A Barrie payday loan can be a great solution when you have a pressing financial need. For some people, it may be their only option if they can’t or won’t borrow from family and friends and they don’t have credit.
However, all payday loans aren’t the same and neither are payday loan lenders. Consequently, you probably need more information to make an informed choice. Luckily, this Barrie payday loan guide offers additional information.
First, we’ll look at how a Barrie payday loan works, including the legalities. Next, we’ll look at the potential costs of a loan. Finally, we’ll point out a few features you should look for in a good Barrie payday loan and lender.
After reading this guide, you should have a good overview of this financial product and whether one is right for you.
What is a Barrie Payday Loan?
A Barrie payday loan is a short-term financial product that can offer you a relatively small amount of money quickly. Of all credit products available, it usually has the easiest qualification requirements.
However, using a Barrie payday loan to top up your bank account isn’t a wise financial decision. It is an expensive form of credit and your loan must be repaid very quickly.
As a result, you could find yourself in a worse financial situation when it is time to pay back your loan if you don’t have enough income. You’ll scramble to pay your usual expenses and the payday loan which can impact your credit and your life.
How Much Can You Borrow?
The maximum legally allowed payday loan in Ontario is determined by a simple calculation. It is the average of 50% of your income over the last two pay periods, up to a maximum of $1,500. If you don’t earn enough, you can’t qualify for the full amount.
Additionally, every lender decides how much they’re willing to lend to you every time you apply. If it is the first time you’ve used a lender, they may loan you less, even if your income supports the full $1,500. However, once you repay your initial Barrie payday loan, they may lend you more.
Can You Have More Than One Barrie Payday Loan?
No. Each lender expects you to repay your loan before you borrow again. This makes sense, since these loans are costly and must be repaid quickly.
Potentially, you could borrow from several lenders at the same time, but this is a very bad financial decision. Remember, even one Barrie payday loan could cost you as much as half your income. If you take out more than one, you won’t be able to meet your expenses and your loan payments.
How Soon Do You Repay a Barrie Payday Loan?
Repayment normally coincides with the end of your income earning cycle. As an example, if you borrow on the 13th and normally receive pay cheques on the 15th and 31st, you would usually repay your loan on the 31st. You wouldn’t be expected to repay your loan on the 15th, since that is within two days.
However, each lender determines when repayment occurs. It is up to you to make certain you understand your loan contract so that you have enough money in your bank account. Otherwise, you will pay additional fees such as an NSF charge and additional interest. Some lenders levy open-ended fees that can quickly add to your debt.
Is an Online Loan Better?
Ontario lenders can grant loans in-person or online. However, most people do not have the time to visit a brick-and-mortar office. Consequently, online loans score high points for convenience.
Additionally, online loans through a reputable lender are safe. Online lenders invest heavily in the best possible encryption software, because their reputation depends on your data security.
Besides that, any information you provide to an in-person lender will end up online anyway. Consequently, borrowing through the right online lender is often a better choice.
How Much Does a Barrie Payday Loan Cost?
That depends on the lender you choose and the payday loan product they offer. The only way to make sure you don’t pay more than you should is by choosing a licensed lender.
Technically, every payday loan lender in Ontario should have a license, but that’s not always the case. Some lenders ignore legalities, because it takes a lot of effort to fulfill licensing requirements.
For instance, licensed lenders are mandated to follow the Payday Loans Act which limits fees, penalties, and interest rates. This Act also describes lender obligations, such as providing your costs to borrow before you provide your sensitive data. This is extremely important, unlicensed lenders can be scam artists. If they get their hands on your personal data it can lead to identity theft.
The only information a licensed lender might ask of you is your province of residence. They may need this to determine which costs apply to you, since they may vary by region.
If you later decide you don’t want to take out a loan through a licensed lender, it’s not an issue since you’re not giving them your sensitive data. That’s certainly not the case with an unlicensed lender that could use your data for illegal purposes.
Costs to Borrow from a Licensed Ontario Lender
Currently, the only costs you can incur when you borrow through a licensed Ontario lender are a:
- Finance Fee of $15 per $100 borrowed
- NSF Fee of $25, if you do not have funds in your bank account on your repayment date
- Late Interest (per year) of 2.5% per month
You can easily check whether a company has a payday loan license on the Ontario government website here.
Are All Licensed Lenders the Same?
Absolutely not. Even though the Payday Loan Act lays out what they can and cannot do, some companies handle the process better than others.
For instance, a good lender will go out of their way to provide excellent customer service. They provide a toll-free number and extended Ontario business hours so you can reach an actual person, if need be.
Of course, they should also provide the usual ways to contact a business such as email, chat, and website support. However, one of the best telltale signs of a good lender is the effort they’ve put into their website.
Does the lender offer a comprehensive FAQ section that answers common questions? Are their webpages clear and easy to navigate? Do they provide additional information to help you better manage your finances and credit?
Are All Barrie Payday Loan Lenders Canadian?
Regrettably, no. Any business can apply for an Ontario payday license. Consequently, many lenders are located in other provinces or other countries.
While this may not concern when you apply, it can cause issues if you ever need help. You may not be able to contact the company straightaway, since they operate in another time zone. Even if you can reach them, they may not deliver the customer service that Ontarians expect.
As a result, it makes sense to choose a Barrie payday loan lender with their feet firmly placed in Ontario. Dealing with fellow Canadians makes things a whole lot easier.
Benefits of a Barrie Payday Loan Through GoDay
GoDay offers a major benefit over other lenders. When you apply for a Barrie payday loan through our company, we will automatically review your application to see if you qualify for an installment loan instead.
Our installment loans offer up to $15,000 with terms of between 6 and 60-months. If you qualify through our company, you will have more options now and in the future if you ever need to borrow money again.
Additional Benefits
- 100% online & 100% Canadian
- We consider various income sources such as regular employment, self-employment, pensions, the Disability Tax Benefit, and the Child Tax Benefit
- Decision in minutes
- GoDay is a licensed Ontario payday loan lender
- Member of the Canadian Consumer Finance Association, representing the majority of Canadian regulated payday loan lenders
- A+ Better Business Bureau rating
- We have over 2,000 reviews on TrustPilot with an overall ranking of Excellent
- Fast funds release – if you apply during business hours, you could have money in your bank account within an hour
- Direct bank deposit or Interac® Email Money Transfer available (conditions apply).
What Do You Need to Qualify?
We can’t speak for other lenders, but we can tell you what we need from you. The following are our basic Barrie payday loan requirements:
- Canadian resident
- At least 18 years of age
- Permanent address
- Active account with a Canadian financial institution with at least three-months of transactions
- Regular income paid through direct deposit (
- Valid email
- Active cellphone or home telephone number
Whether you are ready to start the application process or want more information, please visit our website. Why put your data at risk or pay more than you should?
We’re licensed, ethical, and a proven Barrie payday loan lender. If you’re still not convinced, you can find more information on our Ontario payday loans here.
Let us show you why so people choose us for their Barrie payday loan.
