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Can You Get A Payday Loan In Calgary?
Yes, payday loans are available to residents of Calgary. A payday loan is a type of short-term loan that is relatively easy to get approved for and comes with quick approval and funding. You can often secure a payday loan even with bad credit.
Once you’re approved for the loan, you’ll be given a lump sum of money, which you must repay in a single payment by the time you receive your next paycheque. Terms are very short and can range from 2 weeks to no longer than 62 days.
Loan amounts are much smaller than other types of loans, and are typically no more than $1,500. Interest rates for payday loans are among the highest in the industry, with APRs reaching as much as 500% or more.
Payday loans are very easy to get and can provide urgent funding when you’re in a financial predicament. But considering how expensive payday loans are and how difficult it may be to come up with the repayment amount in such a short amount of time, these types of loans should only be used as a last resort.
Can I Get A Payday Loan Online?
While you still have the option to visit a payday lender in person, you can also apply for a payday loan from an online lender. The entire process takes place online, including funding.
Not only is this the most convenient route to take, but it’s also the fastest. You can be approved and funded within the same business day after applying for your loan. This can come in really handy when you need fast cash.
There are several legitimate online lenders available in Calgary to apply with, even if you have sub-par credit.
Payday Loan Laws In Calgary You Should Know
Payday loans are regulated on a provincial level and have numerous regulations due to their predatory nature. Before applying for a payday loan, it’s best to understand the laws surrounding payday loans in Calgary to better protect yourself.
| Term | Definition |
| Payday Loan Amount | The maximum payday loan amount in Calgary is $1,500. |
| Maximum Term | The longest term for a payday loan in Calgary is 62 days. |
| Maximum Interest | Payday lenders in Calgary cannot charge any more than $15 for every $100 borrowed. |
| Repayment | No payday lender is allowed to demand payment by assignment of wages or automatic deduction from your paycheque. |
| Cooling Off Period | All payday lenders in Calgary must allow you a 2-day cooling off period, within which you may cancel your loan without penalty. |
| Roll Over Law | No lender is allowed to “roll over” a loan. This means you must pay off your first payday loan in full before they can provide you with another one. |
| Contract Rules | All lenders in Canada are required to provide borrowers with a contract that explains in detail the loan, payments, interest, penalty fees, and all other related costs |
| Lender License | All Calgary payday lenders must have a business license that’s been validated by the provincial government |
| Default Consequences | NSF Fee |
What Are The Requirements For A Payday Loan In Calgary?
The criteria to get approved for a payday loan in Calgary are much less involved than a traditional loan. That said, you still need to meet certain requirements to secure a payday loan, including the following:
- Be at least 18 years old
- Be a Canadian citizen or permanent resident
- Reside in Canada and have proof of address
- Have steady employment
- Earn a reliable income
- Have an active chequing account
To prove all of these requirements, you may need to supply a few documents, such as the following:
- Photo identification
- Employment letter
- Recent bank statements
- Recent pay stubs
- Utility bill with your address on it
How To Apply For A Payday Loan In Calgary?
To apply for a payday loan in Calgary, follow these simple steps:
Step 1. Complete The Application
If applying with an online lender, you can fill out the application through the lender’s website. Make sure all the information you provide is accurate.
Step 2. Submit Required Documents
To help the lender verify your identity and financial status, you’ll need to supply any one or more of the above-mentioned documents. The exact paperwork required will depend on the lender.
Step 3. Wait For Approval
Online payday lenders usually provide approval within the same business day.
Step 4. Get Funded
You can expect to have the funds sent to you via Interac e-Transfer or direct deposit shortly after approval.
How To Calculate The Cost Of A Payday Loan In Calgary?
The cost of a payday loan with a 14-day term would cost up to $1,725 if you were to borrow $1,500. Depending on the amount you borrow, the cost of your payday loan will vary.
| Amount Borrowed | $100 | $300 | $500 | $700 | $1,000 | $1,500 |
| Total Cost | $115 | $345 | $575 | $805 | $1,150 | $1,725 |
Should You Use A Payday Loan Or Personal Loan?
As we said, payday loans are very easy to get. They are usually small loans, $1,500 or less and must be fully repaid within 14 days of your approval. They are also appealing because:
- No credit check will be performed
- They offer same-day approval
- You’ll receive your funds on the same day
- An Calgary address, viable income, and bank account are the only proof required
Personal loans are slightly different, even though you’ll also be applying for a lump sum, which you’ll have to repay by a certain due date. Personal loans are different and often more beneficial because:
- You can apply for much larger loan amounts (up to $100,000 with some banks)
- Your loan will be divided into equal payments, making it more affordable
- You can negotiate for a longer or shorter payment schedule
- Interest rates are typically much lower than with payday loans
- Penalties for defaulting on payments are usually less severe than payday loans
How Do Calgary Borrowers Get Stuck In The Payday Loan Cycle Of Debt?
The reason that payday loans can be such a hazard to your financial health is that they come with extremely high-interest rates, sometimes up to $15 per $100 you borrow, which is the limit in Calgary. Borrowers usually get stuck in a payday loan cycle because they borrowed more than they can afford.
When a borrower is unable to pay back their loan by its due date, they’ll be charged a penalty, plus additional interest on the amount they have left to pay. Usually what happens is a borrower will have to drain their bank account just to pay off their loan in full. Leaving them with nothing left to cover other expenses. Thus, they may be forced to take out another payday loan. This is how the payday loan cycle of debt starts.
Alternatives To Payday Loans In Calgary
As mentioned, payday loans can be risky. You don’t have much time to repay what you owe, and the interest rates can be exorbitant. Luckily, there are other options to consider when you need a quick cash fix:
Installment Loans
Most loans are classified as installment loans, which means you repay what you owe through regular installment payments. Many online lenders offer personal installment loans, often without the need to have good credit.
Credit Card Cash Advances
If you have a credit card, you may be able to use it to tap into your credit to get immediate access to cash. All you need to do is visit the nearest bank machine instead of going through an application and approval process for a new loan. Just keep in mind that the interest rate for credit card cash advances is usually a bit higher than purchase rates, and the interest will accrue as soon as you withdraw the funds.
Bank Overdrafts
If your bank account is currently in good standing, you might be able to withdraw more than what your current balance is. This would put you in overdraft, you will likely have to pay interest on the balance as well as a one time fee.
Are You Having Trouble Managing Your Debt?
If you’re struggling with debt, consider applying for the following debt relief programs:
- Debt consolidation program – You’ll work with a credit counsellor in Calgary who will create a plan of action based on your finances. They’ll get in contact with your creditors and hopefully negotiate a payment plan. You’ll then make regular payments through your counsellor to pay back your creditors.
- Consumer proposal – This involves hiring a Licensed Insolvency Trustee in Calgary to offer a proposal to your lenders for you to pay back a portion of what you owe. If accepted, you’ll make payments through your trustee, who will send the payments to your lenders for you.
Calgary Payday Loans Faqs
What is the easiest payday loan to get approved for?
How do I know if the payday lender is legitimate?
Can I get a payday loan using my EI?
Choose Loans Canada
In the end, the choice you make should be made based on your specific financial needs. Do not apply for a payday loan unless it is your only option. If you’d like to avoid the payday loan cycle or you need help getting out of the one you’re in, contact Loans Canada today. We’re confident that we can help you.
