Is it time to pay your Internet bill or rent but you’re in a tight spot? A lot of Canadians feel the burn of debt right now. You might not have extra cash to pay bills until your next salary day.
Fortunately, you can get a sort of cash advance by applying for a payday loan.
Don’t know how to get a payday loan? Not sure why people turn to these loans in the first place?
We’re here to help you figure it out. Read our in-depth guide below and discover whether payday loans might be the solution you need.
Where to Apply?
Don’t know how to get a payday loan? The first thing you need to figure out is where to apply. Fortunately, you don’t need to stray far — you can apply right here, online!
That’s right, you don’t need to physically go to an office and apply for a loan. You can apply in the comfort of your home, whether on a desktop computer or a mobile phone.
This is a far cry from applying for a personal loan at the bank. You need to physically visit a bank branch, present your documents, fill up a form, and wait for days or weeks for approval.
Applying for a payday loan takes less than 5 minutes. You won’t need any documents unless lenders question whether you meet the requirements. Don’t worry, we’ll tackle each of the requirements below but let’s first discuss the process of applying.
How to Get a Payday Loan?
Getting a payday loan is as easy as filling up one form. You start by providing some personal information, such as your name, birth date, and contact information. You also need to provide your address and revenue information.
From there, you’ll have to indicate how much you need to borrow and then your bank details, such as your account number. The lender will deposit the amount directly into your account if you get approved. You also need to indicate if you’re on the edge of bankruptcy or if you plan to enter a consumer proposal.
At the bottom of the form, you’ll need to provide contact information of a safety contact. This is a person the lenders can contact in case they cannot get in touch with you. Providing a contact proves you intend to borrow with good intentions and not to make a quick buck and run away.
Once you submit the form, you’ll have to wait for the approval. Fortunately, this process takes only 24 hours. If you approved before 2 PM, you’re likely going to get a response — and the deposit — before the end of the day.
Of course, this is only if you meet the requirements. Let’s tackle those next.
What are the Requirements?
Do you need an impressive credit score to qualify?
The good news is that you don’t need a good credit score or any credit history to get a payday loan. Instead, payday lenders require proof of income.
Keep in mind these are short-term loans. Lenders prioritize your ability to pay as soon as possible instead of looking at long-term payment capabilities.
This means the first major requirement is stable employment. You’ll need to prove you’ve been in a job for at least three months. You also need to earn enough to pay off a loan, which is why most payday lenders require a minimum monthly salary of 1,200 CAD.
Other requirements include a Canadian bank account that’s been open for at least three months and receives direct deposits from your employer.
You also need to be a Canadian citizen with a Canadian address. Make sure you’re of legal age too, which means you can’t get a payday loan if you’re under 18 years old. After all, you shouldn’t have a long-term job if you’re not 18 yet.
That’s all you need!
If you have a stable job, a direct deposit bank account, and you’re a legal Canadian citizen living and working in the country and of legal age then you’re good to go!
What are the documents you need for a payday loan? You may need to provide a cheque from your bank and proof of ID.
Got Rejected? Here’s Why
Did your application get rejected? Here are a few reasons why that might happen.
First off, your source of income has to come from regular employment.
You won’t qualify if your source of income is a type of welfare. This means you won’t qualify if you depend on student loans, social assistance, self-employment, or disability income. Money from a private pension, CPP, child tax, and other insurance sources also don’t qualify.
There also might be concerns about your employment. You might not qualify if your employer doesn’t directly deposit your salary into your bank account. There will also be problems if the lender finds a discrepancy between your name and the name on the account.
Remember how the safety contact can offer assurance to the lender? You might not get approved if you can’t provide a contact.
How Do Payday Loans Help?
Why do people get a loan like this? How does getting a payday loan help?
Imagine a situation where your car broke down and you need to fix it by the weekend. Unfortunately, your salary doesn’t come in until the next Friday. How will you pay for the repairs now?
The solution is to get a payday loan! If you meet the requirements, you’ll likely get the money within 24 hours. This means you can fix your car and simply pay the loan by your payday, ensuring you don’t suffer from penalty fees and interest charges.
You can also rely on a payday loan in case you have to pay hospital bills, utility bills, or rent. Pay the bills with the loan and then pay the loan the moment you get your salary. With payday loans, you’ll never have to worry about late fees.
That said, always remember that payday loans are only short-term solutions. Don’t rely on payday loans to survive and get out of debt.
Apply for a Payday Loan Today!
Do you understand now how to get a payday loan? If you think you need one, don’t hesitate to apply. You might need to pay a bill, like your rent or Internet bill.
Interested in getting a payday loan? Contact us now and let us walk you through the process!