What is a payday loan?
A payday loan is a small, short-term loan that is intended to provide just enough money to help take you through until your next payday. Payday loans are typically loans with a value of $1500 or less for a term of 62 days or less. Typically, these loans are used for short-term periods.
Is a payday loan the right option for me?
When used responsibly, this type of loan can be extremely helpful to provide financial assistance in a very short amount of time. Some common uses are:
- to pay bills;
- to help cover sudden and urgent expenses;
- to ensure a cheque will not bounce.
What payday loan company should I choose?
It is worth to look through the best loans reviews to find the most suitable service for you. When choosing which payday loan company you will use, it is important to consider both whether:
- The company practices responsible for lending;
- You will use the payday loan responsibly.
How do companies practice responsible lending?
All companies try to ensure you are not taking more than you are able to repay. Your first loan amount will not exceed 30% of your net income. Once you have consistently repaid your loans on time, you will become an established customer and your loan limit may be increased. The amount you are able to borrow will always depend on the amount of your net income.
All services will always send their customer a reminder email two full days prior to their repayment date. This is sent so that arrangements can be made to ensure the funds will be available and avoid NSF charges from the bank. A reminder will also be sent on the actual repayment date.
You can always be assured that there will never be any hidden costs of fees with companies from our list. We are very upfront about our fees, and they are also displayed on our website, with nothing to hide.
Lenders will only enter into a business relationship with those who have the means to handle the costs and conditions of this type of loan. They will not loan to those who are receiving a pension, disability, Employment Insurance Benefits, on Maternity or medical leave, paid by commission only, substitute teachers, and independent contractors as their financial stability is uncertain. Many other Payday Loan lenders have been accused of “preying” on these groups of people.
How can I ensure I am using my payday loan responsibly?
- Be sure to understand all fees and charges associated with any form of credit before making your choice.
- Never use this short term solution for a long term financial challenge.
- Never borrow more than you know you will be able to pay back, in full, on your scheduled repayment date.
- Never borrow money from a company that does not disclose responsible lending practices.
- Choose a company who provides world-class customer service, where your best interest clearly comes before making a profit.
What if my financial obligations become overwhelming?
If you are having difficulties repaying your financial obligations on time repeatedly, attempt to lessen the amount you borrow from your payday lender or consider another source of credit to assist with your long-term obligations.
You may also wish to speak to a credit counselor to assist with the difficulties you may be facing.