Cash advance payday loans in Ontario are a great way to access money quickly. They are especially beneficial for those who don’t have a credit card or line of credit. They may also help you if you don’t have friends or family that can lend you money (or you don’t want to ask them).
However, cash advance payday loans can vary. As well, some lenders are good while others are less desirable. Consequently, it is important to know how to pinpoint good cash advance payday loans in Ontario and good lenders.
Licensed vs. Unlicensed Lenders
Legally, every lender that issues cash advance payday loans in Ontario should have a license. Unfortunately, some lenders ignore the rules and operate unlicensed. This generally occurs online, but could potentially happen in-person too.
Potential Issues with Unlicensed Lenders
Both the Ontario and federal governments warn against using unlicensed lenders for many reasons. Firstly, you could find yourself caught up in a scam. In this case, the lender is more interested in your personal data than issuing you a loan. Once they’ve obtained your sensitive information, they could steal your identity.
Identity theft, scams, and fraud are a very real threat and they can all severely damage your credit score. Almost $380 million was lost to scams and fraud in 2021, up 130% from the previous year.
Secondly, even if an unlicensed lender does issue you a loan, they aren’t governed by federal and provincial consumer protection laws. Consequently, they could handle your loan improperly and use illegal collection methods.
Finally, unlicensed lenders can basically charge whatever fees, penalties, and interest rates they want. Some fees may be open-ended too, which could increase your indebtedness considerably if you don’t meet your loan obligations.
Licensed Lenders are Regulated
Licensed lenders are regulated and have government oversight. They must adhere to the Payday Loans Act, which describes your rights and lender responsibilities. They are held accountable for their actions and can be fined or even lose their license if they do not behave ethically. You can check whether a lender has an Ontario payday loan license here.
One important stipulation for licensed lenders is that they must demonstrate transparency. Consequently, licensed lenders reveal your cost to borrow before you provide your personal information. The only information they need from you is your province of residence, as fees vary by region. If a lender starts asking for your SIN number or banking details straightaway, they probably aren’t licensed.
Additionally, licensed lenders have restrictions on your interest rate, fees, and penalties. In Ontario, a licensed lender cannot charge more than $15 per $100 borrowed.
If you do not have the money in your account when it’s time to repay, they can charge a $15 NSF fee. They can also charge you 2.5% per month in late interest. Borrowers also have 2 days to cancel their loan, if they wish. Unlicensed lenders have none of these restrictions or safeguards.
As mentioned, data security is an important consideration. Licensed lenders are legally-obliged to protect your data well. This includes utilizing the latest security protocols and industry-level encryption software. They must also publish a Privacy Statement which specifically describes how they can use your data and retain it.
You may want to check out this post if you’re concerned about using an online lender. Applying through the internet offers additional benefits, when you choose a reputable, licensed lender.
Only Use Cash Advance Payday Loans in Ontario When You Must
Cash advance payday loans in Ontario are relatively easy for most people to access. However, just because they are available it doesn’t mean you should use them often or for any reason. They are meant for urgent needs.
Don’t use cash advance payday loans in Ontario for binge shopping. You shouldn’t use them to regularly meet your ongoing expenses either. This indicates you have problems with your money management skills. You will spend more, as they are a costly form of credit.
Nonetheless, these loans can provide quick cash when you must have money to manage an immediate, urgent need. Here are just a few valid reasons people might choose cash advance payday loans in Ontario:
- You have income coming in shortly, but you need to bridge a temporary cash flow gap
- Your car broke down and you need to fix it to earn money
- You’ve been offered work, but need new equipment, clothing, or safety gear to start
- A household appliance died and you must replace it
- You, a relative, or a close friend, must deal with an emergency situation
Cash Advance Payday Loans Aren’t Like Other Forms of Credit
Fast cash advance payday loans in Ontario aren’t like a credit card. You borrow a set amount and can’t borrow more until you’ve repaid it.
As well, you can’t make a partial payment like you can on a credit card. Normally, you pay the balance in-full after your next full pay period. The only exception is if you take out multiple loans within 63 days, which you hopefully won’t do.
Cash advance payday loans aren’t like installment loans either. As mentioned, you can’t choose how long you want to take to repay or break repayment into smaller chunks. Your loan payment comes out of your bank account on the same day you receive your income. Be certain you can afford to borrow.
Understand Maximum Loan Amounts
The maximum, legally-permitted loan amount in Ontario is $1,500. However, this doesn’t mean you’ll automatically qualify for this amount.
Ontario law restricts your maximum loan amount to 50% of your previous month average payroll. This limitation was enacted to ensure borrowers have enough money to meet your normal expenses. Additionally, if it is your first time using a lender, they may offer you less until you have a track record with them.
Licensed Lenders Vary Greatly
Even once you’ve eliminated unlicensed lenders, you’ll have many choices. However, not all licensed lenders deliver the speed and service you need.
Some companies want you to complete a lengthy application form including details of where you worked, banked, and lived over many years.
Others take forever to make a decision once they’ve received your application. There’s nothing more irritating than receiving an email stating, “We’ve received your application and you should hear from us soon”. That certainly doesn’t help you when you need a cash advance quickly.
Even more frustrating, some lenders respond and ask you to supply proof of income. They doddle every further after you’re approved. It could be days before they send you your loan contract for signature. Then they might take a few more days before they release your funds.
Some lenders also want you to provide them with a cheque they cash on payday to repay your loan. Really? Who uses cheques nowadays? We live in a digital age and there is a better way. When you choose the right lender, everything’s handled quickly, electronically, and automatically.
GoDay’s Cash Advance Payday Loans in Ontario
You’ve read what to look for and what to avoid. We’ve also mentioned when cash advance payday loans in Ontario might help and when you shouldn’t use them. You probably have better understanding of how these loans work too. Now, let us explain why GoDay is your best choice for quick access to cash advance payday loans in Ontario.
GoDay automatically screens applicants for an installment loan when they apply for a cash advance payday loan. Installment loans offer greater flexibility and often better terms. There’s no need to complete two application forms.
We also offer the following benefits that set us well-above the competition:
- Online process with applications accepted 24/7
- Simple application form – less than 15-minutes to complete
- Quick decision – you’ll have our response within minutes
- Digital loan contract signing and no proof of income required
- Fast funds release – if you sign your loan contract within business hours, you could have funds within an hour. Otherwise, you’ll receive money the next business day.
- 100% Canadian owned and operated – our customer service team lives and works here.
- GoDay is a licensed cash advance payday loan lender in Ontario
- We’ve issued loans to Ontarians since 2012
- Proud member of the Canadian Consumer Finance Association, representing most payday loan lenders in Ontario
- TrustPilot ranks us “Excellent” based on over 1,900 customer reviews
- We offer multiple customer service options including a toll-free number, email, and website. Check out our in-depth FAQ section too.
Our Requirements
GoDay realizes your time is valuable. Consequently, we’re providing you with our requirements for cash advance payday loans in Ontario:
- Canadian resident
- At least 18 years of age
- Permanent address
- Active account with a Canadian financial institution showing recent transactions
- Paid a steady income through direct deposit (we consider regular employment, self-employment, and pensions)
- Valid email address
- Active cellphone or home telephone number
Whether you are ready to start the application process or want more information, please visit our website. We also offer helpful tips on obtaining payday loans in Ontario here.
We provide cash advance payday loans in Ontario, without the hassle.
