It’s true that using online cash loans as a lifestyle habit is not going to help you win financially, but they can be an invaluable tool in an otherwise hopeless situation.
Consider a case where someone has recently suffered some unexpected medical expenses that drained their cash savings. Their car breaks down and they have no way to get to work. They need a couple hundred bucks to cover public transportation costs to get to their job until they get paid, when they can get their car fixed.
This person was definitely living close to the edge, but they’re not being completely irresponsible with their money either.
A quick cash loan becomes the difference between just squeaking by and complete disaster.
How Do Online Cash Loans Work?
The beauty of going online for your cash loans at sites like http://cashloans.ca is that the loan gets automatically deposited into your bank account. Simply fill out the application and you’ll most likely get approved.
Unlike other loans, you won’t get a credit check run on you, so your credit score isn’t an issue at all. This is great because if you DID have a good credit score, you probably wouldn’t need a payday loan (since you’d likely have a credit card or line of credit you could use).
Rather they’ll check that you meet a few minimal requirements such as age (usually at least 18 years old), as well as a minimum annual income (varies between lenders, but probably not as high as you think).
How Much Should I Borrow?
The idea behind payday loans is, as the name suggests, to get a loan based on your next paycheck. Again this will vary by lender, but typically the maximum would be something around $1,500.
What To Watch Out For
If you agree to the loan terms and pay it back within the agreed upon timeline (usually about 10 days), you’ll pay some interest and everything will be fine. You likely saved yourself some NSF fees or other charges for being late, or, like the person in our example above, avoid losing your job because you couldn’t show up.
Payday loans become problematic when you miss the repayment due-date or start using one payday loan to pay off the other one. It’s at this point that interest rates will skyrocket and start compounding on each other, quickly creating a mess that will be very difficult to get out of.
If you know you’re going to be late on a payment, contact the lender immediately. There will be options to extend the loan agreement that you can use. These will cost you extra, of course, but it won’t be as much as defaulting on the loan without telling them ahead of time.