Bridge The Gap Between Two Pay Days - Take Payday Loan In Canada
Payday loan in Canada is a short-term loan, taken up to bridge the gap between two paydays. These cash advances, usually in the range of $100-$1500, are extended for 14 days. The annual percentage rate on payday loans comes out to be 390-780 per cent.
Canada cash advance payday loan can be availed either in person or through internet. Once your loan is approved, the lender will electronically transfer the loan to your account. In return, he will seek a post dated check, worth the loan amount plus the finance charges. On the maturity date, you can repay the loan in cash; else the lender will submit the check for clearance.
Online payday loans simplify the loan application method immensely. You can get the Canadian payday loan in an hour's time, without faxing documents to the lender. Such kind of facility comes in handy for people who have a bad credit history.
Canada cash advance payday loans are usually taken at a time, when expenses go beyond your budget. Such crisis arises in case of medical emergencies, unpaid bills, urgent repair, etc. Since these cash advances are available instantaneously, many people seek out for such loans during emergencies.
Payday Loan Repayment Options
Moreover, payday loan in Canada offers flexible repayment options. You can choose between making up a one time lump sum payment and paying back in installments. However, keeping in mind the cost of payday loans, such loans should be repaid as soon as your pocket allows.
Costs - Canada Payday Loans
However, one should be aware of how much a payday loan Canada costs. The cost of payday loans is higher than the conventional loans. The payday loan lenders do not compare their charges with that of the mainstream lenders. On the contrary, the interest rates are pegged against overdraft, late payment and penalty fees. The payday loan lenders list the following set of alternatives (costs expressed here as APRs for two-week terms):
- $100 payday advance with $15 fee = 391% APR;
- $100 bounced check with $48 NSF/merchant fees = 1,251% APR;
- $100 credit card balance with $26 late fee = 678% APR;
- $100 utility bill with $50 late/reconnect fees = 1,304% APR.
So before you go loan shopping, it will be worth having a look around for cheaper alternatives.
