can add up quickly, sometimes exceeding 500%.
● The amount of money borrowed must be paid back within two weeks or less with additional fees added onto any unpaid balance often referred to as rollover.