If you’re in need of some fast cash, a payday loan can help you get the money you need. While applying for a payday loan is easy, a lot of people hesitate because they’re worried taking out a payday loan will ruin their credit. But will it?
In Canada, credit scores range from 300 to 900 and can affect a lot of aspects of your daily life ranging from your ability to get housing applications to being approved for future loans.
At Blue Copper Capital, our team is always here to help you understand your credit score and keep you on track financially. Keep reading to learn more about payday loans and what happens if you can’t pay one back on time.
What Is a Payday Loan?
A payday loan, also called a payday advance, is a short-term loan of up to $1,500 where a lender will extend high-interest credit based on your income.
It’s typically lent against your pay stubs and meant to cover a financial shortfall.
How do I Prepare to Take Out a Payday Loan?
If you’re ready to take out a payday loan, contact us at Blue Copper Capital. We’re always ready to help.
How Do I Apply?
Applying for a payday loan is easy. You can apply for a payday loan in any of the following ways:
- In person
- Over the phone
Do I Qualify?
You will qualify for a payday loan if:
- You’re at least 18 years of age & can provide 2 pieces of government ID
- You’ve been with your current employer for at least 90 days
- You can provide your current & previous pay stubs
- You can provide banking history for review
Will a Payday Loan Affect My Credit?
Taking out a payday loan won’t affect your credit score or your credit history unless you fail to pay back the loan on time.
Payday loans are only issued on a short-term basis meaning they don’t get reported to the major credit bureaus the same way a personal loan, a line of credit, or a business loan does.
How Long Do I Have to Repay My Loan?
How long you have to pay your payday loan back entirely depends on what province you live in. In most provinces, you have 42 to 62 days, depending on how often you get paid, to pay your loan back.
More more information on payday loans, please call us! Our team would be more than happy to walk you through the process and answer any questions or concerns you may have.
What Happens if I Can’t Pay Back a Payday Loan on Time?
If you can’t pay back a payday loan on time, there can be serious consequences, including affecting your credit score. Depending on what province you live in, the consequences could include any of the following:
- The lender may charge an additional fee if the money isn’t in your account
- Your financial institution may also charge you a fee if there isn’t enough money in your account
- The amount you owe, including additional fees, will continue to increase
- The lender has the right to sue you for the amount owed plus interest and any related court fees
- The lender may turn your account over to a collection agency
If you can’t make your payday loan payments on time, it’s best to talk to your payday lender and ask for an extension. At Blue Copper Capital, we’ll always do our best to help you in any situation.
Unfortunately, if you continue to be unable to pay your loan back on time, it will start to affect your credit score.
We’re Ready to Help
No matter your reason for needing a payday loan, we can help you. We understand that sometimes financial needs can sneak up on you, and we never want you to have to worry about having the money. We can also help you decide if a payday loan is the best for your situation. A line of credit or personal loan may serve you better.
Whether you need to pay an unexpected expense, or you need some space before you get paid next, our team is here to help you experience financial freedom.