Canada is a large and relatively stable economy and it comes only naturally that its lending system is also well developed. The short guide below discusses the short-term loans available in the country, especially payday loans and cash advances.
Today, Canadian citizens find it increasingly difficult to set up a personal emergency fund which covers their unexpected expenses. Therefore the dealers of small loans are always busy offering them attractive cash advances and payday loans. In general, a cash advance is a certain amount of money given to a borrower before he has earned it. The money is often used to meet unexpected needs for financing such as, for instance, paying the deductible at a dental clinic or the service at a car repair shop. The amount of cash advance is deducted from the borrower’s credit card balance. Note that higher processing fees and interest rate apply when you withdraw a cash advance from your credit card and there isn’t any grace period as well.
A payday loan is a short term financing which is paid off when the borrower’s next paycheck arrives, usually in two weeks time. In order to get a paiday loan, it is enough to have an employment contract and a checking account. As a rule, lenders do not take into consideration the applicant’s credit score when estimating his or her eligibility for a payday loan.
310-LOAN is the first Canada-based company to offer cash advances and payday loans online. They offer their clients premium class short-term financing at affordable prices, while their call center and faxless application procedures makes loan application as easy as a piece of cake. Another cash advance and payday loan company available in Canada is the Money Loans Company, which promises its clients speedy financing for no application fee or hidden charges of any kind. An added benefit is their comfortable online application form. Keep in mind, however, that their cost of borrowing is $21 for each $100 borrowed. National Cash is yet another lender that promises instant approval if you can provide a proof of employment. You will need to show your bank statements, pay stubs, or other verifications. Note that you must have been employed at least three months. The lender will regard you as a risky borrower if you have filed for bankruptcy, or have a debt management policy. The same applies for credit counseling and consumer proposals. Another requirement is that you have an active phone and email so that the company may reach you. Once your application is approved, the loan request will be sent for deposit. If your loan is approved before 1pm, it will be deposited on the same day. Your next pay date is the due date for loan repayment. Once you clear the payment, you can take another loan. Your credit limit will grow with every repayment. Generally, the interest rates on cash advances or payday loans are quite high, so you’d better think twice before visiting your local payday loan shop.