Canadian emergency loans can offer you quick cash when you’re in a pinch. However, many myths surround this financial product which could lead you to choosing a less desirable product.
Fortunately, you don’t need to charge large amounts on your credit cards. You don’t need to take a costly payday loan either. FlexMoney installment loans are highly flexible, affordable, and perfect when you need to deal with an emergency now.
Here are 5 myths that we commonly see on the internet regarding Canadian emergency loans. If you’ve believed any of them, maybe it’s time to revisit this convenient financial solution.
Myth #1: You’ll Pay High Interest
Each lender determines your interest rate based on their specific criteria. While some lenders do charge far too much interest, others offer reasonable rates.
If you have a steady job, decent credit, and a manageable debt-to-income ratio, chances are a good lender will offer you a very competitive interest rate. This is often the case, even if you’ve been turned down by a traditional lender.
Alternative lenders often have less stringent criteria for qualifying for Canadian emergency loans too. If your credit isn’t perfect, it isn’t always an issue, because these lenders fill market gap the big banks don’t bother with. Consequently, they’re more willing to look at many factors, not just your credit score to determine credit worthiness.
Plus, when they do check your credit, they use a soft credit inquiry for a general overview of your financial health. This online process allows you to see what the lender offers, without obligation.
Other lenders tend to use a hard credit inquiry which delves deeply into your finances. These types of inquiries lower your credit score slightly and stay on your credit file for several years, even if you decide not to borrow.
Myth #2: You Won’t Get Your Money Fast Enough
You may think that it is faster to walk into an office to apply for Canadian emergency loans. However, this usually isn’t the case. In fact, if you want to get a fast loan, online is usually best.
As an online lender, FlexMoney handles the entire process quickly and efficiently. You never need to take time out of your day to make an appointment and you don’t need to visit an office.
Instead, you fill out a simple online application form from your chosen device. You can do this at any time. We will ask you for information on any debts you owe and we also need your banking details.
Information of your debts helps us determine whether you can comfortably afford to repay your loan. As a general rule, your debts should not exceed approximately 40% of income. For instance, if you earn $2,000 monthly your debt payments shouldn’t be more than $800.
Your banking information allows us to confirm your income through bank issued statements. These statements are used in lieu of a pay stub of letter from your employer, making the process more convenient. We also use this information to transfer money to your bank account and to set up automatic payments.
Perhaps the greatest advantage of online Canadian emergency loans is speed. It only takes around 10 minutes to apply. You’ll also receive our decision within minutes. If you like the terms we’ve offered, it is just a matter of accepting them. We then prepare your loan contract and send it to you for signature. This is also done electronically.
Once you’ve submitted your signed contract, we start the funds release process. Depending on your bank, you could have money in your bank account in less than 24 hours. In-person lenders simply can’t rival that speed.
Myth #3 All Online Lenders Are Shady
Online lenders emerged to fill the needs of the digital age. Certainly, disreputable lenders do exist and you should steer well away from them. Otherwise, you could get caught up in a scam or pay unreasonable fees and interest rates.
Luckily, it’s relatively easy to sort the good from the bad. Reputable lenders are licensed and follow very strict lending and consumer regulations. They belong to organizations such as the Better Business Bureau and industry groups that promote ethical business practices.
Any Canadian emergency loans issued through a licensed lender has provincial oversight. Licensed lenders can’t charge you open-ended fees and the maximum interest rate they can charge you is also limited.
You also have recourse if you believe a lender mismanaged your loan or used unethical practices. This includes filing a complaint through your provincial regulator. Consumer Affairs within your region also provides free assistance.
Myth #4 Online Lenders Offer Fewer Options
Actually, the opposite is often true. Mainstream lenders usually offer very specific products that won’t necessarily meet your needs.
For instance, many banks and credit unions won’t consider loans under a few thousand dollars. Others have very low maximum limits. Basically, if you can’t squeeze your needs into what they offer, you’re out of luck.
No so with online lenders. As mentioned, they work hard to offer a greater range of borrowing options. As an example, Canadian emergency loans through FlexMoney range between $500 and $15,000.
You’ll also find that a good online lender provides many payment options. That means you’re not stuck paying monthly payments, if you’re paid weekly or twice a month. You can also choose a comfortable payment amount by choosing the best loan term. FlexMoney offers terms of between 6 and 60 months. Plus, we never penalize you if you want to pay more. Our personal emergency loans are better.
Myth #5 Applying Online is Unsafe
Data protection has improved drastically over the years. Today, you can rest assured your personal information will remain in the hands of the lender for loan purposes only. FlexMoney uses 128-bit encryption and follows data protection best practices.
As a licensed lender, we can only share your data with third-parties under very specific circumstances. We must also conform to all privacy laws within your region.
Canadian Emergency Loans Through FlexMoney
For your convenience, we’re offering our basic requirements for Canadian emergency loans below:
- Canadian citizen, at least 20 years of age
- Valid email address and mobile phone number
- Have earned a minimum monthly net income of $2,000 for at least the last three months (excluding Employment Insurance, the Disability Tax Credit, and COVID-19 benefits)
- Open and active Canadian bank account with at least three months of transactions
- Not involved in an active bankruptcy, consumer proposal, or credit counselling program.
FlexMoney proudly serves British Columbia, Alberta, Saskatchewan, Ontario, Nova Scotia, Newfoundland & Labrador, Prince Edward Island, and the Yukon Territory. We’ve been lending to Canadians since 2012 and we can help you too! You can find more information on our online emergency loans here.
We have a rating of A+ with the Better Business Bureau and over 1,700 customer reviews on Trustpilot with an overall rating of Excellent.
After reading this article, you may have reconsidered what you previously thought about Canadian emergency loans. Please visit our Help page if you have more questions, or contact us via our 1-800 number, email, or website support. We also have more information on our best emergency loan here.
Otherwise, we invite you to start the application process on our website. We’re fast, fair, and a licensed Canadian company eager to help you deal with your emergency through an affordable personal loan.