Everyone has expenses that they have to deal with at different periods of their lives. In some cases, you might not have the money needed to take care of these expenses. Many Canadians leverage payday loans to cover these emergency expenses pending the time they receive their paycheck. So, suppose you find yourself in this instance, all you need is a payday loan lender in Canada and you’ll be good to go. But how does this really work?

What is a Payday Loan?

Also known as a cash advance, payday loans are used to cover unprecedented expenses while you await your paycheck. This means that you can get a loan from a payday lender, based on certain terms and conditions, and then repay the money when your paycheck or other regularly scheduled income arrives. People have turned to this form of loan for several years, as it comes in handy.

Of course, there are family and friends from whom you can borrow money in times of need. However, this might not be applicable at all times, especially if the money you need is a bit substantial. This makes a quick loan a suitable option for you to explore.

More importantly, payday lenders are private institutions with more flexibility in terms of lending operations. This is a notable difference between getting a payday loan and getting a loan from traditional financial institutions. These conventional banks have rigid processes and strict requirements that might not grant you access funds on the timeframe you need. On the other hand, a private lender operates with a swift process that beats the long, paperwork filled experience you can expect from a traditional institution.

Hence, you can understand why many Canadians have chosen these loans over the years. Private lenders tend to make lending processes easily understandable for all, making the process highly efficient and more comfortable. Additionally, some payday lenders ensure you can process your loans using e-Transfer, so you can receive your money in minutes rather than waiting a full day for an EFT to arrive.

This indicates that payday loan lenders are more understanding when it comes to sorting unexpected expenses. Even if a customer has bad credit, there are still ways for such a person to become eligible for a payday loan. A private lender such as My Canada Payday sets up a consultation process for such persons to adequately understand the best ways in which they can receive loan assistance.

The understanding here is that payday loan lenders have a unique way of attending to people. There’s a great focus on assessing customers on a case-by-case basis to ensure that you receive the most relevant form of assistance. Generally, payday loan companies focus more on the income to debt ratio as opposed to a customer’s credit score. This allows the lenders to make more future-oriented decisions based on the capacity of the customer to pay back. Meaning, if the lender’s assessment indicates that you can pay back your loan, it is immaterial that your credit score isn’t so great at the moment.

Notably, these payday loan companies operate with great security protocols. This is perhaps why you should ensure you choose a reputable company when you need a payday loan. These companies abide by strict government regulations targeted at the protection of people’s interests.

Payday Loans: All You Need To Know About How They Work

If you have ever had to take a loan, then you might already have an idea of how a payday loan works. Nevertheless, think about a payday loan as any other form of a loan. The underlying idea is the same: you receive an amount and have to pay it back with interest by an agreed date. This loan shall be governed by a contract signed by both parties, where the contract contains all the terms and conditions guiding the loan.

With a company such as My Canada Payday, you can take up to $1,500 in the form of a payday loan to cover your unexpected expenses. One of the features that make payday loans unique is that repayment periods can be flexible. In fact, you can negotiate with the lender reasonably to afford sufficient time to repay the loan. Additionally, you can adjust your payment schedule by splitting up the loan into multiple payments. However, the possibility of this will be based on the province from which you’re borrowing.

Here are some of the key things to know about the process involved in getting a payday loan.

Digital or Traditional

When it comes to payday loans, you can either choose to complete the process online or you can visit a payday loan company in your location. For the latter option, you’ll need to move around a bit and find a good company near you that offers great loan services that are fair. However, you can do without this stress by simply opting to complete your payday loan process online.

All you have to do is to find a reputable company and initiate your request for a payday loan. This process is more refined, soothing, and also convenient. You can complete it all from the comfort of your room.

Do Adequate Research

When you’re looking to get a payday loan, it’s crucial to do adequate research before choosing a company. Researching thoroughly will show you the most reputable payday loan companies that offer fair services. Your focus should be on the licenses the company holds, the fee policy, the fairness of the loan agreement, and more. You can also request to speak further with a representative of the loan agency to gain more insights into the services of the company.

While reviews might be helpful, understand that reviews can also be bought. As such, exercise some care in relation to reviews. Instead, you can focus more on friends you know who have gotten a payday loan from the platform and the treatment they received during the period.

Quick Access to Loan

Important to note that what sets payday loan companies apart is that the reputable ones offer you quick access to loans. This accounts for why many Canadians consider these loans to offset their expenses. You want to know whether your loan will be approved within a short period. As such, this is one of the essential things to consider when assessing payday loan companies.

Once your loan is approved, you can utilize any of the supported methods to receive your funds. In most cases, many people will use the e-transfer method to receive their loans. Of course, this is faster and safer than having to deal with cash.

Fee Transparency

When you’re getting a payday loan, ensure you have a good understanding of the company’s fee structure. More importantly, this fee policy should be easily accessible on the company’s website. Once you access the fee policy, read it thoroughly so you know the potential costs of the loan. This allows you to make informed decisions before going ahead with the loan request. Additionally, it also indicates that the company has a great culture of transparency.

Same Day Loan Service

If you’re making a request to get a payday loan, chances are you need it as quickly as possible. Therefore, checking whether a company offers same day loans is highly important. While you might not find this service with some platforms, you’ll get it from My Canada Payday, which allows you to receive the borrowed funds the same day you make a request, so far your application is successful. All you have to do is to fill the application form and provide all the necessary details to complete the process.

Payday Loans Have a Due Date

All forms of loans are to be repaid by a pre-agreed date. Therefore, you must avert your mind to the contract guiding the payday loan and know the repayment date. Furthermore, it’s important to note that these loans are unsecured loans. This means that the loans do not involve the use of collateral. Invariably, the interest rates tend to be a bit higher than secured loans. Nevertheless, they are often calculated to be affordable, especially when you choose reputable loan companies.

Interest Rates on Payday Loans

To have a great payday loan experience, you must know about the interest rates beforehand. The good news here is that payday loans generally tend to have sensible interest rates. This also gets better when you choose a great lender known for its reputable services. The interest rate can range from $15 to $21 on every $100. Ultimately, the interest rate you’ll incur will be determined by your province. Meaning, while the $15 might be applicable in Alberta, you might face $17 in Manitoba.

Generally, these interest rates are stated in actual amounts as indicated above as opposed to using percentages (which is what traditional lenders do). The use of percentages can be complicated and doesn’t clearly represent the interest on such a short term product. Also, when you know the actual amount charged on your loan, you have a knowledge of what you’re repaying precisely.

As you can see, interest rates are key to having a great loan experience. Therefore, it’s important to learn about them before you go ahead with getting a payday loan. More importantly, you should choose a company that is reputed for reasonable interest rates.

Types of Payday Loans

As you can imagine, the rationale behind payday loans is to offer people funds to meet immediate demands. Knowing this, various versions of payday loans exist, as people have different emergency needs. Here, we consider the different forms of payday loans, from which you can choose any that you find suitable.

Advantages of Payday Loans

People don’t just opt for payday loans because the name sounds enticing. After all, a loan is still a loan regardless. Instead, people consider this loan option because of the advantages it offers. Here, we shall consider some of the popular reasons why many Canadians consider payday loans.

Convenient Application Process

Payday loans are easily accessible. This gets even more convenient when you choose a great platform that prioritizes the comfort of customers. With My Canada Payday, you can complete the application form within minutes and proceed with your payday loan request. A seamless application process makes the entire loan journey convenient. After all, someone in need of a payday loan likely wants to meet quick financial demands.

Fixed Interest Rates

When you take a loan, the last thing you want to see are surprises in terms of interest rates. People love to take loans with fixed interest rates. That way, you can contemplate the potential costs and adequately plan your finances. The loans you’ll get from us are structured in line with the relevant interest rate regulations. As such, there are no hidden fees or costs for you to pay.

Bad or No Credit Score?

You might be surprised to find out that we offer loans irrespective of your credit score. Of course, a great credit score is generally considered a necessary prerequisite for borrowing money, especially with traditional lending institutions. However, with us, we consider different factors based on your income and the data from your online bank statement. Therefore, when you have a bad credit score, you can still be eligible to receive a payday loan from us.

In the same manner, subject to certain requirements, we also offer payday loans to people with no credit. This is because we believe in offering people the chance to develop their credit scores.

The Approval Process is Fast

A burdensome approval process can be frustrating when you’re trying to get a loan. This is a major reason why we ensure our approval process is fast. We operate with an advanced system, integrated with functionalities that make the question and answer process swift. This refines the approval process and allows you to know whether you’re proceeding or otherwise within minutes.

Once your application is successful, you will receive your funds through an Interac e-transfer.

Who Gets Payday Loans?

Across Canada, Payday loans are popular among income earners. Money issues come up at different points in time that you might have to address. In those cases when your paycheck is still far away, payday loans are a great option. We offer these loan services to Canadian residents across various places.

Some see payday loans as a last resort. For this group of people, they tend to have emergency funds that they use when money issues arise. However, for many other people, they do not have the luxury of budgeting funds for emergency purposes. As such, when unexpected expenses arise, they look to payday loans.

Some of the common reasons why people need emergency loans include:

• When your bills are due before your paycheck. The best thing is to sort the bills immediately.
• Home maintenance issues are also on this list. Your HVAC system could develop an issue and require urgent attention.
• You might have emergency medical bills to sort.
• Cars can act up at any time. When this happens and you still have to move around, you’ll need to quickly fix the car. A payday loan will be suitable here.

Financial needs are part of our daily lives. When you’re in such a situation, addressing the demand quickly prevents a case of further complications. This is why many people take payday loans, especially since these loans are convenient and easy to pay them back.

How Approval Works

To get a payday loan, there are some metrics of assessment. Once you meet these criteria, you’ll become eligible to access the loan service.

• You have regular income. Self-employment doesn’t qualify you to get a payday loan. You must have employment at a local job where you receive a payment regularly, or regular income such as a pension.
• Your payment must come via direct deposit or cheque
• You’ll have to provide a complete 180 days detailing your bank history
• You must be a Canadian resident or citizen in any of the following provinces: Manitoba, British Columbia, Ontario, Nova Scotia, Alberta, Saskatchewan.
• You must be at least 19 years of age

You’ll also need to have valid contact information including an email address, billing address, and a phone number. These are the key requirements you must possess before your application can proceed for final approval.

How Repayment Works

For every loan you take, you’ll have to repay the amount with interest on the due date. To make this process seamless, most lenders will require that you provide authorization for a direct deduction of the relevant amount at each due date. That way, once the repayment date is ripe, the lender will withdraw the funds from your account directly.

At My Canada Payday, this process is convenient, as everything is completed online. This makes it fast and easy for all parties. The company also affords you the opportunity to close your loan earlier than the due date. You might choose to do this if you already have the outstanding amount and you want to pay at once.

We would suggest that you ensure you have a firm understanding of the repayment process before choosing a lender. This is a crucial part of your loan procedure and it must be clear. Therefore, ensure you read it carefully and thoroughly. You should also know of all options you can consider in repaying your debt. This way, you’re positioned to make informed choices.

Why My Canada Payday?

When you need money now and require express loans, your best bet is to go for a company that is dedicated to helping you solve money problems. As a fully licensed lender, we are focused on getting loans to you as quickly as possible so you can address your demands. In fact, you can have your money the same day you issue an application.

We’re completely ethical in our processes. As such, we operate with the best industry standards in the lending space. We have a team of thoroughly trained financial experts whose goal is to help you out of your money troubles. We understand that you have many things to handle. Therefore, we have curated our services to be seamless, convenient, and yet unmatched. With our app, you can complete the loan application in minutes.

Get started with the application form today. We’ll do the rest!