How Can You Get a Payday Loan?

Getting a payday loan can be relatively easy and quick, making these loans a great option for those looking for a small amount of cash right away. Borrowers like payday loans because they are easy to acquire. Payday lenders don’t have a lot of hoops to jump through, so they offer a unique service to those who are sick of getting the runaround from banks and other lenders.

Discover the process of obtaining a payday loan.

Gather your info

Before applying, it is important to know what information the lender will require. While application requirements may differ from lender to lender, a few items are standard across the board. Borrowers will need to provide a form of identification and have an open bank account in good standing.

They will also need to provide the location of a permanent address and a phone number. Most lenders will also ask for specific information regarding the borrower’s income frequency, amount, and type.

Requirements

In addition to the information they must provide the lender, borrowers must meet a few specific requirements. In Canada, anybody taking out a payday loan must be a Canadian citizen and 18 years of age. Some lenders may have additional stipulations that must be met, but these are the ones that are specifically required by law.

Pick a location

There are an almost infinite number of different payday lenders, between the physical locations and the online lenders. It’s up to the borrower to find and choose which type of lender (brick-and-mortar or online) is the right one for them.

In addition, those looking to take out payday loans need to opt for a lender that can meet their needs in terms of the loan amount, timeline, fees, and other details. It’s advised that borrowers research lenders and find one right for them.

Submit an application

Payday lenders make their application processes fairly straightforward. If the applicant has collected the required information in advance, this step will be a breeze. Fill out the lender’s application form, ensuring to provide any requested documentation or proof.

Having a complete and clear application will make the decision much easier for the lender. The lender will provide approval or rejection within 48 hours – some lenders will even decide immediately!

Receive the loan

Assuming the loan has been approved, it’s now time to sign the contract and receive the money. The contract will outline the loan specifications, ensuring both the lender and the borrower are on the same page regarding all details. Payday lenders now deliver their loans almost exclusively through direct deposit.

Paying the loan back

When the time comes, the borrower has to pay back the money they borrowed, plus any outstanding fees. All the repayment details are clearly outlined in the papers signed at receipt of the loan. Lenders accept repayments in a variety of different ways. Some even still accept cheques.

Late payments

Ideally, borrowers would avoid paying their loan back after the due date, but there are some situations where this is unavoidable. In the case of late repayment, the payday lender may automatically withdraw the funds from the chequing account on file.

Alternatively, they may charge some pretty exorbitant interest fees. Some payday lenders have a great policy that allows borrowers to roll the loan into a new payment period. They only have to repay the fees from the first loan, and the loan amount is transferred onto a “new loan” of sorts. This helps eliminate significant interest fees.