Introduction

Are you scared of loans? Many people who do not take time to learn about finances often feel uncomfortable when it comes to money and managing it. Due to poor money management skills, people often end up having poor credit score.

And once you have a poor credit score, taking a loan from a bank or similar financial institution becomes difficult. So then people start searching for places that offer no credit check e-transfer loans.

Needing a loan in emergencies is a common thing that occurs to many Canadians every day. And when they have a poor credit score, it becomes difficult for them to get approved for a loan.

But many financial institutions in Canada offer no credit check e transfer loans easily. These are online loan lenders.

These institutions do not check your credit score before offering you a loan. Online loan lending institutions, such as PrestoCash, primarily focus on providing loans to people who have poor credit scores and struggle with money due to uncertainties.

In this article, we will specifically talk about what loans are and where you can get loans if you have a poor credit score. And also, we will answer some popular questions related to loans and try to get your concepts about loans as clear as possible.

And No! We will not start by defining a loan because you already know what a loan is. However, we will dig a little deeper and understand more about them.

Why are loans important?

Loans increase the purchasing power of a consumer. They allow a person to buy more than his actual income. When a person takes a loan and buys more, he contributes to improving that country’s GDP. Therefore, taking loans by people is important for the improvement of GDP.

For example, when a county experiences a recession, it increases the money supply in the economy. When more money circulates in the market, it reduces the borrowing/interest rate, creating a good option for people and investors to buy and invest more.

The rise in borrowings increases the sales of goods and services, and when people want to buy more because of the low cost of goods, they take loans. Because of the oversupply of money in the market, the interests on loans are comparably lower than normal days.

During this time, people will take more loans to buy items for themselves, which directly helps tackle the problem of recession in the economy and increases the GDP. So as you see, loans also help in tackling economic problems. But, of course, if you have a poor credit score, you can only go for no credit check e-transfer loans from online loans lenders.

Are loans taxable?

Loans are not taxable. You need to pay taxes only on the income you earn. On the other hand, loans are borrowed money. You do not own the money; you borrowed it from another person or lender.

But the interest you pay on the loan you take is an income for the lender, and the lender is liable to pay taxes on that income at the end of the financial year. Therefore, these loans are not taxable for you but the lender.

There is an exception to this scenario. If you use that loan money and make a profit from it, it will be considered an income, and you are liable to pay tax on that profit at the end of the financial year.

Are loans assets or liabilities?

Whether a loan is an asset or liability completely depends on how you decide to use it. For example, loans are technically considered liabilities as you need to pay them back to the person or borrower you took them from, along with the decided interest rate. On the other hand, a loan taken by a businessman is an investment that will cover his expenses and loan interest.

What loans are the easiest to get approved for?

In Canada, online loans are the easiest to get approved for. Online loan lenders use the internet and many modern facilities, such as e-transfer and the IBV facility, to facilitate quick and easy transactions. Moreover, you don’t need to submit your credit report while applying for a loan. Online lenders specialize in e-transfer loans in Canada.

How to apply for a loan with an online loan lender?

To apply for a loan with an online loan lender, follow the steps below.

  • Visit the website of an online loan lender, such as PrestoCash, and start the online application process by filling out the application form available on the home page.
  • The form contains basic questions that help us to know you better.
  • After submitting the form, wait for us to contact you. Our loan manager will contact you and explain our company’s further process and TnC. You may ask our agent any questions if you have any.
  • Once your application is accepted, the loan amount will be e-transferred to your bank. The whole process is online with minimum documentation to facilitate the quick transfer.

When are loans amortized?

Online lenders offer you flexible payment options. For example, you can choose to make weekly, bi-weekly, monthly or bi-monthly payments. The date at which payments are debited will be discussed when you choose the mode of payment.

Will loans help my credit score?

Loans are an efficient way to improve credit scores. But it would be best if you were careful; missing or delaying payments can negatively impact your credit score. Moreover, when you apply for a loan with financial institutions, the lenders check your credit score, which marks a hard inquiry recorded in your credit report and negatively impacts it.

On the other hand, loans provided by online lenders do not impact your credit score because they do not check it. Therefore, a loan from an online lender neither improves nor worsen your credit score.

Which loans to pay off first?

If you have a lot of loans on your head, follow the below mentioned tips:

  • Decrease the use of credit cards.
  • Start by paying off loans with a higher rate of interest.
  • Start budgeting and be disciplined with it.
  • Increase your income sources.

Conclusion

So this concludes the most popular questions people ask about loans. Having good financial knowledge is important when it comes to finances. Take a step-by-step approach to improve your financial knowledge and manage your money. If you ever fall short of money, apply for a no credit check e-transfer loan in Canada and get a loan instantly.