Some features of payday loans Calgary
1. Small Amount: Payday loans Calgary range between $50 to $1000 and even $1500 in some cases. The monthly income of the borrower is the main factor in deciding the amount that he or she is eligible to borrow. The loan amount for most borrowers is around $500.
2. Short Term: Payday loans Calgary, as the name suggests are loans that last till your next payday. Payday loans have been designed in such a way that they will help you take care of your emergency financial needs that you encounter in the middle of the month. These financial emergencies often catch us off guard with no budget left for them in the monthly expense cycle. This is when payday loans come handy, on your next payday; you can return the loan back to the lender. There are provisions of rollovers and extensions in case you feel that you won’t be able to pay by the next payday, but it comes at an additional cost.
3. No impact on credit score: Even if you have a bad credit score, you are still eligible to take payday loans Calgary. Your current income source is the major consideration in deciding your eligibility for payday loans and not your credit score. Additionally, even if you pay back your payday loan on time, it would not improve your credit score.
4. Low turnaround: Payday loans Calgary are of two types, in-store loans and online loans. For an in-store loan, you just need to walk into a lending store, take your documents along and come out with the money. The process takes about 30 minutes to an hour. Online loans are applied through the website of the lending company. The approval comes online and the money is wired to your bank account. The process takes about 1-2 business days. If you consider this to traditional bank loans, the turnaround time is substantially less.
5. State regulations apply: There have been instances when the borrowers have been cheated by the lenders by charging them with sky high interest rates. A borrower in an emergency need wouldn’t care about the interest much. To put an end to this harassment, state regulations apply on payday loans Calgary which restrict the rate of interest that a lender can charge from a borrower when giving out a payday loans. Similarly there are also restrictions on other charges that lenders charge.
6. Suitable for emergency needs: Payday loans Calgary are suitable only for emergency needs and when you are absolutely sure that you would be able to pay it back by the next payday. This is because payday loans come with high interest rate and other charges and are hence expensive.
Eligibility criteria for getting a payday loan
Payday loans Calgary do not take into consideration your credit score and do not require collateral, but there are certain other conditions that have to be satisfied by the borrower in order to be eligible to take a payday loan:
1. The borrower should be 18 years or older and a Canadian citizen
2. The borrower must have a regular source of income. At the time of applying, you would have to furnish proof of income which would eventually decide the amount that you can borrow and also if you are even eligible for a loan or not.
3. The borrower should have an active bank account. The bank account is used for depositing the loan amount.
When you sign the agreement with the lender, you either have to give them a post-dated check that they can get cashed on the due date or you have to provide them with the authority to wire the due amount from your account on the due date. For all these transactions, you should have an active bank account.