{"id":7029,"date":"2021-10-22T01:45:38","date_gmt":"2021-10-22T05:45:38","guid":{"rendered":"https:\/\/goday.ca\/blog\/?p=7029"},"modified":"2022-04-14T02:08:24","modified_gmt":"2022-04-14T06:08:24","slug":"onlinepaydayloans","status":"publish","type":"post","link":"https:\/\/goday.ca\/blog\/onlinepaydayloans\/","title":{"rendered":"Why Are Online Payday Loans Popular?"},"content":{"rendered":"\n
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Online payday loans offer distinct benefits. However, they aren\u2019t for everyone. Sometimes they don\u2019t suit a person\u2019s needs or their financial situation. Conversely, they could be ideal.<\/p>\n\n\n\n

Nonetheless, it is impossible to make an informed decision unless you understand how they work.<\/p>\n\n\n\n

Luckily, this article provides you with an in-depth look into the workings of online payday loans. We\u2019ll also explore when they might be a good solution. Finally, we\u2019ll point out the most common reasons for their popularity.<\/p>\n\n\n\n

As a bonus, we\u2019ll also share what sets a good payday loan lender apart from the less desirable.<\/p>\n\n\n\n

How Online Payday Loans Work<\/h2>\n\n\n\n

Online payday loans can help you bridge a small-scale financial gap for the short-term. In Canada, the maximum payday loan amount through a licensed lender is $1,500.<\/p>\n\n\n\n

However, lenders may not grant the full amount the first time you apply. Sometimes they will lend you less than maximum, because maximum loan amounts are often based on your income.<\/p>\n\n\n\n

In most cases, you must repay your loan within weeks. Repayment is usually timed with your regular two-week pay cycle. This makes it easy for most people, because it is when they have money.<\/p>\n\n\n\n

The entire process occurs online. There\u2019s no need to visit an office, even when it comes time to sign your loan documents. Most times, but not always, lenders won\u2019t check your credit due to the small loan amount.<\/p>\n\n\n\n

However, tread carefully when you choose your lender. Canada has many, but they’re certainly not the same.<\/p>\n\n\n\n

Licensed vs. Unlicensed Lenders<\/h3>\n\n\n\n

You\u2019ll find many lenders for online payday loans in Canada. Some are licensed in your province and others aren\u2019t.<\/p>\n\n\n\n

Steer away from any lender that allows more than one payday loan at a time. Also avoid any lender that\u2019s willing to lend you more than $1,500. These are not licensed lenders.<\/p>\n\n\n\n

Both these scenarios may seem beneficial, put they aren\u2019t. You may find you don\u2019t have enough money to pay your normal expenses. Plus, you could end up with an unreasonable debt load that could lead to loan defaults. This will damage your credit making it very difficult to obtain get another loan.<\/p>\n\n\n\n

Unlicensed lenders may also charge you extremely high fees if you don\u2019t meet your loan obligations. These fees may not be obvious in your loan documents either.<\/p>\n\n\n\n

Since they aren\u2019t governed by provincial regulations, unlicensed lenders can charge you as much as they want. They can also ignore your complaints and you won\u2019t have a legal channel for recourse.<\/p>\n\n\n\n

Conversely, licensed lenders are governed by strict provincial laws. These include interest, penalty, and maximum loan amount limitations. Typically, the maximum loan is limited to 50% of your take home pay. Licensed lenders must also reveal all fees and penalties upfront.<\/p>\n\n\n\n

Possible Reasons to Choose Online Payday Loans<\/h2>\n\n\n\n

Payday loans offer temporary financial help to manage an urgent situation. They\u2019re not meant for shopping or taking a vacation. With the price of groceries today, you may need to use one to buy groceries<\/a> until payday.<\/p>\n\n\n\n

However, you could use one to fix your car. It could also provide funds if you miscalculated and a payment\u2019s coming out of your bank account before you get paid. You may also want to apply for an online payday loan if a friend or relative needs cash for an urgent situation.<\/p>\n\n\n\n

Basically, if you have a pressing need and know you have money coming in soon, one of these loans could work for you.<\/p>\n\n\n\n

Personal Reasons That Make Online Payday Loans Popular<\/h2>\n\n\n\n

Many people have personal reasons to apply for online payday loans. One might be suitable if you:<\/p>\n\n\n\n