Emergencies and unexpected expenses do not come with prior notice! They present different challenges, especially for an average individual living on fixed earnings. This is where payday loan organizations in Canada step in as a helpful and suitable solution. But what are payday loans? As the name suggests, these are instant loans designed to help people with urgent requirements for funds. These loans are fast, easy to secure, and reflect on your account within 24-hours.
Instant payday loans in Canada come as an excellent alternative to conventional bank loans. Consequently, when individuals decide to opt for a payday loan, finding a provider that suits their interests becomes very challenging. Therefore, you need to consider various factors when signing up for them.
Therefore, to help you better, here’s a list of some of the best online payday loans in Canada. Continue reading as we explore the different aspects of these loans and the hidden aspects of these loans.
Table of Contents
Prerequisite For Getting a Payday Loan Online
Getting personal loans isn’t easy for many borrowers, especially due to their low credit worthiness. Today, most loan providers require you to have a minimal credit score of at least 600. While the credit score of the average American is generally higher than the prerequisite, other factors, including income and creditworthiness, also come into the picture. All of these factors, when summed up, can influence your loan sanction.
However, that’s not the case with a cash advance or payday loan providers. Instead, these lenders provide funds to borrowers with a low credit score. Besides, some quick online payday loans in Canada don’t even run a credit check on the applicants.
Instead, if you’re thinking of applying for a payday loan in Canada, you need to provide proof of:
When opting for a payday loan in Canada, you need to ensure your loan provider that you can repay the unsecured loan. However, that doesn’t mean you need to have a full-time job.
A majority of payday loan organizations in Canada approve loans without applicants having a stable source of income. Instead, you can provide evidence of a recurring income source in self-employment, retirement, disability, or a job. Additionally, some lenders might also demand a minimum monthly income requirement from you.
Besides having a steady or recurring income, most lenders will need you to provide evidence of an active checking or savings account to improve your chances of qualifying for a loan. In many cases, lenders also require you to have a bank account at least a month old.
Form of ID
Finally, a government-approved ID is the last document you’ll need to access instant payday loans in Canada. When signing up for a loan, these providers will ask you to provide identification and your details and contact information. Here, you may use either your state-issued ID, passport, driver’s license, or other approved form of identification that qualifies the lender’s prerequisite.
In addition, when applying for different online payday loans, you might also want to keep these additional documents and information handy. The list includes:
- Document proving your birthdate (you need to be at least 18 years of age)
- Your address (as identified by any legal document)
- Your Taxpayer Identification or Social Security Number
- Your contact information
Finally, when trying to get instant payday loans in Canada, you may need to prove that you aren’t bankrupt or have filed yourself for bankruptcy. Or, you might also want to ensure your lender that you don’t plan to do so shortly.
Here’s a short overview to give you a quick brief on the different payday loans provider:
|Payday Lender||Interest Rates||Turnaround Time|
|Cash Payday||$15 for every $100||Fast|
|PAY2DAY||$15 for every $100||Fast|
|Mr. Payday||$15 for every $100||Fast|
|MyCanada||$15 for every $100||Fast|
|GoDay Payday||$15 for every $100||Fast|
|iCASH||$15 for every $100||Fast|
|Money Mart||$15 for every $100||Fast|
|Cash Money||$15 for every $100||Fast|
Best Payday Loans in Canada
1. Cash Payday
When talking of the best online payday loans in Canada, you cannot miss out on Cash Payday, one of the most trusted payday lenders in the country. They offer a wide range of services to help you manage almost anything related to banking and finance.
Qualifying for payday loans with Cash Payday is effortless! The basic criteria of getting a payday loan from Cash Payday start with the above the age of 18 criteria. The next requisite is to have an active bank account, followed by the contact number. Once you qualify for these three criteria, your application is just as good as approved.
Talking of the interest rates, Cash Payday is known to have one of the lowest interest rates in the country. The platform offers competitive interest rates of 15%, i.e., the cost of borrowing will amount to $15 for every $100 advance. For instance, if you borrow $200, you will have to pay $230.
The platform also stands out with its customer reviews! Cash Payday is rated among the top service providers by its customers. In addition, the platform is swift with its process and everything, ranging from the application process to wiring the loan to the account, happens in no time. In most cases, your application will be approved within a day, and the money will be credited in a matter of hours.
PAY2DAY has some of the best ratings from its customers, making it one of the best lending companies in Canada. The primary reasons behind this uplifted position of PAY2DAY are unmatched customer satisfaction and enhanced quality of services. Plus, they are also open for business on any day of the week.
PAY2DAY is also one of the most accessible payday loan organizations in Canada. They have operations spread across thirty different locations across the country. Besides that, one always has the option to access PAY2DAY’s services through their highly interactive website.
The online medium is much more convenient for many as they can do all the application-related documents from remote locations. In addition, the application processings in PAY2DAY are operational at all times, so it does not take long to get your applications approved. Therefore, no matter the day of the week, you can get your application approved in almost no time.
Most importantly, the interest rates charged by PAY2DAY are well within the bounds of the national average. It charges a 15% interest on the amount you borrow, and you can borrow up to $1500. If you borrow $300 for 14 days, you will have to pay $345 on completion.
3. Mr. Payday
The next lender on the list of the best payday loans in Ontario and other areas across the country is Mr. Payday. The establishment came into being in 2002 and has successfully earned a good place for itself in the market. Customers from different parts of the country lay their trust in Mr. Payday for payday loans.
One of the main reasons customers prefer this lender over others is the unmatched convenience of their services. No borrower has to make any personal visits to their offices or branches. Instead, you can get everything done right on their website, making matters more convenient for many.
Besides that, the efficient approval offered by the lender also plays a key role in garnering more customer support. For example, if you apply for a loan during business hours, the loan will get approved in just thirty minutes. As a result, Mr. Payday becomes the option for anyone in need of advances at the earliest.
Finally, the interest rates offered by Mr. Payday are certainly in line with other payday loan providers in the market. The platform will charge $15 for every $100 you borrow. Thus, if you borrow $100, the total payable sum will amount to $115.
4. MyCanada Payday
MyCanada Payday is one of the leading payday loan providers globally, with branches spread across many strategic locations around the country. The establishment is owned and operated by Canadians with all necessary licensing. As a result, they can provide you with an easy and seamless bowling experience.
There are many MyCanada Payday reviews online, and all of them have something positive to say about this lender. The efficient services offered by MyCanada Payday ensures you get your loan approval in under thirty minutes. Also, you can apply for a payday loan through their online portal, which generally takes only five minutes.
MyCanada Payday is a few lenders that offer payday loans to even people with bad credit scores. Apart from that, the platform has a 24/7 automated loaning system that will issue your loans in no time. So no matter the time of day, MyCanada Payday is always there to assist you with loans.
MyCanada Payday allows you to borrow up to $1500, and they charge $15 on every $100 you borrow. This means if one takes a short-term payday loan for $400, they will have to pay back $460. So if you are someone looking for an easy way to get loans, check out MyCanada Payday. Overall, MyCanada payday reviews a safe, reliable, and competent payday lender.
5. GoDay Payday Loans
GoDay Payday Loans is another growing lender from Canada restricted to online access. The platform leverages a simple, paperless application process to provide customers with loans in no time. Provided you have an active bank account for the money to be transferred.
The best thing about GoDay Payday Loans is they accept applications from different employment groups. One can even avail of payday loans for welfare recipients in Canada with GoDay Payday Loans. So no matter if you are living on Canada child benefit or simply a disability income, GoDay Payday Loans have always got your back. Besides, the online application process will only take five minutes.
Furthermore, GoDay Payday Loans does not mandate its customers to secure their loans against any asset. All concerned authorities also licensed the platform to give you a short-term payday loan. But make sure to check out the late-fee details for times when you are not able to repay your loan on time.
The fee charged by GoDay Payday Loans is relatively in line with industry standards. In most cases, you will be charged $15 to $19 for every $100 you borrow from the platform. These charges often vary based on the province you live in. Additionally, you can avail of a maximum loan of $1500.
If you are looking for flexible and quick online payday loans in Canada, iCASH is ideal. iCASH has an office based in Ontario, but its online platform allows you to access all loan application services easily. In addition, this is one of those few platforms that offer you 24/7 loan services with swift and instant approval.
Customers have to sign a conventional contract, and the funds are transferred to their accounts in no time. Besides that, iCASH is a certified member of the Canadian Consumer Finance Association (CCFA). Initially established in 2014, the platform has served over 500000 customers successfully.
The basic requirements for getting a payday loan from iCASH include at least 19 years of age and a minimum income of $800. You can avail of a loan amount of $1500 for a loan term ranging from 7 to 62 days.
Adding to it, customers need not pay any additional fee for the early repayment of loans. iCASH generally charges $15 on every $100 you borrow. However, this rate can increase up to $19 based on the province you reside in.
7. Money Mart Payday Loan
Money Mart Payday Loan is another prominent payday loan provider in Canada. The platform offers both payday loans and installment loans. Besides, the hassle-free application process and fast approval of loans make Money Mart Payday Loan one of the most preferred choices for most customers.
The best thing about Money Mart Payday Loan is your prior bad credit score yields no value here. Also, you do not need to secure your loans against any assets. Money Mart Payday Loan also has over 120 physical stores across the country, but you can always use their online platform for superior convenience.
Similar to many other payday lenders on the list, even Money Mart Payday Loan charges a fee of $15 on every $100 you borrow. However, this fee can increase up to $19 based on your province.
8. Cash Money
The final payday loan provider on the list is Cash Money which offers customers a hassle-free loaning experience. Anybody can come across a sudden emergency where they require an emergency cash boost until getting their next paycheck. Cash Money caters to the requirements of such individuals in the best manner possible.
In terms of convenience, Cash Money allows you to apply for loans through physical branches, phones, or even online. You can avail of a maximum payday loan of $1500 based on your income potential. Once approved, the amount will be transferred to your account in just 15 minutes.
The fees charged by Cash Money are relatively similar, as the platform charges $15 for every $100 you borrow. Then again, these fees can increase up to $19 based on your province.
The Real Cost of Payday Loans in Canada
Most loan providers in Canada don’t generally go through a background check or your credit score before sanctioning a loan. So as long as the applicant is aged 18 or above and has a bank account and a job, they can easily avail of instant payday loans in Canada.
While a payday loan is generally taken to cover everyday funds, your application is more likely to get rejected if you don’t have a job. Besides, some providers also sanction payday loans for welfare recipients in Canada.
However, when availing of such loans, it’s essential that you understand the real costs behind them. Payday lenders tend to sanction up to 60% of your monthly salary. The general thumb rule is that the applicants need to pay it back the following month, including administration fees and accumulated fees.
The Interest Rates In Payday Loans
Instant payday loans in Canada generally come with a high-interest rate. Applicants generally need to pay a high repayment sum, including the interest and additional fees. While payday loans may be an easy source of money, they come with consequences.
For instance, for every $100 you borrow, you’ll have to repay an interest ranging from $16 to $25, depending on the organization you avail them from. In addition, other fees between 15% to 30% can also be applied to the total borrowed amount.
This is where payday loans become tricks! While sanctioning them is easy, the repayment tenure is short and generally attracts a 15-30% interest rate. So if you look at it, payday loans leave you in a loop of loans and repayments due to the high-interest rates.
Payday Loan Alternatives
Payday loans are not a favorable option among many loan seekers due to the high-interest rates that can sometimes reach up to 652% APR. While these loans are short, un-secured, and generally smooth, the high-interest rates are a shocker to many.
This is where many loan seekers start looking for different payday loan alternatives to cushion themselves again a financial rollercoaster. Therefore, even if you’re accustomed to payday loans, it’s always wise to educate yourself on the other alternative options available in the market.
In the following section, let’s check out some of the alternatives to payday loans in Canada.
- Get a Personal Loan
While it can become challenging for you to avail payday loans from your bank or credit union, it is always a smart move to trust the internet. Today, we have many lending institutions who are willing to provide you with unsecured loans, despite a poor credit score. In addition, these lenders also provide applicants with different installment schemes to help repay the loans at the earliest.
Pro Tip: Avoid reaching out to too many payday loan organizations in Canada. These lenders pull out your credit profile, which negatively impacts your credit score.
- Use Your Credit Card
Like a short-term payday loan, you can also use a credit card to cushion your funds. However, while using a credit card is similar to a cash advance, the interest rate on the latter is much more affordable.
For instance, withdrawing cash using your credit card at an ATM costs you a cash advance interest rate of 2.99%.
Pro Tip: Different credit cards have their specialization and fees. Therefore, it’s always wise to sign up for a credit card with low-interest rates for balance transfers and cash advances.
- Get a Guarantor Loan
The third option on our list is a guarantor loan! This is a feasible option if you cannot qualify for a personal loan and you cannot provide collateral to get a secured loan. These loans remove a credit score requirement and replace it with a ‘guarantor’ that vouches for the repayment. However, it should be noted that these loans aren’t very cheap either.
- Use Overdraft Protection
Accessing the overdraft protection facility is another great alternative to payday loans. An option available with your checking account, this feature allows you to withdraw more funds than you currently have in your account while avoiding the ‘Non-Sufficient Fund fee’ you’d generally attract.
However, it should be noted that there are certain limits to overdraft protection, and you need to pay a fee (per use or monthly), along with an interest that goes up to 22% per annum.
- Have an Emergency Fund
The last alternative to payday loans is having an emergency fund as a part of your budgeting! Having an emergency fund should be a part of your savings strategy as these are the funds that you can rely on.
While financial analysts and experts advise you to save up to 3-6 months’ worth of your expenses, any amount of money is a good start.
Pro Tip: Store all your emergency funds in a savings account with a high-interest fee. This way, you’ll be entitled to receive something more than what you save.
Emergencies can render anyone helpless at any time! However, with smart planning and sources of a steady income, you always are at a chance of clearing things up. Now that you have an idea of some of the best payday loan organizations in Canada, we hope you have all the financial guidance you need.