A hefty paycheck is not a guarantee that you will be financially sound all the time. An emergency expense may crop out of nowhere when you expect it the least. Things can be worse if you don’t have savings in hand and the paycheck is still a few weeks away. What if the expense is something you cannot postpone or delay? Is there a way to get instant cash that does not translate into a long-term liability? How quickly can you get the funds which you require to fulfill immediate needs? Payday loans emerge as the best answer to all these questions.
The best thing about these loans is that they are easy to get and you don’t end up with a long term liability. You borrow money today and can pay it back with your upcoming paycheck- as simple as that! Additionally, you have the option to apply for payday loans in Canada at Friendly Lender in just a few clicks. Things couldn’t get easier, could they? Everything about these loans sounds good but you should still be sure that you meet the eligibility requirements before you apply for one. Let us check the facts that you need to know about these requirements.
Understanding the process of payday loans online in Canada
Even before you ask about the eligibility requirements for payday loans online, you need to understand how these loans actually work. Obviously, you will need to connect with a website while applying for one. These websites have a network of lenders who assess your application and provide you the loan if you qualify. You need to be careful about the choice because collaborating with a credible website should be your priority. A legitimate one will connect you only with genuine lenders who charge just optimal interest rates on the loans they extend.
Once you land at the right website, you will have to fill a small online form with a few personal details, in addition to your employment status and financial details. Just click to submit the form and your application will reach multiple lenders. If you are eligible, you will probably get an approval for your payday loan in just a few minutes. The money comes into your account within a day or two after the approval. You couldn’t ask for anything else, considering the speed and simplicity of the process. The best part is that there is hardly any need for documentation in the entire process.
Basic eligibility requirements you need to fulfill
Considering the ease of the application process for online payday loans in Canada, you will surely feel confident. However, there are some basic eligibility criteria that you must absolutely fulfill for maximizing your chances of approval. These include the following:
- Primarily, you need a steady source of income to prove that you will have enough money to pay back on the due date. If you have a regular job, the lender will be willing to help on the basis of your next paycheck. On the other hand, you will still be eligible if you have regular income from self employment. The lender is concerned about your ability to repay rather than where you make money from.
- You will also need to furnish evidence about your employment, which lenders verify for approving the loan. Pay stubs work in case of salaried borrowers while your bank statement is pretty good if you are self employed.
- A healthy checking account which is in good standing with the bank is another factor that a lender typically considers while approving a payday loan online.
- These eligibility requirements are easy to fulfill but not having a great credit score gives you a reason to worry. Local lenders usually consider this magic number while approving loans and a low score often spoils your chances. But with the online borrowing option, you can get a bad credit payday loan as well. All you need to do is to convince the lender that you are in a position to pay back the loan.
- Besides bad credit loans, you may even find a no credit check loan without having to worry a bit about your credit score. These loans are approved after a soft credit check which involves gauging your repayment capacity on the basis of your current financial status.
Availing online payday loans is hassle-free because the eligibility requirements are simple in a majority of cases. Whatever information you share on the website must be genuine because false or misleading facts will do more harm than good. Don’t expect the lenders to approve without verification and state only authentic information, even if it means disclosing a bad credit score.
Go through the terms and conditions
Even though getting payday loans online sounds easy, you need to be extra watchful before closing the loan agreement. Read the fine print and understand the website’s terms and conditions carefully. You may even connect with their support team if you have any queries and doubts. Being aware about the prevailing rate of interest and state caps is equally important if you want to save yourself from scams. There will be plenty of unscrupulous lenders out there looking to take you for a ride. Applying for a payday loan with a trustworthy site is the best thing to do if you want money fast but do not want to risk your personal and financial details.
Although you may apply online for a payday loan without much effort, this does not give you liberty to borrow without second thoughts. These loans are meant to meet financial emergencies while you wait for your next paycheck, but you still require a repayment plan to deal with the loan. The idea is to manage the subsequent month’s expenses in such a way that you are able to pay back the loans without any problem. Further, you may even discuss the options of loan rollover and installment repayment with the lender in case you are not really sure about honoring the payback on its due date.