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Can You Get A Payday Loan?
Yes, payday loans are available to residents of BC, and they’re very easy to get approved for compared to other loan types.
Payday loans are usually made for no more than $1,500, so they’re only good for small cash needs. They’re also very expensive compared to other types of loans.
Interest fees in BC may be as high as $15 per $100 borrowed. Additional fees may also be charged if you’re late on your repayment.
What Is A Payday Loan?
Payday loan terms are very short, with maximum terms of 62 days. Because there is such a short window of time to repay your loan, it can be tough to meet this tight deadline. As such, you should only take out a payday loan if you’re certain that you can come up with the funds needed to pay the loan back, plus interest, by the due date.
If you don’t pay back the loan on time, you can’t take out another payday loan to pay off your old loan. This is known as “rolling over” your loan and is not permitted in BC. You’re only allowed to take out one payday loan at a time.
This is meant to protect you against the payday loan cycle of debt, which can happen quickly if you’re not careful.
Can I Get A Payday Loan Online In British Columbia?
There are several online payday lenders available in British Columbia. All you need to do is visit the lender’s website and apply online from wherever you are, at any time. All required documents can also be uploaded directly to the lender’s website.
The application process is quick and simple, and the funds can be deposited directly into your account or e-transferred in as little as a couple of hours after loan approval.
Are You Eligible For A Payday Loan In British Columbia?
To qualify for a payday loan in British Columbia, you must meet the following criteria:
- Be at least 19 years of age
- Be a Canadian citizen or permanent resident
- Have a valid address
- Have an active bank account that can accept direct deposits
- Have steady employment
To verify your identity and financial status, you may be required to submit any one of the following documents:
- Government-issued photo ID
- Social Insurance Number (SIN)
- Pay stubs
- Employment letter
- Utility bill (for proof of address)
- Banking information
How To Calculate The Cost Of A Payday Loan In British Columbia?
When you take out a payday loan, you’ll need to pay interest on the borrowed funds, which is how lenders earn a profit. As mentioned, payday loans in BC can cost as much as $15 per $100 borrowed.
To illustrate how much a payday loan in BC may cost you, let’s assume you’re borrowing $1,000 at $15 per $100 borrowed. At this rate, the cost to pay back the loan would be as follows:
| Borrowed Amount | Total Interest | Total Repayment |
| $1000 | $150 ($15 per $100 borrowed) | $1,150 $1,000 (originally borrowed funds) + $150 (interest on the loan) |
Other Costs To Consider
There may be other charges to cover in addition to the interest, including the following:
- Late payment fees
- NSF fees
- Overdraft fees
Can I Get A Payday Loan Online In British Columbia Via e-Transfer?
Yes, you can receive your borrowed funds through an e-Transfer, depending on the lender. In fact, an e-Transfer is the most common way that payday loan funds are sent to borrowers in BC.
As long as you have an email address and bank account, you can access your funds this way. Then, you can access the money directly from your bank account.
Can I Get A Cash Payday Loan Online In British Columbia?
You can get access to the money from a payday loan in several ways in British Columbia, including via cash. The payday lender must have a physical location, and you must visit in person to receive your funds in cash. This is the fastest way to get funded.
Payday Loan Laws In British Columbia
| Payday Loan Amount | You can borrow up to $1,500 with payday lenders, however, the amount cannot exceed 50% of your net pay. |
| Max Term | Payday loans must be repaid within 62 days |
| Interest | $15 per $100 borrowed. |
| Cooling Off Period | All lenders must give you the right to cancel your payday loan contract within 2 business days of approval without penalty. |
| Roll Over Law | No lender is allowed to force a “roll over” of your loan, meaning they cannot provide you with another loan to finance your first if you haven’t paid it in full |
| Contract Rules | All lenders in British Columbia and Canada, in general, must provide you with the exact details concerning your loan, payment process, interest fees, penalty charges, and any other related costs |
| Lender License | All lenders in British Columbia and Canada, in general, must have a business license validated by their provincial government |
| Default Consequences | NSF Fee |
Click here to learn more details about your rights when it comes to payday loans.
When Is A Payday Loan A Good Choice?
In truth, there are very few instances when a payday loan is actually a good idea. They should only be used under the following kinds of circumstances in British Columbia:
- You have a serious financial emergency on your hands that your income or credit cards won’t cover
- Your credit is so bad that you don’t qualify for any type of credit card, personal loan or other debt relief product
- You’re 100% certain that by the time your next paycheck arrives, you’ll have enough money to reimburse your lender in full, fees and all
When Is A Payday Loan A Bad Choice?
Almost always! But even more so when you’re in these types of situations:
- When your other regular expenses would use up most of or your whole paycheck
- When you do qualify for other, less predatory credit products in British Columbia
- When the cost you’re trying to cover is not a serious, necessary expense
- When your income is typically unstable (freelance, commission based, part-time hours, low wage/salary, etc.)
For some differences between personal, private and payday loans, check this out.
What Warning Signs Should I Look Out For in British Columbia?
There are only a few payday loan lenders left in Canada that still qualify as legal businesses. While no payday loan is cheap, some lenders are definitely more predatory than others, especially if they are scam artists preying on desperate people. Here are some several warning signs you should look out for to identify a predatory or fake lender in British Columbia and Canada, in general:
- The sales representative won’t give you all the required information. Just because you need very little to be approved, doesn’t mean the lender should simply take your banking information without discussing the terms and conditions of the loan properly. If it seems like your sales representative is sweet talking you and avoiding your questions or important information, walk away immediately.
- The lender uses forceful sales tactics. Just because payday lenders are businesses, that doesn’t excuse improper, rude behaviour on their part. If the lender is clearly being pushy and aggressive during the application or payment process, it’s a sign that they’re trying to intimidate and take advantage of you.
- They charge sky high-interest rates and other vague/hidden fees. While almost all payday lenders in British Columbia charge high-interest rates and fees, it’s important not to gloss over these details, even if they appear legitimate. Before you fork over any information, find out exactly what the lender charges and how much your loan will cost by the end of your payment term.
- They try to get you to “roll over”. The payday loan cycle starts to get worse when you can’t afford to pay your loan back in full within 14 days. If that’s the case for you, the lender might try to offer an extension of your payment period by an additional 14 days. Of course, these offers don’t come free and are illegal in in British Columbia and Canada, in general. It only leads to more hidden fees and more severe debt.
Payday Loans In BC FAQs
I’m unemployed. Can I still get a payday loan?
Will a payday loan hurt my credit score?
Why are payday loan interest rates so high?
Can I Get A Payday Loan Online In British Columbia Loaded Onto A Prepaid Credit Card?
Find a Payday Loan Alternative That Works
If you’re looking for an alternative to a payday loan or you’re having trouble dealing with your payday loan debt, Loans Canada can help. We’ll get you matched with the right lender or debt relief service provider in British Columbia. Fill out an application today!
