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Direct payday loan lenders
Direct payday loans are an option for borrowers with bad credit who need funds fast.
If you’re in need of some cash but have a poor credit score, you can apply for direct payday loans. These loans are handy when a traditional lender, like a bank, cannot give you a loan because you have a bad credit history.
⚠️ Warning: Be cautious with payday loansPayday loans are expensive. 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). Consider alternatives instead of a payday loan:
- Local resources. Government programs and nonprofits offer free financial services and help with food, utilities and rent.
- Debt relief companies. There are services to help you reduce your debt payments.
- Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
- Side jobs. Sell unwanted items online, sign up for food delivery and more.
Direct payday loans
These direct payday loan lenders all have online applications.
Maximum borrowing costs 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||$17 per $100 borrowed|
|Nova Scotia||$19 per $100 borrowed|
|Newfoundland and Labrador||$21 per $100 borrowed|
|Northwest Territories, Nunavut & the Yukon||$60 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
What is a direct payday lender?
A direct lender of a payday loan is a lender that provides small-dollar loans directly to the borrower. This means that your information stays in one place, but you won’t get a chance to shop around and compare your options.
How do direct payday loans work?
Depending on the lender you select, you can apply online or in-store, and the application should only take a few minutes to complete. Most lenders process applications quickly and let you know if you’ve been approved soon after. Once you sign the contract, you typically have to repay the loan along with all applicable fees by your next payday.
Online applicants can get their money transferred electronically into their bank account, and in-store applicants can collect their approved funds in person shortly after approval.
Keep in mind that payday loan regulations are not the same in every province. Some aspects that can vary include the maximum amount you can borrow, the term and whether or not you can extend your loan.
Key features of direct payday loans
- Loan amount. The range is usually $100 to $1,500, but how much you can personally borrow depends on your income.
- Borrowing fee. The fee depends on your province or territory. You can expect payday loans to be between $15 and $25 for every $100 borrowed.
- Loan term. Direct payday loans are typically repaid by your next payday.
What to look for in a direct payday loan lender
Not all direct payday loan lenders are the same. Pay attention to these points while comparing lenders:
- How easy is the process? Online direct payday lenders are an easy way to apply for a payday loan, but not all online applications are equally user-friendly. Some lenders might ask you to fax certain documents to verify your credentials, and the overall time these lenders take to review applications, approve your loan and disburse your funds varies significantly.
- What types of income do they accept? Some direct payday lenders accept more types of income than others. If you’re on government benefits, check that the lender you’re interested in accepts your income.
- What is their reputation? The payday loan space is known to be predatory. Check that the lender is provincially licensed and properly assesses your ability to repay the loan.
Benefits and drawbacks of a direct payday lender
- With you from start to finish. When you work with a direct lender, you deal with a single institution throughout the process — from applying to the disbursement of funds and repaying the loan. This can make borrowing much simpler.
- Information is secure. Loan connection services can pass your personal information to various third parties, and there’s no telling how many marketing calls might follow.
- Miss no opportunity. While a number of loan connection services boast extensive lender networks, they might still manage to miss a few good ones. When you’re on your own, you can take the time to look for ones based on your specific needs. You don’t have to worry about missing out.
- Spend more time looking. If you limit your search to direct payday lenders and refrain from using a loan connection service, you may end up spending more time to find the right loan.
- Disreputable lenders. There is always a chance of finding a disreputable lender online. Make sure you check the reputation of the lender before you apply.
- Costs and terms. A drawback of any payday loan is the cost: You’ll likely pay a high APR in the triple digits. You also won’t have much time to repay your loan, with most loans due on your next payday.
Is there anything to avoid?
- Avoid taking out more than you can afford. Even if you’re looking for direct payday lenders because you have an immediate financial need, keep in mind you’ll have to be able to repay the loan. If you’re not sure about your ability to repay on time, you may want to avoid taking the loan out in the first place.
- Avoid late payments. When you make late payments, lenders will charge late fees. And if there’s no money in your bank account on the due date, you could end up paying nonsufficient funds fees, too. Banks and credit unions charge these fees to cover the costs of a bounced cheque when there aren’t enough funds in your account to cover the repayment.
- Avoid settling. Given that there are dozens of direct payday lenders in Canada, it’s best that you compare a few before making any kind of a decision.
Should I borrow from a direct payday loan lender?
You might want to use a direct payday lender in the following situations:
- You need money today. When you don’t have time to shop around, working with a direct lender that you trust could get you the money in the easiest way possible.
- You want to avoid broker fees. While there are some connection sites that can help you find a payday loan for free, brokers can charge fees that make an already-expensive product even more costly.
- You want to avoid lender calls. One of the main drawbacks of working with a broker or connection service is that you might receive calls from lenders, well after you’ve taken out your loan.
- You don’t have a bank account. It can be hard to filter for lenders that don’t require a bank account through connection services or brokers — you might have to do that research yourself.
How to apply for direct payday loans
Applications can easily be completed and submitted online. In order to secure a loan, you will typically need to meet the following requirements:
- Be a Canadian citizen or permanent resident
- Meet the age requirements (usually 18 years of age, or the age of majority in your province or territory)
- Have proof of a steady income
If all of the requirements are met, there are just a few steps to apply:
- Provide your name, date of birth, address and email address
- Provide the necessary ID, like a copy of your passport or driver’s licence, if applying online
- Give details about your employment status and income
Frequently asked questions
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