Can One Apply For Multiple Payday Loans Canada?
In the Canada, some of the strongest payday loan regulations are followed, which are primarily structured to protect the consumer from exploitation by lenders. They are also meant to ensure that the borrower does not sink deep into debt due to irresponsible borrowing.
As per the Short-Term Tender Law (STLA), enacted in 2008, the Payday Loans Canada companies are prohibited from giving short-term loans over the internet or telephone. In addition, the law puts a cap for all payday loans at $500,for a duration of no less than 31 days and the interest should not exceed 28% APR. It also restricts the number of payday cash loans a borrower can take within a specific period of time.
In Canada, borrowers cannot apply for more than Instant Payday Loans within a year. Unless you have gone through a financial literacy program, you shall not be allowed two short term loans in every 30 days. Such steps has been taken to ensure you do not end up in a debt trap and borrow more than what you are actually in need of.
Since lenders have access to borrower’s credit report, they will already know if you have an outstanding debt. Thus, borrowing multiple payday loans will show up in your credit report and also hurt your credit score if you default. So, it is best to avoid taking multiple payday loans and fail to pay back. When you fail to repay online lenders may sell your debt to a debt collector and that will further create long term financial issues.
When you miss your payment dates, late payment charges and interest rates will keep piling on. Applying for a new payday loan to pay off the previous one is never the best solution. Multiple payday loans are likely to become impossible for you to manage and lead you into a borrowing cycle that can be hard for you to come out of.
Though it is possible to borrow multiple Payday Loans Canada, there are a few things that you should be aware of before applying them. Read on to know more about it in this article.
As per the Short-Term Tender Law (STLA), enacted in 2008, the Payday Loans Canada companies are prohibited from giving short-term loans over the internet or telephone. In addition, the law puts a cap for all payday loans at $500,for a duration of no less than 31 days and the interest should not exceed 28% APR. It also restricts the number of payday cash loans a borrower can take within a specific period of time.
In Canada, borrowers cannot apply for more than Instant Payday Loans within a year. Unless you have gone through a financial literacy program, you shall not be allowed two short term loans in every 30 days. Such steps has been taken to ensure you do not end up in a debt trap and borrow more than what you are actually in need of.
Since lenders have access to borrower’s credit report, they will already know if you have an outstanding debt. Thus, borrowing multiple payday loans will show up in your credit report and also hurt your credit score if you default. So, it is best to avoid taking multiple payday loans and fail to pay back. When you fail to repay online lenders may sell your debt to a debt collector and that will further create long term financial issues.
When you miss your payment dates, late payment charges and interest rates will keep piling on. Applying for a new payday loan to pay off the previous one is never the best solution. Multiple payday loans are likely to become impossible for you to manage and lead you into a borrowing cycle that can be hard for you to come out of.
Though it is possible to borrow multiple Payday Loans Canada, there are a few things that you should be aware of before applying them. Read on to know more about it in this article.
