Pros and Cons of Same Day Installment Loans
Several benefits come with same-day installment loans. First, they are a lifeline when unexpected bills and expenses appear out of nowhere. However, there are also disadvantages that are associated with it.
Pros
- Quick and Easy Application – You can apply online on the direct lender’s website, provide the necessary documents needed, sign your contract, and the fund will be transferred to your bank account in no time.
- High Approval Rate – Most of the borrowers easily get approved as direct online lenders specialize in this kind of scenario, and they know how to manage the risks that come with it.
- Fast Money – Once you get approved and sign your loan agreement, the direct lender will immediately send the money directly to your bank account on the same day.
cons
- High-Interest Rate – Direct online lenders offer higher interest rates compared to other lenders. However, they are still lower than what you would get if you take out a payday loan.
- Predatory Lenders – There will be a lot of scammers that will try to take advantage of your financial situation. Usually, installment loans are not subject to strict government regulations, which means predatory lenders, may appear every now and then.
- Endless Debt – As there is a higher interest rate to be paid on top of the principal amount you borrowed, there is definitely a high chance that when you miss a payment, there will be additional fees and penalties too.
Online Direct Lenders That Offer Same Day Installment Loans in Canada
There are a lot of online direct lenders that offer same-day installment loans in Canada. These are some of the most popular ones:
Go Loans Canada
Go Loans Canada is an established online lending company that offers same-day installment loans of up to $1,000. Their repayment term ranges from 91 to 120 days, and borrowers can choose between 3, 6, or 12 payment installments. The interest rate is 32%, with a $1 transaction fee.
iCash
iCash offers online same-day installment loans of up to $1,500. They charge $15 to $19 per $100 borrowed, depending on your location in Canada. You can repay the loan in 2 or 3 installments with a loan term of up to 62 days.
Payday Buzz
Payday Buzz is a Canada-based lender that offers online same-day installment loans of $800 to $5,000 with a repayment term of 3 months to 12 months. Their interest rates vary, but to give you a general idea, they charge 3.4% per month for a loan amount of $1,500.
Frequently asked questions
Will a same-day installment loan put money in my account today?
How do I apply for a same-day installment loan?
What are the basic requirements needed to apply for a same-day installment loan?
What do I need to take note of when taking out a same-day installment loan?
Conclusion
Same-day installment loans are fast, easy, and convenient. However, there are a lot of risks associated with these types of non-traditional loans. Make sure you take the time to understand the lender’s terms and conditions before you take out a same-day installment loan to avoid getting into a debt trap.
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