No fee payday loans in Ontario aren’t offered by all lenders. If you think that it is as simple as searching the term to find one, we suggest you look closer.
Some lenders use others terms that are less obvious to disguise extra costs you shouldn’t pay. Others make it seem certain fees are an industry standard, when they really aren’t.
What Extra Costs Should You Expect to Pay?
If you choose the right loan and the right lender, the only extra costs you pay is if you don’t meet your loan obligations.
For instance, you may pay an NSF charge if the funds aren’t in your account on your payment date. You will also pay late interest from the time your payment was due until you actually pay.
Other than that, a good lender should only charge you interest on your loan. That’s it.
How Do Some Lenders Disguise Unnecessary Fees?
Late interest and NSF charges are normal if you fail to meet your loan obligations. This is not what is meant when a lender states they offer no fee payday loans in Ontario. It is unnecessary fees you want to avoid.
Origination Charge
A common unnecessary cost many lenders include when you take out a loan is an “origination” charge. This is just another name for a fee a lender expects you to pay to set up your account with them.
Obviously, setting up an account is an administrative duty. Ethical companies accept this is a normal cost of doing business, not one a customer should absorb. Nonetheless, it is more common that you might think.
What’s worse is this un-fee can cost you plenty. It is based on a percentage of your total loan amount, ranging between .05% and 8%.
Pre-Payment Penalty
A penalty is just another name for a fee. Some lenders charge you one if you want to make extra payments or pay your loan off early.
Why would a lender charge this? Basically, it helps them recoup the interest they would have earned if you had taken longer to pay off your loan.
Clearly, this isn’t a fee you should pay. You should be able to get out of debt sooner if you want.
Don’t take out a loan with a pre-payment penalty. This indicates the lender values profits more than your business.
Finding a Good Lender for No Fee Payday Loans in Ontario
Many lenders offer loans, but not all of them are good. Here are a few important considerations before you decide on a lender.
Are They Licensed?
Legally, all companies that issue no fee payday loans in Ontario should have a license from the Ontario Ministry of Government and Consumer Services. Unfortunately, some don’t bother.
Issues with Unlicensed Lenders
Choosing an unlicensed lender can have dire consequences. Both the Government of Canada and Ontario warn against it for several reasons.
Firstly, unlicensed lenders are often criminals eager to get their hands on your personal information. This can lead to identity theft and illegal credit opened under your name.
Secondly, since these lenders aren’t licensed, they aren’t bound by Ontario or Canadian consumer law. If they do issue you a loan, you have little or no recourse if they abuse you or your data.
Lastly, unlicensed lenders can charge ongoing fees and very high interest rates since they aren’t regulated. It is very unlikely you’ll get a no fee loan from one of these companies. In fact, you will probably pay hidden fees and much more than expected. They can also use illegal methods to collect their money.
You can check easily check whether a particular lender has a license on this Ontario Ministry of Government and Consumer Services website here.
Benefits of Licensed Lenders
Licensed lenders have government oversight and must follow the Payday Loan Act of Ontario. This Act describes permissible lender procedures as well as allowable fees, penalties, and interest rates.
The only costs a licensed Ontario payday loan lender can charge are:
- A set cost for borrowing of $15 for every $100
- NSF charge of $15 if you don’t have money in your account when your payment is due
- Late Interest charge of 2.5% per month if you don’t make your payment on-time
Licensed lenders must also reveal your cost to borrow before you provide any personal information. The only exception is your province of residence. This is necessary since fees vary by region.
Do They Have a Long Lending History?
With so many choices for no fee payday loans in Ontario, it makes sense to choose an experienced, licensed lender. This can help you pinpoint industry professionals.
Companies that have been in business for a long time are clearly doing something right. Otherwise, they wouldn’t survive in this competitive market. Always look for a lender with at least 5 years of lending history, but preferably more.
Do They Belong to Consumer & Industry Organizations?
Ethical lenders are interested in their reputation. They try to resolve problems quickly and care about their customers.
Additionally, they are open to criticism. They acknowledge they can’t do everything right all the time, but they’re always trying to improve.
Consequently, a good lender values the feedback left on consumer websites such as the Better Business Bureau. They respond to complaints and try to resolve issues.
Good lenders also keep on top of changes within the lending industry. They follow best practices and adhere to ethical, regulatory, and industry standards.
Within the payday loan realm, the Canadian Consumer Finance Association (CCFA) represents most regulated providers. You can check whether a lender is a member here.
Do They Have Good Reviews?
When we mention you should check a lender’s reviews, we don’t mean a cursory search to see how many stars the company has on Google. This gives you very little information about the company’s no fee payday loans in Canada and even less detail about the company itself.
Instead, we suggest you look at how the company responds to criticism. No company can possibly satisfy every customer, but they can demonstrate they care. Do they answer people’s comments, or simply ignore them? Are they interested in doing better?
If you’re interested in more in-depth information on a lender, try independent review sites like TrustPilot. Users submit information based on categories such as customer service, speed, and more. Lenders who’ve been in business for years have plenty of data for you to draw on.
Are They Based in Ontario?
Many companies offer no fee payday loans in Ontario, but they’re not located here. Some have their home base in another province or even another country.
While this may not seem like an issue now, it could be if you ever need help. They could operate in another time zone, making it harder for you to get in touch.
Cross-border companies often rely on email, which also leads to delays and frustration. Plus, the lender’s customer service representative may not know Etobicoke from Mississauga, never mind how to spell them.
Do You Need to Apply In-Person?
Most Ontario payday loan lenders have brick-and-mortar offices. They expect you to visit them to apply for no fee payday loans in Ontario.
Clearly, this is inconvenient, but it is also completely unnecessary today. You can easily apply online for no fee payday loans in Ontario now.
If you think applying in person is faster, it usually isn’t. Consider the time it takes to get to the office. Then you must stand in line and fill out a lengthy application form. You may need to provide proof of income too. If you don’t have it, you’ll need to dig up old pay stubs or get a letter from your employer.
After that, you wait for the person behind the counter to input your data into their computer. Then you wait again.
When you apply online, everything’s simplified and automated. You can fill out an application form at any time from any device and the lender verifies your income electronically. There’s no need to visit an office, even to sign your loan contract.
Do They Tell What You Need to Qualify?
Unfortunately, whether you visit a lender in person or apply online, most don’t tell you what they need from you beforehand. They want you to fill out their application form, even when you can’t possibly meet their criteria. Obviously, that can be a complete waste of your valuable time.
Luckily, this isn’t the case when you choose a good lender. They will spell out what they expect from you. This includes age and residency requirements, as well as what they expect regarding income, banking, and identity verification needs.
No Fee Payday Loans in Ontario Through GoDay
GoDay really does offer no fee payday loans in Ontario. If you repay your loan on-time and in-full, you will only pay interest on the money you borrow.
Our company also offers a bonus if you decide to apply for a loan through us. We automatically screen applicants for an installment loan without filling out another application form. Installment loans generally offer more time for repayment and better terms. We’ll automatically notify you if you qualify.
We also consider applications from various income sources. These include regular employment, the Canada Child Benefit, Disability Tax Credit, Old Age Security, the Canada Pension Plan, and private pensions.
More Reasons to Choose GoDay
GoDay offers many other powerful reasons to choose us for no fee payday loans in Ontario. Here are just a few:
- We are a licensed payday loan lender in Ontario
- GoDay has granted loans to Ontarians for over 10 years
- We have an A+ rating with the Better Business Bureau
- GoDay is a proud member of the Canadian Consumer Finance Association
- Our TrustPilot rating is “Excellent” based on almost 2,000 customer reviews
- We are 100% Canadian owned and operated and based in Ontario
- We offer a 100% online process, including digital income verification and electronic loan contract signing
GoDay is happy to provide you with our basic requirements for our no fee payday loans in Ontario below:
- Canadian resident
- At least 18-years old
- Permanent address
- Active account with a Canadian financial institution with at least three months of recent transactions
- Paid regularly 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. We also offer helpful tips here.
Let us show you why so many people choose GoDay for their no fee payday loans in Ontario.
