Vancouver city is full of diverse online financial options to choose from. Whether you have a good credit history or bad credit ratings in the profile, there is fiscal option for all the people around. One of the most frequently used financial products you find is same day payday loans in Vancouver.
The name sounds familiar who has already applied payday loan in the past or looking some detailed information on the same.
Many Canadians wanting some extra cash think about applying for payday loans in Vancouver but rather confused about its detailed operations and terms.
No need to worry as here in this blog, we will be looking at some of the prominent facts about guaranteed payday loans Vancouver, bc in Canada to save much without indulging in a hard fought debt cycle.
The Repayment Cycle of Payday Loans in Vancouver City
Payday loans no credit check online anywhere in Vancouver, Canada can be applied either online or physically at the establishment of a lender. But most commonly it is applied digitally with a fraction of minutes only. No lengthy paperwork, hours of waiting, and tedious procedure free loan offer actually appear shiny glittering thing in the eyes of borrowers.
However, it comes with a higher rate of interest which most people do not know. In the repayment period which is approximately of 2 weeks from the day of receiving the paycheque, you have to pay increased set of charges. Sometimes that could go up to 600%.
There is another hidden fact associated with such short term loan offer in Vancouver is no option of rollover. It means, Canadians are not allowed to apply for another similar payday loan to repay the earlier one. On the contrary, if you fail to repay, then you will be indulged in a dangerous debt cycle that constitutes high penalty charges.
Things Borrowers Normally Expect
Normally, a person who is employed live on a monthly income to handle all the expenditures. But he/she never knows the arrival of unexpected fiscal circumstances that demand immediate cash. And, this is where they think about applying for payday loans Vancouver for the following few reasons:
- Arrange instant cash on the same day of getting the loan approval
- Immediately qualify for it even if having negative credit ratings in the profile
- Cannot afford to wait for days for the loan approval
- The paycheque is getting delayed due to unfavourable reason
But apart from the other reasons, payday loan might not suitable for you and do not meet the expectations, if you don't have a steady income, previous loan is already pending, too many expenditures due that cannot be met, and do not have quality proof required by the lenders.
Check Out the Rules & Regulations Surrounding.
Although payday loan proves beneficial for many to arrange fast cash and pay the dues well on time along with the repayment. But some due face challenges to let both ends meet. For this, federal government of the Canada has set some rules and regulations specifically for payday loans in Vancouver that comprise of the following points.
- Only 23% or $23 interest rate will be allowed on the borrowing of per $100.
- The information of Vancouver payday loan should be visible including the above point.
- There will be no lenders allowed to charge more than $23 as interest rate on a monthly basis.
- Borrowers have the liberty to cancel their loan within a period of 48 hours.
How to Check False or Scam Payday Loan Lenders in Vancouver?
The loan market in Vancouver is full of genuine and predatory lenders that most people cannot differentiate about. If fall under the trap of a scam artist, then one has to pay higher interest charges, unbearable late payment fees, and face other issues.
People having immediate financial needs are desperate to apply for loan with a any lender they find it first. As a result, they have to face repayment difficulties for life.
To make out of the wrong fall, we have gathered few points that help you find the false lenders in Vancouver and avoid applying for loans from them.
- If a lender offers rollover option in Vancouver, then it is a fake lender in Canada, because rollover option is illegal in Vancouver.
- A true lender cannot charge rate of interest more than 23%.
- Genuine lenders will never force or lure you to apply for payday loans. If they found desperate to make you fall for the loan, then sense that it is a trap for you.
- If lenders fail to answer your every single query, then it is not a real one.
- Genuine lenders always send a loan agreement after receiving the application to get the final go through from the borrower. If your lender is not asking for the same, then do not apply from him.
- Online lenders do have a physical office where you can visit personally in Vancouver and inquire all the things. In case, the lender you have got in touch with does not an office location, then it is a fraud one.
What is the Difference between Payday Loan and Personal Loan?
Some people in Vancouver, BC in Canada have this dilemma of finding similarities between payday loan and personal loan. In fact, there are big differences between the two. Like, a payday loan is often offered for a small amount, whereas, loan amount can be extended along with repayment term in personal loans.
Another difference is the rate of interest. As already mentioned, payday loans in Vancouver have 23% as the rate of interest, but in personal loans it can be lower or higher as per the circumstances. There are high penalties under a payday loan offering which is not that much in a personal lending.
The Final Note
Choose to have payday loans Vancouver, BC, Saskatchewan, Ontario, Manitoba, Alberta, Regina in Canada once you clear the picture by going through the above information. Let your finances be flexible at a certain point of time after getting the necessary fiscal aid.
"The following loan calculator will help you determine your monthly loan payment for any type of loan based on loan size, interest rate and loan length. You can also find a refinement table at the bottom of the page."