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While it would be great if everyone always had enough money to pay for unexpected expenses and emergencies, that sadly isn’t the case. Many of us aren’t as good at saving as we wish we were, which can often lead to financial problems, for example, not being able to cover the cost of an unexpected expense.
However, all is not lost, thanks to short term loans. They can be a lifesaver if you need some money quickly and your friends and/or family are unable to help. Regardless of where you live in the province, short term loans in Saskatchewan are available to anyone who’s looking for quick and convenient financing.
For a bit of information about the loan process in Saskatchewan, read this.
What is a Short Term Loan?
Short term loans are generally smaller loans, which can be as low as $100 and as high as around $2000. In addition to smaller amounts, these loans also have shorter repayment periods. While many loans will have years (or even decades) for repayment (for example a mortgage), most short term loans in Saskatchewan are repaid within a year or two.
Because of the small amounts and small repayment periods of these loans, they are often quick and easy to be approved for, which makes them quite popular. While the interest rates offered will vary, you can expect rates to be slightly higher as these loans are easier to get approved for and often don’t require a credit check.
These types of loans are perfect for emergencies or other situations where it doesn’t make sense to take out a larger loan and be locked into payments for many years.
What Are The Pros And Cons of Short Term Loans in Saskatchewan?
While short term loans are a good option for those who require a little bit of extra money fast, they aren’t perfect for everyone. As with anything, there are pros and cons for this type of loan that everyone should be aware of. These include:
The approval times are generally very fast, which is preferable during emergencies as time can be of the essence.
You’ll typically have a wide variety of lenders to choose from, this means you’ll be able to find a lender that you trust fully.
They will be paid off in much less time than standard loans, which doesn’t let the interest compound as much.
They are often easier to get approved for as there is less risk for the lender.
If you’re wondering how to compare lenders in Canada, click here.
Because these loans have shorter terms, are typically easier to get approved for, and normally don’t require a credit check, they often come with a higher interest rate.
Because short term loans in Saskatchewan are often so easy to get, some consumers take advantage of this and take on too many, leading to a cycle of debt that is hard to get out of.
Sometimes, scammers will use short term loans to prey on desperate individuals. Because of this, you need to remain vigilant and always make sure you are on the lookout for signs of a scam such as guarantees of approval and upfront fees.
For further information about the pros and cons of short term loans, check this out.
Recommendations for Using a Short Term Loan
While you can use these loans for everything, as we mentioned earlier, you do want to exhibit some caution. Remember, these loans aren’t perfect for everyone or every situation, so they should not be taken out without considering the consequences. As a result, here are a few recommendations of certain instances where it makes perfect sense to go with a short term loan in Saskatchewan:
Unforeseen medical expenses that your insurance coverage will not take care of
Groceries, rent, or utilities if you are low on cash or your next pay day isn’t for a while
Any other expense that you might categorize as a need
Click here if you have bad credit but you still need a loan in Saskatchewan.
Frequently Asked Questions
What does a short-term loan mean?
A short-term loan can mean many things. They don’t usually exceed $1500. A short-term loan contract can last up to 90 days but are typically 2 to 8 weeks. Among the more common types of short-term loans are credit cards, personal loans, and payday loans. With shorter terms come higher rates. Payday loans are among the highest with APRs exceeding 500%. Credit cards and personal loans cannot exceed the legal limit of 60% but usually fall within 10% to 36%.
Is there a penalty for paying off a short-term loan early?
You should save on interest when paying off a short-term loan before it’s due. Credit cards generally have a grace period where no interest is calculated on purchases. Of course, be aware that if you take a cash advance on your card, interest starts to add up immediately. In regards to payday loans, in most provinces, providers are not allowed to penalize you for paying off the loan before it’s due. If a personal or installment loan is considered open-end or flexible, then there shouldn’t be a penalty for making any early payments. Fixed-term or closed-end contracts, however, will likely have such penalties. Consult with your provider to determine which loan type you have.
Am I eligible for a short-term loan if I have poor credit?
It’s entirely possible to qualify for a short-term loan with poor credit. There are providers of personal and payday loans that do not check your credit score. Instead, they’ll determine if you qualify by checking your overall ability to repay. This will require that you submit documents that verify your identity, banking details, address and source of income. Another way to get approved is by securing your short-term loan with collateral, such as a vehicle. In the same vein, a secured credit is easier to qualify for even with bad credit since it’ll be backed by a security deposit and will help rebuild your credit.
Finding The Best Short Term Loan in Saskatchewan
If you feel a short term loan is the right option for you, don’t hesitate to contact Loans Canada. We feel that no matter your unique situation or needs, we will be able to help you find the perfect short term loan in Saskatchewan.