One of the most frustrating, and common, scenarios among the workforce is dealing with the period between paychecks. Even with a well-crafted budget that includes emergency funds, it’s not uncommon to face financial hardship before your next payday. Often, the needs result from unforeseen expenses like a dental issue or car repairs. It causes workers to make almost impossible decisions between things like food and electricity and being able to actually get to work.
This is why e-transfer payday loans in Canada have come more and more popular. While payday loans in Canada are almost always a poor financial decision, in certain cases they can be useful.
What Are E-Transfer Payday Loans Canada?
E-Transfer payday loans are the modern adaptation of payday loans; where, unlike with traditional lenders, you can get your funds through an e-Transfer. Payday loans are a short-term loan service designed to cover cash flow issues in between paychecks. The loan terms involve annual percentage rates (APRs) which are applied to the amount you borrow. Payment is generally due after a period of two weeks; or, if you are paid monthly, on your next paycheck. Originally, borrowers had to go to a lender in-person to apply, though e-Transfers aim to make the service more accessible and convenient.
How Do E-Transfer Payday Loans Work?
E-Transfer payday loans in Canada are designed for ease and convenience, improving access to this useful service. So long as you have access to reasonable technology (like a computer or smartphone) and have an internet connection, you can complete the process at any time. Though you can find the services from multiple companies, they basically all follow the same procedure.
Apply Online For E-Transfer Payday Loans Canada
As with any other loan, the first step is completing the application. Navigate to the website of the company from which you want to get the loan. Follow the prompts on the web page to proceed. It is important to vet the companies you plan to deal with. Ensure that they are well-reputed and financially solvent so as to mitigate personal risk. Once you are sure that you are dealing with a viable business, you can proceed to the next step.
This is the part of the process where you indicate personal details that allow the company to verify both your identity and financial situation. This information includes:
- Personal ID: You will need to input your full name, address, phone number, and email address.
- Borrowing needs: The provider will require your borrowing needs, so indicate the amount which you wish to receive. Note that it cannot exceed the amount of your paycheque. Often, lenders restrict you to 50% of the amount, since you must be able to repay it plus the interest charged for the service.
- Banking details: Since the funds are provided digitally, you must provide your banking details. You can find the specific information on your online banking service or by looking at one of your cheques to identify the branch, transit, and account number.
The approval process varies based on the lender. Some companies offer immediate approval, while others require two business days to review your application form and provide you with a response. In most cases, you will receive approval. Though a soft credit check is often conducted to ensure that you are reasonably able to repay the loan, it is usually not a barrier to approval. In fact, if you apply in person, many agencies don’t require a credit check at all for a payday loan. Usually, the only caveat is if you requested too much money, where you may need to reapply. To save time, request a realistic amount that you will be able to pay back right away.
Receive Your Funds
The loan funds are sent to you via Interac e-Transfer, a secure method of transmitting funds in Canada. Generally, the Interac e-Transfer will go out within the following 15 to 30 minutes. It warrants a note that, often, e-Transfers can take up to 30 minutes to appear in your inbox, so be sure to let the full time elapse before following up.
Learn how to spot and avoid e-Transfer scams.
Repay The Loan
Just like with any other loan, the final step is to repay the amount. Per your agreement, the funds will be withdrawn directly from your bank account. The alternative to this method is to attend in-person, though for many this can be a logistical issue. Instead, most simply wait for the funds to be taken from the account. Keep in mind that, should there be insufficient funds in the account, you will incur an NSF fee from both the lender and your bank. Additionally, you won’t be eligible for another payday loan until the amount is repaid.
Benefits of an E-Transfer Payday Loan
Payday loans are prevalent for a reason — it lets you access money quickly. Particularly with the rise of curfews and lockdown orders, it can be challenging to get to a lender in a timely manner. Even without these time restrictions, it’s sometimes difficult to get to the lender office if you work shifts or there aren’t any nearby locations. The sheer convenience of e-Transfer payday loans adds value, but there are other benefits too. These include:
- Faxless and Paperless Application: The faxless payday loan application process requires no paperwork. It is entirely void of physical documents, letting you apply either through the online service or via an application.
- Simplified Approval: This type of payday loan involves short, straightforward, and intuitive applications that streamline the borrowing process.
- Quick Access to Money: Especially with lenders that offer immediate approval, you can access money quickly and from the comfort of your home.
- Poor Credit is Approved: Though many lenders complete a soft credit check, poor credit rarely acts as a barrier to approval. In fact, in just about all cases, poor credit applicants are approved for their payday loan request.
Other E-Transfer Loans in Canada
As the digital age takes hold in Canada, there are an increasing amount of electronic loans available to consumers. The services are not exclusive to payday loans, rather they extend to other arrangements like:
- E-Transfer personal loans: Provided you meet the income and credit thresholds, you can apply for a personal loan online. With a paperless application process, similar to payday loans, you receive the funds via e-Transfer and repay them via direct withdrawal. Many businesses offer personal loans of up to $45,000.
- E-Transfer lines of credit: In a matter of minutes, you can receive pre-approval for a line of credit. This process requires no paperwork and, just like an e-Transfer payday loan, can be done digitally, from the comfort of your home and on your time.
Am I eligible for an e-Transfer payday loan in Canada?
How fast can I get an e-Transfer payday loan?
How much can I borrow through an e-Transfer payday loan in Canada?
Are e-Transfer payday loans safe?
How do you accept an e-Transfer payday loan?
E-Transfer payday loans offer desirable efficiency, especially with today’s modern, digital lifestyle. The process is quick, approval is easy, and it lets consumers get the money they need when they need it. What’s important to remember is that, while the amount borrowed through payday loans may seem small, if it is not quickly repaid, it can cause a snowball effect. Before proceeding, ensure that you have a repayment plan that avoids taking out additional payday loans. Equipped with a prudent budget, you can make the most out of the e-Transfer payday services available and make your financial future that much brighter.
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