Loan Payments 101

Fairstone
Author:
Fairstone
Fairstone
Expert Contributor at Loans Canada
Caitlin
Reviewed By:
Caitlin
Caitlin Wood, BA
Editor-in-Chief at Loans Canada
Caitlin Wood has more than a decade of experience helping Canadian consumers learn how to take control of their finances. Expertise:
  • Personal finance
  • Consumer borrowing
  • Credit improvement
  • Debt management
📅
Updated On: April 29, 2021
iCash

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British Columbia Residents: iCash offers payday loans in British Columbia (license number: 67639)

Ontario Residents: Loan amounts and repayment terms are subject to qualification requirements. The maximum allowable cost of borrowing under the payday loan agreement is $14 for every $100 advanced. On a $500 loan of 14 days, the total cost of borrowing is $70, with a total payback amount of $570 and an APR of 365%. On a loan of 62 days, the APR is 82.42%.

Manitoba Residents: To learn more about your rights as a payday loan borrower, contact the Consumer Protection Office at 1-204-945-3800 or 1-800-782-0067 or at www.manitoba.ca/cca/cpo

Nova Scotia Residents: Payday loans are High Cost Loans. The maximum allowable cost of borrowing under the payday loan agreement is 14$ per every 100$ received, which means on a 100$ loan for 14 days, the total cost of borrowing is 14$, with total payback amount of 114$ and an APR of 365.00%.

PEI Residents: Loan amounts and repayment terms are subject to qualification requirements. The maximum allowable cost of borrowing under the payday loan agreement is $14 for every $100 advanced. On a $300 loan of 14 days, the total cost of borrowing is $42, with a total payback amount of $342 and an APR of 365.00%. On a loan of 62 days, the APR is 82.42%.

The Cashback Program and Refer a Friend Program are not available in Manitoba, British Columbia and New Brunswick.

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For this post, we’ve teamed up with our partners at Fairstone

When you know you need money and you’re thinking it may be time to get a loan, the first thing that may come to mind is loan payments. How much will your loan payments be? How frequently will you have to pay? And, are there ways to reduce loan payments? 

In this article, our partners at Fairstone answer the most common questions about loan payments and give you the information you need to stay in control of your loan. 

What Are My Loan Payment Options? And, How Do I Know Which Option Is Better For Me?

Generally, lenders allow you to choose one of three loan payment options. When choosing a payment option, consider factors like how frequently you’re paid and how you like to pay your current bills. Based on your preferences, one of these loan payment options may be better suited for you:

  • Monthly loan payments – you make a payment on your loan the same day every month, totalling 12 loan payments a year. This is a great option for people who are paid monthly or who like to have a predictable repayment schedule since it’ll always be on the same day every month.
  • Semi-monthly loan payments – you make two payments a month toward your loan, one halfway through the month and the other at the end of the month. In total, you’ll make 24 loan payments a year. This is a good option if you’d like to make smaller, more frequent payments, but like the regularity of paying on the same dates each month.
  • Bi-weekly loan payments – loan payments are made every other week, totalling 26 loan payments a year. Not only is this a great option for people who are paid biweekly, but this option also saves you money over time as you’ll pay less interest. Learn how bi-weekly payments reduce interest charges here

How Much Will My Loan Payments Be?

You can try a generic loan calculator to see if you can estimate loan payment amounts, but your best bet is to go directly to your lender. Not all lenders provide payment estimates, but luckily you can visit Fairstone.ca for a no-obligation loan quote. You’ll find out how much your loan payment might be based on the loan amount you’d like to borrow. The best part? It’s free and won’t impact your credit score. 

What Will I Pay In Interest Over Time?

Your interest rate is determined by many factors, including the type of loan you choose, how much you borrow, your credit history and other factors. Unfamiliar with how interest rates are calculated? This webpage is a great resource to learn more about how interest rates work

You can reduce interest charges by choosing a shorter loan term and a bi-weekly payment schedule. And, any extra payments you put towards your loan will reduce interest charges as well. If you’re interested in paying off your loan early or making extra payments, it’s important to ask your lender about any pre-payment penalties. Luckily, there are no pre-payment penalties on Fairstone’s unsecured loans.

What Can I Do To Stay In Control Of My Loan Payments?

If your lender provides the option, automated payments can keep help you keep on track with your loan payments. Once you have the payment schedule set up, loan payments will come from your bank account regularly, without any action from you. With automated payments, you’ll never miss a payment and won’t have to face any late payment penalties or interest charges. 

Payment affordability is a key aspect of getting a loan. You want to make sure you’re getting the right loan for you, and that the money you’re borrowing meets your needs and budget. Although it’s great to look at your borrowing options online, it can be worthwhile to sit down with someone to review your financial situation and get a good understanding of your loan options. With Fairstone, you can have both – a free, no-obligation loan quote and a knowledgeable Lending Specialist at a branch near you. 

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Fairstone

Fairstone Financial is a leading alternative lender in Canada, they have been helping Canadians since 1923. Their mission is to provide Canadians, with fair to good credit, with an affordable alternative to payday loans.

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