If you’re in need of some fast cash and you live in Toronto, online payday loans could be a viable option for you. While it’s no secret that we make our money from lending, we do advocate for responsible borrowing practices.
With this in mind, we decided to address some commonly asked questions and well-known misconceptions surrounding payday loans, as there is a lot of false information floating around online.
Do Payday Loans Have High Interest Rates?
While payday loans tend to have a higher interest rate than traditional ones, the rationale is simple: The risk is greater for the lender. However, claims online stating that payday loan interest rates can be as high as 400% or more is simply untrue. At Better Than The Bank, our interest rates are capped at 32% maximum, although this is often lower for clients in good standing.
Are Payday Loans Difficult To Obtain?
Generally speaking, most loans take a lot of work, requiring endless documentation and jumping through hoops to get your money. However, online payday loan applications are a breeze. The documentation is minimal, and the process is smooth and seamless.
Moreover, your credit history won’t matter, as this is not a determining factor for approval. Before handing over the money, we need to know whether you can pay it back. This means proof of your income will be required. That sums up the extent of the administrative burden of applying for an online payday loan.
Do Payday Loans Affect My Credit Score?
A payday loan shouldn’t have any tangible impact on your credit score unless you default. It should be known, however, that late or missed payments on your payday loan can serve to erode your credit score. Aside from this, there will be no other impact on your credit score ‒ for better or for worse.
What Dangers Should I Be Aware Of When It Comes To Payday Loans?
Payday loans can lead to a cycle of debt if not managed properly. When mismanaged and poorly planned, some borrowers take out another loan to repay the previous one, repeatedly leading to a cycle of neverending debt.
It is important to note that payday loans are intended to be a once-off solution to a short-term financial shortfall. Using these loans can be beneficial and save you from trouble.
Don’t wait any longer to change your circumstances. Contact us at Better Than The Bank now to apply for Toronto online payday loans.