Payday Loan Calculator
Good money habits always require some sort of planning. No matter what your financial situation is like at the moment, you must know about options and tools that may help you on a rainy day if you don’t have enough emergency cash stacked somewhere. Ideally one must have enough money for rainy days but for whatever reason you are short on cash and have unfortunately encountered a tough situation where you need to borrow money quickly and easily then payday loans are something you must know about. Payday loans are easy loans that come with high interest and must be returned within the next payday. Although the borrowing amount cannot exceed more than $1500 in Canada, you should be aware of how much interest will you need to pay if you decide to take a payday loan. A tool such as Payday Loan Calculator will help you to see how much loan you can take comfortably and the interest that is applied to that amount.
Things you should know about Payday Loans
Borrowing and lending money is a very common practice both in formal and informal setups and is taken very seriously. Unless you are borrowing money from a close relative or friend, you are required to pay interest on the money you have borrowed either as a short-term or long-term loan. Therefore, as someone who intends to borrow money via payday loans, it is crucial to know a few things about these easy-to-get fast payday loans so you make a well-informed decision. It is fairly easy to make a well-informed decision as the rules and policies around payday loans are well-established in countries like Canada and each province has separate laws to regulate lending and borrowing payday loans. Therefore, learn what rules apply in your particular state and understand the interest rate.
For government regulations and policies, you can read the policies on government websites and lenders’ official documents. After reading and understanding the rules that apply, you need to calculate the interest rates. The information regarding the lending amount, interest rate, and duration of repayment should be available to you by looking at the official websites of direct lender loans online or at the storefront where their representatives can help you understand such rules. As per rules such rules must be stated clearly so that borrowers can make a decision knowing all the interest rate and other information, thus can be protected against any exploitation. It is crucial because taking out a loan is often a hard decision and people in very serious financial situations opt for payday loans, so at least they should know clearly and concisely about all the rules and factors that are involved in payday loans.
Therefore, a simple tool like the payday loan calculator can assist them to explore various lenders and interest rates to find a lender and amount that they can comfortably return.
Payday Loan Calculator
As you must know easy online payday loans are quick to access but comes with high interest rates. However, it is not like any lender can put an interest rate as they like, but the government has restricted the amount of money that could be borrowed and how much interest could be applied when someone takes out a payday loan. So, the high interest is within the amount set by a provincial government and lenders tweak and change interest rates as per the set regulations. Let us explain how it works and why you need a payday loan calculator.
Payday Loan Interest Rates
First of all the amount of payday in Canada must be between $100 to $1500. The interest rate is often applicable on every $100 borrowed so if you have taken a payday loan of $100, you might have to pay an interest rate as high as $20 dollar. If a particular state has the rule that you cannot put an interest rate higher than $20 then all lenders must comply with this rule. So what lenders do is they charge different interest rates within this set limit: for example, one lender may charge $16 for every $100 dollar borrowed and another lender may charge $18 for every $100 dollar payday loan. However, it is not merely about the interest rate, with this slight difference in the rate, the repayment duration may differ. For example, if a lender is lowering the interest rate, they might shorten the repayment duration and vice versa. Moreover, each lender may have different criteria based on the borrower’s salary and in that case, different interest rates and repayment periods can be different.
All these factors can affect how much money you can borrow and the interest rate and repayment duration that is applicable. Since there are numerous payday lenders, you can pick and choose the best option that suits your situation well. As someone who is in urgent need of cash, you can simply use a tool like a Payday loan calculator to your advantage in the most cash-desperate situations.
Moreover, in addition to calculating interest rates of different lenders and different payday amounts, such calculators can also help you compare interest rates acquired in a payday loan, car loan, or credit card loan, if you want to explore other loan options and compare them for immediate or future use. Generally, payday loans are best suited for those who need quick cash and have bad or no credit history as other loans have many formalities and rules that may delay access to much-needed urgent money.