There is no shortage of payday loans in Canada. However, just because guaranteed approval payday loans Canada are readily available and easily accessible does not make them the best personal financing option for everybody. These loans are designed to meet the needs of people in a certain set of circumstances. Typically, they are meant to serve people who would otherwise find it impossible to access finances from traditional lenders. However, circumstances differ and so do needs and requirements. Therefore, before you jump on that opportunity to get quick financing, take a step back and consider if it is the right option for you. Here are three profiles of people with an analysis of how guaranteed approval payday loans work for them. Do you fit in with any of the profiles?
As A Bad Credit Borrower of Guaranteed Approval Payday Loans Canada
Lenders of payday loans have one thing in common – they are willing to work with people who pose a bit of risk. As far as red flags go, bad credit is top of the list. Traditional lenders view bad credit as a sign of untrustworthiness making it extremely hard for people with bad credit to access loans. For this reason, these people turn to payday loans otherwise they may never access loans of any size.
The unique thing about bad credit borrowers is that they are only in a difficult situation temporarily. The only thing that restricts them from traditional loan options is their bad credit which can be improved. This is different from other circumstances in which how a person receives their income restricts their loan options. These people can look forward to having more loan options if they play their cards right. However, in the meantime, guaranteed approval payday loans are exactly what they need to get through their rough patch. These loans can even help them improve their credit scores.
As a Receiver of Non-Employment Income
If you don’t receive your income from working a job, traditional lenders perceive you as risky. With that said, thousands of Canadians depend on CPP, pensions and disability payments to get by. Traditional lenders consider these types of incomes as potentially unstable. Not only are they low, but also they can be halted at any time with little notice. These people find it almost impossible to access loans from traditional lenders.
Payday loans providers are used to these kinds of circumstances and are more receptive of such people. This is the reason most people who get their income from other sources as than a job prefer these lenders. However, these lenders also impose conditions due to the risk they are taking on. You will need to provide proof that you actually have income coming in. additionally, if your income is low, you should expect to be approved for only a small amount. In case you need more financing, you may need to provide more security to your lender in the form of collateral such as a car, house or any other property.
If You Are Self Employed
Unlike a traditionally employed person, a self-employed person cannot always count on a consistent monthly income. This fluctuation in income may make traditional lenders a bit nervous to extend any loans to you particularly short term payday loans. Inconsistent income is an inherent part of being self-employed. While this does not mean that they are necessarily low on income, it shows that their short terms income might be inconsistent to cater to short term loans. For this reason, guaranteed approval payday loans Canada are a better fit. Long terms loans give self-employed people more time to scrounge up funds in case they have a slow month or two. The lender will require extensive documentation to show your income history and your loan amount will be determined by your full income history.
You now know guaranteed approval payday loans apply to your specific circumstances. So, how do you find the best provider for guaranteed approval payday loans Canada? Well, Bonsai finance is here to help. Using our convenient online portal, we will walk with you step by step to help you find the best loan options in the market and make a choice on which provider suits you best. Do you have any questions? Talk to us today.