Payday loans in Barrie can provide you with quick cash. However, you should realize they are only appropriate for urgent, immediate needs. Even though they can bridge a temporary cash flow gap, they’re not suitable for ongoing expenses.
Nonetheless, they can be a viable alternative if you don’t have access to credit or you can’t or don’t want to borrow from friends or family. However, most people either know nothing about them or have only heard bad things. That’s a shame, since they do play an important role in the lending market.
If you’re considering payday loans in Barrie, here are 5 important facts you should know before you make a decision.
Fact #1 – You Don’t Necessarily Need to Have a Regular Job
Certainly, many payday loan lenders make regular employment a requirement for their loans. However, many people earn money in other ways. Consequently, some lenders offer payday loans in Barrie that accept income from other sources.
For instance, those who are self-employed, receive a pension, or earn income through the Canada Child Benefit or Disability Tax Credit may qualify for a loan. Usually, the only stipulation is that you receive your earnings through direct deposit. This makes it possible for the lender to verify your income electronically.
If you don’t fit into the requirements of a particular lender, definitely look elsewhere. Every lender determines their own lending requirements. Even if one lender won’t approve you, it doesn’t mean you can’t get a loan through another lender.
Fact #2 – The Lender Should Be Licensed
Legally, every lender in Ontario is required to have a license. This applies to both in-person and online lenders. However, some companies don’t bother with legalities.
Potential Problems with Unlicensed Lenders
If you choose an unlicensed lender, it can cause you plenty of headaches. First, it could be a scam and the lender may just be after your personal information. This can lead to identity theft and illegal credit opened under your name.
Second, unlicensed lenders aren’t bound by Ontario or Canadian law. Consequently, you’ll forfeit consumer protections that you would normally fall back on if you have a problem with your loan.
Finally, if per chance the company actually issues you a loan the interest rate, fees, and penalties aren’t controlled. As a result, you could pay far more than you should. Plus, they can use illegal methods to collect what you owe and you won’t have recourse.
You can check whether a lender has a license on the Ontario Ministry of Government and Consumer Services here. If you’re not convinced, read further. The benefits of using a licensed lender are definitely worth the effort.
Benefits of Using Licensed Lenders
As mentioned, a licensed lender has government oversight. In Ontario, they must follow the Payday Loan Act. This Act describes precisely what a lender can and cannot do regarding fees, penalties, interest rates, and collection methods.
Additionally, licensed lenders must be transparent. They can’t hide fees and reveal your cost to borrow before you provide your personal information. The only information they will request is your province of residence, as allowable costs vary between regions. Here’s an example of the first page you will see when you apply through GoDay.
Finally, Ontario law determines how much you can borrow. This is meant to protect you from overborrowing. Currently, the maximum, legally-permitted payday loan maximum is 50% of your previous month’s earnings, up to a maximum of $1,500.
Fact #3 – Qualification Requirements Can Vary
We already mentioned that some lenders offer payday loans in Barrie for various income sources. However, this isn’t the only criteria that may vary.
As an example, some require a minimum credit score or a high monthly income. Fortunately, GoDay has neither. Our requirements are basic and straightforward:
- Canadian resident
- Over 18 years of age
- Open bank account with a Canadian financial institution
- Earn a steady income and paid by direct deposit
- Valid personal email account
- Either a home or cell phone number
Fact #4 – Many Payday Loans Require an Office Visit
Regrettably, many companies still want you to take time out of your busy day to visit their brick-and-mortar office. Since most borrowers are in need of quick cash, this is extremely inconvenient.
Certainly, some lenders offer payday loans in Barrie through an online portal instead. However, you need to choose wisely. Even though they may claim their loans are online, they’ll still want you to finalize your paperwork in-person.
The Benefits of Online Loans
Fortunately, some lenders do offer a completely online process. This includes a quick and easy online application form that shouldn’t take more than 15 minutes to complete.
Once you submit your application form, a good online lender should give you their decision within minutes. After all, a digital loan process should be highly-automated and efficient.
Perhaps the greatest benefits of using a good online lender are convenience and speed. You don’t need to dig up old pay stubs, as the lender confirms your income electronically. You never need to visit an office when it comes time to sign your loan contract either. It’s all handled digitally. If you have concerns about online security, we suggest you read this post.
Of course, getting your money quickly is more likely when you apply online. Once you’re approved and sign your contract, a good online lender should have the money in your bank account in 24 hours or less. If you apply on a weekend or holiday, you may need to wait until the next business day.
Nonetheless, it usually far faster than an in-person loan. There’s no traveling to an office, waiting in line, filling out a lengthy form, and twiddling your thumbs while they process your information.
Fact #5 – Choosing Canadian Can Minimize Challenges
Certainly, many companies offer payday loans in Barrie. However, some are based outside of Canada. This can obviously create communication problems.
If your only contact method is through email, you may deal with long reply waits due to time zone differences. Plus, you could end up dealing with someone who can’t communicate clearly which can lead to frustration and misunderstandings.
Fortunately, a few good lenders are based in Canada. They use Canadian customer service representatives and follow provincial and federal lending laws. They also have Ontario office hours. Unfortunately, this may not be the case when you choose a cross-border lender.
What to Look for in a Canadian Lender
Always look for a good Canadian lender that offers multiple customer service options, not just email. They should also have an in-depth FAQ section and offer support tickets on their website. Most importantly, they should have a toll-free number where you can talk to a real person during business hours. Canadians expect good service, and if a company expects to stay in business they’d better deliver.
You’ll also want to check their reviews to see if they’re responsive. Good lenders try to resolve problems. However, you shouldn’t rely on Google alone. Also check independent review sites such as TrustPilot. This will provide you with specific information on various aspects of the lender including customer service, their loan process, and more.
Finally, a good Canadian lender joins industry groups. They want to stay on top of the latest lending trends and legislative changes. They are also more likely to follow ethical lending practices.
Payday loans in Barrie through GoDay
GoDay offers an added incentive to all applicants. 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 that GoDay is the best choice for payday loans in Barrie:
- GoDay is a licensed lender in Ontario. We follow the Payday Loan Act and other provincial and federal consumer laws.
- We’ve been lending to Barrie residents since 2012
- We attained Better Business Bureau accreditation in 2015
- Over 1,800 customers rated us highly on TrustPilot. Our overall standing is “Excellent”
- We’re a proud member of the Canadian Consumer Finance Association (CCFA) which represents the majority of Canada’s regulated payday loan lenders
- GoDay was founded in Canada and we’re still 100% Canadian owned and operated
- Our loan process to 100% online, fast, and efficient
- We offer multiple customer service options
- Funds available by 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. Let us show you why so many Canadians choose GoDay for their Payday loans in Barrie. We offer more than the competition.