The Canadian Federal Government introduced and has passed Bill C-26 which gives authority to provinces to regulate the payday loan industry. Each province is now able to introduce legislation to protect consumers and set a clear maximum on the cost of borrowing.
Canadian provinces are enacting new laws pertaining to payday loan companies. The province of Manitoba was the first and others provinces will follow. Payday loan firms offer short term lending services for people who need money before they receive their paycheck’s. Typically, these consumers have no source of available credit due to the fact they may be in the military, working at low wage jobs, or have bad credit ratings. They may be needing a short term loan for emergency financial situations, or simply want to purchase an item that has to be purchased right away.
The major Canadian banks aren’t in the business of serving these “low profit” consumers and thus many of them find they are subject to higher financing fees and or cannot get even the basic levels of credit. Banks have shifted their service emphasis away from consumers in the last decade. The consumer checking and savings accounts do not provide sufficient profit for them and they’ve turned to a focus on business and mortgage lending. Banks have consolidated and eliminated local branch locations in an effort to improve bottom line efficiency. The changed focus has resulted in huge growth in profits. Bank machine fees produced a record 154 million dollars in profit, and monthly business chequing fees are pulling in $4 to $35 per account per month.
Royal Bank recorded a record 1.5 Billion dollar profit for the first quarter of 2007 and Scotiabank became a member of the Billion dollar club as well with just over $1.02 Billion. The Windsor Star recently reported that small businesses are paying out more than $723 per year on banking fees. Despite these high fees from banks who are enjoying the benefits of a Canadian Banking charter, the public and the government are very quiet on the matter.
A no-fax payday loan is basically a loan that an individual secures to meet an emergency that arises before his payday. The loans can range anywhere from as low as $50 to as high as a $1000. Emergencies that would require this type of loan can also be just as varied. Some people take out loans to pay for a sudden medical expense, some to pay for emergency bills, some to pay for car repairs. Emergencies such as these might leave no time for a person to go through the traditional way of borrowing money or taking up a payday loan. However it is important to keep in mind that payday loans can end up costing a fortune in extra fees, so they should be approached with great caution.
No wonder then that the no fax payday loan companies became popular. These companies rose as an alternative option to those seeking payday loans in a faster way. Many companies have gone hi-tech, employing the World Wide Web to enable borrowers to access loans on a very short-term basis. In some online arrangements, borrowers still need to submit some few things, but in a more streamlined no fax payday loan processes, consumers can simply just log on the net and get cash into their accounts in as a fast as less than an hour. An online loan is first, a private transaction, and second, it is hassle-free.
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As much as possible avoid using this type of loan. But if borrowing from payday loan is inevitable, once is enough…
Payday loans must be very pleasing to people in great need of immediate money. And why not? Imagine that you can apply for a loan and get approved within minutes! Imagine that you will not have to go through several administrative papers just to borrow a couple of hundred dollars you need for emergency bill or a 3-day household budget. Imagine that you don’t need to risk bigger assets such as your house and car just to get a small amount of loan. Imagine that you don’t have to be a good credit record holder to get approval. These may be the reasons why you want to consider payday loan. Okay, the bottom line is, you need money fast and there is this type of loan where you can get it, which also offers the amount you need without asking so many questions about your credit history or requiring you to submit several documents or asking for big collaterals.
With a document proving that you are presently employed, an ID, an active savings account, and an age
of 18 years old or above, you can apply for payday loan anytime- and get approval in 24 hours or less. These are very simple requirements compared to other requirements asked from other types of loan vehicles. You can also file your application online, over the phone, or at the local office. But regardless of how you apply, you can get the money deposited right at your savings account. That easy and that simple!
Instead of being delighted with this offer, why not ask the question, “why getting a payday loan easy and simple?” The answer is, payday loan companies charge high interest rate on each loan they approve. Oftentimes, interest rate will go between 30% and 50% per week. Meaning, for every $100 you borrow, you will have to pay $130 to $150 back, in one week alone. That’s $30 to $50 for every $100 loss on your next budget! It may seem small at first but you will only realize that the cost if it is taking its toll on your budget.
Things have been said against payday loans and the companies offering them. But the fact still remains that payday loans bridge the gaps between paychecks to people who have fallen short of cash or who need to pay unexpected bills. The services of payday loans help people who run out of cash to continue to sustain daily expenses or pay necessary bills before the next paycheck arrives.
It is true that getting easy, unsecured loan like payday loan has some drawbacks including high interest rates. But can borrowers have the time to think of this when they badly need emergency money? Most may answer “no” since many people act through their impulses; and when desperation comes, they are not really concerned about the future effects of their current actions. But impulse should not be an excuse to neglect the repercussions of borrowing money from these companies because in the end, it is not the lender who will suffer; it is the borrower.
So if you badly need money to make both ends meet, you should know how to carefully decide when to acquire payday loans and how to get the best of them.
When to acquire payday loans?
If you need cash now, you have tried all the possible alternatives to acquire money, and you have nowhere else to go to lend money, then it is probably time to consider applying for a payday loan. In other words, apply for payday loan as a last resort– use the service of this loan vehicle in dire emergencies only.
How to get the best of payday loan?
One word: think! Can you save more on payday loans than borrowing from other loan vehicles? Can you survive another day without borrowing from payday loan?
Need cash, now and fast. Sounds familiar? Whether it’s your neighbor, your friend, your relative or you yourself who needs the money, an emergency cash needs is no joke. They can harass you no end and put a lot of stress in your life, all the more so if you have run out of options where to get your funds. If this is your situation right now, you might find no fax payday loans very helpful.
What are no fax payday loans?
No fax payday loans are cash advances you can get quick access to. These loans are offered on a short term basis, usually between 14 to 30 days. Loan amounts can range anywhere from $100 to $1500, depending on your qualifications. Lenders also charge higher interest rates, not only because no fax payday loans are short term loans but also because they are often unsecured loans. You’ll get a higher APR in exchange for not giving a collateral, a security or a guarantee.
Who qualifies for no fax payday loans?
To qualify for a no fax payday loan, you must be a citizen of the United States, 18 years old or older and legitimately employed for at least 6 months when you filed for the loan. Your employment must be on a full-time basis or you must have a regular source of income at least. You must also have a minimum income of $1,000 a month (or a minimum net income of $800 a month).
How do I apply for a no fax payday loan?
You will need to provide your lender with your personal details such as you name, age and address, among other things. An online application form is available at your chosen lender’s site. It will only take a few minutes to complete this and you can submit the application any time, anywhere.
Category: Payday loans