It would be simple to select the first lender that pops up in your online search, but taking out a loan is serious business. This is why it's in your best interest to do your homework before deciding to conduct business with a lender. Agreeing to loan terms that you don’t understand can do more harm than good. As you select your lender, it’s very important that you understand the basics of your loan. So, educating yourself is a first step in managing your debt.
The two types of loans we are going to focus on are payday loans and installment loans. A payday loan is a short-term loan designed to provide additional cash flow between pay periods. It’s like advancing your pay date, which is why you might see the term "cash advance." You simply borrow cash for a set period of time and pay the money back plus the applicable fees on your next pay date. It’s important to know that payday loans should be used for short-term financial needs only, not as a long-term financial solution. An installment loan is a loan that is repaid over time with interest in several payments (or installments). Unlike payday loans, most lenders will require a credit check before approving an installment loan, and paying back the loan on time can help build credit history.
Money Mart® is a founding member of the Canadian Consumer Finance Association, an industry leading group fostering best business practices and consumer protection. Once you have considered this information, we hope that you will try us or use a reputable lender to fulfill your needs. Canadians have trusted us for over 30 years with their everyday financial solutions.