Payday loans are short-term, unsecured personal loans which are usually used to take care of immediate financial needs. Since, these loans are available at short notice without any guarantee or collateral, the rate of borrowing is extremely high. The APR on a payday loan could easily go up to 400-500% and the debt mounts quickly, in case you default.
Other personal, unsecured loans like installment loans or term loans which comparatively have lower rates of interest, longer payment period and more flexibility in choosing your repayment period or plan, are often preferred if you are looking to take a loan for an amount which is quite big or if you are looking to consolidate all your debts into a single loan. However, most long-term unsecured loans require good credit scores. If your credit score is below 700, you may face some resistance or greater scrutiny when applying for a loan. A score below 650 may make it near-impossible to get a long-term installment loan.
Cashco Flex loans, a long-term unsecured loan is a little different in this respect. Although a thorough analysis of your credit history and debt-to-income ratio as well as total debt service is carried out, you can be more confident of a successful application. Cashco Financial, an industry pioneer and leader has a number of awesome financial products. Apart from flex term loans, which can be availed online or from any one of the 62 Cashco offices in Canada, you also get auto loans, payday loans and pawn loans.
It guarantees complete data security and safety. It has loans applicable for any financial situation. It also offers cash advances on a nonrecourse basis that helps you to fight lawsuits in Canadian courts. It is also one of the very few creditors which actually help you to improve your credit score because it informs credit reporting agencies about your timely payments and with each payment, your chance for credit approval in the future, improves. Also enjoy cash benefits, discounts, loyalty upgrades, easy loyalty point redemption and other exiting gifts for your long association.
How payday loans work?
Cashco Financial is the leading payday loan direct lender in Canada. Whether you are looking for payday loans in Edmonton, Alberta or in British Columbia or any place in Ontario or Saskatchewan, Cashco is the most responsible payday lender.
Beware of online brokers who pretend to be direct lenders. These companies simply act as traps to lead unsuspecting clients into debt traps. They add their fees to the already high origination fees and high interest and don’t share all the details with the clients. Many of these companies are sham companies and don’t have the official mandate to conduct credit business.
Most consumers find payday loans attractive because of two reasons. One is that it provides cash within a few minutes of applying. Second is that there is no verification or a customary, token verification. Unlike in some other credit types, you don’t have to share details about your past credit defaults, payments or history in general. This is one of the biggest obstacles to avail other loans especially in a country like Canada where almost every family is heavily submerged in debt!
The approval is almost instant. You fill up a customary form and share supporting documents online and your loan is approved with 30 minutes in most cases. If you allow pre-authorized payment, the principal along with the interest will be deducted from your bank account on the predetermined date.
Try to avoid applying for multiple payday loans because rejections might hurt your credit score. Also, don’t take a payday loan to settle another payday loan due. This would indicate that you have entered into a debt trap.
Avoid the payday loan trap at all cost. Don’t opt for a payday loan until and unless you are confident that you cans settle the loan in full on the due date. Also, make sure that you have considered all other credit options before applying for a payday loan. Keep sufficient backup plans when applying for such a loan. Payday loans could attract interests as high as 20-30% and can double if you default. You could land in legal woes if you fail to pay. Try to work out a settlement plan with your lender in such a situation. It may seem to be a boon at first but if you don’t take your part of the bargain seriously, payday loans could come back to haunt you for a very long time!
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