Loan Kensington-Cedar Cottage

A Few Facts About Payday Loans

Payday loans are considered unsecure meaning they do not require collateral.. They are short term in nature due to be repaid on your next payday.. Most times you can apply online and the cash can be deposited to your bank account within hours.

How to Get a Payday Loan

Many payday loans are available online so there is no delay with the documents. You answer questions about your banking details your income where you work how long you have been employed there when you get paid next how much money you need and so on.

The payday loan company will decide to lend (or not lend) based on how much you want and compare that to your income. Be careful how you fill the application out and only ask for what you need because you will be more readily approved for a reasonable amount.

Most successful payday loans are dealt with by email using documents showing how much was borrowed repayment terms and interest you will owe. You will also receive loan conditions that outline your rights under the Consumer Credit Act. There will also be details about repayment cancelling the loan and the use of your personal information.

Regulation of Payday Loan Companies

You should probably investigate the credentials of the company you want to borrow from. A legitimate lender will display their license in their office or have a download available for you to view. If something does not look right you should contact your local authority for further confirmation.

If the payday loan company you are applying to is properly licensed there will be a government body to contact where you can get reassurance of fair practice.

Why Does the APR Appear High on Payday Loans?

At first glance the APR on a payday loan looks very high. This might look misleading but the figures are high for a simple reason. APR Stands for Annual Percentage Rate meaning it is an annual calculation. Whereas a payday loan is due to be repaid in a few days or a couple weeks.

Rather than relying on the APR rate it is more advisable to look directly at the loan agreement to see exactly how much interest you will be charged for the period of your payday loan. Also there might be a flat rate charged instead of percentage. It is advisable to look closely before signing anything to determine if you can make the repayment as per the terms set out in the agreement.

Kensington-Cedar Cottage

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Kensington-Cedar Cottage, Vancouver, BC, Canada