{"id":7197,"date":"2022-03-15T00:14:13","date_gmt":"2022-03-15T04:14:13","guid":{"rendered":"https:\/\/goday.ca\/blog\/?p=7197"},"modified":"2022-04-23T00:11:23","modified_gmt":"2022-04-23T04:11:23","slug":"vancouver-paydayloans","status":"publish","type":"post","link":"https:\/\/goday.ca\/blog\/vancouver-paydayloans\/","title":{"rendered":"Vancouver Payday Loans: Find Out About Them Now"},"content":{"rendered":"\n
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You may have heard that Vancouver payday loans are an option when you need money quickly, but do you know how they work?<\/p>\n\n\n\n

Yes, they can be a good solution if you can\u2019t borrow from friends, family, or your bank. You can also use one if you can\u2019t or don\u2019t want to borrow against a credit card.<\/p>\n\n\n\n

However, there\u2019s much more to know about Vancouver payday loans if you want to make an informed decision. Consequently, we\u2019re providing you with the basics so you understand when and if they might be a good option for you. You can also find additional information here<\/a>.<\/p>\n\n\n\n

How Much Can You Borrow?<\/h2>\n\n\n\n

Vancouver payday loans, or cash advances, are a type of unsecured loan. Unsecured refers to the fact that you do not need to guarantee what you borrow by putting up collateral such as a car or a home.<\/p>\n\n\n\n

In Canada, the maximum allowable payday loan amount is $1,500. However, British Columbia legislation imposes a maximum of half of the average of your last two payroll deposits. This ensures you retain sufficient income to meet your normal needs.<\/p>\n\n\n\n

Even if your income surpasses this restriction, a lender may not grant you the entire amount if it is your first time borrowing from them. Of course, once you\u2019ve repaid your first loan the chances of obtaining a higher amount improves. A common first loan amount is $500.<\/p>\n\n\n\n

Do You Need to Be Employed?<\/h2>\n\n\n\n

Most lenders do make this a requirement. However, GoDay accepts applications for those that receive income from a variety of sources. This includes the Canada Child Benefit, Disability Tax Credit, Old Age Security, private pensions, and the Canada Pension Plan.<\/p>\n\n\n\n

Can You Have More Than One Payday Loan?<\/h2>\n\n\n\n

Technically, yes. You may be able to obtain more than one payday loan if you apply through multiple lenders and you\u2019re approved. However, we strongly suggest you don\u2019t do this. It could put too much stress on your finances, when you\u2019re already in serious need of capital.<\/p>\n\n\n\n

Loan defaults lead to additional fees, bothersome collection calls, and even wage garnishees if the lender seeks a judgment. These actions could negatively impact your credit file too.<\/p>\n\n\n\n

GoDay will not grant a borrower more than one payday loan at a time for these reasons. However, once your payment clears for your first loan, we will be happy to consider granting you another loan.<\/p>\n\n\n\n

When Do You Need to Repay Your Loan?<\/h2>\n\n\n\n

Typically, loan repayment on your next regularly scheduled pay date unless your next pay date is in the next two days. In this case, repayment is extended to your following pay date.<\/p>\n\n\n\n

Aligning repayment with your pay date makes perfect sense, since you have the funds in your bank account already. Plus, you\u2019ll have less chance of spending your money on something else.<\/p>\n\n\n\n

Can You Extend Your Repayment Terms?<\/h2>\n\n\n\n

Normally, no. However, if you\u2019re taking out your third payday loan within 62 days in British Columbia, the lender must be setup on an extended payment plan.<\/p>\n\n\n\n

In this case, the loan is repayable over two pay periods if you\u2019re paid monthly. If you\u2019re paid semi-monthly, bi-weekly, or weekly, repayment is extended across three pay periods. In either case, you can choose to pay the off the balance earlier if you want.<\/p>\n\n\n\n

What About Fees?<\/h2>\n\n\n\n

The maximum finance fee a licensed lender can charge in British Columbia is $15 per $100 borrowed. However, some online lenders aren\u2019t licensed and could charge you much more.<\/p>\n\n\n\n

Legislation stipulates the lender can\u2019t charge more than $20 for an NSF fee. Late interest is capped at 30% per year. Fortunately, neither of these costs are a consideration if you meet your loan obligations.<\/p>\n\n\n\n

Can You Cancel a Vancouver Payday Loan?<\/h2>\n\n\n\n

Yes, British Columbia law states a licensed lender must provide a 2-day cooling off, or cancellation period on all payday loans. Providing you submit a cancellation notice to the payday loan lender within this time, you can cancel without penalty.<\/p>\n\n\n\n

Are All Payday Loan Lenders Alike?<\/h2>\n\n\n\n

No. By law, any person or business that grants payday loans in British Columbia needs a license. This applies whether they operate in-person or online. Nonetheless, some unscrupulous lenders ignore the law.<\/p>\n\n\n\n

Reputable lenders are always licensed. They\u2019re not afraid of scrutiny and they provide a clear path if you\u2019re dissatisfied with their practices. Additionally, they always stay on top of legislative changes that strengthen or alter lending requirements.<\/p>\n\n\n\n

Always look for a licensed lender. Otherwise, you could fall prey to a scam or pay exorbitant fees without legal recourse. Luckily, consumers have nothing to fear from reputable, licensed lenders. If you’re worried about borrowing through a good online lender, don’t be. Read more about that here<\/a>.<\/p>\n\n\n\n

What Laws Should Payday Lenders Follow in BC?<\/h2>\n\n\n\n

Payday loans in British Columbia fall under the Business Practices and Consumer Protection Act<\/a>. This legislation defines what a payday lender can and cannot do.<\/p>\n\n\n\n

Just remember, the lender must be licensed if you want the reassurance that this legislation provides. You can check whether they\u2019re legal on the Consumer Protection BC website here<\/a>.<\/p>\n\n\n\n

When Is a Payday Loan a Good Choice?<\/h2>\n\n\n\n

Payday loans are not a good choice if you\u2019re planning a shopping spree or find you continually can\u2019t pay your bills. However, one can help you out of a temporary financial bind when you\u2019ve exhausted your other options, but know you\u2019ll have money coming in soon.<\/p>\n\n\n\n

Here are a few examples of when Vancouver payday loans could be useful:<\/p>\n\n\n\n