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A high APR on a payday or title loan might not cost much if you can repay it on time. However, it can become expensive if you choose to roll over your loans or take out a new loan to pay it off later.<\/p>
Before taking out a loan, ask yourself how likely it is that you can repay your loan on time. If you struggle with your finances, consider contacting a credit counselling agency before taking out a loan. A credit counsellor can explain your options and help you come up with a recovery plan. \n <\/p><\/div>\n <\/div>\n<\/div>\n
Pawn loans<\/h4>
Rather than sell and buy back your personal items, some pawn shops let you put up your valuables for collateral on a loan. With a pawn loan, you borrow a percentage of your item\u2019s resale value \u2013 normally 25% to 60% \u2013 repaying it in cash, after which your items are returned to you.<\/p>
Rates tend to be high, although they are sometimes negotiable depending on the lender. Typically, you\u2019ll have a few months to pay it off.<\/p>
- General eligibility.<\/strong> You must be at least 18 years old, or the age of majority in your province or territory, and own an item of high resale value, like jewellery, gold or electronics.<\/li>
- Maximum loan.<\/strong> Around 60% of your item\u2019s value.<\/li>
- Typical APR.<\/strong> Varies widely, though it\u2019s often less expensive than a payday or title loan.<\/li>
- How to apply.<\/strong> Get your item appraised online, and take your item and appraisal to the pawn shop. Complete a quick form to get your cash, along with a ticket to reclaim your item after repaying your loan.<\/li>
- How long it takes.<\/strong> Typically no more than one day.<\/li><\/ul>
Debit card loans<\/h4>
By definition, these loans don\u2019t involve sending cash to a bank account. Instead, your lender loads your funds onto a prepaid debit card in your name, which you can pick up at a store or receive by mail. You\u2019ll need proof of a bank account to qualify though. The convenience here is that you don\u2019t have to have funds deposited or withdrawn from your bank account if you don\u2019t want to.<\/p>
These cards can encourage repeat borrowing, offering an easy way to sign up for future loans. Some even allow you to earn rewards as you would with a credit card.<\/p>
Most lenders offering debit card loans are payday lenders, meaning that the same payday restrictions will apply if this is the case. Payday loans are regulated at the provincial\/territorial level, so APRs and fees will vary.<\/p>
- General eligibility.<\/strong> You must be a Canadian citizen or permanent resident who\u2019s at least 18 years old, or the age of majority in your province or territory. You must also possess a car title in your name and have proof of a consistent income.<\/li>
- Maximum loan.<\/strong> Varies by lender and your financial situation.<\/li>
- Typical APR.<\/strong> Can be 50% or more.<\/li>
- How to apply.<\/strong> Complete an application online or in a store.<\/li>
- How long it takes.<\/strong> As little as one day.<\/li><\/ul>
Bitcoin loans<\/h4>
If you don\u2019t have a bank account, another option might be to repay a term loan entirely in bitcoin, thanks to lending platforms like BTCPOP. Here, investors fund your loan and collect on repayments, rather than a bank or online lender.<\/p>
If you\u2019re already an expert in cryptocurrency, you\u2019ll understand the risks better than someone who\u2019s new to the game. Otherwise, this borrowing option might not be for you.<\/p>
Why not? For one, bitcoin is not a stable currency. Its value changes by the minute and the Government of Canada treats it as a type of investment, like stocks or bonds. It\u2019s impossible to predict how much your coin will be worth tomorrow, let alone when your loan is due.<\/p>