What to Know About Payday Loans?

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Money

 

What to Know About Payday Loans

Many Canadians know when they need fast cash, they can rely on payday loans to help them make ends meet until their next cheque. When you need funds fast and have tried other options, payday loans are always available, but it is advised that they are only used as a last resort because of the high interest rates. While they can provide you with temporary relief, you should know what you’re getting into when you choose to use a payday loan. 

One of the biggest challenges that some face is when they are in desperate need of cash, they might be willing to agree to anything. Some lenders that are less scrupulous know this and try to take advantage of a borrower’s predicament. Which is why you need to read before you sign, but more on this below.

Are Payday Loans a Good Idea?

For many, definitely not. But for others, yes. There are some people that do not have options like banks or credit unions to go to. They don’t have an emergency fund, and when unexpected expenses come up, their options are limited. While it is probably best to fo with another option, but if you don’t have any, payday loans can provide a short term solution. 

Fast Cash from e-Transfer Loans

One of the fastest ways to get cash from an online payday loan is when they provide an e-transfer. If your loan request is approved, the funds can arrive in your account quickly.

Even with bad credit or low income e-transfer payday loans can be an option available to many when you need fast cash. If you’re employed, 18 or older with an active checking account, you can apply for a fast payday loan 24/7 online. With near instant approval, the entire process is quick and easy in Canada.

Finding a Guaranteed Payday

Sometimes people that are looking for loans online will come across all kinds of things that can sound too good to be true. This can be when some lenders will say just about anything and everything to attract your business. 

One example is guaranteed payday loans no matter what canada that some people will look for when in need of fast cash and hoping that some kind of guaranteed approval exists. 

What About Payday Loan Alternatives?

A payday loan is really for people that have poor or bad credit and can’t get a loan through the banks or credit unions because of this. They are simply considered too much risk by the banks, and they’re not willing to let some borrow. 

But if your overall risk doesn’t look to be too bad, sometimes online lenders will offer you what is called an installment loan, which is very similar to a personal loan. While these are also high interest, they’re a better option than payday loans, which are due in full on your next payday. With installment loans, you are provided the opportunity to make multiple payments. This can also be a lot easier on your budget than repaying a lump sum all at once. 

Smart Borrowing

While payday loans are a high interest short term loan, when used responsibly they can be a great option when alternatives like asking friends or family for financial help or pawning something is not a quick cash option. Of course trying the bank or credit union would be advised, or even a cash advance from a card. But it’s assumed these would have been used if they were in fact options. 

As always, smart borrowing also means to read the terms of your loan agreement before signing as well, so that you know what your payments will be, when they occur, and other important details and conditions about your loan. Without reading ahead of time, you can later learn the hard way of things like additional fees, or even penalties within your loan agreement. It’s strongly advised that you take the time to read through it before signing and be aware of any and all particulars that you would be agreeing to. 

You should also only borrow what you will be capable of paying back on your next payday. Otherwise, what happens to many is they find that they need to take out another loan to pay off the first, and it becomes a debt cycle that can be expensive. 

Smart Saving

While some studies say as many as half of Canadians could not cover an unexpected expense of $400, one thing you can do starting now is to put $10-20 away each check, to build up an emergency savings. Obviously, the more you put aside the sooner you might get to the point where you have saved something substantial. You might consider what you could do without temporarily, like a subscription service or something, to help you reach your goals faster. Who know, your future self might just thank you should an emergency happen later where you could use fast funds again.

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How to Get Out of Debt

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how to get out of debt
 

How to Get Out of Debt 

So, you have found yourself in a situation where you have to decide on how to get out of debt. Many of us are at the mercy of our creditors when it comes to paying off our bills. Yes, they are your lifeblood, but so is your credit. So how do you go about figuring out how to get out of debt without having to be pushed into a corner?

Finding a way out of debt isn’t that difficult. You need to know which creditor is giving you trouble and then work to make amends with them. As long as you’re able to negotiate, you should be able to resolve any issues quickly.

The first thing you will want to do is take a look at your personal credit report to see where your current debt and payments stand. It would be best to get at least three copies of your credit report from all three major credit bureaus so that you can compare them.

In most cases, if you have paid off a lot of your credit cards and have moved on to new ones, you won’t have a huge amount of debt left. As long as you are still making your payments on time each month, you shouldn’t have any problems finding new credit to help pay off your old ones.

Another option would be to apply for a loan from a financial institution or a bank. It is always better to avoid applying for loans from payday lenders and loan sharks as well. You may have a hard time getting approved by them, but if you are willing to take some risks, they could prove to be a good idea.

Once you have eliminated all the credit card debt that you have, you’ll have to reevaluate your spending habits. You should not go back to the way things were before you started chasing debts, as it can negatively affect your credit and cause even more financial troubles.

Having a history of making payments on time for your bills is another factor that contributes to your credit score. If you’ve neglected to make payments on time, these can add up and impact your rating.

Another consideration is your debt to income ratio, or DTI. To determine this, take all of your monthly debt payments divided by your gross monthly income. If you are thinking of taking a personal loan out in future, many lenders suggest that a ratio of no more than 28% is ideal to be considered for a loan with good rates.

Another way to figure out how to get out of debt is to talk to an attorney. An attorney can help you figure out what you can do to avoid bankruptcy and prevent your creditors from filing charges against you.

Bankruptcy is always an option, but there are many ways that you can get out of it without filing it. With the right plan, it is possible to rid yourself of debt without risking everything you’ve worked for and saved. Sometimes a debt consolidation loan, if an option, is a better decision. Or speak with an expert on credit counselling.

Picking up an extra job or creating a side hustle to pay down any debt is another way of helping to fix your credit score.

There are many ways to figure out how to get out of debt, but most of them will require that you understand your financial situation and work to resolve it. If you do, you can definitely be able to live debt-free.

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Different Types of Loans

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Different Types of Loans

In this article we will show the difference between popular loan services. We hope this information will help you make correct choice. Let’s begin.

Personal Loans
loan for individuals, minimum papers needed, fast approval, automatic redemption.
Title Loans
a loan where a collateral is required (no physical transfer is not needed). The credit rating of the applicant is not considered. Loans can be approved very quickly.
Payday Loans
small short-term unsecured loan.
Home Equity Loan
the type of loan in which the borrower uses his home as collateral. The loan is often used to finance large expenses, such as house repairs, medical bills, or higher education.
Refund Anticipation Loan
short-term consumer loans. The loan term is usually from two to three weeks.
Pawnbroker Loans
loans secured by personal property.
Auto Loans
loans secured by vehicle.
Mortgage Loans
loans secured by real estate.
Signature Loans
the type of personal loan offered by banks and other financial companies which only use the borrower’s signature as a guarantee of debt repayment. The lender just looks at the credit history and the availability of a source of income when deciding to give a loan.

You also maybe interested in these articles:

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How to Connect with a Payday Loan Lender

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Choose Best Payday Loan Lender
 

How to connect with a Payday Loan Lender?

If you have discovered that you aren’t going to be able to meet your financial obligations, or just need a quick influx of cash to take advantage of a red-hot opportunity that is time sensitive, or just need a bit of extra cash in your pocket for any different number of reasons, you’ll want to look into the best payday loan lender in Canada.

An industry that has seen some very explosive growth in just the last 10 years or so, trying to figure out how to choose the best payday loan lender in Canada can be a bit of a headache and hassle. However, with the tips and tricks included below, you should be able to streamline this process dramatically, and always walk away with a favorable outcome!

Always read the fine print to any agreement

Before you sign on the dotted line to any payday loan agreement, you need to make sure that you have read all of the fine print. Not only that, you may even want to have a professional legal expert give the agreement a quick “once over” just so that you have complete and total confidence in the agreement that you’re going to make.

Also, you need to verify that the terms you were looking for, in the terms that you have verbally agreed to, are represented in that agreement – or you won’t have a leg to stand should you need to seek recourse for anything in the future.

This should be a bit of a no-brainer bit of advice, but you’ll find that there are still some out there that don’t read every single letter of their financial documents and are surprised to learn that things aren’t quite what they seemed later on.

Reputation is absolutely everything

Make sure that you choose to work only with loan lenders that have a favorable reputation in the industry – and never compromise on this fact.

The truth of the matter is that there are a number of payday loan lender services offering the same or similar financial opportunities, some of them with established track records for fair dealings and favorable client relations and some of them with less than glowing reputations.

When you’re talking about such a major decision that will impact your financial future for years and years to come, you’d have to be at least a little bit crazy not to move forward with the most trustworthy, respected, and highly rated payday loan service today.

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4 Great Ideas: Where to Get Money

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4 Great Ideas: Where to Get Money

Every day we spend money and sometimes we need bigger amount of cash than we have right now. For example we need to buy pills or to impress a girlfriend or to buy some gas for motobike. Where to get money fast?
So what we need to do in such situation?

Crediteck.ca prepared four ideas to solve this urgent money problem.

1. Friends or Relativies

fiendsIn any unexpected life situation you can ask your relatives or friends to help you.
Pros: you do not need to pay percents and you can ask to wait some time before you can return money.

You can not use this option very often, but it depends on your kind of relationship.

2. Credit Card or Overdraft option on Debit Card

credit cardsIf you have credit card – you know what to do 🙂 If you have Debit Card your bank can provide “overdraft” option to your card. It means you can withdraw bigger amount of money that you have on your bank account. You can use this cash amount for short time.

This option is used for different unexpected life situations.

3. Sell Stuff

sell stuffIf you have some unused stuff you can sell it on ebay.com, craigslist.org or near market even.

Just look at your closet or garage and find out have many things can bring you money! Old CD’s, t-shirts, phones or books…

Try it!

4. Get Payday Loan or Cash Advance

payday loanThis is the fastest and easiest option. Just fill out form on this site and you will get money in one hour or faster! You can borrow up to $1500 on return it on next payday.
So you do not need to bother relatives, you can sit at home in your chest and enjoy your cash loan.

If you are ready – Apply Now!

Advice: you can try to save some money for such situations. You can put it on debit card or deposit, or just hide under the pillow or in strongbox.

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Things You Need to Know About Cash Loans

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cash loans
Things You Need to Know About Cash Loans

In Canada as well as nearly any other country, cash loans are a great way to get money as quickly as possible without having to wait for your next paycheck. They tend to be best used in urgent situations, where a lot of money needs to be paid upfront for something, but you don’t have the funds at the moment.

While these loans tend to work fairly well, there are still some precautions that you have to take before you decide to make use of a cash loan. You don’t want to get yourself into trouble by piling on more debt.

Read more: Benefits of Short Term Loans.

Repay as Quickly as Possible

Since cash loans tend to be short-term, you want to repay them as quickly as possible. You still have the option of paying off these loans over a longer period of time than a couple weeks, but what ends up happening is that you start paying extraordinarily high amounts of money on interest. This is something that you don’t want to get caught in, so you need to be absolutely certain that before getting a cash loan, you’ll be able to pay it off in full with a couple weeks to a month. Otherwise, you’ll end up in a worse position than when you started.

Be Aware of High APR

As touched upon in the previous section, high APR can end up biting you pretty severely if you’re not careful. If you don’t pay off the full balance, you’ll end up having to pay extremely high interest rates for the next billing cycle. For short-term cash loans, this is unavoidable since they’re not designed to be used for anything other than getting cash as quickly as possible. In any case, make sure you’re aware of the interest rates that you’re facing if you don’t pay the full balance.

Be Eligible

Most cash loans require that you have some proof of full-time employment and/or stable income, as well as being over the age of 18. They’re taking enough risk as it is considering the nature of a cash loan, so they need to make sure that you’re able to pay off your loan in a relatively short period of time. Otherwise, they end up losing money, and you end up with crippling debt. So, once again, be absolutely certain that you have the income to back up the loan you’re taking out.

Avoid Scams

Not all companies in the business of providing cash loans do so honestly. Since they are a business, it’s in their interest to make as much money from their clients as possible, and some of them do this by misleading the clients into thinking they’re getting a better deal than they really are.

Boring as it may seem, be sure to read the fine print. You don’t want to have any hidden fees imposed upon you, and more importantly, you definitely don’t want to get ripped off, especially if you’re taking out a significant amount of money. In short, be careful and think critically about what you’re getting.

Read more: Protect Yourself from Cash Loan Scams.

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Steps to Applying for a Payday Loan

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Steps to Applying for a Payday Loan

Ready for fast and easy money loan? I’m sure Yes! So, lets go!

1. Click The Apply Button

Click the “Apply Now” button at bottom of this page or same menu item at right. You will be followed to http://crediteck.ca/apply/.
Steps to Applying for a Payday Loan

2. Fill Out Form

Just fill in all form fields.
form apply for payday loan

3. Get Your Loan and Enjoy!

You will get money same day directly to your bank account or credit card!
payday loan - steps to get money
That’s right, no paperwork and no hassles. What could be easier?
Good luck!

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Benefits of Short Term Loans

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Benefits of Short Term Loans
 

Benefits of Short Term Loans

One of the hallmarks of a truly great artist is the ability to create something which remains relevant and true in its message over the years and decades and centuries. The incomparable Cole Porter was a truly great artist, and his music continues to a post-Recession world today.

“Times have changed,” certainly, and when it comes to the free-wheeling world of the open market in an ever-changing, always-trending post-Lehman Brothers economy, “Anything Goes.”

And to keep up with those changes and trends, chances are good you’re going to need to take out a small short term loan.

Naturally, the idea of a short term loan can come across as a fearful one to a lot of people — and it’s certainly understandable why, at first blush, that might be the case. After all, the recession we’re still recovering from was due, in part, because of insolvent loans, and we’ve grown up with anti-loaning axioms being embedded into the fabric of our culture, everywhere and everything from the Bible to Shakespeare’s immortal pear of wisdom “Never a borrower nor lender be.”

But, indeed, as Cole Porter’s song indicates, “Times have changed”, and the banking system is now a lot safer and more secure than it was in the pre-Lehman Brothers days, to say nothing of Shakespeare’s day and antiquity. Loans and the process of loaning has never been more secure, and it’s never been more important to take out a short term loan.

How Can I Benefit From a Short Term Loan?

There are a variety of reasons. To begin with, an economy such as exists in the United States, Canada, United Kingdom, China and other G8 countries depends largely on the ability of these countries to do precisely what Shakespeare’s Polonius warns against — be both borrowers and lenders. The goal of borrowing and lending this way is to grow an economy faster than the excess of debt and in such a way as the net gain and worth of these countries outstrips that debt. Despite our multi-trillion-dollar deficit, that’s still the case in Canada; the alternative is winding up in an economic position similar to Greece, where the borrowing and lending process has completely broken down and, thus the economy collapsed with it.

That’s a vastly oversimplified explanation for the Greek Debt Crisis, but one suitable for our purposes here, and one which likewise leads into out next reason — namely, that the micro level of the economy, which includes your own personal financial welfare, depends upon it. As on the international stage, an economy that can depend on small loans being taken out and repaid and, just as important, consumers willing to take small risks and turn them into moderate to large-scale successes and profits is sure to prosper, and so will you.

But perhaps the most important and personally-imperative reason to take out a short term loan right now is the fact that there’s never been a better time to do so, and you absolutely need one of you’re going to get ahead financially. It’s a brave new financial world out there now, and to keep up, chances are you’re going to want (and need) some extra capital to keep your investments and new business ventures humming. The beauty of a short term loan is that it’s generally small, doesn’t take a long-term commitment and, if it works, can be renewed or else replicated in the form of similar subsequent short term loans.

Successfully stringing together and paying off a series of short-term loans is good for your credit score, good for your business prospects, good for the bank and bankers lending you the money, and good for the economy overall.

“Anything Goes,” so why not go out today and test the waters with a safe, structured short-term loan today?

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Protect Yourself from Cash Loan Scams

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payday loan scamsProtect Yourself from Cash Loan Scams

With the modern global economy anything but healthy (and with absolutely no real signs of it getting any better any time soon), payday loan and cash loan services have been popping up left and right promising the moon and the stars when it comes to quick cash for those that would not have access to it otherwise.

Traditional lenders have next to no interest whatsoever in doling out large amounts of money to customers that may have spotty track records as far as their credit is concerned, and these payday loan and cash loan services are filling a major gap.

At the same time, you need to make sure that you are always doing everything you can to protect yourself from payday loan scams – and here are three tips and tricks to help you do exactly that!

Work only with reliable and reputable cash loan or payday loan services

The most important thing you can do to protect yourself and predatory lenders is to always (and I mean always) work with reliable and reputable services and reliable and reputable services only.
You need to verify the credentials of the lender that you are considering moving forward with, verify that they have an upstanding ranking with the Better Business Bureau, and even do a bit of research online to verify that people have not been scammed by them in the past.
All of this research and due diligence is fight all and of a critical importance to protect yourself from loan frauds, and it cannot be skipped!

Never – NEVER – take out more money than you actually need

Secondly, you need to make sure that you are never taking out more money than you actually need through these payday loan or cash loan services.

One of the best ways to insulate you from very serious trouble with your finances later down the line is to take out only the money you need – and no more – whenever you need it. Then repay the loan that you have already taken out, and only after it is paid off consider taking out another one.

Be wary of any deal that seems “too good to be true”

Lastly, you’ll want to make sure that you aren’t pursuing an agreement or a loan with any service that seems too good to be true.

Obviously, there are certain services out there in the payday loan and cash loan world that are much more attractive and enticing than others, but there is a world of difference between favorable terms and a deal that is almost unfairly lopsided in your favor.

Favorable terms are certainly something that you’ll want to pursue, but any time you start to feel that a deal is too good to be true it often is – so trust your gut, and protect yourself from cash loan scams!

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Infographic: My First Payday Loan

Infographic: My First Payday Loan

We know that application for first payday loan is disturbing. So that’s why we created this infographic – “My First Payday Loan”. infographic - my first payday loan Apply Now! We know that getting payday loan first time is very delicate procedure. We know that you can have a lot of questions. First of all – don’t worry. Application procedure is quick, easy and very secure. There is no reason for concern. Just follow the instructions. Everything will be OK! Everyone in your life is faced with a situation when we urgently needed money, and you don’t want to get from friends and relatives. To issue consumer credit no desire or simply do not have time for registration? You can make out a loan to pay online or at the office. My first loan obtained to pay two years ago and still use this service. The problem may be dividing into two phases. Stage 1 is the test, 2 the process of obtaining and both consist of four steps. First credit conditions that nationality; you should be a Canadian citizen. The second condition is your age. Canada government is prohibited to lend to citizen under the age of eighteen years. The third condition – so you should have an account in Canadian bank. Fourth, it refers to the return of the loan. To repay it you should have a job and your work experience in this position for at least 3 months. You can receive loan online immediately. To do this, you must fill out a form on this site. Then the manager to send you offers. After choosing lender, you will get your money to your bank account. From that day there will be only one step – enjoy your loan, spend money, wait payday and repay the loan automatically. Now you know how it is made. Embed this infographic on your site:

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Infographic: Guide to Payday Loans

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Infographic: Guide to Payday Loans

Crediteck presents Guide to Canadian Payday Loans – How to get quick and affordable cash loan with no hassle. Some interesting facts, stats and faq. infographic guide to payday loans This infographic is simple guide with general information about our payday services. For more information please visit this pages: Get loan: Apply here → Embed infographic on your site:

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Payday Loans Laws and Regulations in Canada

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Payday Loans Laws and Regulations in Canada

 

Payday Loans Laws and Regulations in Canada

Payday loans are becoming popular since they appeared in Canada in 1990s. In order to clearly understand all the risks and the money involved, you should be familiar with certain rules that provide important information necessary to make a reasonable decision.

Background

Statistics suggest that the average payday loan is valued at $280 and is extended for a period of 10 days. In order to meet the basic loan qualification, the borrower must have identification, a checking account and a proof of a regular income. As a rule, lenders extend the credit based on the percentage of the borrower’s net pay until his next payday. The borrower writes a post-dated check for principle plus interest rate and fees.

Canadian Payday Loan Association

The CPLA represents 804 retail financial services outlets providing payday loans to customers in Canada. The association’s mandate is to work with governments toward a national regulatory framework that will allow for a viable industry and protect consumers.

The payday loan industry is regulated on the basis of the Pay Day Loans Acts and Regulations, which operate in each province and under the appropriate governments.

Provincial regulation

Since 2006, the Criminal Code of Canada allowed Provinces to regulate the payday loan policy and each of them, except Quebec and Newfoundland, has enacted certain rules towards this industry.

Since November 1, 2009 the Payday Loan Regulation under the Business Practices and Consumer Protection Act, have been in force in British Columbia. The maximum interest rate was 23% of the principal. All lenders are required to register and are actually regulated under the Consumer Protection BC.
The government of Saskatchewan announced the regulations similar to those in British Columbia in June 2010. The Payday Loans Act 2012 came into effect on January 1, 2012.
In Manitoba, the maximum rate you can be charged is 17%, according to The Consumer Protection Regulation 2006.
Ontario limited the fees till 21% and enacted the Payday Loans Act 2008.
In 2008, New Brunswick laid out a regulatory framework for licensing payday lenders but hasn’t yet determined the maximum interest rates.
Prince Edward Island and Nova Scotia have imposed a cap of 25% according to the Payday Loans Act 2009.

Criminal interest rate

Section 347 of the Criminal Code of Canada makes it a criminal offence to charge more than 60% interest annum.

Bill C-26 amends section 347 of the Criminal Code, which criminalizes the charging of usurious interest rates. An increasing number of payday loan companies suggests that some Canadians are willing to pay these rates in excess of those permitted in the Criminal Code. Bill C-26 is designed to exempt such loans from criminal sanctions in order to facilitate the provincial regulation of this industry. Thus, it applies to lending companies licensed by any province that has legislative measures in place designed to protect consumers and limit the total cost of the loans.

The new section 347.1, which exempts a person who makes a payday loan from criminal prosecution in case – the loan is for $1500 or less and the agreement lasts for 62 days or less; if the person is licensed by the province to enter into the agreement and the province has been designated by the Governor in Council under new section.

The main requirements on the payday loans in Canada according to the Payday Loans Act in each province that each should know about

  • All loan providers have to be licensed.
  • The lenders have to give you a copy of all necessary documents you have signed and the loan agreement.
  • The loan agreements must disclose all necessary information according to the Act and Regulation.
  • A lender has no right to issue a new loan until the first one is repaid, and must not issue a loan greater than 50% of the borrower’s income (this percentage may vary regarding the province).
  • The lending company has no right to access the borrower’s bank account.

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The Difference Between Payday Loans and Cash Advances

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Difference Between Payday Loans and Cash Advances

The Difference Between Payday Loans and Cash Advances

Today many people confuse and even equate these two terms – a cash advance and a payday loan. A cash advance is usually considered as the amount of cash obtained against a credit limit. A payday loan is a small sum of money, which a person borrows for a short time.

There are some features that distinguish these two forms of borrowing money. First of all it’s a list of documents and forms which a loaner should present and fill out. If you receive a payday loan, the creditor requires only identification documents.

In the case of obtaining a credit card cash advance, the debtor must submit, in addition to the passport, personal information (for example, an income statement), and also have a previously opened credit card. By the way, the credited party spends more time on registration the credit card cash advance than a payday loan.

The next peculiarity is the terms and the amount of payment for using the money. A person obtains a payday loan for a period of 10 or 14 days. After this period of time the obligor must return money. The interest at the rate of about 15 percent is paid for a payday loan. If a debtor has overdue the time limit payment, he should pay the next 15 percent of the sum until he repays the debt.

The fee for using the credit card cash advance is usually charged as a percentage of the received money (this rate varies from 2% to 4%). Sometimes the fee for a cash advance is fixed, which is called flat fee. But very often a debtor pays both the cash advance interests and the flat fee. It depends on the credit card issuer. However, there is no grace period for a credit card cash advance, unlike a traditional loan. A borrower pays interests every month on the balance. Sometimes some finance companies can charge extra fees apart from cash advance interests. Try to pay the cash advance in time or even before the billing notice comes to reduce the amount of fee. If you obtain the cash advance through the ATM, the financial company which owns this ATM can also charge some fee.

The main disadvantage of a credit card cash advance is that: if you have withdrawn the whole amount of cash advance at once (not during the whole year), you should still pay fee from month to month. In such situation you pay off the debts with the charge of 20 to 25 percent interest per year. So if you are not sure in your ability to pay in time during long-term period, it’s better to obtain a payday loan for couple of times, although it will cost you a bit more expensive than to withdraw a cash advance. That’s why the choice of extra money depends on your solvency and also situation.

Please note:
In Canada, the “cash advance” and “payday loan” terms often mean the same thing.

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Payday Loans or Credit Cards?

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Payday Loans or Credit Cards

Payday Loans or Credit Cards?

Whether you are a simple worker or a businessman, but the human nature is that people want to indulge themselves and to purchase new things. And this little pleasure makes people think how to get money quickly and without any risk. A credit card is one of these fastest ways to receive money. It is a convenient tool for obtaining non-cash payments. However such scheme of crediting as payday loan requires the registration of a minimal package of documents.

If you still hesitate which of these methods of crediting is the most suitable for the recipient, this article will be helpful while making the right decision. These credit mechanisms have their advantages and disadvantages. Let us consider them more detailed.

Advantages

Payday LoansCredit Cards
You can get cash loans at any department of the bank.You can carry any amount of money on your card and the thieves can’t take away cash from you.
All the loans are given instantly, that is the first loan can be given within about 20 minutes, and the next for 5 minutes.It is suitable to pay for purchases in large supermarkets.
The financial institutions’ reliance is important while obtaining the loan, and the recipient’s credit history does not matter.It gives you an opportunity to get cash back when the sellers give you an accrued discount.
It’s enough to have any earnings for obtaining money.There is an interest-free crediting period. When you return money before the expiration of this period, the interest will not be charged.
You must submit identification documents – passport and a taxpayer identification number.There is an ability to pay for goods and services via the global net.
No co-signer required.
It’s without any mortgage.

Disadvantages

Payday LoansCredit Cards
Because the loans are provided in cash, be careful on the streets where the robbers can take away the money.You must always remember the PIN code of your credit card.
While paying for gods in the supermarkets you need to count bills and money.If you loose a credit card, you should inform the bank immediately and ask to block it.
There is no cash back while purchasing goods and services.The bank sets a limit on withdrawals from the credit card, it depends on the client’s paying capacity.
The loan term varies from 7 to 20 days, during this period the amount of the obtained money should be repaid.While opening the credit card the agreement, income statement, a co-signer or mortgage can be required.
The amount of the cash depends on the beneficiary’s income.

Thus, the scheme of money reception in the case of a payday loan is much easier than using a credit card: you can receive money more rapidly; you spend less time on documents registration. This, in turn, stresses that such service is very convenient and affordable for most people. The main thing you should remember when choosing a credit is to count properly your budget and not to turn the loans into a tradition.

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History of Payday Loans in Canada

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payday loans canada history

History of Payday Loans in Canada 

The evolution of instant payday loans in Canada.

The lending money loans for little period of time in Canada has emerged a long before. Though the popularity of crowd lending with exclusive stores became famous in the middle of 90’s and it was well known with the name of “cheque cashing loans”. From that time till present these types of payday loans for few days are employed by many people with the availability of fastest and easiest loans in a short period of time. The diagram below shows the trend of this service from 1996 to 2011.

Payday loans market trend in Canada

In a last decade the payday loans for few days has increased dramatically with the respect of several factors. The foremost reason of this growth is due to the increase of such payday stores in Canada and intensive marketing of this service. In past ten years, the growth of internet made big contribution in the development of many businesses, including payday loans. The last factor is the consequence of bad credit history of many Canadians and the only choice to borrow money was this payday loan option. The major users of payday loans are considered to be females. You can see from the graph that from 1996 to 201 the payday loans were increasing in a big deal and the major contribution was done by women.

Female-male payday loan trend

In the mid nineties the number of such stores were over 20 organizations and Canada Treasury estimated that the number of payday loan businesses have increased more than twofold in 700 spots of Canada. The Canada Treasury estimates that in ten years future the trend of new payday organizations would augment to 600%. You can see from the diagramm that the trend increased dramatically at times of global recession starting from 2007 to 2011.

Number of cash advance companies

The payday loan service is flourishing as of the clients have become more aware of the fact that for comfort you need to have higher costs of risks.

As of 1998, the internet employment with payday loans commenced that enabled to target bigger markets in the industry. Since then the lenders do not have geographical limitations or restrictions. Customers can be gained from any country of the world via internet. In order to get better point of view of payday loan business it is strongly recommended knowing the history of the industry.

Payday loan users in Canada

The users of the internet consist of mainly by younger generations such students. The internet employment by payday loans has increased the influence on the young generations.

Max APR offered by payday loans service

By the way, you can count yourself APR for your loan here →.

As of 2005, payday loan businesses in Canada applied the service that assisted clients to obtain money at such periods when their salaries were deficient with their monthly expenditures. Moreover the service presents several hundred dollar loans, as of clients do no have any advantage of paying the bill later than stated time.

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