Applying for Cash Advances in Canada
Whether you have unexpected expenses or just need some extra money for the month, payday loans (also known as cash advances) in Canada are an attractive option to help make ends meet. A short term loan between 100 and 1,500 dollars, a payday loan is generally intended to cover expenses until a borrower gets their next paycheck. These types of loans can have many benefits when used in a responsible manner and are a much better option than late bill fees and payments, disconnected utilities, bounced checks, or eviction.
Payday Loan Basics
If you have never borrowed money from a payday lender before, the amount you will be able to borrow will probably be relatively low. It may differ from company to company, but first time borrowers in Canada may receive up to $250 for an initial payday loan. Although a high credit score is usually not necessary in order to be approved for a loan, it may increase the amount of money you are able to borrow. Once you demonstrate that you are a responsible customer by paying back the loan, the company you have done business with will usually increase the amount of money you are able to borrow in the future.
In order to be approved for a payday loan, you must agree to repay the money in addition to fees and interest within the specified time period. The interest fee you will be charged is a fixed, non-negotiable percentage of the loan amount and will increase as the amount of money borrowed increases. If you take longer to pay back the principal amount within the agreed upon time frame, the amount of interest you pay will increase proportional to how much extra time it takes to pay the money back.
Regulation of Payday Lenders in Canada
The Criminal Code of Canada was amended in 2006 to allow regulation of the payday loan industry. Most provinces have specified that the maximum charges (including interest and fees) for short term loans cannot exceed 23 percent of the principal loan amount. Lenders are barred from loaning more than 50 percent of a customer’s monthly take-home income or requiring that the principal amount be paid back before the customer’s next payday. In many provinces, the borrower is also able to cancel the loan if they do so by the end of the day after signing the loan agreement. In addition, only one loan at a time is permitted. Although these regulations apply in most provinces, make sure you understand the rights that are specific to the one in which you live.
Applying For a Loan
Payday loans (also known as cash advances) are available through visiting an actual store or through online lenders. The process for online loans is extremely quick, and borrowers are often able to get cash deposited in their bank accounts in only few hours. In the past, a customer might have to wait days to get approved and have the money wired to their account. It can often take weeks for traditional lenders such as banks to approve and process a short term loan. In contrast, payday lenders often take no more than one business day to fund a loan.
Applying for a payday loan cash advance online is quick and easy. After creating an online account, you will need to provide your name, birth date, employer information, social insurance information, email address, bank account and routing number, address, telephone number, monthly salary amount, and monthly rent or mortgage amount. You may also be asked for a copy of your driver’s license, and if you are self employed you may also need to provide a copy of a bank statement. Your information is secure and none of it will be shared with solicitors.
Payday loans (also known as cash advances) are an easy and convenient solution to help make ends meet until the end of the month or in cases where a quick emergency influx of cash is needed. There are hundreds of payday lenders in Canada, so make sure you do the research and find a reputable company to do with business with. It may also be helpful to read online comments from users who have used a particular lender. Always educate yourself about your rights as a borrower and take time to fully understand the interest and fees involved before taking out a payday loan.