Even though people are intrinsically industrious and sensible, there still can be time when they would require financial help. This may be for a variety of reasons- the little one may need to enroll for an academic course, urgent family medical aid may be required, or your house may simply be begging for repairs. Whatever be the case, the working class living in the Canadian town of Nanaimo deserves to be free from financial worries.
Things to keep in mind
1. While looking for the best company to get payday loans in Nanaimo, ensure that you pick one which allows you to fill the application form online
2. Funds should be transferred instantly upon loan approval
3. Look for a lending company where hard credit checks are not done by credit bureaus, or else your credit score will be drastically reduced. The loan approval team only has to do a soft credit check.
4. Your privacy is very important, and so the financial company you select must process applications using appropriate encryption technology
5. Companies ought to comply with provincial loan regulations. Legal licenses to operate anywhere in British Columbia will help in dealing with your case in this region.
Payday loans are short loans
Payday loans fall under the short loans category, which means that interest rates will have zero relevance during emergencies. Being short term, they usually last for only a fortnight. Naturally, someone facing a life-and-death situation will not be bothered about percentage as long as money becomes available. Instead, it would be better idea to finish pending work as well, once the emergency has been cleared. In comparison, do you know what would happen if you wait to get the loan from a traditional bank? Emergency obligations may just spiral out of proportion in the wasted period.
In case you require a payday loan to pay off EMIs on any other loan, top financial companies can certainly help. This happens when monthly incomes are not adequate for EMIs, which may also have happened due to a job loss. Such urgent financial support can be obtained from companies that give payday loans.
The borrowing limits
Normally, the limit of a payday loan will depend on your present financial situations and state laws. In British Columbia, before 2017, the cost to borrow $100 couldn’t be more than $23, but this has been lowered to $17, as per the latest update. Since these loans are short term, the interest rate can only be calculated if it is assumed for a year. The APR (Annual Percentage Rate) is always charged in accordance with Consumer Protection BC.
Recurring payments may not be suitable
After you decide to get payday loans in Nanaimo and the application is approved, a number of lenders may ask you to give your credit/debit card details to have the amount automatically deduced from your account every month. Though this is quite handy, it may become risky as you may run short of money for mortgage payments, rent, food and other essential expenses. It could even take you over the overdraft limit, inviting further bank charges. In other words, if auto debit is not suitable for you, talk to the CPA (Continuous Payment Authority) for other ways of repayment.
Reasons for rejection
It is mandatory for you to possess a valid bank account, income and ID proofs. Despite having these, you could be rejected for a payday loan due to many reasons, which include:
- You are already making payments on an outstanding loan
- You would not be a good match for the required repayment requirement. This is because of state-specific laws that decide how much income you can spend, and the lender would use his judgment to gauge that you won’t be able to pay
- Your checks have recently bounced
- You declared a bankruptcy recently
- You opened the eligible bank account very recently
- You haven’t been on payroll for long enough
Some people think that repayment of payday loans helps to build good credit, but that is usually not true. While it can be true if the firm you choose to obtain these loans makes timely payment to credit bureaus, not paying on time will certainly hurt your score. If you do not end up paying on time, the lender is likely to report default to the bureaus, or even sell this report to a collection agency which will do the same job.
In an ideal world, if people are left to themselves, they will probably never take loans. Unfortunately, an average person in the real world is likely to encounter several situations where he/she will require financial assistance. A payday loan helps in disbursing a large amount of money within a short period, without the legal hassles of a regular bank loan. The only condition here is payment of a higher interest rate.