Same day payday loans in Ontario make it very simple to obtain cash quickly. You don’t need to visit an office, since you can handle the entire process online. Ultimately, there’s no faster way to get money in a hurry.
Nonetheless, many people don’t understand what same day payday loans in Ontario actually are, never mind how they work. They aren’t meant for all needs, so let’s look at when they might help you.
Qualification Requirements are Straightforward
In most cases when you choose a good lender, they have very basic qualification requirements. They aren’t particularly concerned with your reason for borrowing. They just want to ensure that you can repay your loan.
Generally, the lender will look for a steady income from the same source for three months, or more. The lender will also want to see a permanent address and a bank account with a Canadian financial institution. This account is used for your funds release and loan repayment.
Lenders usually ask for a valid email address and telephone number too. These are used to confirm your identity. Today, you usually don’t need to have a home telephone number to qualify. A cellphone is enough.
These Loans are Meant for Short-Term, Urgent Needs
Even though the lender probably isn’t too concerned with how you want to spend your money, consider this. You shouldn’t use same day payday loans in Ontario often or for just any reason.
These loans are meant for short-term, urgent needs. If you find you must borrow frequently, you have a money management problem. Using payday loans to pay your monthly bills is not a good idea. They are a costly form of financing. You could find yourself in a worse situation, instead of the loan helping you out of a financial squeeze.
Examples of when same day payday loans in Ontario might help you include:
- Raising money to fix your car, because you need it to get to your job
- Paying your travel expenses to visit a sick or dying relative
- Adding money to your account, because you miscalculated your payday and would otherwise pay multiple NSF charges.
However, these loans are not meant for frivolous spending. Don’t take a payday loan, because you want the latest iPhone. You shouldn’t borrow to buy new clothes or to fly away on a vacation either.
How Much Can You Borrow?
The legal payday loan maximum in Ontario is $1,500. However, you may qualify for less. Ontario restricts the maximum allowable loan to 50% of the average of your last two payroll amounts. As an example, if you earn $1,200 every two weeks, you could only borrow 50% of $2,400, or $1,200. This is to prevent you from taking on more debt than you can afford.
Additionally, many lenders will not offer you the full amount the first time you borrow, even if your earnings can support it. Typically, lenders grant smaller loans of about $500 until you prove you are creditworthy.
After you’ve repaid your initial loan, they may issue you another one for a higher amount. However, you can’t have more than one loan at a time.
Choose a Licensed Online Payday Lender
Many lenders offer same day payday loans in Ontario. However, most people don’t have time to visit an office when they need money quickly. Fortunately, the entire loan process can be handled online. Just be certain to choose a licensed lender. This ensures the company adheres to Ontario consumer laws and the Payday Loans Act which outlines lender and borrower responsibilities.
Additionally, when you choose a licensed lender, they are legally required to reveal your costs to borrow before you provide your personal information. This ensures your data remains safe, whether you decide to borrow, or not. The only information they should ask you for is your province, as fees vary between regions.
The types and amounts of fees and penalties that a licensed lender can charge you are strictly regulated too. This certainly isn’t the case with unlicensed lenders that charge notoriously high interest rates and open-ended fees.
Good Lenders Make the Process Simple
You shouldn’t have to fill out a lengthy application form that asks where you worked, lived, and banked years ago. Good lenders want to know you’re able to repay your loan now. Their application form is short and the process is simple.
The form should only ask for basic information to confirm your identity and income. Once you submit it, the lender should provide a decision within minutes. They should also include your exact cost of borrowing, including your interest rate and repayment terms at this time. You aren’t obligated to accept these terms, but if you decide to move forward it’s easy.
The lender prepares your loan contract for signature and emails it to you. After you review it and sign it, it triggers the funds release process. If you sign your loan contract within business hours, a good lender could have funds to you within hours. Otherwise, you can expect money in your bank account or an email money transfer in under 24 hours.
Good Lenders Use a Soft Credit Inquiry
Payday loan lenders may or may not run a credit check as these loans are for small amounts. However, you should always check which method they use if they do.
Lenders can choose either a “soft” or “hard” credit inquiry. A soft credit inquiry provides the lender with a general overview of your finances and does not impact your credit score.
A hard inquiry provides the lender in-depth financial details and it lowers your credit score. Hard inquiries also remain on your credit file for up to three years, even if you decide not to borrow from them. If you shop around through several lenders that use hard inquiries it can make it seem you’re having a hard time getting a loan.
Understand Your Loan Obligations
Almost always, you repay your entire loan in one payment on your next full payday. In some exceptional cases when a person takes multiple loans over a short period, repayment extends to 62-days, but never more.
Obviously, it is very important that you meet your loan obligations. Otherwise, you will pay an NSF charge and late interest too. The lender may also report the default to Canada’s two credit bureaus, Equifax and Transunion.
If so, your defaulted loan will have a serious impact on your credit score and your ability to borrow. You may not be able to get a cellphone plan, rent an apartment, or even get a job if the company checks your credit.
Look for Multiple Customer Service Options
If you’re in a hurry for money, you may want to talk to a real person to find out exactly when the lender will send you your money. Unfortunately, many companies that offer same day payday loans in Ontario rely on email.
Always look for a lender that offers more. They should have a toll-free number and posted office hours. Of course, website tickets and an in-depth FAQ on their website can be helpful too.
Same Day Payday Loans in Ontario Through GoDay
As mentioned, lenders can vary greatly. Some are licensed and trustworthy, while other are fly-by-night companies you’ll want to avoid.
However, licensing isn’t the only factor that determines a good lender. Here are a few other reasons you should consider GoDay for your same day payday loans in Ontario.
We’re Transparent
GoDay believes in total transparency. As a result, we’re providing you with our basic requirements for our same day payday loans in Ontario below:
- Canadian resident
- Over 18 years of age
- Permanent address
- Active account with a Canadian financial institution
- Steady source of income through direct deposit (we consider regular employment, self-employment, and pensions)
- Valid personal email account
- Cellphone or home phone number.
We’re Licensed
GoDay is a licensed payday loan lender in Ontario. You can confirm this through the Ontario government search engine here. We’ve provided payday loans to Canadians since 2012. We use a soft credit inquiry if we review your credit file.
We’re Reputable
GoDay is a member of the Canadian Consumer Finance Association and the Better Business Bureau. We have over 1,900 reviews on TrustPilot, with an overall ranking of “Excellent”.
We Protect Your Personal & Financial Data
GoDay utilizes the most recent data protection standards and practices to safeguard your information. Please read our Privacy Statement here if you have questions or concerns regarding how we use your data.
We’re Fast
Our loans offer same day funds release, but you may get your money in hours if you sign your loan contract during our business hours. You’d be hard-pressed to find another company that can get money into your hands any faster.
We’re Canadian
We were founded in Canada and are still 100% Canadian owned and operated. Our customer service representatives are Ontarians, just like you.
We offer a toll-free number if you’d like to talk, as well as online support and answers to frequently asked questions on our website.
Get Started Now
Whether you are ready to start the application process or want more information, please visit our website.
We also offer more information on our loans here.
Let us show you why so many people choose GoDay for their same day payday loans in Ontario.
