Payday Loans in Kitchener
You never know when a financial emergency will arise. A sudden expense can cripple a household budget. If a car breaks down or a water pipe bursts, there is no time to wait for your next paycheck. Normal loans take too long to process and require a credit check or a car title. If you are looking for payday loans Kitchener, this guide will tell you everything you need to know.
What Is A Payday Loan?
A payday loan is a very short term loan that helps consumers to get cash immediately to cover emergency expenses. The loan is set up to be paid back within a few weeks from the next paycheck.
What Is A Payday Loan Used For?
Payday loans can be used for any purpose that the borrower requires. The most common uses for payday loans are;
• Emergency car repair
• Avoid costly shutoff of utilities such as power or water.
• Pay the rent or mortgage • Insurance or car payments.
• Pay credit cards
How Do Payday Loans Work?
Payday loans provide quick cash to consumers in order to cover an emergency expense. The biggest advantage to payday loans is that there is no credit check and there is no need for collateral. This helps cut down on the wait time. Most of the time you can receive your money within 30 minutes.
What you do need is a regular paycheck that comes once a month or every other week. The loan company will set an appointment for you to come in and pay off the loan on your next paycheck. If you don’t show up, a withdrawal will be taken from your account automatically. If you don’t plan to pay the loan off in full, a minimum monthly payment is often available.
What To Expect When Getting A Payday Loan
To qualify for a loan you have to be an adult. Bring in your ID and proof of income. The only requirements to be approved are that your income is enough and you don’t already have payday loans outstanding elsewhere. If you are in the process of bankruptcy or have recently bounced checks, this also could be cause for rejection
It is important to understand that payday loans do not build up your credit if you pay on time. They may put a negative mark on your credit if you don’t pay it off. If your lender promises that this loan is helping your credit, they are probably not being truthful.
The most you can borrow on a payday loan is typically between $300 and $1000. This doesn’t mean you are approved for the full amount. The payday lender will use income and expenses to determine the amount that you qualify to borrow.
What Are The Costs Of A Payday Loan?
Payday loans are designed to be short term. There is a high cost for these loans compared to other types of credit. For this reason, it is important that consumers only use them when they really need it and that they don’t ever plan to keep a payday loan open for a long time. The ideal situation is to pay the loan off in full on your next paycheck. The APR, or annual percentage rate, is often quoted for payday loans at a very high rate of 300 or 400%. This doesn’t represent the actual cost because the loan is not designed to last for a full year. In fact, most payday loan terms are only for 2 weeks. The cost of your loan will be quoted to you as a flat dollar amount. If you have a plan to get the loan paid off within the first few weeks, the costs are manageable.
What to Look For In A Payday Loan Company
Payday loans can come from a variety of sources. There are companies that make loans directly and other companies that will sell the loan to another company for processing. There are payday loan companies that have physical offices in Kitchener, and there are companies that do all their business online.
The important factors in choosing a Payday loan company are a quick and easy loan process, instant funding of cash or electronic transfers, and excellent customer service.
Get Back On Your Feet With A Helping Hand
When a sudden expense comes up and the budget is not working out payday loans in Kitchener are available to help get you through. Speak with the lender, you can get all your questions answered and be sure that you understand the terms of your loan. If you take responsibility, payday loans are a tool that will get you back on your feet again.