Loan Victoria-Fraserview Vancouver
A Few Facts About Payday Loans
A payday loan is an unsecured loan not dependent on collateral such as a car. They are short term in nature due to be repaid on your next payday.. You can apply online and the money loaned can be credited into your bank account on the same day.
How to Get a Payday Loan
Many payday loans are available online so there is no delay with the documents. You will be asked for details about your income and employment bank account details when your next payday is and the amount you wish to borrow.
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.
If your application is successful you will be sent your loan agreement by email showing the borrowed amount the repayment date and the amount of interest you will pay. You should also see details from your local Consumer Credit Act outlining your rights and typical loan conditions. 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 you are in doubt about their legitimacy then you are within your rights to contact your local authority for further information.
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 is an Annual Percentage Rate and as such is calculated over a whole year. However a payday loan is taken usually only over a few days or 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 up to you to decide whether you will be able to repay on time.
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Victoria-Fraserview, Vancouver, BC, Canada