An online payday loan is a lifeline for someone who may have bad credit, but needs quick access to funds. These people do not have the option of borrowing money through traditional means, such as going to the bank and applying for a personal loan. When you have a low credit score, you may not even qualify for most credit cards.
This is why you will see so many people using payday loans. They are easy to obtain, while they have very friendly terms. The problem is, you can’t rely on loans for the rest of your life.
Below is a guide that explains how to get a payday loan and then discusses ways to improve your financial situation and credit score.
Get a payday loan
Getting payday loans online in Ontario is not at all difficult. There is a very simple process that you must follow to apply Payday Loans Online Ontario.
You will visit the website of the relevant lender, enter your personal information and submit your request. Most of the major lenders in Canada have online application platforms, where you can get a near instant decision on your loan.
The advantage of such a system is that you know how much money you can borrow in a matter of minutes. Then you can evaluate the loan agreement, agree to the terms, and start the process of receiving the money.
Those who provide a bank account when they apply can get the money by direct deposit. This means that you could have the money in your bank within 48 hours or even sooner.
Repay a loan responsibly
Payday loans are not meant to be debt that you hold on to for many years. These loans do not come with any credit checks, which means they come with a higher rate of interest than usual.
When the interest rate is high, you’ll want to pay off a loan as soon as possible. Maybe you take out a payday loan with 300% APR. Such an interest rate could make you pay three times as much as what you borrowed if you wait a year to repay the money.
This is why most payday loans are paid off in a matter of weeks. When you borrow using payday loans, you need to establish a repayment plan.
Such a plan should be developed by determining how much money you will make from your work over the next few weeks. Evaluate if this money is enough to repay the loan and meet your usual expenses. If you can do it, you are in a great position to borrow money.
Achieve financial stability
The end of the game for every person is to achieve a state of financial stability when you don’t have to depend on a short term loan to survive. This is what you want to accomplish, but how can you get there?
The first step to improving your financial outlook is to create a budget. You need to fully understand how much money you make each month and then compare it to your spending the previous month.
If you find that you’ve spent more money than you earn, on average, don’t panic. Rather than being hard on yourself, be happy that you recognized the problem. Now you can take steps to solve the problem by limiting your most unnecessary expenses.
Increase your credit score
One of the reasons you may have needed a payday loan is to have a low credit rating. If you buy a secured credit card and pay off the entire balance each month, you can improve your score in a year.
Then you can apply for regular credit cards, go through the same process, and get your score to a respectable level. Having a higher credit score means you can get low APR credit cards and personal loans, as well as mortgages, car loans, and other lines of credit.
There is no doubt that increase your credit score of a few hundred points is a difficult process. You will have to work hard to pay off your debts on time for years to come, but all the effort is worth it.
Take out a payday loan if you have no other way to access quick cash. Make sure you pay off the loan on time, and then take steps to regain control of your finances. By being frugal, saving money, and improving your credit score, you can achieve a good long-term financial outlook.
Denise Larson story