Payday loans have a number of advantages and disadvantages. It is an unsecured loan which has supporters and detractors alike and it is imperative for a payday loan borrower to know and analyze the pros and cons of payday loans before he proceeds to apply. Among all personal loans, it is probably the most risky because of the extremely high rate of interest. However, it is also available relatively easily. Whether it is payday loans in Edmonton or some other place in Canada, Cashco Financial is a trusted name and has years of experience in payday lending.
Hence, it depends on the borrower how effectively he manages the loan and repays it without letting accumulation of a debt mound. Term loans are often preferred over short-term payday loans because these have lower rates of interest, longer time-of-maturity or tenor and bigger credit limit. They are also very flexible and have better laws and regulations. Hence, the level of transparency and awareness is greater.
Flex loans
Cashco Flex loans are installment loans which are paid periodically in small but repetitive installments. You can choose your tenor, the number of installments and the money that you need. However, the credit limit is generally $5000. Cashco Financial has major presence in 4 provinces in Canada and has setups in 62 locations in Canada.
It is also a reliable name in online credit lending and agents who are waiting to help you with your needs and queries. It tries to build strong relationship with its clientele at every touchpoint and gifts special discounts, offers and cash benefits to its loyal customers. You can also get special offers for referrals. Applying for loans is transparent and convenient. It is also a major player in the field of pawn loans where it aims to empower and provide financial assistance to the unbanked and needy Canadians.
Advantages of payday loans
- Instant availability of loan: The entire application, verification and approval process is quick and money gets transferred to your account quickly. The whole process usually doesn’t take more than 24 hours.
- No need for good credit score: You will be eligible for payday loans even if you don’t have the best credit score or debt service ratio. Your credit history won’t be verified.
- Extremely convenient: All the formalities can be completed online and you won’t need to head to a brick and mortar store. You will have the choice to either collect a check from a store or accept a direct transfer to your registered bank account. There is hardly any lapse of time.
- No need to provide collateral security: Payday loans are available without collateral security. The rate is higher but you don’t risk losing your house, car or other valuable assets at any point in time.
- Loan amount determined by income: You will only get a percentage of your monthly income. So, even if you want to borrow more, you can’t and this acts as a check on irrational borrowing.
Disadvantages
- Need checking account and steady income: You will have to provide proof of income and also need a checking account. Without these, you won’t be eligible for a payday loan.
- Doesn’t solve big financial problems: Payday loans can take care of small needs. It can never solve a big crisis or help you to solve your debt riddle. Rather, inconsiderate and irrational borrowing can add to the woes further and destroy your credit score completely.
- High rates of interest: Payday loans have one of the highest rates of interest. It is almost comparable to credit card rates of borrowing. The rate on defaulting once could suddenly become double.
- Less transparency and consumer protection: Payday loans are susceptible to fraud because there still aren’t enough laws to protect consumer interests. Companies can set their own terms and conditions. The rates of lending are unregulated at many places in Canada. In case of double-dealing, these loans are difficult to track and many of the online lenders are either ghost companies or are brokers who add to the already high interest rate.
Payday loans can become addictive. You will need to have control when taking one and be resolved to pay it on the due date. Even if it means, going not going to a fine dining restaurant, it is worth it because you shouldn’t get into the harassment phase where loan sharks keep calling you, pestering you or threatening you to settle the dues.
