Table of Contents
Borrow Money Online
People do everything online these days. They make friends, work, watch movies, enjoy concerts, and find dates on the Internet. They also buy, pay, and receive salaries without setting foot outside the home. But are you aware that you can borrow money online as well?
About two million Canadians take out payday loans every year. Most of them go to lenders that accommodate online loan processing. There is nothing sketchy about that if it is a licensed lender.
For example, British Columbia strictly regulates a licensed payday lender in Vancouver. This makes it safe to borrow money online. But the question is when is it a good idea to do this.
When It is An Emergency
Payday loans typically have higher interest rates. This is when you compare them with personal loans from the bank or cash advances from a credit card. In Vancouver, payday lenders can charge as much as $15 per month for every $100 borrowed. Meanwhile, a personal loan usually starts from 9.9% a year.
For example, if you borrow $300 for 14 days, you will know you have to pay back $345 before you even apply for the loan.
Paying $45 interest on $300 might seem a bit steep for two weeks. But, if you need cash fast for urgent car repairs or medical treatment, then an online payday loan is the way to go.
The great thing about borrowing money online is you can get it in as little as an hour. You only have to make sure you pay it back on time to avoid additional fees.
When the Payback is Higher
It sometimes happens that you only need a bit more money to make a big score. Suppose you have the chance to buy something you can sell for a hefty profit, but you don’t have enough money on hand. If the money you need is less than $1,500, then a payday loan might be the way to save the day.
For example, you found an antique at a yard sale worth $10,000, and the owner is selling it to you for $2,000. You have a willing buyer and $1,000 on hand, so you need to get $1,000 fast. With this, the $150 in interest you must pay for a payday loan does not seem so bad.
When You Know You Can Pay It Back on Time
This one is tricky because most people are optimistic about their ability to pay back a loan. You should only borrow money online through a licensed payday lender. This is especially if being short of cash is a temporary thing.
For example, you used some of your rent money to buy a new refrigerator because your old one finally gave up the ghost. In the meantime, the rent is due, and your paycheque is still two weeks away. But, it is more than enough to cover both the principal and interest as well as next month’s rent. If that is the case, then borrowing money online makes sense.
Conclusion
When you borrow money online, the responsible thing is to do so only when you are sure you can make payment on or before it’s due and in full. Many lenders now encourage such responsible behaviour. They do this by ensuring borrowers know the terms of their payday loans even before they apply to borrow money online.
