Same day payday loans in Canada can be a life saver when you find you’re in a financial pinch. If you apply online, it takes less time and the process is much simpler. Consequently, it is usually the fastest way to get money when you’re in a hurry.
However, many people don’t understand what same day payday loans in Canada are all about. They don’t work like other loans products and they aren’t meant for all needs.
Less Stringent Qualification Requirements
If you choose a good lender, you won’t face tough lending requirements that you would face elsewhere. Generally, these loans have very basic qualification requirements that rest on your income.
Fortunately, income requirements are much lower than a traditional loan. Additionally, they don’t place as much emphasis on stability. If you earn a steady income from the same source for three months, chances are you could qualify.
However, same day payday loans do come with other requirements. You will need to have an account with a Canadian financial institution with at least three months of recent activity. Income must be paid by direct deposit and the lender will confirm this through authorized bank statements. This is done quickly and safely as all data is encrypted.
Additionally, you’ll need a valid email address and either a cellphone or home telephone number. These are used to confirm your identity.
Only Borrow for Short-Term, Urgent Needs
Same day payday loans are only meant for short-term, urgent needs. You shouldn’t use them to shore up your bank account each month, because you can’t manage your money.
Equally, they aren’t a good choice if you’re planning on using the funds to buy a new gadget or the latest trendy clothing. They are an expensive form of credit and other options are better if you want these things.
Examples of when same day payday loans in Canada might be appropriate include:
- Accessing quick cash to fix your vehicle, because you need it to get to work
- Paying expenses if you need to deal with an emergency
- Bridging a financial gap, knowing you will have the money to repay your loan shortly.
How Much Can You Borrow?
The legal payday loan maximum in Canada is $1,500. However, provinces and territories also have their own limit based on a percentage of what you earn.
Consequently, in some provinces the maximum allowable amount is 50% of the average of your last two payroll amounts. In others, it is 30% of the average of your last two payroll amounts. Some provinces have no restrictions at all so you can borrow the maximum amount of $1,500, providing your income supports it.
Here are a few examples of how this percentage restriction works. If you earn $1,200 every two weeks in Ontario, you could only borrow 50% of $2,400, or $1,200. This is because the province has a 50% restriction, as does British Columbia and Saskatchewan.
In New Brunswick, you can only borrow 30% of the average of your last two payroll amounts. Using the example above, you could only borrow $720. This also applies to Manitoba.
As well, each lender decides whether they will grant you the full amount, even if you qualify for it. Many lend smaller amounts if it is your first time dealing with them. You need to repay your initial loan before you get another one. However, the lender may lend you more the next time.
Importance of a Licensed Lender
Many lenders offer same day payday loans in Canada. However, not all lenders are licensed. This is required in most provinces and territories, but some lenders operate don’t comply with this requirement.
Unlicensed lenders do not need to comply with the Payday Loans Act which outlines lender and borrower responsibilities. This Act demands transparency regarding your cost to borrow before you reveal your personal information.
It also restricts the types and amounts of fees and penalties that a lender can charge. Without this protection, you could pay very high interest rates and open-ended fees. Plus, you unnecessarily put your data at risk, which could lead to identity theft.
Simplified Application Process
When you choose same day payday loans in Canada through a good online licensed lender, you’ll enjoy a simplified application process. You won’t need to provide information about where you worked, lived, and banked years ago.
Instead, the lender asks for pertinent information about where you stand now. They just need basic information to confirm your identity and income. Everything is handled electronically, making the process fast and worry-free.
Perhaps the greatest benefit of online same day payday loans in Canada is speed. Once you submit your application, the lender provides a decision within minutes. Pre-approval includes your exact cost of borrowing, including your interest rate and repayment terms.
You aren’t obligated to accept these terms, but if you decide to move forward it’s easy. Just accept the terms and the lender prepares your loan contract. You sign it digitally. Signature triggers funds release, which can occur within hours if you sign during business hours. Otherwise, you can expect money in your bank account or an email money transfer in under 24 hours.
No Impact on Credit Score
Same day payday loans in Canada are for relatively small amounts. Consequently, the lender may or may not run a credit check on you. However, always check whether they use a “soft” or “hard” credit inquiry before you apply.
A soft credit inquiry does not impact your credit score, but a hard inquiry lowers it. Hard inquiries also remain on your credit file for up to three years, even if you decide not to borrow from them.
How Do Same Day Payday Loans in Canada Work?
As mentioned, same day payday loans in Canada are short-term solutions. In almost all cases, you must repay the entire amount you borrow on your next full payday. Generally, the only exception is when your payday falls within two days of your application. Then repayment falls on your next payday.
If you take out multiple loans over a short period (which you shouldn’t need to do and is never advisable), repayment extends to 62-days, but never more.
Meeting your loan obligations is very important. Otherwise, you will pay additional fees and late interest, which will add to your indebtedness significantly.
The lender may decide to report your defaulted loan to the credit reporting agencies in Canada too. This can seriously limit your access to credit and this impact can last for years.
Service Matters
No one can predict what the future holds. Even if you think you may not need to contact the lender, there could come a time when you help.
Always look for a lender that offers multiple customer service options. Email is a given, but you should also be able to talk to a real person when needed. This service should be offered via a toll-free number.
Also check whether the lender offers website support and an in-depth FAQ or help section on their website. You shouldn’t have to reach out and wait if you have a simple question.
Same Day Payday Loans in Canada Through GoDay
Yes, there are plenty of lenders in Canada. However, not all of them are licensed or trustworthy.
Before you decide on a lender for same day payday loans in Canada, here are a few other factors that make GoDay your best choice.
We’re Transparent
GoDay believes transparency is always part of ethical practices. While we are licensed and legally required to provide you with complete and accurate information, we would do that anyway. We do not charge unnecessary fees and you receive 100% of you approved loan amount.
We are happy to provide you with our basic requirements for our same day payday loans in Canada here:
- Canadian resident
- Over 18 years of age
- Permanent address
- Active account with a Canadian financial institution
- Steady source of income through direct deposit (we consider regular employment, self-employment, and pensions)
- Valid personal email account
- Cellphone or home phone number.
We’re Licensed
We are a licensed payday loan lender in Ontario, British Columbia, Nova Scotia, Alberta, New Brunswick, Saskatchewan, Prince Edward Island, and Manitoba. We’ve provided payday loans to Canadians since 2012.
We’re Reputable
GoDay is a member of the Canadian Consumer Finance Association and the Better Business Bureau. We have over 1,900 reviews on TrustPilot, with an overall ranking of “Excellent”.
Automatic Review for Installment Loan
GoDay provides an added bonus when you apply for one of our same day payday loans in Canada. We’ll automatically review your application to see if you qualify for an installment loan, without an additional application.
Installment loans offer greater flexibility, such as a longer term if you want more time to repay. Generally, they offer better interest rates too.
One of the Fastest Processes in the Industry
Even though the title says “same day”, you could get your money within hours if you apply during business hours. The entire process is fully-automated, easy, and blazingly fast.
Canadian Company Here to Serve You
We were founded in Canada and are still 100% Canadian owned and operated. Our customer service representatives are Canadians, just like you.
We understand the challenges Canadians face and the level of service they deserve. Contact us via telephone, email, or website support ticket, or online chat. We’re eager to help.
Get Started Now
Whether you are ready to start the application process or want more information, please visit our website. We also offer more information on our payday loans here.
Let us show you why so many people choose GoDay for their same day payday loans in Canada.
