{"id":7233,"date":"2022-04-12T00:44:28","date_gmt":"2022-04-12T04:44:28","guid":{"rendered":"https:\/\/goday.ca\/blog\/?p=7233"},"modified":"2022-04-23T00:07:02","modified_gmt":"2022-04-23T04:07:02","slug":"5-facts-about-paydayloans-in-hamilton-you-need-to-know","status":"publish","type":"post","link":"https:\/\/goday.ca\/blog\/5-facts-about-paydayloans-in-hamilton-you-need-to-know\/","title":{"rendered":"5 Facts About Payday Loans in Hamilton You Need to Know"},"content":{"rendered":"\n
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Payday loans in Hamilton aren\u2019t all the same. While lenders do agree they are best used for urgent, immediate needs, they many not handle them in the same manner.<\/p>\n\n\n\n

Additionally, these loans are only a good solution in certain situations. For instance, they can bridge a temporary cash flow gap. However, they shouldn\u2019t be used to top up your bank account constantly since you have poor money management skills.<\/p>\n\n\n\n

Nonetheless, they can be a viable financial alternative. If you can\u2019t borrow from friends or family, or don\u2019t have access to other credit products, they could help you out in a pinch.<\/p>\n\n\n\n

Even so, most people know little or nothing about them. Either that, or what they\u2019ve heard isn\u2019t actually true. Luckily, these 5 facts about payday loans in Hamilton could clarify matters so you can make an educated decision.<\/p>\n\n\n\n

Fact #1 – You Could Qualify Through Other Income Sources<\/h2>\n\n\n\n

Typically, payday loans in Hamilton rely on your steady income from employment. However, many people earn money from other sources. Examples include pensions, self-employment income, the Canada Child Benefit, and the Disability Tax Credit.<\/p>\n\n\n\n

Nonetheless, many lenders exclude these people from payday loans in Hamilton. Consequently, if you don\u2019t work for an employer, you\u2019re out of luck.<\/p>\n\n\n\n

Luckily, a good lender will consider your application if you don\u2019t fit into the usual income earner mold. Shop around and find one that appreciates your business if don\u2019t earn your income through a regular job.<\/p>\n\n\n\n

Fact #2 \u2013 You Need to Use a Licensed Lender<\/h2>\n\n\n\n

Legally, every lender in Ontario should have a license. In reality, some shady online lenders don\u2019t bother with legalities.<\/p>\n\n\n\n

Should you choose an unlicensed lender, because you don\u2019t understand the implications or you\u2019re in a hurry, it could have very serious consequences.<\/p>\n\n\n\n

First off, the company could be a front for a scam. They set up websites hoping to capture your sensitive data. This can lead to identity theft or other complications since they\u2019re not legally-bound to follow Ontario and Canadian laws.<\/p>\n\n\n\n

Second, should they actually grant you a loan, they could also charge you high interest, open-ended fees, and unnecessary penalties. This could leave you in a worse situation than when you began. They can also use illegal methods to collect any money owing. This includes pestering you, your family, and your neighbours, and much, much more.<\/p>\n\n\n\n

Benefits of Licensed Lender<\/h3>\n\n\n\n

On the other hand, a licensed lender must follow the Payday Loan Act<\/a>. This ensures payday loans in Hamilton are handled correctly. Every licensed lender must adhere to consumer protection protocols. Otherwise, you have recourse.<\/p>\n\n\n\n

A licensed lender must also reveal your costs to borrow before you provide them with your personal information. Here\u2019s an example<\/a> of the first page you will see when you apply through GoDay.<\/p>\n\n\n\n

Licensed lenders also have specific limits on how much they can charge you. Fees and penalties are also restricted.<\/p>\n\n\n\n

Finally, they follow Ontario\u2019s limitations on the maximum payday loan allowable in the province. This limit ensures you do not borrow more than you can afford. The maximum, legally-permitted amount through a licensed lender is 50% of your previous month\u2019s earnings, up to a maximum of $1,500.<\/p>\n\n\n\n

Use the Ontario Ministry of Government and Consumer Services here<\/a> to check whether a lender has a license, or not. It\u2019s definitely worth the effort.<\/p>\n\n\n\n

Fact #3 – Requirements Vary Greatly Between Payday Loans in Hamilton<\/h2>\n\n\n\n

Don\u2019t think that you can\u2019t get a payday loan, just because you don\u2019t have a big bank account or a fancy home. Every lender determines their own qualification requirements.<\/p>\n\n\n\n

For instance, GoDay has very basic requirements that most people can meet. You need to:<\/p>\n\n\n\n