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Emergency situations often require immediate access to money. Anything from car repairs to a broken tooth can call for a quick influx of cash; and, if you don’t have established savings or credit cards, it can feel overwhelming. For these reasons, many turn to payday loans — a short-term lending arrangement that provides you with emergency funds.
When you receive your next payday, you repay the loan along with interest. Since payday loans are widely available and enable any consumer with a steady job (and the pay stubs to prove it) to access funds, they remain a widely used service.
A Warning About Payday Loans
Payday loans can seem like a convenient way for Canadian consumers to access the money they need quickly and with few requirements. But, payday loans are an extremely expensive loan product, with APRs of up to 500%. If you are considering taking out a payday loan, make sure you fully understand the consequences and research other viable options before signing any contract.
How do I Find a Payday Lender Near me?
There are a few different approaches to tracking down a payday lender in your area. By doing your research, you can find lenders with more competitive loan terms, easier application processes, and faster results. Some research methods include:
Go online and navigate to a couple of different search engines. Chances are Bing, Yahoo, and Google will have slightly different results. Type in your criteria, starting with the basics: payday lenders and your location. Alternatively, so long as your location settings are active, you can type in, “payday lenders near me” and get the same results.
Next, make yourself a list of lenders with a location in your area. You can do this either by consulting an online map; or, if you can access a vehicle or public transit, then simply make sure the municipality is consistent.
Once you’ve curated the list of potential lenders, it is time to narrow down the options. Research each lender individually. Learn what the application process entails, including the time to get approved, the amount you can access, the interest, and repayment terms.
When you look at the details of each lender side by side, you can more easily determine which lender is the best for your needs. Begin the application process through the company you’ve selected. Depending on the company you choose, the application will either be online or in-person at the branch.
Looking for online payday lenders? Check out our list of online payday lenders.
Use a Loan Comparison Platform
If you want to streamline the research process, you can consult a loan comparison platform. By providing you with a list of lenders who offer services in your area, the comparison site can cut down on the time required of your research.
While these sites enable you to find companies that offer services for your location, the lenders may not have physical branches. As a result, this is a better-suited option for those who prefer to rely on digital services. It’s also a good approach for those living in rural areas who still need to access a payday loan.
Check out how you can receive your payday loan through an e-transfer.
Loan comparison sites offer a lot of benefits, not the least of which is saving consumers time. Instead of going through each potential lender for specifics, you can compare their rates, loan terms, amounts, and consumer reviews at a glance. The loan comparison platform does the legwork of the research on your behalf, making it easier to find competitive rates on financial services like payday loans.
Check out what payday lenders and bad credit lenders look for in an applicant.
Process of Applying For a Payday Loan in Person
The application process for payday loans is fairly straightforward, particularly if you complete the transaction in person. As long as you’re prepared, getting your documentation ready ahead of time, you can make light work of the application process. The steps are simple:
- Visit the branch: Go to the location of your choice in person, supplying them with the necessary documentation. Bring pay stubs, banking details, proof of address, and a government-issued identification with you to prove the information you are giving the lender.
Prefer an application process with less paperwork? Check out the faxless payday loan.
- Fill out the application: The application process is fairly simple, focusing mainly on your job. The lender will want to know how much you earn, your position, and how long you have been in that role. Other details include your residential address and financial information. Usually, the application process can be completed in a single visit. The lender will review this; and, in most cases, approve the loan.
Worried about getting rejected? Learn how to avoid being rejected for a loan.
- Review the agreement: Once you’ve been approved, be sure to review the specifics of your contract. Pay extra attention to the repayment terms, including the rate of interest. Payday loans are federally regulated, so the amounts are fairly standardized. Usually, you are expected to repay the loan upon receipt of your next paycheck. If the terms work for you, sign the agreement, and the lender will give you either cash or a cheque for the loan.
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What to Look For in a Payday Lender?
When vetting potential payday lenders, there are a few necessary metrics to investigate. Be sure to follow the same steps for each lender to ensure that you are consistent in the details. Necessary steps include:
- Investigate the lender’s online presence: A reputable payday lender will have a well-established network of physical locations. Known companies like Cash Money and MoneyMart have retail outlets across Canada in addition to an established website. Ensure that the business is accredited, has a proven track record of success on the market, and makes sufficient information available online.
- Look into fee specifics: For any loan, you need to know what charges you incur for taking out the loan. These include any administrative fees, origination fees, the standard rate of interest, and any extra costs associated with defaulting on your agreement. All payday loans are regulated by the federal government, so the fees are fairly standard. However, to be competitive, lenders may offer slightly more competitive rates to incentivize consumers. Keep your eye on the specifics, especially if you are doing the research on your own instead of using a loan comparison site.
- Learn about the funding process: Depending on whether you complete the loan application process in person or online, the financing method will differ. If you get the payday loan at a branch, you can expect the money right away in either cash or cheque format. Conversely, if you are completing the payday loan application online, the funds should be available within 24 hours. The money will be transferred to the account whose information you supplied at the time of the application process.
Check out these alternative financing options to payday loans.
Choosing Between Online and in Person Payday Loan Providers
Determining how to access your payday loan depends largely on your personal situation. Both approaches have their own benefits, serving better those with different circumstances.
Online Payday Lenders
This approach is preferable for those who live in a rural setting where there are no nearby branches. If you don’t have access to a vehicle, it can save you a lot of time if you apply through an online service. Particularly if you are not fluent in the process of getting a payday loan, it can be better to stick close to home. Few things are less convenient than driving an hour to a branch, only to find out you left a necessary document at home.
However, the benefits of online services have a couple of caveats. For one, you need reliable access to the internet and to online banking. The online approval process takes a bit longer, and the funds are only then directly deposited into your account. As such, it is only a good solution if you don’t need the money right away.
In-Person Payday Lenders
Some circumstances make it easier to apply for a payday loan in person. If you are close enough to a physical branch, it can be more straightforward to take the time to apply at the location. This is especially true if you are new to the application process. A customer service representative can talk you through the steps, informing you of any necessary paperwork. It also gives you an opportunity to make inquiries as to the interest, repayment, or anything else about which you’re curious.
Ultimately, the main reason many choose to apply in-person is because of the rapid access to loan funds. Unlike digital applications, when you are approved in the branch, you will get either cash or a cheque immediately. This enables you to use the funds without delay, whether for groceries, to access medical services, or anything else which requires prompt payment.
Need cash quickly? Check out same day loans.
Documents Needed to Apply For a Payday Loan
In order to get a payday loan approved at a branch, the key to efficiency is bringing along all the necessary paperwork. The first thing you need is government-issued photo identification, such as a valid driver’s license or a passport. Bring a supplemental identification such as a healthcare card since most locations require two pieces of ID.
In terms of financial information, be sure to have both pay stubs and bank statements. Generally, lenders expect at least three consecutive prior paycheques. However, if you have access to them, bring three months’ worth of proof of payment. Additionally, you will need to show your bank statements, also for the preceding three months. This proves several things, including your address, that you deposit the cheques into your account, and that you are able to repay the loan with your next cheque.
Finally, the lender will request your bank account details, including your account number, branch details, and transit number. These numbers correspond to your bank account; and, while the information is usually found on your bank statement, you will need to sign something explicitly giving the lender consent to withdraw the repayment when the time comes.
Do I need a bank account when applying for a payday loan in the physical branch?
Will the payday loan lender give me cash or a cheque when I apply in person?
Can I get a payday loan at my local bank?
While the payday loan structure is straightforward if the agreement isn’t followed stringently, then penalty fees can accrue quickly. The key to success is doing your research and find the right type of loan that meets your needs, whether that’s a payday loan or another more affordable option.
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