6551534889_69d0a94aa5_oPayday loans have gained widely accepted infamy for being debt builders. Yes, it has supporters because it does provide you the option of short-term, quick liquidity but of all the personal loans it is one of the most feared and least understood. Payday loans can suck you into a debt trap quickly if you are not careful and it becomes a continuous debt cycle.

In comparison, installment loans or term loans are much safer. But, most lenders carry out a thorough investigation and analysis of your credit history and income details in case of long-term installment loans and you may not be found eligible. Rate of rejection is much lower in payday loans.

However, installment loans like Flex loans despite being long-term unsecured personal loans have low rejection. Cashco Financial, the company which offers Flex loans usually approves loans to those who don’t have the best credit history and offers flexible, personalized terms of repayment, depending on the merit of the case and personal reputation of the client.

Cashco Flex loans

 Cashco Financial is one of the leading payday lenders in Canada and provides different types of loans. Its premium product is flex loan and it not only provides a flexible tenor and amount of loan but also offers wonderful loyalty programs and exiting discounts to its repeat customers and those which apply for long term loans. Special offers and benefits are available for client referrals as well.

Although it specializes in long-term loans, it is also one of the leaders in the domain of payday loans. Whether you are looking for payday loans in Edmonton, Alberta or Vancouver in British Columbia, Cashco Financial is the most obvious choice.

Why should you avoid payday loans, if possible?

  1. Extremely high rate of interest: The APR (Annual Percentage Rate) on payday loans is one of the highest. On some payday loans, it could go past 400%. Payday loans have such high rates of interest that very soon you will have to pay an interest which is more than the principal. Additionally, you may have to pay rollover fees, late fees, and origination fee among other costs. So, payday loans are not pocket-friendly. The rate usually varies between 10-30%. The rate might easily double if you default.
  2. Short tenure of payment: Payday loans are short-term loans and usually have to be repaid in full within a month or your next payday, whichever is earlier. Since the tenure is too small, if for some reason you fail to pay back the loan, you end up paying a significant amount in interest and late fees.
  3. You would need to have a fixed job and a checking account: For availing a payday loan, you would need to have a fixed job and provide proof of salary when you make an application. You would also need a checking account and if you don’t have these, you may not be eligible for a payday loan, even if you have a good credit history.
  4. You can easily fall into a debt trap: Payday loans are risky because the moment you default, the rate becomes steeper and the debt accumulates faster. Moreover, many enter a situation where they have to borrow more money to service previously accumulated debts. It soon becomes unmanageable. This becomes a debt cycle and the more you borrow, the bigger the debt becomes.
  5. You will have to repay even if you lose your job or meet an accident: Unlike a lawsuit cash advance where your liability gets waived if you lose the lawsuit, payday loans are not offered to you on a non-recourse basis. So, even if you lose your job or ability to work between the date of borrowing and the due date, you will still have to pay back the loan in full.


Payday loans are like circus tigers. They can be of great help but if you ever take a misstep, you could come at the receiving end. Hence, it is advised that you look for other forms of credit, if you have options.

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