Having cash at hand is always a good position to take especially when you have bills and other money related obligations that you must cover within a month. You may not always have cash in your bank or at hand every day of the month. Sometimes your paycheck is too far away and in extreme situations, you do not have a paycheck at all. Payday lenders come to your rescue at these cash-crunch times. Payday lenders are small businesses that specialize in providing emergency cash to individuals for a fee. Here are additional details you need to know about payday lenders to decide whether they are a good option for you.
It is easier to get a payday loan approved in Canada than it is to get a bank loan approved.
This happens because the qualification for a payday loan does not necessarily follow the remarks that exist on your credit report. Payday lenders understand that you need the money as an emergency and it is not in their business interest to deny you the opportunity to get it.
In most cases, your relationship with the lender will take a month or two. Thus, you do not need to show how much you earn on an annual basis and declare all your revenue sources to qualify for the cash advance. If you have an expected income source that will be arriving though your bank, then you qualify for a payday loan. You will approach the lender and grant them permission to take the given amount from your account when your cash advance period lapses.
Payday lenders work with other partners who are experts in collecting payments from their clients.
Most of these partners are continuous payment authorities that hold the power, based on an agreement you sign, that gives them the right to make withdrawals from your account until you settle your debt. The withdrawals will only take place at stipulated times, before you can access your money in the bank. All this happens in a particular way so that your lender is protected from cases of payment defaulting. Remember that you get the cash advance without providing any security, thus it is understandable for lenders to protect their business.
When anything unfortunate happens to your ability of paying the money at the stipulated time, you can request an additional repayment period. The payday lenders, upon receiving your postponement request, will initiate a new processing fee that you can pay in the meantime as you await your financial conditions to change. It is also possible to refinance your cash advance with another one just as you would do with a regular bank loan when you need additional funds. However, when you are refinancing, you must also show that the paycheck you expect at the end of the week or month is enough to cover your enhanced cash advance. Borrow less than you expect on your paycheck so that you are able to pay it back when it is due.
In the end, your need to maintain a high quality standard of living requires a commitment to pay your bills and be able to afford to buy the things you need. You can do this with your salary and other investment gains that you make but when you do not have enough of these funds, a payday loan will be an ideal solution.