Scarborough payday loans are a great solution when you need money quickly. They are a good alternative when you can’t access credit and you can’t borrow from friends or family.
Nonetheless, these loans must be used wisely. They’re intended for urgent, immediate needs. They can be used to bridge a temporary gap in your finances, but not to handle ongoing expenses.
If you’re considering Scarborough payday loans, here’s what you need to know so you can choose the best.
Lender Requirements Vary
Many lenders offer Scarborough payday loans, but what they offer varies. Some provide quick loans and excellent customer service, while others are less accommodating.
Brick-and-mortar businesses issue most payday loans in the area. However, this means you need to take time out of your day to visit their office. If parking, waiting in line, and feeling uncomfortable aren’t your thing, you have another option – online Scarborough payday loans.
Some Lenders Accept Various Income Sources
Most lenders require regular employment to qualify for Scarborough payday loans. This is unfortunate, since many people earn a steady income from other sources.
Luckily, a good lender accepts applications from those that earn money in different ways. If you collect the Canada Child Benefit, Disability Tax Credit, Old Age Security, a private pension, or the Canada Pension Plan, you could qualify.
Applying Online Offers Many Benefits
The biggest and most obvious benefit is that you can apply at any time from any device. Online lenders have also perfected the application experience, so you’ll spend less time from start to finish.
If you concerned about data security, you shouldn’t. Good lenders use the latest encryption technology and follow consumer data protect protocols. For those interested in the fine print, here’s a link to GoDay’s Privacy Statement. It describes how and when we use your personal information. You can also find more information in this article.
Choose a Lender That Uses a Soft Credit Inquiry
Even though Scarborough payday loans are for relatively small amounts, the lender may check your credit. If they do, it is important that you know what inquiry method they use.
A hard credit inquiry gives the lender your complete financial details. It lowers your credit score slightly and stays on file for up to three years.
Conversely, a soft credit inquiry gives the lender a broad overview of your financial position. It does not lower your credit score. It does remain of your credit file, but carries little weight.
Not All Lenders are Licensed
Even though every lender operating in Ontario (in-person or online) is required to have a license, some don’t. If you use one of these lenders, you are risking a lot.
First, the lender could be a scam artist only interested in your personal data. This could lead to identity theft.
Second, an unlicensed lender can charge whatever fees, penalties, and interest rates they want. Since you’re already in a financial bind, this is the last thing you want.
Third, should you fail to meet your loan obligations, they could use illegal methods to collect their money. This includes bullying you for payment, harassing you at home and work, and even calling your neighbours.
On the hand, if you choose a licensed lender, they must follow the Payday Loan Act. This Act describes what the lender can and cannot do, and your rights as a consumer.
Additionally, a licensed lender has limits on fees, penalties, and interest rates. They must reveal your cost to borrow upfront too. Legal oversight also ensures you have rights regarding how the lender handles your personal data.
It is very simple to check whether a company is licensed. Use the Ontario Ministry of Government and Consumer Services website here.
Understand the Product
Regrettably, many people see the maximum loan amount available and automatically assume they get it all. In reality, Ontario law determines how much you can borrow to ensure you borrow responsibly.
This amount is 50% of your previous month’s earnings, up to a maximum of $1,500. Even if your income supports the maximum amount, a lender may offer you less. Once you pay off your initial loan, they may offer you more.
Costs Should Be Revealed Upfront
Licensed lenders are legally-obligated to reveal your cost to borrow upfront. If a lender doesn’t do this, they’re either unlicensed or unethical.
The only information they should ask for at this point, is your province. Allowable fees and interest rates vary by region.
Here’s an example of the first page you will see when you apply through GoDay. Once you select Ontario, you can easily see your cost to borrow. If the lender asks you for personal information first, we suggest you look elsewhere.
Simple Application Process
We already mentioned that applying online makes sense. Nonetheless, some lenders even make this process far too complicated.
Look for a lender with a simple application form. It shouldn’t take you more than 15-minutes to complete it. Should the lender ask you where you worked, banked, or lived three years ago, you’ll want to look elsewhere.
Scarborough payday loans allow you borrow small sums of money. You shouldn’t have to reveal your life history to get one. The lender should only be interested in your recent history and your ability to repay.
How Quickly Do They Decide & Release Funds?
Don’t assume all lenders process payday loan applications quickly. That’s not the case. Sure, they might say they’re “fast”, but what does that really mean?
A good online lender should give you their decision within minutes, not hours or days. They should also offer digital document signing to speed up the process.
Additionally, the lender should release funds quickly once you’ve signed your loan contract. If you do so during regular business hours, it should happen within a few hours. Evenings, weekends, and holiday signings should trigger a funds release the next business day.
What are Their Qualification Requirements?
You’re in a hurry, so the last thing you want to do is spend time on an application if you can’t possibly qualify.
A good lender let’s you know their basic qualification requirements. For the sake of this article, here’s an example of what GoDay requires for their Scarborough payday loans:
- Canadian resident
- Over 18-years of age
- Active bank account with a Canadian financial institution
- Steady income through direct deposit
- Valid personal email account
- Home or cell phone number
Check Their Reputation
This almost goes without saying nowadays, but it’s worth repeating. The time it takes to check out a lender could save you a boatload of problems.
Find out how long they’ve been lending in Canada. Are they an Ontario company, are they based in another province, or are they a subsidiary of a foreign company? You can usually find this information on their About Us page.
Good lenders are invested in their reputation. Check out customer reviews on independent sites like TrustPilot. The comments are divided into categories such as customer service, loan, process, application, and more.
Does the lender belong to the Better Business Bureau? This shows they’re open to criticism and strive to resolve problems. Finally, check whether the company belongs to any industry-recognized groups. This can indicate the lender stays on top of best practices and is committed to ethical lending.
Multiple Customer Service Options
There’s nothing more frustrating than a company with limited customer service options. You may not want to email and wait for an answer when you have a pressing need.
Always look for a lender that offers multiple methods of contact. If you need to talk to someone, they should offer a toll-free number during Ontario business hours.
You should also be able to use a support ticket on their website to ensure the company must respond. Email support should also be available, but not on its own.
Scarborough payday loans through GoDay
GoDay wants to make borrowing simple and worry-free. We offer an easy online process, digital contract signing, and amazing customer service.
We also offer 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 a great choice for Scarborough payday loans:
- GoDay is a licensed lender in Ontario. We follow the Payday Loan Act and Ontario’s consumer protection protocols
- We’ve been lending to Ontarians since 2012
- Our company obtained Better Business Bureau accreditation in 2015 – our overall rating is A+
- Over 1,800 ratings on TrustPilot
- Proud member of the Canadian Consumer Finance Association (CCFA) which represents the majority of Canada’s regulated payday loan lenders
- We’re 100% Canadian owned and operated
- Our process for Scarborough payday loans is completely online
- We use a soft credit check
- Decision within minutes
- Funds within an hour, if you sign your loan documents during business hours
- Direct bank deposit or Interac® Email Money Transfer (conditions apply) available.
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 Scarborough payday loans.