An online cash advance is a great option when you find yourself in a tight financial position that you didn’t plan on. It isn’t meant for a shopping spree or to compensate for your poor budgeting. However, it can help you handle unexpected expenses when you’re in a bind.
What Cash Advance Options are Available?
Canadians have several options when it comes to a cash advance. Each offers advantages and disadvantages. The first is a cash withdrawal through an ATM against a credit card.
Cash Advance Against Credit Card
Unfortunately, this option isn’t available to many people. Even if it is, cash advances come at a very steep cost. You’ll be charged a much higher interest rate than regular purchases.
Plus, there isn’t a grace period a cash advance. This means you don’t have the usual 28- days before the amount starts to accumulate interest.
Additionally, you will either pay a flat fee or a percentage of the amount you withdraw for using this option.
Finally, credit cards compound interest on the unpaid balance. In other words, you’ll pay interest on any interest the credit card company tacks on to what you owe. This can cause your debt to increase, even if you’re making your minimum payments.
Short-Term Loans
Alternatively, some lenders offer a cash advance in the form of a short-term loan. These are available from local lenders and online. You borrow a specific amount and the lender transfers the money to your bank account quickly. In return, they charge you interest for their service.
Generally, these short-term loans are available to those with a steady income. They fill a gap in the marketplace left by traditional lenders who are unable or unwilling to lend to people that don’t meet their strict criteria.
Two types of short-term loans can provide quick cash: payday loans and installment loans.
Payday Loans
Payday loans offer very quick cash with minimal fuss. Approval rests on your salary, with far less emphasis on your credit.
However, payday loans are usually for small amounts. The legal maximum in Canada is $1,500. In some regions you can’t borrow this amount unless it is less than half of your net income. A lender may not give you a loan for the full amount the first time you borrow with them either.
An online cash advance through a payday loan must be repaid relatively quickly. Normally, this occurs after your first full two-weeks of work on your normal payday. Some regions allow repayment over 62 days, but never longer.
Installment Loans
Installment loans offer greater flexibility, more time to repay, and often lower interest rates too. These loans may also be unrestricted so you can make extra payments or pay off your entire loan off at any time without penalty. However, installment loans usually have more requirements than payday loans.
For instance, mainstream lenders place great emphasis on your credit. If yours is less than perfect, they may not grant you a loan. Fortunately, alternative lenders don’t do this. Nonetheless, they will perform a review based on specific criteria.
Unfortunately, many lenders don’t grant installment loans for small amounts either. As an example, if you only need a cash advance of $500 quickly, most lenders won’t even consider your application. Luckily, there are a few that will consider a smaller online cash advance through an installment loan in Canada.
Applying for an in-person installment loan can be a long process. You must book an appointment, take time out of your day to visit, complete paperwork, and wait. Thankfully, online lenders have simplified the process. They can deliver an online cash advance quickly, due to advancements in technology. Some online lenders even allow you to conveniently pay your installment loan via QR code, making the process even faster and more efficient.
When is an Online Cash Advance Appropriate?
Basically, an online cash advance is meant to help you out of a temporary financial bind. It’s not meant for extra money when you’re continually spending more than you earn. However, one can help you if you will have the money to repay very soon.
Here are a few situations when payday loans in Canada could help you out:
- You started a new job and need to pay a bill before you’ll receive your first pay cheque
- Your car needs repairs so you can drive to work to earn money
- You’ve been offered online work and more pay, but need a new laptop to fulfill the qualifications
- A close friend or relative is dealing with an emergency and has turned to you out of desperation.
Of course, you probably have your own reason for needing an online cash advance. The point is, if you have a pressing need, an online cash advance through GoDay could be a good solution.
Can You Qualify for an Online Cash Advance?
If you have a steady job, chances are you can either get a payday loan or an installment loan for an online cash advance quite quickly. The application and approval process are usually much simpler and faster than most other loans.
If you’re wondering GoDay’s requirements are for an online cash advance in Canada, they are as follows:
- Must be a Canadian resident
- At least 18 years of age
- Permanent address
- Active account with a Canadian bank or credit union with recent transactions
- Paid regularly through direct deposit
- Valid email
- Active cellphone or home telephone number
GoDay also offers a bonus. Some applicants may qualify for an installment loan when they apply for a payday through our company. There’s no need to fill out another application form. We’ll automatically notify you and you’ll enjoy greater flexibility and more time to repay too.
Do Lenders Differ?
Absolutely. Any company can offer to lend you money, but that doesn’t mean they’ll treat you well. We suggest you look at the following factors to determine whether a lender is right for you:
Are They Licensed?
Licensed lenders have government oversight. Lenders must adhere to strict laws that govern their fees, penalties, and loan amounts. These restrictions are meant to protect consumers. If a licensed lender doesn’t follow the letter of the law, you can take action.
Additionally, licensed lenders must be transparent. They can’t hide their fees behind flashy websites or complex legal documents. They must tell you upfront how much it will cost you to borrow.
Conversely, if you borrow through an unlicensed lender, you have few, if any, legal protections through Canadian agencies. You’ll have little recourse if they mismanage your online cash advance. They can charge open-ended fees and incredibly high interest rates.
Luckily, GoDay is a licensed lender in BC, AB, SK, MB, ON, NB, NS, and PEI. We follow all payday loan regulations for each region precisely.
Are They Canadian?
So many lenders present themselves as Canadian companies, but they’re really subsidiaries of foreign institutions. This may not seem a major problem, until you need assistance.
Suddenly, you could find yourself dealing with someone who doesn’t know BC from Newfoundland or Toronto from Calgary. You could also wrestle with time zone differences or find you can only deal with the company via email.
If you want peace of mind, choose a Canadian lender with a toll-free number. That way you can speak to a real person to get to the heart of the matter quickly.
GoDay was founded in Canada and is still 100% Canadian. Our customer service representatives live and work here. We offer a toll-free number as well as website and email support.
How Quick & Simple is the Process?
The last thing you want to deal with when you need money now is a slow lender. Is the application process simple? How quickly will they make their decision? If you’re approved, how long until the money is in your bank account?
The entire online cash advance process should only take hours, not days. You should be able to sign your loan documents digitally and then see the money in your bank account very shortly thereafter.
GoDay is a leader in the online cash advance realm. We’ll let you know whether you’re approved within minutes.
Once you sign your loan documents, we strive to get the money in your bank account within an hour. If you sign your loan documents outside of business hours, our staff will forward the money as soon as they’re back in the office.
How Do They Check Your Credit?
If you apply for a payday loan, the lender may or may not check your credit. This is because payday loans are for small amounts. Nonetheless, they will do a review of your life circumstances.
Before deciding on a lender, check whether they use a hard or soft credit inquiry. A hard inquiry negatively impacts your credit file and remains there, even if the lender turns you down for a loan.
GoDay uses a custom scorecard to assess your creditworthiness. If we do decide to check your credit, we use a soft inquiry that does not appear on your credit file.
Do They Have Good Reviews?
Customer testimonials can tell you a lot about how a company treats their customers. Check their Better Business Bureau rating as well as on an independent site such as Trustpilot.
Incidentally, GoDay has an A+ rating with the Better Business Bureau. We also have an overall rating of “Excellent” as assessed by over 1,400 customer reviews on TrustPilot.
Are They Transparent?
When applying for a payday loan, the only thing the lender should initially ask you is your province. This is because regional laws vary.
Once they know where you live, they should reveal the associated fees immediately. They should not ask you for personal information unless you decide to move forward.
If a lender asks for your personal information first, look elsewhere. You don’t want them to get hold of your data before you’ve had a chance to consider what they’re offering.
By the way, GoDay always reveals your interest rate and fees upfront. There’s no guessing or hiding fees. We don’t operate that way.
How Long Have They Been in Business?
This is a point that many people fail to check out. Fly-by-night lenders are everywhere, but is that the kind of company you want to deal with? Probably not.
You’ll be happy to know that GoDay has been an online cash advance lender in Canada since 2012. We’re also a member of Canadian Consumer Finance Association which represents the majority of short-term loan lenders in the country.
We’re fast and use the latest tools in the industry. Whether you live in Toronto, Mississauga, Oakville, Brampton, or somewhere else, if you need an online cash advance, please visit our website. We’ll help you get the money you need now.
