Payday loans online, what are they and are they good?
Online payday loans are short-term loans with very high-interest rates and fees which makes it hard to re-pay when you borrow money from lenders who offer payday loans. One of the reasons why it makes it hard for anyone in a tight financial situation to repay online payday loans is simply because they order you to repay the loan once you get your next upcoming paycheque. The Canadian government website has a detailed explanation for payday loans.
To put into context, once you receive your payday loan, you’ll have to owe the lender the money with high-interest rates and fees the moment you receive your paycheque if ever you don’t get to pay them on time. Sadly this is the trap that a lot of people that are in a tight financial situation are brought into. Once you apply for a payday loan, you’ll be bound to pay between 15$ to 23$ per 100$ borrowed. This means that if you borrow 1000$, you’ll be caught paying around 1150$ or 2230$ on your next payroll (which is about 2 weeks after you apply for a payday loan). It would be the equivalent of paying 1800$ to 2760$ versus a personal loan like the one that we offer which could be as low as 240$ to 350$ for the same amount.
What is better than a payday loan?
A better solution than a payday loan would be to choose a personal loan. We figured out that the best formula that would work for individuals that are going through unexpected financial struggles would be to find a better solution than a payday loan by reinventing how personal loans work. We made personal loans a better option for anyone who’s looking to borrow money online by simply giving our customers the flexibility to repay and by also having them repay the money borrowed by simply asking for a small payback percentage per payroll. This permits our customers more time to handle their financial obligations and also gives them more time to relax and not worry about having to pay huge amounts of fees.
Basically, PrestoCash has a better solution than online payday loans because:
- We offer better payback solutions
- Lower interest rates
- Flexibility
- No hidden fees
- Don’t need to pay the full amount on your next payroll
We also took the time to make the loan application process very simple for our customers to easily get their loans online through e-transfers. You can quickly get a loan the same day you apply!
Payday loans can put you in a tougher situation
You’ll end up owing more money
Like we discussed through the previous points, with online payday loans, you end up paying more than if you would’ve chosen a simple personal loan. It’s understandable that your situation can encourage you to choose the option that you land on first. Although it’s important to take the moment to understand the options available and which one would be best for you and your current financial situation.
Payday loans can hurt your credit score
It might seem like a good idea to get money online through a payday lender although you can end up making your current financial situation harder to get out of (as discussed on the previous topic). Making your current situation a tougher one to get out of would only create this domino effect of bad financial situations which would only increase your debt and hurt your credit score. This is not a fun cycle to be caught in. That made us realize that getting a quick loan online should be made simple and easy for anyone who wants to get out of a tight financial situation. Our how to get a loan page is dedicated to helping users understand how we made the money lending process very simple and easy to go through.
Payday loans can Increase your stress level
Considering that payday loans can make you end up owing more money than any other lending options available online and hurt your credit score at the same time, this can also cause anyone to increase their stress level. It’s very simple, you don’t want to have to deal with that, especially since you already have a lot on your plate to deal with (which is the reason why you’re looking for a lender that can help you out, not make things worse).
Consider other options than a payday loan
Now that you know the side effects of dealing with payday lenders, it’s important that you consider other ways to get an online loan. Thankfully we have the option to get an e-transfer loan online that makes it very easy to get funds directly deposited into your bank account.
Although it’s important to keep in mind that in whatever you end up borrowing money from, whether it’s from a financial institution or family and friends, paying the amount back is crucial. The reason why it’s crucial to do so is simply that not only will you have that stress in the back of your mind, but you will also have to deal with the bad reputation that you’ve given to yourself, your friends, family and the credit bureau. This could follow you all your life until you decide to pay back what you lent.
Here’s a quick summary of payday loans online
Online payday loans are very hard to deal with even if it seems tempting to borrow money from payday lenders. We understand that you want to get out of a financial crisis as quickly as possible but keep in mind that the high-interest rates of online payday loans can hurt you in the long run through owing more money than other lending options available online, increased stress levels and a bad credit reputation.
If ever you’re in need of help during hard financial times, consider getting an e-transfer loan with us by simply filling out our quick and easy online form and expect to be pre-approved the same day you apply!