Under the term of unsecured payday loans are understood credit types that do not involve any collateral or cosigners or anything of the kind
. Payday loans also refer to such a group as they have all the features and they also have a definite benefit they are fast to obtain and they do not involve any credit checks.
Unsecured payday loans are supposed to help in emergency situations when cash is needed right now and without delays and there is nowhere to get it. They require only the proof of income and identity and employment and some other basic documents but if compared with the process of getting a regular loan, here everything is so much simpler. In fact, a person can apply from a comfort of ones home with no need for wasting time and hassle.
Unsecured payday loan obtaining process is very simple. There is also some limit to the amount of a loan and it can be different depending from various factors. Generally such loans are offered for the period of two weeks but it can be longer. In case a person cant repay in time, many lenders offer extensions, roll-overs as they are called. Loans presuppose interest rates and when it comes to payday loans this means very high ones.
Interest rates depend on the company but one should not expect that payday lenders will put themselves into your shoes and that they will take pity of you. This is their business and they make money on it. Thus, it is recommended that every customer thought carefully before applying for such a service and then facing the need to make huge repayments.
One of the features of unsecured payday loans in Canada is that they require a valid active checking bank account in order to transfer the money. The whole thing is very simple and convenient and there is no need in personal contact and so on. At the end of the term when the loan is due a lender withdraws cash from a persons account and thats it. No hassle, no time wasted.
In the situation when the repayment date comes and there are no sufficient funds on the account, it is fraught with a bounced check or dishonored withdrawal and certain problems and more debt for a borrower. Thus, it is recommended that a person no to borrow more than he or she can actually repay.
