Are you in need of cash before your next paycheque? If so, payday loans in New Brunswick offer fast, short-term relief. However, they come with steep fees and should be used with caution.
Payday Loans: Snapshot
Before taking out a payday loan in New Brunswick, it’s important to understand the basics of this type of short-term financing:
| Loan Amounts | Up to $1,500 |
| Loan Cost | $14 per $100 borrowed |
| Loan Terms | Up to 62 days |
| Funding Time/Method | – Same-day funding – Funds are typically sent via e-Transfer, direct deposit, or cash. |
Learn more: Payday Loans
What Are The Requirements For A Payday Loan?
Qualifying for a payday loan in New Brunswick is easy. You’ll typically need to meet the following criteria:
- Proof Of Income: You must generate some form of income, whether it’s from a job, government benefits, or a pension. Each payday lender has their own income requirements.
- Photo ID: You’ll need to show the lender a valid government-issued ID, such as a driver’s license or passport.
- Bank Account: You need an active bank account for the lender to deposit the money and withdraw loan repayments.
Are Credit Checks Required for Payday Loans?
Credit checks are not typically part of the payday loan application process. Most payday lenders skip the credit check and focus instead on your income and financial stability, making these loans accessible even if you have poor or no credit.
Do You Have to Be Employed to Qualify?
You don’t always have to be employed, though employment certainly helps. Many lenders accept other income sources, such as pensions or government benefits. As long as you meet their minimum income requirement, you can still get approved.
Where Can You Apply For A Payday Loan In New Brunswick?
It’s important to make sure the payday lender you’re working with is licensed to provide these short-term loans in New Brunswick. Licensed lenders will display their license number in their physical storefront or on their website.
You can also find a list of licensed payday lenders by visiting the Financial and Consumer Services Commission of New Brunswick website.
There are only a handful of licensed payday lenders in New Brunswick, including the following:
Brick And Mortar Payday Locations In New Brunswick
Most payday lenders are available online; however, you can apply in-person with some lenders such as Money Mart.
| Lender | Address |
| Money Mart | – 1400 Mountain Road, Moncton, NB E1C 0S1 – 378 Rothesay Avenue, St. John, NB E2J 2C4 – 1229 Prospect Street, Fredericton, NB E3B 3B9 – 408 King George Highway, Miramichi, NB E1V 1L4 – 180 Hebert Blvd, Unit 48, Edmundston, NB E3V2S7 Find a Money Mart near you. |
How Do I Apply For A Payday Loan?
To apply for a payday loan in New Brunswick, follow these steps:
- Step 1: Find A Licensed Payday Lender. Make sure the payday lender is licensed to provide these high-cost loans in New Brunswick.
- Step 2: Gather Required Documents.Get relevant documents ready for the application process, such as proof of income, photo ID, and bank account information. If you’re not currently working and are collecting government benefits, you will need to provide documents supporting this non-employment income.
- Step 3: Complete And Submit The Application. Fill out the loan application on the lender’s website. Approval typically takes no more than 24 hours.
- Step 4: Receive The Funds. Shortly after applying for your payday loan and submitting your documents, the lender will send you a loan contract if you’re approved. The funds will be deposited into your bank account minutes after approval, usually through direct deposit or Interac e-Transfer.
Your Rights As A Payday Loan Borrower In New Brunswick
As a payday loan borrower in New Brunswick, you have certain rights as protected by law. The following chart outlines the specific lender rules and consumer rights surrounding payday loans in New Brunswick:
| Loan Amounts | Up to $1,500 (maximum of 30% of your net pay) |
| Loan Terms | Up to 62 days |
| Cost Limits | Maximum fee of $14 per $100 borrowed |
| Cooling-Off Period | 48 hours (excluding Sundays & holidays) |
| Rollovers | Not allowed |
| Lender Licensing | All payday lenders in New Brunswick must be licensed in the province |
| Default Charges | $20 maximum penalty for a bounced cheque or pre-authorized debit |
Note: If you’ve been unfairly treated by a payday lender in New Brunswick, you can file a complaint online to the Financial and Consumer Services Commission of New Brunswick. Provide all available documentation and a description of the issue.
What Happens If You Miss A Payday Loan?
If you miss a payday loan payment, your lender can charge you interest and late fees, which will increase the total amount you owe. In addition, the lender may contact you to collect payment, but they’re not allowed to harass you or contact your employer.
Here are the specifics regarding restrictions on what payday lenders can do when it comes to late or missed loan payments:
| Maximum Penalty Fees | Up to 2.5% per month on the outstanding balance |
| Maximum NSF Fees | Up to $20 for a late payment |
| Collections Actions | If your debt is sold to a collection agency, they can contact you to collect payment, but they’re not allowed to do the following: – Harass or intimidate you – Call outside permitted hours – Contact others without your permission |
How Much Will You Pay For A Payday Loan?
In New Brunswick, the most a payday lender can charge you is $14 per $100 borrowed.
To help you get a picture of what your loan could cost you, the following chart lists different payday loan amounts and their corresponding costs:
| Loan Amount | Cost To Borrow | Total Loan Cost |
| $100 | $14 | $114 |
| $200 | $28 | $228 |
| $300 | $42 | $342 |
| $400 | $56 | $456 |
| $500 | $70 | $570 |
| $1,000 | $140 | $1,140 |
| $1,500 | $210 | $1,710 |
Learn more: Payday Loan Interest Rates
Before Getting A Payday Loan, Read This First
Payday loans may be fast and easy to get, but they’re also costly. Before applying, it’s essential to understand the risks and red flags.
- Beware Of Scams: Not every payday lender operates legitimately. Some may charge hidden fees, promise guaranteed approval without reviewing your application, or ask for payment before funding your loan. These are all red flags that should tell you to walk away.
- Debt Trap Risks: Payday loans often carry sky-high interest rates and short repayment windows. If you’re unable to repay on time, you might feel the need to borrow again to cover your repayment, which can lead to a cycle of debt that’s hard to escape.
Is A Payday Loan Right For You?
Given the high cost and short repayment windows of payday loans, they’re only a smart choice in specific situations:
- Your Credit Is Low: If your credit score has taken a hit and traditional loans aren’t an option, payday lenders may offer a quicker and easier solution. Instead of checking your credit, payday lenders will place more weight on your income and bank account.
- You Need Money Fast: If you’re in a time crunch for money, a payday loan may be worth considering, as they’re designed for speedy funding. In many cases, you can receive your funds within hours of applying, which makes them a potential lifeline when urgency matters.
Other Ways To Get Fast Cash
If you’re still able to make some bill payments despite your current financial struggles, the following options may be worth considering:
| Financial Product | What It Is |
| Credit Card Cash Advance | Allows you to withdraw money using your credit card, usually with higher interest rates compared to regular purchase rates. |
| Personal Loan | A lump sum of money borrowed from a lender, repaid with interest in regular installments over a set term. |
| Credit Line | A flexible loan that lets you borrow up to a set limit, repay it, then borrow again, similar to a credit card. A couple of options include: – Nyble offers a zero-interest credit line of up to $250, which can also be used to build credit. – Bree offers interest-free cash advances up to $500 to help avoid NSF fees and cover last-minute bills. |
Need More Help With Financial Issues? Look Into Professional Assistance
If your financial troubles are particularly tough to handle on your own, you may want to consider more aggressive measures.
Government Assistance Programs In New Brunswick
The following provincial government programs are available to those who are experiencing financial difficulty:
| Social Assistance Program | Learn More |
| Emergency Fuel Benefit | Learn More |
| Rent Supplement Assistance Program | Learn More |
| New Brunswick Low-Income Seniors’ Benefit | Learn More |
Debt Relief
Speak to a credit counsellor for guidance with debt management, budgeting, and improving your financial situation. They can help you find a debt relief solution that works for you:
- Debt Management Program (DMP). A DMP combines several debts into one loan spread over up to 5 years. This helps to simplify bill payments and save money in interest.
- Consumer Proposals: A consumer proposal is a legal agreement in which consumers negotiate with creditors to repay a portion of a consumer’s debt over a period of up to 5 years.
- Bankruptcy: Bankruptcy is a legal process that provides relief to consumers to repay their outstanding debts, usually through the seizing and selling of assets (with certain exceptions).
Learn more: Debt Relief Programs In Canada: What Are Your Options?
Bottom Line
If you’re dealing with poor credit and a last-minute expense, payday loans in New Brunswick might offer quick relief. But be careful, as they come at a high cost and can easily lead to a cycle of debt that’s tough to break. It’s important to explore all other financial options first, and only choose a payday loan if you’re confident you can repay the full amount on time.
