With APR’s over 500%, why would I get a payday loan?
Let’s clear this slightly misleading number up right now. Yes, a lot of short term loans have APR’s in the hundreds, but that’s only if you held the loan for an entire year, making that number relevant. The simple truth is that payday loans, in Ontario at least, are not taken out for longer than, at maximum, a 30 day period. The large majority of loans are taken out for two weeks or less because it’s the very nature of these loans to be a short-term solution!
It would matter more if “roll over” loans were legal, but since payday lenders are prohibited from offering them, it’s a non-issue.
Bottom line? You’d want a payday loan if you hit a cash flow shortage or you don’t have any other advanced means of credit. You wouldn’t be alone, either. Millions of Canadians use the service every year, and they come from a variety of backgrounds. The “payday loan customer landscape” has changed significantly in the last ten years.
What if I have bad credit? Can I get a payday loan?
This depends largely on the lender you’re applying to. Goday.ca is a responsible lender, and thus we do run a credit report which would appear on your credit history. We do this to properly analyze whether you’re financially capable of taking on the responsibility of a payday loan. We don’t want to add to any financial difficulties you might be having, and your credit situation is sometimes a good indicator of that. “Bad credit” is subjective to the lender. We take many things under consideration when reviewing applications, credit is only one of them. Having “less than perfect” credit might not prevent you from getting a loan, but it might affect how much you’re approved for.
Why would I want to apply online verses going in person to a store?
If time is of the essence to you, then an online app would be your best bet. GoDay.ca has one of Canada’s most automated application systems online, as we partner with many industry specialists to provide the fastest service. We’ve made it really simple for you to apply from anywhere you might be, so you don’t need to be sitting in front of your PC to apply. If you have a cell phone or tablet with data, you can apply from literally anywhere you might be.
Imagine applying for a loan in a matter of minutes on your commute to work & having funds in your account by the end of the day. That’s way more convenient than driving, walking or otherwise traveling to a retail store and bringing hard copy documents with you to apply. Another favourite perk is the privacy you would enjoy from applying online. No one would know but you. That’s an important benefit to a lot of people.
Can I re-apply or is it a one time thing?
You can definitely re-apply for a payday loan, but there is one stipulation – you have to have paid back your previous loan in full. We simply can’t give you another loan ontop of an existing loan – it’s not a responsible practice. We’d also not recommend taking out more than one loan at a time across various lenders. It could hurt your chances for re-loaning in the future. Stick with one lender to make it easier for you to track.
Should I take out a payday loan to pay off other debts?
Again, this is meant to be a short term solution to a cash flow situation, not a supplemental method of paying down other debts. If you find yourself asking this question, we’d highly recommend sitting down with a certified financial advisor from your bank to determine what the best plan is for you. We can’t give you a hard “yes” or “no” simply because everyone’s situation is very different, but our general response would be “no” simply because of the high interest you’re paying on this type of loan.
