Busting the Myths of Online Loans: Canadians Have Options Beyond Payday Loans
Payday loans have more than doubled in Canada to 4% of households, reports a study recently released by the Financial Consumer Agency of Canada. It is important that Canadians are educated on lending options outside of their traditional banks and payday lenders, including online unsecured personal loans.
Online lenders like Amber provide financial responsible Canadians with simple, personal loan approvals. What many don’t think of when their banks can’t support them (the survey reported that payday loan users have low access to traditional credit products), is that using an online lender can offer a fair and quick loan option to meet life’s necessary and unexpected expenses.
Have Your Doubts About Online Loans?
There are myths about online loans floating around that stop Canadians from even considering them an option. We’ve taken a closer look at a few of the most common myths we come across.
Myth 1: It’s the same as a payday loan: Many don’t distinguish between payday lenders and an honest online lending service. Online lenders can meet the same timeline (a loan in as little as 24 hours!) while charging their clients a rate that is cheaper than a payday loan.
Myth 2: It’s more expensive than a regular loan: Similar to a traditional bank loan, Amber Financial assigns a single annual percentage rate (APR) to your loan that does not change for the term of the loan. There are no hidden charges; no extra fees are charged for initiation or insurance.
Myth 3: It’s too simple to be trustworthy: Many see a simple application as a reason to be concerned. How can it be safe and trustworthy? Well, a lot can be done with the information provided in a simple and secure 3-step application, including a secure bank account verification, identity check and credit score check. An Amber Financial loan officer is also assigned to each application for personalized service.
Online Loans Offer a Great Option to Canadians Financial Literacy Month is about educating Canadians, and part of that is understanding that there are alternatives to payday lending when a traditional bank can’t meet their financial needs.