{"id":7164,"date":"2022-02-13T18:29:02","date_gmt":"2022-02-13T23:29:02","guid":{"rendered":"https:\/\/goday.ca\/blog\/?p=7164"},"modified":"2022-04-23T00:18:08","modified_gmt":"2022-04-23T04:18:08","slug":"10-ways-to-find-the-best-cash-loans","status":"publish","type":"post","link":"https:\/\/goday.ca\/blog\/10-ways-to-find-the-best-cash-loans\/","title":{"rendered":"10 Ways to Find the Best Cash Loans"},"content":{"rendered":"\n
\"cash<\/figure>\n\n\n\n

Cash loans offer a great way to get money quickly when you\u2019re in a tight spot. They\u2019re a trusted lifeline for Canadians when they face an unexpected situation. However, they\u2019re not meant to top up one\u2019s bank account, because you\u2019re unable to handle your money properly.<\/p>\n\n\n\n

If you find yourself in a sudden financial bind, cash loans can be a good solution. However, you\u2019ll want to follow these 10 quick tips to separate good cash loans and good lenders from the less desirable.<\/p>\n\n\n\n

1. Understand How They Work<\/h2>\n\n\n\n

Cash loans, or payday loans<\/a>, aren\u2019t like a credit card. You aren\u2019t allowed to carry a balance. Instead, you need to pay a cash loan off quickly and usually in one payment. Normally, repayment occurs on your first payday after a full two-week pay cycle. Some provinces allow up to 62 days to repay, but never more.<\/p>\n\n\n\n

The maximum, legally-permitted cash loan amount in Canada is $1,500. However, lenders often base your maximum on whatever your wage and debts can bear.<\/p>\n\n\n\n

2.   Look for a Licensed Lender<\/h2>\n\n\n\n

Any financial company can offer cash loans, but that doesn\u2019t mean they\u2019re all good lenders. Some are licensed and some aren\u2019t.<\/p>\n\n\n\n

Unlicensed lenders may use illegal tactics to collect what you owe. Even worse, crooks could be targeting your data and you could get caught up in a scam.<\/p>\n\n\n\n

Consumers should definitely choose a licensed lender since their practices and products have government oversight. For instance, they can only charge so much for interest. Depending on the province, legislation may limit the maximum loan amount to ensure you can\u2019t take on more debt than you can afford.<\/p>\n\n\n\n

Additionally, licensed lenders can\u2019t charge open-ended fees and penalties. These regulations protect consumers. However, anyone who borrows from an unlicensed lender won\u2019t enjoy these safeguards. If the lender handles your cash loan inappropriately or charges exorbitant fees, you have little recourse.<\/p>\n\n\n\n

Licensed lenders are also legally obliged to provide clear information to a borrower. Their website should provide accurate answers to common questions and multiple ways to contact the lender if you have questions.<\/p>\n\n\n\n

Most importantly, you should be able to find information regarding fees, penalties, and your responsibilities beforehand. Basically, a licensed lender must tell you upfront how much it will cost you to borrow before you provide your sensitive data.<\/p>\n\n\n\n

3.   Check for a Long Lending History<\/h2>\n\n\n\n

There\u2019s no shortage of Canadian lenders for cash loans. However, some are fly-by-night organizations you won\u2019t want to borrow from.<\/p>\n\n\n\n

Check whether the company mentions how long they\u2019ve been lending in Canada. Also check whether they have Better Business Bureau<\/a> accreditation. This demonstrates the lender\u2019s willingness to accept criticism. It also provides a way for consumers to seek resolution if they have a problem.<\/p>\n\n\n\n

Finally, look at the lender\u2019s ratings on independent sites such as TrustPilot<\/a>. They provide a wide range of unbiased consumer reviews. These are generally more dependable, because they come from verified users. Google reviews can come from anyone, whether they have first-hand experience with the business, or not.<\/p>\n\n\n\n

4.   Choose a Canadian Lender<\/h2>\n\n\n\n

Don\u2019t assume a company lending in our country is Canadian. Many multinationals open a subsidiary to tap into the Canadian market, but their actually based elsewhere.<\/p>\n\n\n\n

The problems with dealing with a cross-border lender are manyfold. For instance, they may not operate within Canadian time zones. Their customer service representatives may not be Canadian either. Even though their lending in Canada, the laws in their region could take precedence if there\u2019s ever an issue.<\/p>\n\n\n\n

Why deal with a lender that doesn\u2019t know BC from Newfoundland or Toronto from Calgary? Choose a Canadian lender with a toll-free number and speak to a real person to get to the heart of the matter quickly. You\u2019ll also have the added assurance that the company is governed by Canadian laws and under the scrutiny of Canadian institutions.<\/p>\n\n\n\n

5.   Apply Online<\/h2>\n\n\n\n

Online cash loans are more convenient. You don\u2019t need to make an appointment, visit an office, or fill out lengthy paperwork. The process is simple, quick, and painless.<\/p>\n\n\n\n

You can usually complete and submit your application form in about 15-minutes. Apply at any time from any device, but if you submit outside of business hours you may need to wait a little longer for your funds. Nonetheless, it is still far quicker than an in-person application.<\/p>\n\n\n\n

Online lenders won\u2019t ask for much information besides your name, address, email, etc. However, they will need your banking information to verify your income and to deposit funds if you\u2019re approved. Other than that, an online application form is very straightforward.<\/p>\n\n\n\n

6.   Choose a Lender That Uses a Soft Credit Check<\/h2>\n\n\n\n

Cash loans may or may not involve a credit check. This is because cash loans are considered small loans when compared to other lending options.<\/p>\n\n\n\n

However, you will want to ensure that the lender isn\u2019t damaging your credit if they do decide to check. A hard credit inquiry negatively impacts your credit file and remains there, even if the lender turns you down for a loan.<\/p>\n\n\n\n

Luckily, some lenders use a soft credit check instead. This does not reduce your credit score. It is generally used for informational purposes, but is not the sole criteria used for determining eligibility for cash loans.<\/p>\n\n\n\n

Lenders that use a soft credit check normally have their own financial scorecard. They will review your life circumstances, but they seldom place as much emphasis on credit as traditional lenders. They simply want to see a steady income and a good debt-to-income ratio which demonstrates you can comfortably repay your cash loan.<\/p>\n\n\n\n

7.   Check Their Response Time<\/h2>\n\n\n\n

When you\u2019re looking for cash loans, the last thing you want to do is wait for days or weeks for your money.<\/p>\n\n\n\n

Check how long the lender will take to make a decision on your application. They all mention \u201cfast\u201d or \u201cquick, but does that mean? Is it minutes, hours, days, or weeks?<\/p>\n\n\n\n

A good lender has an automated system that reviews applications almost instantly. They should send you their decision within minutes and that\u2019s important when you\u2019re in a hurry for cash.<\/p>\n\n\n\n

8.   Look for Digital Document Signing<\/h2>\n\n\n\n

Unfortunately, many cash loans involve visiting an office to sign your loan documents. This applies to supposedly \u201conline\u201d cash loans, as well as when you apply in-person.<\/p>\n\n\n\n

Check that the lender offers digital document signing. The company should be able to send your loan documents to you very quickly once you agree to their terms. In turn, you should be able to sign them digitally, return them within minutes, and set off the funds release process almost instantly.<\/p>\n\n\n\n

9.   Find Out How Long Funds Release Takes<\/h2>\n\n\n\n

There\u2019s no point borrowing from a company that doesn\u2019t get the money you\u2019re your hands quickly. Check what the lender promises regarding funds release after you sign your loan documents. Is it minutes, hours, or days?<\/p>\n\n\n\n

A good lender can usually get the money in your bank account within an hour, providing you forward your signed documents to them during business hours. If you sign them outside of business hours, you should receive your money the next business day, at the latest!<\/p>\n\n\n\n

10. Review Lending Requirements<\/h2>\n\n\n\n

Many lenders won\u2019t tell you their borrowing requirements upfront. That\u2019s frustrating, since you\u2019re already pressed for time. Luckily, GoDay does not operate like that.<\/p>\n\n\n\n

We\u2019re happy to provide you with our requirements so you know whether you should apply, or not. We\u2019ve helped many Canadians and if you have a steady job, chances are you can easily access our cash loans. It is possible to overcome any fears<\/a> over borrowing online too. Here\u2019s our basic lending requirements for our cash loans:<\/p>\n\n\n\n