If you’re among the 45% of Canadians currently experiencing financial difficulties, immediate relief can help get you back on track. Payday online loans are an option that many families turn to in times of crisis. They can help you get money in the bank ASAP so that you can reorient yourself and pay bills instantly.
However, many people believe that these installment loans aren’t worth the risk. Read on to learn whether or not this is true and who should consider fast loans for quick cash.
What Are Payday Loans?
Payday loans are short-term personal loans. They get their name because they’re essentially an advance on your next paycheck. You’ll be expected to pay them back within just a few months as soon as you get paid again.
Canadians can get payday loans with an easy online application. This process involves giving the loan provider some simple information like your name, bank account information, and employer information. You also will likely need to submit a pay stub.
Many people try to avoid payday loans because of the high interest rates. However, Tekaloan estimates that the average APR is only about 23%. This is on par with the average interest rates that major credit card carriers provide.
These loans are ideal for those looking for immediate relief from current financial problems. They provide emergency for those who need to make rent before a due date or pay bills before the electricity is shut off. They also work great for those struggling to put food on the table and need immediate funds to make ends meet.
However, once you’re approved for a payday loan, it’s also important to note that you can use the money for anything. You’re not limited to food and daily household supplies. Plenty of people take out fast loans to pay for their dream wedding or an immediate stress-relieving vacation.
There’s no shame in this as long as you’re able to pay the loan back within the pay period!
When you apply for a payday loan on Tekaloan.com, your application will get approved in as soon as 24 hours. You’ll then get money deposited into your bank account on the same day. This means that you can start spending right away without worrying about a long wait period that you need to struggle through.
Credit Score Benefits
One huge myth surrounding payday loans is that they damage your credit score. While you might see an immediate dip when you take funds out, this short-term hit can pay off greatly in the long term.
This is because payday loans are installment loans. When you pay back the loan reliably in installments, you prove yourself financially reliable. Your credit score increases each month as you give money back to the lender.
In the end, your credit score is likely to improve!
This is especially true for those with low credit scores (or no credit scores to speak of). You give yourself a chance to show that you’re reliable and worth lending to. This opens up possibilities for new credit cards, higher credit limits, better apartment rentals, lower mortgage rates, and more.
Manageable Loan Amounts
Payday loans have repayment terms of about 3 to 6 months. The exact length will depend on how much you take out.
Some people only require small $500 loans, which will fall closer to the 3-month end of things. Others will need $750 or $1000, which will bring the payment period up to 5 or 6 months.
In addition to the sum you borrow, your repayment period will also depend on the frequency of your payroll. If you’re paid more often, you can give higher installments back to the lender and decrease the length of your pay period. This can help you save on interest since your interest rate depends on the loan length.
Because you get to negotiate terms based on how much you make and how much you must pay back, you’ll be able to come up with a personalized repayment plan that meets your exact needs. Installments will be manageable and easy to pay back on pre-specified dates. You can even automate payments to the lender so you don’t need to think about them in the future.
Plus, since the interest rate is fixed, you’re expected to pay the same sum every month. You don’t need to worry about a variable payment based on how much you spend during the pay period. This makes budgeting easier.
Some people even choose to take out payday loans to pay off credit card bills. This makes paying back the funds easier because of fixed payment sums. Plus, it consolidates multiple credit card bills so you don’t need to worry about paying multiple bills.
Easy Application Process
The application process is easy partly because the requirements are broad. To take out a payday loan, you’ll simply need to be:
- Over 18
- A Canadian citizen
- Someone with very few ‘insufficient funds’ transactions
- Employed by at least 3 months
- Receiving a direct deposit or cheque income of $1200 monthly
- Not currently considering bankruptcy
That’s it! If you meet these criteria, you can apply online from any device. This process entails telling us:
- Your personal information (name, address, social insurance number, etc.)
- Your contact information including your email address and phone number
- Information about your revenue such as your source of income and pay frequency
- The amount of money you’re looking to borrow
- Your banking information and transfer number
- Safety contact information
Once you enter this information into Tekaloan’s application portal, we’ll pair you with a lender who’s already pre-approved you. You can then negotiate terms with them, fill out all required paperwork, and come to an agreement that works for both parties.
So, Are Payday Online Loans Worth the Emergency Money?
Payday online loans have a few disadvantages, but they usually pay off in the end. They’re a great way to get emergency money as soon as you need it and can even raise your credit score with installment loans.
Now that you know the benefits of these loans, it’s time to get started. Tekaloan is committed to providing quick, easy financial relief to individuals and families across Canada. Apply today to get cash transferred to your bank account in as soon as 24 hours.