A Milton payday loan can be a good option when you choose a good product and a good lender. However, many companies offer these loans and all payday loans aren’t precisely the same.
Luckily, this guide will help you sort through your options. It will discuss how a Milton payday loan works and its limitations. The guide also points out ways you can separate good lenders from less desirable ones.
This information is meant to help you make an informed financial decision. The more information you have on this credit product, the more likely you will choose wisely.
How Much Can You Borrow in Ontario?
The legally permitted Canadian maximum payday loan amount is $1,500. However, Ontario enacted additional legislation to ensure Ontarians don’t take on more debt than they can afford.
Consequently, when you apply for a payday loan in Ontario the maximum amount available to you is 50 percent of the average of your previous month’s net income.
As an example, let’s say you are paid every two weeks. Your take home pay on your last two pay cheques were $1,200 and $1,000. That’s an average of $1,100 over the past month. As a result, the most you could borrow is 50 percent of that, or $550.
However, just because your income can support a Milton payday loan of $550, that doesn’t necessarily mean the lender will give it to you. Every lender has their own lending criteria.
Potential Uses for a Milton Payday Loan
A Milton payday loan is meant for temporary, urgent financial needs. However, it is an expensive form of credit. Consequently, it is not advisable to constantly borrow to meet your ongoing expenses. This indicates you are not managing your money well.
Nevertheless, a Milton payday loan can be an effective financial tool when you know that you can afford to repay it and only in certain circumstances. The following scenarios are examples of when one might come to the rescue:
- Emergency car or home repair
- You need equipment for a new job so you can earn money
- Your payday at your new job doesn’t align with your old bill payment schedule
- You need cash to help a friend or family member out of an urgent situation
What About Repayment?
Payday loans are repaid quite quickly and in-full. Repayment normally occurs within weeks, not months. Most likely your lender will withdraw the full amount from your bank account on your next payday.
Insufficient funds in your account leads to additional fees. These fees can be substantial if you choose the wrong lender. We discuss what to look for in a good lender later in this guide.
In-Person vs. Online Loans
Some people believe that applying in-person is somehow safer. This certainly isn’t the case. Every lender uses computers and the internet. Even if you go to a brick-and-mortar office, you can bet your data ends up online.
However, there are some things you should consider when you’re trying to decide which route is better for you.
Convenience
In-person loans simply aren’t as convenient as online payday loans. Instead of taking time out of your busy day to visit an office, you can pick up your favourite device and apply at any time.
Speed
Besides being more convenient, an online Milton payday loan can also be much faster. A good online lender has a streamlined process that can offer cash in hand in record breaking speed.
Data Encryption
In-person lenders use paper application forms. You fill one out and then the person behind the desk transfers your data into a computer. However, their reputation does not depend on how well they handle your sensitive information. Who knows how they store both your physical and digital data?
Compare that to a good online lender. Their reputation depends on handling your data properly. Consequently, they invest heavily in top-notch data encryption and eliminate the need for a paper trail.
Lender Licensing
All payday loan lenders in Ontario should have a license. However, some companies ignore this requirement.
So, what does this mean for you? Unlicensed lenders aren’t bound by consumer protection laws, including the Payday Loan Act. As a result, they can handle your loan in any manner they choose. This may include charging you open-ended fees or using illegal methods to collect funds.
Conversely, licensed lenders follow fee, penalty and interest rate restrictions. However, there’s a much more serious consideration – identity theft. Both the Ontario and federal governments warn against using unlicensed lenders, because they can be scam artists after your sensitive data. If they obtain it, they can take out credit under your name and seriously damage your credit score.
The only information a licensed lender might ask initially is your province of residence. This is because fees and restrictions vary between regions.
How Much Will a Milton Payday Loan Cost?
As mentioned above, this very much depends on the lender you choose. Fortunately, a reputable licensed lender is legally-mandated to reveal your costs to borrow upfront, once you provide your province.
A pop window should appear with an accurate estimate of your costs. If you want a general idea, the legally allowed fees in Ontario are currently:
- Finance fee of $15 per $100 borrowed
- NSF fee of $25, if you do not have sufficient money in your bank account on your repayment date
- Late interest charge of 2.5% per month
If a lender does not reveal your costs upfront, they are probably unlicensed. Look elsewhere, otherwise you risk your sensitive data and you will pay more.
What to Look for in a Good Lender
We already mentioned that you should look for a licensed lender in your region. However, there are many additional factors that can help you separate the good from the bad.
Website Information
A good lender provides in-depth information on their website. This allows potential and existing customers to find answers themselves, quickly and easily. A well-developed FAQ page shows the lender is willing to delve into the details of their company and their product.
Customer Service
Definitely steer away from a lender that only offers email for customer support. This isn’t very helpful if you have a pressing concern. You should be able to talk to an actual person via a toll-free number. Of course, they should offer website support and email too.
Independent Reviews
Checking Google isn’t very helpful. Instead, try independent review sites like TrustPilot and the Better Business Bureau. TrustPilot categorizes comments so you can find specific information on the company, loan, and process. BBB accreditation indicates a transparent lender willing to resolve differences.
Ontario Lender
Many companies offer a Milton payday loan, but they’re located elsewhere. This can become a real problem if you have questions or concerns.
Time zone differences and customer service representatives that don’t know Ontario can lead to frustration and misunderstandings.
Invested in their Industry
A good lender belongs to industry organizations so they can stay on top of legislative change. They’re also dedicated to transparency, professional, and ethical lending.
Lenders that can’t bother to participate aren’t interested in surpassing expectations, just meeting basic lending requirements.
Transparent Loan Requirements
No one wants to waste time filling out an application for a loan they can’t possibly get. Consequently, it makes sense to choose a lender that lays this information out straightaway.
Streamlined Lending Process
A good lender has a streamlined lending process. It is simple and fast and does not involve uploading documents or visiting an office.
Does the lender tell you when they will make a decision when you apply? What about releasing funds? Do they tell you how long it will take?
GoDay’s Milton Payday Loan Requirements
GoDay is a transparent lender. Consequently, we are happy to provide you with our basic loan requirements below:
- Canadian resident that is at least 18 years of age with a permanent address
- An active account with a Canadian financial institution with recent transactions
- Paid regularly through direct deposit
- You have a valid email and an active cellphone or home telephone number
Benefits of Our Milton Payday Loan
Bonus: GoDay is a select lender that automatically considers your payday loan application for an installment loan. If you meet our criteria, you could enjoy better terms and more flexibility, without making an additional application.
- Simple 15-minute application form
- 100% online process – no office visits
- Digital income verification – no document uploads
- Decision in minutes
- Money in your bank account within an hour, providing you apply during business hours
- Licensed Ontario payday loan lender
- We’ve issued loans to Ontarians since 2012
- Member of the Canadian Consumer Finance Association, representing most regulated payday loan lenders
- Over 2,100 customer reviews on TrustPilot, with an overall ranking of Excellent
- We’re Canadian owned and operated
- Toll-free number with extended Ontario business hours, as well as email, and website support and website FAQ
- Funds release options include 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 Canadian payday loans here.
Let us show you why so many people choose GoDay for their Milton payday loan.
