Over the last few years, as consumer debt continues to climb, payday loans in Canada seem to have grown in popularity. Individuals with bruised credit looking for small personal loans are turning more and more to payday loan companies thinking that this is the only way to get a loan with bad credit. Thinking that payday loans are largely harmless, individuals enter with the best intentions (having the loan only until the next pay day), and often find themselves quickly caught in a web of fees and revolving payday loans.
Why do so many people rely on payday loans in Canada? There are a few reasons:
- Typically no questions are asked, and no credit check is done
- Many believe that the existence of bad credit means regular finance companies will say no
- The money is obtained quickly – no long waiting period
With this rise in payday loan company usage, finance companies are fighting back – urging consumers to think twice about entering that store and signing their lives away. Bad credit is not the end of the world, and there are other options available – far more positive ones – when it comes to getting a loan with bad credit.
So why are payday loans so dangerous? They represent the most expensive route and really are like making a deal with the devil:
- Payday loans don’t report to your credit report – meaning you are not actually making any inroads as far as rebuilding credit.
- Fees are often astronomical, and interest builds at an alarming rate.
- These companies make most of their money from loans that roll over (meaning those that are not paid off right away). For more about roll over costs, check out one of our previous blogs here: https://www.prudentfinancial.net/have-back-to-school-payday-loans-piled-up-we-can-show-you-how-to-break-free/
There is a much safer, far more cost effective alternative. A finance company that offers personal loans to individuals with bad credit, even discharged and undischarged bankrupts, is a much better option. A finance company often means far less scrutiny than the bank, and will often better recognize the need for a second chance, and some will even offer guarantees as to how fast you can get your loan (much quicker than the bank).
Prudent Financial is one such company. We offer personal loans, quickly. If you are trying to get a loan with bad credit and finding it difficult, don’t despair; Prudent Financial has your financial needs covered. Call us today at 1.888.852.7647.