Frequently asked Questions about Canadian Payday Loans

Ouch! An unexpected bill! What are you going to do? You don’t have any friends or family who’ll lend you the money. You ask your creditor if they can wait until next payday, but they say “No”. Who you gonna call? No, not ghostbusters! You’re going to get a payday loan. And if you don’t know anything about payday loans, then study these top 10 payday loan questions and you’ll know what to do.

How do I qualify for a payday loan?

There are many companies out there offering payday loans. And they’re all competing for your business. So the qualification requirements may differ from company to company.

But basically, they all require that you’ve been gainfully employed for a period of time, usually 6 months. They all require you have an active checking account. And they all require that you earn a certain amount of money, usually around $1000 a month.

Do I need to have a savings and a checking account to get a payday loan?

Payday loan companies require you have an active checking account. That’s the only account they deal with. You don’t need to have a savings account.

What payday loan companies refer to as an active checking account is one that’s recently had regular deposits made into it, and one that doesn’t have an excessive amount of NSF checks, or overdrafts.

I have bad credit – can I still get a payday loan?

Your credit rating has no bearing on your qualification for a payday loan. No credit check is done. The reason for that is because the payday loan company gets your bank account information. They deposit your money into your account and, when it’s due, they take it out of your account.

Therefore, they’re guaranteed of getting your money. That’s their security. So it doesn’t matter what the status of your credit report is. You’re qualified even if you’ve had a bankruptcy, as long as it’s discharged.

How long does it take to process my application for a payday loan?

Again, with the number of payday loan companies out there, policies and procedures differ. Many companies require you to fax them copies of your pertinent information. That takes time, but if everything’s in order, you’ll usually get your money deposited into your bank account within one business day.

There are some payday loan companies that tell you it takes 30 seconds to approve your application. However, the actual process of depositing the money into your bank account usually happens within 24 hours.

When is my payday loan due?

The reason these payday advances or cash advance loans are called payday loans is because they’re always due on your next payday. So that’s never more than 15-18 days, depending on your pay schedule.

What’s a cash advance loan?

Payday loans have several different names, but they’re all the same thing. Some companies call them cash advances. Some companies call them cash advance loans. Others call them payday loans, and yet others call them payday advances, or payday cash advances.

So, no matter how you combine the words: payday, cash, advance, and loan, they all mean the same thing. Probably the reason some companies like to use different terms than others is to make you think they offer something different because, remember, it’s a highly competitive business. But basically, they’re all the same.

If I’m short of funds when my payday loan is due, can I get an extension?

Payday loan extensions are a source of controversy. The purpose of a payday loan is to help you out with a short-term loan when you’re caught in a situation where you need immediate emergency funds.

It’s not recommended that you renew or extend your payday loan because it’s very expensive. If you figure out what you pay when you rollover your loan (which is what some companies call an extension), the interest rate can work out to being 300% or even much more, depending on the policy of the payday loan company you’re dealing with.

There are some companies who actually publish their interest rate that applies to extensions, and some even top 1000%!! So you need to really think about it before you get an extension. Use that only as a last resort.

What can I use my payday loan for?

There are no rules or regulations governing what you spend your payday loan funds on. The idea of a payday loan is to help you out short-term. Perhaps you have a utility bill to pay, and your service will be cut off if you don’t pay it right away.

Or maybe your car has broken down and you need it to get to work, so you need money right away for the repairs. Whatever the reason, you can get a payday loan to help you out in a pinch. That’s what they’re designed for.

Can I pay back my payday loan before the due date?

There are no restrictions for paying your payday loan before it’s due. If you can possibly do that, it’s a great idea. Remember, you’re paying interest on that loan, and it’s charged daily. So, although it probably won’t amount to a huge sum of money, it’ll save you a few dollars.

And if you had to get a payday loan in the first place, a few dollars is probably very valuable to you. Every little bit helps, right?

Where’s the best place to get a payday loan?

There are payday loan companies on every corner, it seems. But if you want to save yourself some time and running around, the best place to get a payday loan is on the Internet.

Online payday loans are very popular these days, mostly because of their convenience. You can apply online and get an answer anywhere from almost instantly to within 24 hours. If you go to a payday loan store, you then have to go to your bank. And what if your bank isn’t open.

Online payday loan companies are there 24 hours a day, 7 days a week, 365 days a year. And that’s great because you never know when that financial emergency will come up. It may be on a holiday, and then online payday loan companies are the only ones “open”.

In Summary

It’s important to remember what payday loans are for – to provide emergency funds, to be paid back on your next payday. The convenience is a life-saver to many people who have nowhere else to turn.

There are many online cash advance companies waiting to serve you. So when that car breaks down, or that urgent bill comes in, just get online and your money will be in your bank within 24 hours. What could be easier?