Do’s and Don’ts When Applying For Online Payday Loans Canada
Online payday loans are loans of small amounts of money that is transferred to your bank account. This is acquired through applying online by submitting an online application form and the documents needed for your application. These have high-interest rates since they are easily granted even with individuals who have low credit scores. You can get easy Canada payday loans online. Online payday loans are convenient, quick, and safe. This type of loan has become more in demand over the years because of the advantage you can get from availing of it.
DOs when applying for online payday loans:
Budgeting according to Your Needs
The most important factor when you avail of a payday loan is the reason why you are availing a payday loan in the first place. What financial problem or immediate need are you facing? How much do you need? Can you pay for it on your next paycheck? If you pay for it on your next paycheck would you still be able to buy your basic needs? How will you budget the deduction from your next income against your expected expenses? These are the questions you must ask yourself when you fix your budget considering the payday loan. These can also be you guide questions on assessing whether you are to avail of a payday loan or not.
You must read your contract thoroughly. Everything must be indicated in your contract. The lender that you have chosen is obligated to provide all the facts about your loan. This includes due dates, interest rates, other fees, credit policies, loan payment procedures, and more. You should go through them one by one because some companies try to insert details that make your loan payment procedure complicated. This will then lead to a delay in your payment and you will be left with no choice but to have an additional charge. Before you avail of a payday loan and sign anything, always read and understand the disclosure agreement presented to you.
Paying on Time
After availing of a payday loan, the next task you have is making you sure you have the money on your checking account on the date and time that you are required to pay the loan back. If the money isn’t there on your account, you will incur additional fees from the lender. You might also incur a different fee other than the one you have to pay to the lender from the bank account since the bank may pay for it and it will be recorded in your account as a bank overdraft. Especially when you availed an online payday loan, you must never forget to pay on time. Traditional lenders in stores may be able to help you extend the date, but not when you chose the payment option via your checking account.
DON’Ts when applying for online payday loans:
Going with Your First Find
To find the right and best lender for you, you have to have multiple options so you can compare the services and credit policies lenders have. There are strict companies and there are lax ones. Some charge higher than the accepted charge since it should not be higher than $15 for every borrowing of $100. Find the lender that can work with your needs and are genuine in caring for your welfare. More so, you must always verify whether they are registered and licensed. Always review their terms and the fee structures of their payday loans.
They will always find out. It’s best, to be honest, than to lie because most often than not, they eventually find out about these things. If you are caught red-handed with your lie, you will have a record in their system and you will not get any of the funds you need now and in the future. It is also possible that they may warn other companies when you commit a fraudulent act. More so, it is best to be honest when you are struggling to pay your loan. When it is proven that you cannot pay for your loan anymore and that paying for it would require you to give up funds that should be allotted for your basic needs if you pay, your lender is obliged to consider your financial status. You will be provided with a time allowance to figure out your repayment plan and present it to your lender.
Taking out more than you need:
Do not borrow more than you need. Always stick to your financial problem. Your only goal here is to immediately find a financial solution. If it’s $200 that you have to pay, only borrow $200. You don’t need to borrow additional funds. The larger your borrowing is, the greater charges you would have to pay on the given date of your agreement especially when you cannot pay it on the given date.
Making it a long-term debt instrument
As mentioned earlier the charge for every borrowing of $100 is $15. When computed, its annual rate is already 400%. The longer it takes for you to pay, the more additional charges you would have on your record, until you can no longer pay your loan. Payday loans are specifically made as short-term debt instruments that address immediate cash needs that are not relatively large.
Letting one payday loan lead to another
This goes hand-in-hand with the first task of budgeting accordingly. If you don’t manage your income and expenses wisely. You will end up having nothing left either for your basic needs or your payment. If you do not have anything left to pay for your current payday loan. You might be tempted to take another payday loan as payment for the first payday loan you have gotten. Most often than not, if not always, consumers who have multiple payday loans are not able to repay and organize their finances after acquiring new loans to make ends meet. It only goes from bad to worse.
Online payday loans are not for the faint-hearted. This type of loan is very beneficial when it comes to an urgent need, but it takes a lot of commitment and discipline for you not to gain any unnecessary charges that may stem from the lack of effort you put in sticking to your budget. If you know yourself to be organized, this is the loan for you.