There are so many myths about payday loans that are spreading these days vastly between Canadians. And these are affecting the borrowers as well to apply so that they can’t feel relaxed from the clutch of emergencies, they have got into.
And a loan for short term is enough capability to remove those emergencies at once when there is no extra money to handle that. In 20’s one of the major myths is spreading in the market “Payday Lenders Typically Target Low-Income People, And the Most Marginalized” during their hard financial times whereas this is completely wrong.
But, these online payday loans are known best for overcoming emergencies like paying unpaid medical bills, college fees, house repairing, etc. You need to repay that once you get your next pay-check with a bit high-interest rates.
Data Source : Canada.Ca
Anyone can apply for loans under any circumstances whereas almost all the traditional lenders check credit scores and reject applications. In case you have bad credit then the lenders don’t approve easily or else they impose high interest rates along with the fee.
One of the reasons they also expect some benefits. Apart from that, according to the current study of Buckeye Institute. It has proved that only 3.57% margin of total profit payday lenders gets.
Let’s find more about payday loans by knowing their identity first of all. So that it can be easy for any borrower to approach the lenders with confidence for applying for the loans. And they can get fast approval as well as funds, they are looking for.
What are payday loans?
Payday loans are very supportive financially during financial problems which make you helpless because you have no money left. Your salary from your employer and income from disability benefits(social security’s) is still far away, but strewn expenses need to be cleared by paying that all.
Learn about: WHAT BENEFITS ARE AVAILABLE IN CANADA? ☛ 2021 Guide to Government Benefits in Canada
Imagining such a situation scares, but there is nothing to be worried about if you have met with one of the situations. The reason being, there is a strong solution that has come in form of payday loans that also accept CERB, Child Tax Benefit and income from Canadian Social Assistance like ODSP as guarantee to eliminate your unexpected expenses.
Sudden problems are those problems that you are not prepared for, but you have to face at any cost. Those problems seem to be difficult for managing at the same time when they are financial. And there is fund scarcity as well on the other hand.
How Do Payday Loans Differ From Other Types Of Loans? 5 Facts!
- Paying emergency bills: Borrowers apply for these guaranteed payday loans no matter what Canada 24/7 because there are unexpected bills that have knocked on their door. There might be medical bills, electricity bills; apart from that college fee also they need to travel suddenly.
- Car repairing: Canadians are using pay-day advances when their vehicle has stopped on the way because it needs repairing. It’s been so long since they repaired their vehicle last time now again it needs that to continue moving.
- Changing home’s look: It has come in front very often when borrowers apply for the loans for giving a new change to their home by repairing that as well.
- To get rid of financial stress: When there are expenses, but no cash along then there is a need arises for cash advance. Nobody wants to bear financial stress which kills almost therefore they resort to same day cash loans.
- Easy to apply: It is really hard for the borrowers to visit bank to bank specially when they have bad credit. These online payday loans with bad credit are very easy and convenient to apply without going anywhere which automatically forces the borrowers to apply for loans.
What are common myths about payday loans?
Since payday loans are very helpful and supportive for the borrowers which give them the strength to face their financial problems. Despite this, there are rumors and myths about the online pay-day loans which seem to be an obstacle for the borrowers.
That’s why if you are also going ahead to apply for the loans then you should pause before you apply that. Because we don’t want you to face any sort of problems while you want to come out of those financial problems that you are suffering right now.
There are some common myths about payday loans that you should know once. This will boost up your confidence if this is your first time.
Why Payday Loans Are Bad? Due to the Dangerous Myths Associated With It:
- Only struggling and poor can apply: This is false that those who are struggling and belong to a poor family. Only they can apply for these online loans whereas anybody can apply whenever they need from anywhere and at any time.
- Payday loans have horrible interest charges: There is no doubt that these loans have high-interest charges. But they are not horrible even borrowers can manage that by paying on time.
- Hidden fee: There is no hidden fee. Apart from that, it also depends on whom you are applying for the loans. There might be some lenders who might play a game with you by hiding most of the things like fees.
- Only good credit holders can apply: This is also completely wrong that you can only apply for loans when you have a good credit score. Some so many such borrowers have applied for the loans with their bad credit and got the approval faster than anywhere else.
- Not impossible to pay that back ever: This also creates an illusion in the mind of borrowers when they come to know about they can’t pay their loans back. On the other hand, borrowers can pay that back by maintaining their budget and being responsible.
Why Payday Loans Are Good?
Applying for payday loans online is a great option for Canadian who is looking for urgent cash because there is no hassle of anything. This is a more convenient option than other options to apply for the money and get within 15 to 20 minutes only.
A large number of borrowers have shown payday loans importance in their lives due to the fastest service and quick solution to their financial problems.
Conclusion: Why Do People Take Payday Loans?
It’s time to come out of these traditional myths of payday loans because you must have learnt about that and finally you are at the end. So now you can apply for same-day advance confidently without keeping even a single negative notion because there is nothing to worry about.
You can now target your unexpected expenses to remove which tend to disturb you financially with the help of payday loans. Now, your every single expense will live no longer with you. It doesn’t matter when your next payday would come.
Andrew has 12+ years of experience in the credit counselling industry and loves all things related to finance. He teaches people to take control of their money so they can live life on their own terms.