Both term loans and payday loans have a number of discernible and distinct advantages.
Long-term installment loans which are unsecured are mainly accepted as personal loans. These have a longer maturity period, moderate to the large loan amount, and an interest rate which may be slightly more than secured loans where collateral has to be provided like auto loans or home loans but much lower than short-term loans and credit card debt. Technically speaking, payday loans are also personal loans since these are accorded to you for your personal use and you are free to use the loan in any way you deem fit. Both term loans and payday loans have a number of discernible and distinct advantages.
But it is a universally accepted fact that payday loans are risky because of the high rate of interest, no provision to waive off the loan even if you meet an accident or lose your job suddenly or the fact that there is still not enough laws to protect consumer interests, especially in some provinces in Canada.
However, if you need payday loans in Edmonton or payday loans in Toronto, why don’t you try Cashco Financial, the most respected financial services provider in Canada? If you are looking for longer tenor and lower interest rate, try out multi-payment Flex loans, Cashco Financial’s premium product.
Cashco Flex loans
Cashco Flex loans are ideal for consolidating loans, for taking care of shortfalls or taking care of any personal financial need. The application is convenient and you can choose a payment plan which seems fair to you. You can take up to 3 years to settle a loan. You may also pay it off before the date of maturity because there is no pre-closure penalty. It means more savings. There is also enough opportunity for you to win cash benefits and unexpected discounts for being a loyal customer. For successful referrals, you would get more benefits.
Advantages of payday loans vis-à-vis other credit instruments
- Convenience: You can apply for payday loans online and the whole process is completed quickly. You won’t need to visit brick and mortar stores to either submit your application or collect the money you borrowed. All the formalities, verifications and approvals will be completed, sought or given virtually. This saves a lot of time. Payday loans are also small and so there is a lower chance of default if you are careful. You won’t have to deal with the payment of the loan for years but bother about it till the next payday.
- Ultra-quick turnaround: The whole process is completed in a few minutes at the least and a few hours at the most. The money is generally handed over to you on the same day. If not, it is definitely transferred to your bank account the next day. Physical movement is not at all required. You will need to fill out a very simple electronic form and provide virtual supporting documents. With an increased level of automation, the time of turnaround has now come down to a few minutes in most cases.
- Flexibility: You can choose the terms of accepting the loan. Do you want a cheque or a direct electronic bank transfer? Usually, it is paid in a lump sum but some companies allow you to collect the money in a couple of tranches also. Most payday loans also offer the facility of early foreclosure which helps you to save a lot of money you would have otherwise wasted in paying interest.
- No credit score verification: Most payday lenders don’t carry out a detailed verification of your credit history or current credit score. That makes you eligible for a payday loan even if you don’t have a good credit score, which is almost mandatory for most long-term unsecured loans and other credit options.
- No restrictions: You can spend the borrowed money in any manner that pleases you. You are expected to be responsible but there is no legal binding on you.
Conclusion
Payday loans give you access to instant liquidity. Whenever, you need to bother about an unanticipated expenditure and you don’t have enough cash, payday loans can become your only beacon of hope. Just make sure to pay the dues on time and don’t dither and it will remain a good choice.
