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What is a Payday Loan?

Payday loans, also commonly known as cash advances, are unsecured personal loans, typically ranging up to $1,500.00 or up to 50% of your income. In other words, payday loans are small, short-term loans that are meant to be an immediate cash advance in times of need for those who cannot access other credit or other avenues of cash before their typical payday. Those who are interested in payday loans should plan to use their next occurring payday to repay the loan in full, including the finance charge.

A finance charge, also known as the cost of borrowing, is a fee that is added to your principal amount at the time of borrowing. This charge is the fee you pay back to the lender for their services. Most provinces in Canada set a different maximum lending rate. For example, Alberta and British Columbia’s total cost of borrowing is $15 per $100 borrowed, while Saskatchewan’s total cost of borrowing is $17 per $100 borrowed. Please visit Speedy Cash’s FAQ’s page HERE for more details on costs of borrowing.

Payday loans can be very convenient because they provide you with the money you need almost instantly. The application process is quick and hassle-free because payday lenders do not require a credit check. Typically, with a payday loan application, most lenders require the following:

  • One piece of government issued photo ID
  • A blank personal cheque and/or pre-authorized debit form
  • A 60-day bank statement
  • Proof of address
  • Most recent pay stub

Payday loans can be a great resource! They can be used for anything from paying bills, car and home repairs, or for travel. There is no restriction as to what you can use your payday loan for. Most payday loan companies offer various loan types to help cover you in any financial situation such as Child Tax loans, Pension loans, Emergency loans, and Vacation loans! That’s right — do you need a vacation? Check out more about vacation loans HERE!

Payday loans can also be granted online, which is a huge bonus for those who can’t leave the house, or who don’t have means of transportation. What’s even better is that some payday loan companies offer a 24/7 Online Lending service to their customers, so you can apply anytime!  Typically, the same requirements are needed to apply for an online loan, and everything that is processed online is 100% confidential and, is usually done directly through the company’s website. The cherry on top? Typically funds are e-transferred within a matter of minutes! 

While this is pretty amazing, remember that you do have to pay your loan back, typically on your next payday. Most payday loan companies offer multiple ways to pay back your loan and work with you to find a way to pay that is best for you. One of the most common things to happen when people miss their due date is they are out of town and unable to make it to the original location to pay back their loan. Well, paying back your loan has never been easier! Many companies offer an e-transfer option or, even an auto debit option to ensure their funds are reimbursed, and that you are not charged any overdue late fees. You never have to worry about missing a loan payment again and paying a late fee. Moral of the story here? Pay back on time, and borrowing before payday can be a wonderful solution for you and your family!

Do you owe a loan now? Just visit THIS PAGE in order to make a safe and secure payment online!

Want to know what happens if you do not repay your payday loan? Stay tuned for our next blog!