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Payday Loans Richmond 2019

Compare the best lenders in this region:
ProviderRating
Cash Money -
Climb -
4 / 5
Pylo Finance 4 / 5
Fresh Start Finance 4 / 5
Marble Finance 5 / 5
Money Mart 4 / 5
Private Loan Shop 5 / 5
Progressa 3 / 5
My Canada Payday 5 / 5
Mr. Payday 4 / 5
Money Provider 5 / 5
Loan Express 3 / 5
Loan Away 4 / 5
Lendful 3 / 5
LendDirect 5 / 5
Health Smart Financial Services -
GoDay 4 / 5
iCash 5 / 5
Focus Financial Inc. 2 / 5
FlexFi 5 / 5
Eastern Loans 5 / 5
DMO Credit 5 / 5
Capital Cash 2 / 5
Credit 700 2 / 5
Credit Club 5 / 5
Credit2Go 3 / 5
Ledn 5 / 5
Amber Financial 5 / 5
Affirm Financial 5 / 5
310 Loan 2 / 5
Newstart Canada 4 / 5
Ferratum 5 / 5
SkyCap Financial 4 / 5
Fairstone 2 / 5
Lending Mate 4 / 5
Consumer Capital Canada 4 / 5
Lamina 3 / 5
Loans SOS -
514 Loans 5 / 5
CashCo 5 / 5
UrLoan 5 / 5
Loan Me Now 4 / 5
Captain Cash 4 / 5
BC Loans 4 / 5
Urgent Loans 4 / 5
Easy Financial 3 / 5
Mogo Finance 4 / 5
Cash Money 5 / 5
Borrowell 5 / 5
Magical Credit 5 / 5
Speedy Cash 5 / 5
ProviderRating
Alliance Financing Group LTD -
CanaCap -
CLE Capital -
Canada Equipment Loan -
SharpShooter Funding 5 / 5
First West Credit Union 5 / 5
Meridian Credit Union 5 / 5
Laurentian Bank of Canada 5 / 5
HSBC Bank Canada 5 / 5
National Bank 5 / 5
Canadian Imperial Bank of Commerce (CIBC) 5 / 5
Scotiabank 3 / 5
Bank of Montreal (BMO) 3 / 5
Royal Bank of Canada (RBC) 5 / 5
CWB National Leasing 5 / 5
Money in Motion 5 / 5
Lease Link 5 / 5
FundThrough 5 / 5
Econolease Financial Services Inc. 5 / 5
Easylease Corp 5 / 5
Dynamic Capital 5 / 5
Capify 5 / 5
Canadian Equipment Finance 5 / 5
Capital Key 5 / 5
Cashbloom 5 / 5
BFS Captial 5 / 5
BDC 2 / 5
Baron Finance 5 / 5
B2B Bank 5 / 5
AOne Financial Solutions 5 / 5
Borrowell 5 / 5
iCapital 5 / 5
Lendified -
IOU Financial 5 / 5
Company Capital 5 / 5
OnDeck 5 / 5
Lending Loop 5 / 5
Thinking Capital 5 / 5
ProviderRating
Coast Capital -
Canada Auto Finance -
Credit River Capital Inc -
Capital Trust Financial -
Canadian Truck Loan -
Canada Car Loans -
Car Loans Canada -
Car Creditex -
Auto Capital Canada 5 / 5
Carfinco 5 / 5
Canada Drives 5 / 5
Prefera Finance 5 / 5
Approve Canada 5 / 5
2nd Chance Automotive 5 / 5
Newstart Canada 4 / 5
SkyCap Financial 4 / 5
Splash Auto Finance by Rifco 5 / 5
Carloans411 5 / 5
AutoArriba 5 / 5
ProviderRating
Newstart Canada 4 / 5
BHM Financial 5 / 5
ProviderRating
CMLS Financials -
CHIP Reverse Mortgage -
CanWise -
Centum 5 / 5
Broker Financial Group Inc. 5 / 5
Bridgewater Bank 5 / 5
Alpine Credits 5 / 5

It’s not uncommon for many Canadians to suddenly find themselves in a financial predicament in which fast cash is needed right away to cover an expense. Many times a last-minute situation will fall on our laps with not enough money in the pot to cover the cost.

That’s why many consumers turn to loans to access the funds needed to pay for their emergency financial situations. And one specific loan type is a payday loan.

Let’s go over what payday loans in  Richmond are and whether or not they’re something you should consider applying for.

The True Cost of BorrowingDo you know what the true cost of borrowing is? Learn more about it here.

What Are Payday Loans?

Payday loans are typically made for limited amounts, usually no more than $800 to $1,000. They’re designed to be short-term in nature and are generally required to be repaid in full in one lump sum within a couple of weeks to a month. Usually, however, the loan amount – plus interest – must be paid back by the time you get your next paycheck.

When it comes to payday loans, it’s important that you know your rights.

Dangers of the Payday Loan Cycle

Consumers who are considering taking out a payday loan need to be wary of the potential dangers of such a loan arrangement. More specifically, the dreaded “payday loan cycle” that consumers can easily get caught up in, which is often very difficult to get out of.

The cycle can be a real challenge to break out of because of the extremely short time frame within which the loan amount is due. The majority of consumers who take out a payday loan typically need a lot more time to repay their loan than what they’re given.

As such, many find themselves taking out another payday loan in order to pay off the original loan they took out. And the cycle can continue on and on, making it tough to get out of debt.

So, how can you break this vicious payday loan cycle?

Take out a personal loan instead. Rather than continuing to make the cycle more difficult to get out of by taking out more payday loans, consider securing a personal loan instead. These are much easier to pay back because of their longer terms and installment payments. Plus, their interest rates are usually lower than payday loans.

Look into a debt relief service. Consider looking into a service that is designed to help get consumers out of debt. Depending on how serious your debt situation is, the program you choose will differ. There are debt management services, debt settlement services, and debt consolidation loans that may be available to you to help you deal with your mounting pile of payday loan debt.

How to Break The Payday Loan CycleTake a look at this infographic for even more information about the payday loan cycle.

Alternatives to Payday Loans

To avoid the perils of payday loans in Richmond, consider other loan alternatives, including the following:

Installment loans – Rather than repaying your entire loan amount in full with one lump sum as is the case with payday loans, an installment loan allows you to pay back your loan amount in installments. As such, you’ll have an easier time paying down your loan amount, placing less stress on your finances.

Home equity loan/HELOC – If you’re a homeowner and have at least 80% equity built up in your home (which is the value of your home minus what you still owe on your mortgage), then you might be able to qualify for a home equity loan or home equity line of credit (HELOC).

Car title loan – If you own a vehicle outright, a title loan might be a viable option to get your hands on much-needed funds. In this case, your car would serve as collateral for the loan, which can help you get a loan at a relatively decent interest rate.

Borrow from family or friends – Any family members or friends who you trust and who may be willing to lend you money might be a better alternative than taking out a payday loan. You can work out arrangements in terms of interest rates and when the loan amount is due to be repaid.

Keep an Eye Out For Predatory Lenders

Payday loan industry can be dangerous territory because of the predatory lenders who lurk. These types of shady lenders can suck you into a loan you think you need while getting you stuck in a neverending payday loan cycle.

To avoid these lenders, it’s important to know what to look out for. Here are some signs of payday lenders to avoid:

  • They charge triple-digit interest rates
  • They offer extremely short minimum loan terms
  • They require one balloon payment
  • They’re not transparent with their fees
  • They require a mandatory arbitration clause

These are all red flags of predatory lenders to help you steer clear of them.

Payday Loan Interest Rates

The biggest drawback of payday loans is the exorbitant interest rates that are usually charged. Typically, finance charges range from $15 to $30 for every $100 borrowed. While this may not seem so expensive, when you calculate the APR of a payday loan it’s often upwards of  500%.

Looking for relief from payday loan debt? Click here.

What’s the Difference Between Payday Loans and Personal Loans?

Payday loans and personal loans differ in many ways, including the following:

Loan term. As already mentioned, payday loans must be repaid in a very short time, usually a couple of weeks. In contrast, personal loans can be repaid in a few months or over a year.

Interest rate. Payday loans come with extremely high interest rates. Personal loans, on the other hand, are usually much more affordable in this department, though the exact rate you’ll be charged will depend on your credit score, income, and current debt load.

Payment schedule. Whereas a payday loan must be paid back in one lump sum, personal loans are installment loans, which means the full amount is repaid in installments over time.

Loan amounts. You’re limited in how much you can borrow with payday loans, which is usually no more than $800 to $1,000. Instead, personal loans allow for higher loan amounts, though the exact amount that you can get approved for will depend on your financial situation and your lender.

Payday Loan Rules in Richmond

Every province and territory across the country has its own specific regulations governing payday loans. In Richmond, no more than $1,500 can be borrowed, which must be repaid within 62 days. Further, payday lenders can’t charge any more than $15 for every $100 you borrow, and the loan can’t exceed 50% of your paycheck.

Online Payday Loans Options

You can easily find a payday lender on street corners where you can physically visit and get your funds on the spot. But there are also online payday lenders that you can look into that allow you to apply for a payday loan from wherever you have a secure internet connection.

Online payday loans are very easy and convenient to apply for and simply require that you fill out an online application and provide a few pieces of information and documentation. Approval is usually provided shortly after your application has been submitted, and the funds will then be deposited directly into your account.  

What Credit Score Do I Need to Secure a Payday Loan?

Your credit score plays an important role in your ability to secure different types of loan products. For conventional loans, a decent credit score is needed, usually anywhere between 650 to 680.

But when it comes to payday loans, credit scores don’t hold as much weight. In fact, payday loans don’t necessarily require a high credit score. Many borrowers who take this route do so specifically because of their bad credit scores. Payday loans are not offered based on a high credit score, but rather on income and a current and valid address and bank account.

Canadian Credit ScoreInterested in more information about credit scores in Canada? Click here.

What Do You Need a Payday Loan For?

Considering the potential pitfalls of a payday loan, it’s important to seriously consider why you would want to take one out to gain access to fast cash.

Since payday loans in Richmond can be extremely expensive and can get you mixed up in a difficult loan cycle, they should only be considered after you’ve really thought long and hard about what you need the money to cover and after you’ve considered other options.

Here are 10 questions you should ask yourself before taking out a payday loan.

Looking to Apply For a Loan?

If you’re in a financial pickle and need a loan to get the funds needed to cover a pressing cost, call Loans Canada. We’ll help you find the right lender and loan product that will help you get access to the funds needed. While payday loans in Richmond might be an option, we can help you find a better alternative to suit your needs.

FAQs

Can you get a loan with bad credit?

  • Yes, Canadians with bad credit can still qualify for a loan. Unsecured bad credit loans may be paired with higher interest rates, but consumers can still opt for a secured loan such as a car title loan to gain access to lower rates.

Will applying for a loan hurt my credit score?

  • If the lender performs a hard pull of your credit, yes your credit score will go down a few points. But it will recover over time. The most important thing is to make sure you don’t have too many hard pulls within a short period of time.

Can I pay off my loan early?

  • Yes, some lenders will allow you to settle your account early. Just keep in mind that you may be charged a prepayment penalty, which is typically a percentage of your remaining loan balance. Before you sign a loan contract make sure you understand the terms of your loan.

What is the difference between a secured and an unsecured loan?

  • A secured loan is backed by some form of collateral, typically an asset like a vehicle or piece of property. If a borrower defaults on a secured loan, the asset could be seized. An unsecured loan does not require collateral. The heightened risk of an unsecured loan may result in a higher interest rate, although this is usually a function of the applicant’s credit history.

How to tell if a lender is legitimate?

  • Choosing a legitimate lender can seem like a daunting task, but there are a few key factors to watch out for. For example, a legitimate lender will never ask for any form of upfront payment and should have many independent reviews you can look at online.

Can I transfer my loan to someone else?

  • Certain loans, for example, a car loan, can be transferred to someone else. But, a personal loan cannot be transferred.

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Posted by
Lisa has been working as a freelance writer for more than a decade, creating unique content that helps to educate Canadian consumers. She specializes in personal finance, mortgages, and real estate. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. She enjoys sharing her knowledge and experience in real estate and personal finance with others. In her spare time, Lisa enjoys trying funky new recipes, spendin...

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