Emergency Payday Loan


Updated: Sep 11, 2020
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Emergency cash advance - Canadian payday loan offers. Compare & apply online.

In this section, we'll explore everything there is to know about payday loans, all their features, benefits, and drawbacks.

Loans are very useful for most financial endeavors, and with vast amounts of loans available to consumers, there is an option for people who need a little bit of help at the end of the month. Payday loans are designed to help people get to their next paycheck without sacrificing any of their everyday costs. Gasoline, food, and utilities can cost quite a lot of money, and sometimes emergencies can pop up. That birthday you forgot, a faulty clutch, or simply an unexpected expense could render you broke until the next paycheck. That is what payday loans are designed for. Below, we’ll explore Canada payday loans, the things they have to offer, and their respective benefits and disadvantages.

See Emergency Payday Loan Suggestions Summary
Editor's suggestion: Emergency Payday Loan - Nov 28, 2020

What Is a Payday Loan?

A payday loan is a loan issued by a private party (bank or financial institution ) designed to help you reach your next paycheck. They are usually in the form of microloans, which are small amounts of money with relatively high interest.

They’re designed for people living paycheck to paycheck and come in many different shapes and forms. While they might be helpful, taking them for a long time could wind up costing more than it’s worth. Due to their relatively high-interest rates and middle-ranged APR, they’re not the most consumer-friendly type of loan.

Based on the lender, they can come with varying amounts of interest-based on the cash that is lent. More often than not, these loans don’t exceed $1500, and their interest rates depend on the lender, the amount of money lent, and the pay off time.

At times, the interest rate and APR fees can rack up to 20% of the original sum, which is not worthwhile for most people. Sometimes, getting a payday loan is unavoidable, so you’ll have to find a reliable lender and make a pay off plan.

These types of loans are most often used to purchase groceries, pay urgent expenses, or simply get to your next paycheck. They’re usually applied for by returning borrowers, which can land them in a cycle of debt. Do not get a payday loan if you can’t afford to pay it off, as the costs and fees can wind up costing an excessive amount of money.

PRO Tip
If you’re not sure that you can afford a payday loan, don’t get one. It’s always best to be financially safe and aware than to risk getting in a debt cycle. A debt cycle can ruin your credit score and financial wellness in no time.

The Common Traits Of PayDay Loans

While there aren’t many types of payday loans per se, almost all payday loans have a couple of things in common. Payday loans are:

  • Expensive
  • Short term loans
  • High-interest loans
  • High fee loans
  • Require no credit history
  • Mostly unsecured loans
  • Don’t inquire a check into your credit score

While they can range in cash, most share these common traits. Another nasty thing that correlates to most payday loans is the astronomical penalty fees should you fail to pay on time.

What are the Interest Rates and Fees on Payday Loans?

There are a lot of fees placed on payday loans, and the interest rates are sky-high. That is the primary reason why payday loans have quite a bad reputation.

One of the most prominent costs of getting a payday loan is the interest fees, which can rack up to 20% of the original sum at times. Depending on the pay off time, the loan amount, and the lender, the interest rates will vary, but they’ll always be relatively high.

The costs of processing these types of loans are also pretty high, as there is a commission fee on most payday loans.

Other fees that exist with payday loans are late fees, rollover fees, and other processing fees. With so many fees and such an astronomical interest rate, payday loans can hurt your credit score significantly.

PRO Tip
While payday loans don’t improve your credit score, failing to pay on time could trap you in a circle of debt that is sure to have a significant impact on your credit score.

Pros and Cons of Payday Loans

Payday loans come with a significant amount of drawbacks, but do have some advantages. Based on your personal financial situation, you can apply for a payday loan and be fine – but you should always be cautious.

Pros:

  • Quick money
  • Very helpful
  • Fast approval
  • Online application
  • No credit history required

Cons:

  • Expensive and has high interest
  • Not recommended by federal institutions
  • Could ruin your credit score
  • May lead to a debt cycle

Final Thoughts

Payday loans might be life-saving at certain points – more often than not, they’re not worth it. The astronomical fees credit ruining potential, and high-interest rates make these types of loans less than ideal for most consumers.

Canadian PayDay Loan Offers Recap


PayDay Loans FAQs. What People Ask About Emergency Loan Offers

Can I Be Sued for Not Paying a Payday Loan?2020-08-16T23:42:55-07:00

Yes. Failing to pay for a payday loan can lead to a very costly lawsuit by the lender.

Are Payday Loans Worth It?2020-08-16T23:37:55-07:00

Payday loans can cost a lot of money, and you should never get them unless you’re sure that you can pay them off. Failing to pay them off could land you in a cycle of debt or even worse.

What Are the Interest Rates and Fees on Payday Loans?2020-08-16T23:39:20-07:00

The interest rates and fees on payday loans are high. These are short term microloans, meaning that the costs of getting one usually exceed their worth. At times, the combination of these can exceed 20% of the original sum.

How Much Money Can I Get From a Payday Loan?2020-09-09T20:46:53-07:00

Payday loans are microloans, meaning that you can’t get a lot of money through them. They usually range anywhere from $100 to $1500 at times. The amount solely depends on the lender.

Can I Get a Payday Loan?2020-08-16T23:40:59-07:00

Everyone can get a payday loan. You don’t have to have a credit history, as these types of loans don’t trigger an inquiry. All you need to do to get a payday loan is:

  • be of legal age,
  • be employed, and
  • apply for it.
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