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Direct deposit payday loan
Need funds fast? You can get a payday loan that can be directly deposited into your account.
Payday loans can give you quick access to money when you need it. There are a number of payday loan lenders who offer online loans, and they can deposit your payday loan directly into your bank account.
⚠️ Warning: Be cautious with payday loansHigh-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives.
Get a payday loan with direct deposit
Maximum borrowing costs of payday loans per provinceAlways refer to your contract for exact repayment amounts and costs as they may vary from our results.
|Province||Maximum allowable cost of borrowing|
|Alberta, British Columbia, New Brunswick, Ontario & Prince Edward Island||$15 per $100 borrowed|
|Manitoba, Saskatchewan & Nova Scotia||$17 per $100 borrowed|
|Newfoundland and Labrador||$14 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
How does a direct deposit payday loan work?
Online payday loan providers rely on the EFT (Electronic Funds Transfer) system to disburse funds and collect payments in Canada. When applying for a direct deposit payday loan, you’ll have to include your routing number for your bank, as well as your own personal account number. The lender will use these details to transfer money into your account.
The lender relies on the same information when your payment is due. They request the funds from your bank account on the due date. This can be a problem if you don’t have enough money in your account as the bank could charge you a fee for overdrawing money that you don’t have, while the lender could charge you a non-sufficient funds fee. Before taking out a loan, make sure you’ll be able to repay it on time.
What is EFT?
EFT, also known as Electronic Funds Transfer, is the backbone of the Canadian payment industry. This system works to electronically transfer money between 2 different accounts. In the United States, the system is known as ACH, or Automated Clearing House. These two systems are compatible, meaning you could send money electronically between the 2 nations, even though they use different payment systems.
How to choose a direct deposit payday loan
Not all payday loans are created equally. You should consider the following features when you’re comparing your options:
- Length of time to receive your loan. After it’s initiated, a direct deposit doesn’t take much time to go through, so even small variances in processing time can make a difference, especially if you’re in need of money urgently. Payday lenders don’t take the same amount of time to process applications, and many don’t work outside of business hours or weekends.
- Loan amount. You can borrow different amounts depending on provincial/territorial laws and your eligibility, but payday loans typically come with low minimum amounts. This is because payday loans generally need to be repaid by your next payday.
- Fees. The provinces have their own regulations for how much a lender can charge for a payday loan. For example, in Alberta, BC and Ontario, lenders can charge a maximum of $15 for every $100 borrowed. In Manitoba or Saskatchewan, the most a lender can charge is $17 for every $100 borrowed.
- Reputation of the lender. The payday loan space is known to be predatory. Find out what others have to say about the lender by reading reviews. If you’re set on a payday loan, choose a lender who abides by provincial regulations and properly assesses your ability to repay the loan. Learn more about legitimate lenders.
Benefits and drawbacks
- Multiple options. There are plenty of lenders who offer direct deposit payday loans. If you can apply for the payday loan online, chances are direct deposit is available to you.
- Apply from anywhere. As long as you can provide the required information and live in the province where the lender operates, all you need is access to the Internet to apply for a direct deposit payday loan.
- Freedom in spending money. You can spend the money you receive from a payday loan for just about any legitimate purpose. You can use this money to pay bills, to travel or to simply get by until your next payday.
- Need a bank account. You will need a bank account that is authorized to receive direct deposits. Your lender relies on this account to send your loan to you and to collect your repayments.
- High fees. Payday loans tend to charge higher fees when compared to other types of loans. If the fee is expressed as an annual percentage rate (APR), it would be in the triple digits.
- Short loan term. You’ll need to repay your loan by your next payday, usually within 1 to 4 weeks. This doesn’t give your finances much time to recover, which is why it’s important to be certain you can repay the loan.
Is there anything you should avoid?
- Avoid borrowing more money than you can afford. If you feel you might not be able to repay a loan on time, avoid taking one out in the first place. A late or missed repayment could lead to additional and costly fees, which can throw you into a spiral of debt.
- Avoid merely skimming over the loan offer document. Before you accept the loan, take time to go through its terms and conditions carefully. This should give you a clear idea of the fees and charges you might have to pay under various circumstances.
- Avoid bad terms. If you have a loan offer that is extremely costly and full of fees, you’re under no obligation to accept the terms. There are lender-matching services that can help you find a better loan.
Are payday loans available in my province or territory?
Payday loans are available in all provinces and territories across Canada. Payday loans are regulated by individual jurisdictions, meaning costs and fees can vary. Ensure that any lender you choose abides by the laws of the place you live.
Find out how much lenders can charge across Canada
Alternatives to payday loans
Consider payday loans as a last resort. Below are other options to take note of before applying for a payday loan.
- Installment loans. These are a type of personal loan offered by online lenders that tend to have shorter terms, smaller loan amounts and higher interest rates than the average personal loan. Direct deposit is available for this loan.
- Personal line of credit. Borrow up to a pre-set limit with an open term. Pay just the interest and pay off the balance any time. Online lenders like Mogo and Cash Money can consider borrowers with bad credit and non-employment income. Direct deposit is available.
- Credit card cash advance. Cash advances aren’t always the best option because of their high APRs, but if you’re in need of quick cash, the fees and terms may be better than those of a payday loan.
- Negotiate with your creditors. Contact them and tell them you’re having trouble keeping up with your debt. They may help you create a repayment plan or extend your due date to ease your financial burden.
Direct deposit payday loans give you the ability to apply for a loan from just about anywhere, and you can access your approved funds no matter where you are in the world as long as there’s an ATM around that allows you to withdraw from your bank account. Given the number of lenders online and loans on offer, comparing your options before applying is a necessary step in finding the best loan for you.
Frequently asked questions
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