Do Ontario payday loan companies need a good credit rating for my loans to be approved?

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A credit rating is an assigned value set by most lending companies (including banks) to determine one's eligibility in borrowing money from lending institutions. One's credit rating is dependent on many factors, some of which the borrower has no control over.

Although many lending corporations have different ways of rating a borrower's credit capacity, most of them follow what is known as the FICO score, named after the Fair Isaac Credit Organization. One's FICO score can range between 300 to 900, with 900 being the rate of someone who has no foreseeable credit problem and can borrow money easily. A credit rating of 300 is usually an indication of a high risk borrower, and people with credit ratings near this number often have their loan request denied, more often than not.

Most middle income citizens cannot hope to comply with these extremely stringent credit standards and have no chance of borrowing money from these big companies, even if they are in dire need of financial aid. Most people turn to Ontario payday loan companies for a payday loan instead, because their standards are often more realistic to meet.

A payday loans company is a lender company that offer loans that may have a higher interest rate than most credit companies. But while a large lending institution cannot hope to even help someone in distress with their financial problems, a payday loans company is able to release the needed funds in an average of 24 hours, sometimes even less.

An Ontario payday loan company though has maximum loans limits and typical loans range between $ 100 and $ 1,500. Payday loans are almost always short term loans and will have to be repaid in as little as 30 days. Such is the nature of payday loans that the borrower has to pay the full amount of the loan by their next pay day (which often coincides with the 30 day period set by the loan company). Some payday loan companies though are a little more lenient when it comes to the payment period, and may even have a program where the payment can be staggered over a couple of paydays, but with a higher interest rate over all.

The requirements for securing a payday loan is different than those from large lending companies, and will often not involve any collateral, leaving your other assets safe and secure. The requirements may even vary from one Ontario payday loan company to another, but most of them will often require you to be employed in a good company and are receiving a fixed monthly income and have an active bank account.

This can be a lifesaver for people who really need to have money in their hands the soonest time possible, such as those who are involved in a medical emergency, those involved in an accident or have unforeseen bills that they need to pay. Nobody can really predict when emergencies will happen to us, and just having that option that you can have someplace to turn to can make a huge difference in how you are able to get your life together after an unforeseen financial difficulty.

If you are from Ontario and you are looking for information on ontario payday loans visit http://www.instantpaydaycanada.com right now.

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