Online Payday Loan Cash Advance Articles

Date: 10/23/2008

Frequently Asked Payday Loan Questions

Although the payday loan can be found in other parts of the world as well, Canada definitely has a good number of venues which are making them available to Canadian residents who find themselves in need of a little financial funding to get them through to the next payday. However, many people have some important questions about the payday loan. Below are some of the most common questions and our answers.

What is a Payday Loan?

A payday loan is cash given to you that is paid back on your next payday. Generally, the amount of a payday loan in Canada is no more than $1,500 but the borrowable amount is based on your provable income. You write the vendor a post-dated check for the borrowed amount plus fees and interest. The check is then cashed on the day marked on the check.

Why Would I Want a Payday Loan?

You might need a payday loan for a variety of reasons. Sometimes our paychecks just don’t cover all of our expenses in a given week. For example, if you need new tires for your car but can’t afford them out of a single paycheck, you could use a payday loan to get the tires you needed now while spreading the costs out over two different paychecks. If you were facing a personal emergency and needed cash quickly, the payday loan is going to be one of the best sources of possible funding available.

What about a Payday Loan and Bad Credit?

Although it is called a payday loan, you don’t have to go through any type of credit check to make sure you are approved. All you need to do is proof that you have an income, how much you earn, and how often you are paid. You will also need to supply proof of your identity to make sure no one is using fake information to take out a payday loan. That’s all you need to do. It doesn’t matter if you have bad credit, no credit, or exceptional credit. The Canadian payday loan is an option available to anyone.

How Much Will a Payday Loan Cost?

When you take out the payday loan, you should ask about the fees and interest rates. Most lenders will charge a small fee – sometimes as little as $10 – for the service. Interest may or may not be added as well. Of course, you will also be responsible for the principal cost of the loan.

What if I Can’t Pay the Payday Loan Back as Agreed?

If you can’t pay the back the payday loan as agreed, you must contact the lender as soon as possible. The company will put through your check on the scheduled date and you will be charged fees by the bank and the lender if there are insufficient funds in the account. Most lenders will give you the option of rolling over your balance which means you only have to pay a small portion and can reschedule a later pay off date.

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