A London payday loan can offer you quick cash when you have an immediate, pressing need. However, loans and lenders differ, so you need to know what to look for if you want to find a great one.
Plus, many people don’t understand how a London payday loan works, since it differs greatly from other forms of credit. As a result, some people make poor financial decisions, because they don’t have the information they need.
Consequently, we’re providing you with information on the legalities of payday loans in Ontario. We’ll also touch on the financial implications, so you’re prepared should you decide to borrow. We’ll also point pointing out some important things to look for in a good loan and a good loan process.
Finally, we’ll provide you with some very important information regarding how to find a good lender for your London payday loan.
How Payday Loans Work in Ontario
Canadian law limits the maximum amount of a payday loan to $1,500. However, Ontario has its own limitation based on your income to prevent you from borrowing more than you can afford.
Ontario law allows a maximum amount of 50% of your previous month’s income, up to a maximum of $1,500. Consequently, you may not qualify for a full $1,500 London payday loan if you don’t earn enough.
As well, every lender determines how much they will lend to you. Even if you qualify for the maximum amount, they may not offer you that much the first time you borrow through their company. Luckily, once you establish a rapport with a particular lender, the chances of a higher amount and better terms increase.
Financial Implications of a London Payday Loan
While $1,500 might not seem like a lot of money, you must consider how these loans work. This loan option isn’t for everyone and certainly not for every use. Compared to other credit forms, a London payday loan is paid back much quicker. It can also be much more expensive.
Unlike other forms of credit, you can’t increase your loan amount. The lender provides you with a lump sum of money and won’t lend to you again until you repay your loan.
You can’t roll over your outstanding balance either. You must repay the entire amount when you receive your income. The lender debits your bank account and if you do not have funds available, you will pay an NSF fee and additional interest. Plus, you could take a hit on your credit report.
Consequently, it is important you only use a London payday loan when you have exhausted other avenues. It is only meant for urgent, immediate cash flow issues and when you know you will have the means to repay.
Qualifying for a Great London Payday Loan
Very few lenders tell you what you need to qualify for a London payday loan. Fortunately, a select few are transparent so you don’t waste your valuable time completing an application form for a loan you can’t possibly get.
As well, many lenders will only grant you a London payday loan if you have a regular job. Luckily, some lenders consider applications from those that earn income other ways.
For instance, if you’re paid through direct deposit from the following income sources, you may qualify for a London payday loan:
- Several part-time jobs
- Self-employment
- Canada Child Benefit
- Disability Tax Credit
- Old Age Security
- Canada Pension Plan
- Private pension
In-Person or Online?
There’s absolutely no benefit to an in-person application. It isn’t faster, easier, or safer, and it certainly isn’t more convenient.
In reality, the in-person process is often more complicated and time-consuming. That’s a great disadvantage when you need money quickly. Applying online makes sense in our busy world.
Loan Process
Of course, choosing the right online lender is extremely important. You’ll want one that has finetuned the lending process, for a quick and easy borrowing experience. Here are a few things to look for when you’re comparing lenders.
Easy Application Form
A good online lender offers an easy application form that takes less than 15-minutes to complete. You should be able to apply at any time and from any device too.
The lender shouldn’t ask you for information on where you lived, worked, or banked years ago. They should only be interested in your recent history.
No Proof of Income
A good online lender does not ask you to drop off proof of income at a brick-and-mortar office. They don’t ask you to upload it either.
Instead, they use digital income verification through authorized bank statements. It’s fast, secure, and speeds the loan process.
Quick Decision
A good online lender delivers their decision within minutes once you submit your application. You immediately see the lender’s terms and can move forward quickly if you want their London payday loan.
Digital Contract Signing
In our digital world, there’s absolutely no reason you should have to visit an office to sign your loan contract. Choose a lender that embraces technology and uses digital contract signing. It’s fast, safe, and triggers funds release.
Fast Funds Release
Of course, this is a very important factor. Who cares about approval? What about the money?
Luckily, the best London payday loan lenders have money to you very quickly. If you sign your contract during regular business hours, it could be within an hour. The latest you should receive funds is the next business day.
Choosing a Lender
So, how do you find a lender that offers all this? The following are a few ways you can narrow the field.
Licensing
Licensing ensures the lender must respect you and your consumer rights. You can easily check whether a lender has a license on the Ontario Ministry of Government and Consumer Services website here.
Unlicensed lenders can be scam artists only after your sensitive data. If they do issue you a loan, you won’t have the consumer protections you deserve. Additionally, you will pay more as their fees, penalties, and interest rates are not regulated like they are when you choose a licensed lender.
Customer Service Options
Many lenders offer a London payday loan. However, some are located outside of Ontario or outside the country.
What does that mean for you as a consumer? You will probably need to interact with the lender via email. This might be fine in some cases, but what if you have an urgent need? Wouldn’t it be simpler to talk to a Canadian who works for a Canadian company with Ontario business hours?
With so many lenders available, it makes sense to choose Canadian. Look for a toll-free number, chat, and website support. Of course, they should also use email, but it shouldn’t be your only choice. A good lender also provides in-depth information on their website FAQ page for those who need quick answers.
Brand Reputation
Has the lender been in business for a long time? Do they belong to industry groups that promote ethical business practices?
What about their online presence, beyond Google reviews? Do they have reviews on independent sites such as TrustPilot? Do they try to resolve problems and respond to criticisms? Are they a member of consumer groups such as the Better Business Bureau?
Get a Great London Payday Loan Through GoDay
GoDay is a fully-transparent lender. Consequently, we are happy to provide you with our basic requirements for a London payday loan:
- Canadian resident
- At least 18-years old
- Permanent address
- Active account with a Canadian financial institution with recent transactions
- Income paid through direct deposit
- Income earned through employment, self-employment, Canada Child Benefit, Disability Tax Credit, Old Age Security, Canada Pension Plan, or Private pension
- Valid email address
- Active cellphone or home telephone number
Benefits of Choosing GoDay
GoDay offers an added incentive. 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 you’ll want to choose GoDay:
- We’re a licensed lender in Ontario
- We’ve issued payday loans since 2012
- Member of the Canadian Consumer Finance Association (CCFA), representing the majority of Canada’s regulated providers
- Better Business Bureau accredited since 2015
- GoDay has over 2,000 reviews on TrustPilot, with an overall rating of “excellent”
- We’re 100% Canadian owned and operated
- Toll-free number, email, chat, website support and website FAQ available
- Extended Ontario business hours
- Fast and simple process – get our decision in minutes
- Quick funds release -sign your loan contract digitally and receive your money in a flash
- 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. We also offer more information on our Ontario payday loans here.
Let us show you why so many Canadians use GoDay for their London payday loan.
