Payday loans in Hamilton aren’t all the same. While lenders do agree they are best used for urgent, immediate needs, they many not handle them in the same manner.
Additionally, these loans are only a good solution in certain situations. For instance, they can bridge a temporary cash flow gap. However, they shouldn’t be used to top up your bank account constantly since you have poor money management skills.
Nonetheless, they can be a viable financial alternative. If you can’t borrow from friends or family, or don’t have access to other credit products, they could help you out in a pinch.
Even so, most people know little or nothing about them. Either that, or what they’ve heard isn’t actually true. Luckily, these 5 facts about payday loans in Hamilton could clarify matters so you can make an educated decision.
Fact #1 – You Could Qualify Through Other Income Sources
Typically, payday loans in Hamilton rely on your steady income from employment. However, many people earn money from other sources. Examples include pensions, self-employment income, the Canada Child Benefit, and the Disability Tax Credit.
Nonetheless, many lenders exclude these people from payday loans in Hamilton. Consequently, if you don’t work for an employer, you’re out of luck.
Luckily, a good lender will consider your application if you don’t fit into the usual income earner mold. Shop around and find one that appreciates your business if don’t earn your income through a regular job.
Fact #2 – You Need to Use a Licensed Lender
Legally, every lender in Ontario should have a license. In reality, some shady online lenders don’t bother with legalities.
Should you choose an unlicensed lender, because you don’t understand the implications or you’re in a hurry, it could have very serious consequences.
First off, the company could be a front for a scam. They set up websites hoping to capture your sensitive data. This can lead to identity theft or other complications since they’re not legally-bound to follow Ontario and Canadian laws.
Second, should they actually grant you a loan, they could also charge you high interest, open-ended fees, and unnecessary penalties. This could leave you in a worse situation than when you began. They can also use illegal methods to collect any money owing. This includes pestering you, your family, and your neighbours, and much, much more.
Benefits of Licensed Lender
On the other hand, a licensed lender must follow the Payday Loan Act. This ensures payday loans in Hamilton are handled correctly. Every licensed lender must adhere to consumer protection protocols. Otherwise, you have recourse.
A licensed lender must also reveal your costs to borrow before you provide them with your personal information. Here’s an example of the first page you will see when you apply through GoDay.
Licensed lenders also have specific limits on how much they can charge you. Fees and penalties are also restricted.
Finally, they follow Ontario’s limitations on the maximum payday loan allowable in the province. This limit ensures you do not borrow more than you can afford. The maximum, legally-permitted amount through a licensed lender is 50% of your previous month’s earnings, up to a maximum of $1,500.
Use the Ontario Ministry of Government and Consumer Services here to check whether a lender has a license, or not. It’s definitely worth the effort.
Fact #3 – Requirements Vary Greatly Between Payday Loans in Hamilton
Don’t think that you can’t get a payday loan, just because you don’t have a big bank account or a fancy home. Every lender determines their own qualification requirements.
For instance, GoDay has very basic requirements that most people can meet. You need to:
- Be a Canadian resident over the age of 18
- Have an open bank account with a Canadian bank or credit union
- Get paid a steady income by direct deposit
- Have a valid personal email account and either a home or cell phone number
If a particular lender requires much more than this, you may want to try GoDay instead.
Fact #4 – Online Loans Make Sense
The loan process can vary drastically between lenders. Some only lend through brick-and-mortar offices. This means you need to take time out of your day to go to their office to apply.
Others embrace technology and offer online loans, but choose wisely. Some call their payday loans in Hamilton “online”, but you still need to finalize in-person. This negates the benefit of choosing the convenience of an online loan in the first place.
Look for a lender that offers their entire loan process online. You should be able to complete their application form in around 15 minutes. They should also use an automated system to provide you with their decision in minutes.
Finally, you should be able to sign your loan contract digitally. Once signed, a good online lender should have the money in your bank account within 24-hours. If you apply on a weekend or holiday, it could take longer. However, if they want you to wait days or weeks, look elsewhere.
Fact #5 – Customer Communication Counts
Fly-by-night lenders do exist and they aren’t concerned about you or your loan experience. They are simply in the market to make money.
Always choose a licensed lender with a long history in Canada. Even better, choose a Canadian company with Canadian customer service representatives. This guarantees the company is bound by Canadian laws. Plus, when you’re dealing with fellow Canadians there’s less chance of communication challenges, time zone issues, and misunderstandings.
Look for multiple customer service options such as email, website support, and a toll-free number where you can talk to a real person during business hours. Canadians expect good service, and if a company expects to stay in business they’d better deliver.
Also look for a lender that replies to online reviews, strives to resolve problems, and shows they value your business. Be highly suspect if the company has nothing but five-star reviews. It is impossible for any lender to satisfy every borrower, but they should respond to specific comments about specific issues.
Don’t rely on Google reviews alone either. Check other independent sites like TrustPilot too. This will give you specific information on their customer service, loan process, products, and more.
Finally, check whether the company belongs to industry-recognized groups that govern short-term loan lenders. This shows the lender is committed to ethical lending and keeping up with the latest practices.
Payday loans in Hamilton through GoDay
GoDay offers an added incentive to all applicants. If you apply through our company, we will automatically review your application to see if you qualify for an installment loan. This may be beneficial as these loans offer a longer repayment period and often better terms.
Here are a few other reasons that GoDay is a great choice for Payday loans in Hamilton:
- GoDay is a licensed lender in Ontario. We follow the Payday Loan Act and Ontario’s consumer protection protocols
- We’ve been lending to Ontarians since 2012
- Better Business Bureau accredited since 2015
- Almost 1,800 customers ratings on TrustPilot with an overall standing of “Excellent”
- We’re a proud member of the Canadian Consumer Finance Association (CCFA) which represents the majority of Canada’s regulated payday loan lenders
- GoDay was founded in Canada and we’re still 100% Canadian owned and operated
- 100% online, from application to funds release
- Fast, efficient, and friendly
- Funds available by direct bank deposit or Interac® Email Money Transfer (conditions apply).
Whether you are ready to start the application process or want more information, please visit our website. You can also find additional information on Canadian payday loans here.
Let us show you why so many Canadians choose GoDay for their Payday loans in Hamilton. We offer more than the competition.
