Instant payday loans in Canada

A payday loan is designed to give you access to funds in a short amount of time. Some lenders even offer instant decisions, instant approval and instant processing for payday loans. But what do these terms really mean, and how long does it really take to get your loan money?

What are instant payday loans?

When providers advertise “instant decision payday loans” or “instant payday loans”, they will usually let you know the outcome of your loan application within a few minutes or up to one hour after you’ve submitted your application. To secure online payday loans with instant approval, you’ll need to make sure you have all of the required information on hand so your lender can quickly assess your application and make a final decision. Otherwise, the lender may circle back to you to ask for more information, slowing down the process.

Lenders also promote “instant funding” or “fast funding” payday loans; they’re committing to getting the funds to you as soon as possible. If you’re applying in person, you can get your loan paid out in cash immediately, while in other cases you could receive an INTERAC e-Transfer for your funds in less than five minutes.

Exactly how fast are online payday loans with instant approval?

While many payday lenders can give an instant decision, the turnaround time for funding is the major point of difference. Some lenders can offer instant wire-transfer payday loans once your contract is received, while others take more time.

Can I get instant approval on a payday loan with bad credit?

The vast majority of payday lenders have pretty generous lending criteria compared to more traditional lenders, so getting fast approval on a payday loan with bad credit is possible.

In some cases, people with bad credit scores turn to payday lenders simply because it’s their only option to get approved for a loan. Instead of focusing on your credit score in the application process, payday lenders zero in on how stable your monthly income is to make sure you will have the funds to repay your loan. Payday lenders have a good incentive to take on your loan application too: these loans come with pretty steep interest rates and even more charges if you’re late with your repayments.

Learn more about this topic in our guide to getting a payday loan with bad credit.

How to compare instant decision payday loans

With so many instant payday lenders to choose from, you can compare providers and narrow down your scope of options based on these factors:

• Interest and fees

  Provincial laws govern the annual percentage rate (APR) that payday lenders can charge. This includes the interest, as well as other applicable fees. However, payday lenders in any given province will still charge different APRs and fees, so it’s worth comparing your options.

• Maximum loan amount

  This is another factor that depends on provincial regulations, but not all lenders provide loans up to the maximum allowed amount for first-time borrowers. In some cases, you might have to build up a history with a lender or at least repay your first loan on time before you qualify for the maximum loan amount.

• Loan term

  The time you have to repay the loan also depends on provincial laws. While some provinces let you rollover or renew your loan, others such as British Columbia, Alberta, Saskatchewan, Ontario, Nova Scotia and New Brunswick don’t. Whether or not you can get on a repayment plan also depends on the state of your residence. Check the applicable rules for your location and remember that the longer you take to pay the loan off, the more you’ll end up paying in fees. Typical payday loans are due in full within 1-4 weeks.

• Repayment flexibility

  Your lender should let you pay your loan off ahead of time without charging any additional fees or penalties. While payments via cheques and direct debit are commonly accepted, some lenders let you pay using a debit card as well.

• Application process

  How quick and easy is the application process? Instant payday loans in Canada can give you a decision within minutes of receiving your application.

• Processing time

  If you’re in a time crunch, figure out which lender that can offer instant wire transfer payday loans upon approval. It may be that payday lenders with physical stores are your best bet so you can apply, get approved and sign the paperwork on the spot, and receive your funds in cash. But if you don’t have a brick-and-mortar location near you, instant wire transfer payday loans can be sent to your account via INTERAC e-Transfer in as little as two minutes.

• Eligibility criteria

  If you have bad credit, a history of bankruptcy, an unstable income source or other factors that you’re worried about, double check to make sure the lenders on your shortlist can accommodate your unique circumstances. Some payday lenders encourage you to apply even though you have less-than-perfect credit.

• Lender's reputation

  Verify the lender’s details online to make sure it has a good reputation. The Internet gives you an easy means to find out what previous borrowers have said about any payday lender. If you find any reason to be wary, you should move on to another lender.

What to watch out for with instant payday loans in Canada

On the other hand, all consumers need to be wary of payday loans because they come with their fair share of drawbacks. Here are some red flags to watch out for before proceeding:

• High interest rates. Payday loans are known for their excruciatingly high interest rates when compared to conventional loans. If you don’t repay your loan on time, you could be penalized with additional fees. Explore all of your options before you decide to apply for this route. If you think you might have problems in paying the loan back on time, avoid taking it in the first place.
• It’s a short-term solution. You typically have to repay your loan on your next payday. Most payday loans need to be repaid in 1-4 weeks. If you want a longer loan term, consider an installment loan. Using short-term payday loans is not a solution for a long-term financial problem.
• Be careful of scams. When you apply for a payday loan and are approved, make sure you go through the loan contract carefully. This step gives you a clear picture of how much you might have to pay in different circumstances. Finding out about the payday lending laws in your province or territory ahead of time can also help protect you from unfair lending practices.

How to apply for an online payday loan

If you’ve done your research and you’re ready to apply for a payday loan, you can decide to apply in person, over the phone or online on your phone or desktop. Here are the typical steps involved in securing your loan:

1. Navigate to your lender of choice’s website. Click on the Apply Now button on the lender’s homepage, select your province and select Payday Loan from the product options. Your lender will state your province’s regulations – for Cash Money, for example, the application page states in Ontario, you can apply for up to $1,500 and the funds must be repaid within 40 days.
2. Provide your personal details, including your full name, address, date of birth, email address and phone number. With some payday lenders, you need to make an account to log in.
3. Provide your employment details, including the company name, company address, your job position and your monthly income, net and gross amounts. Payday lenders often focus on ensuring that you have a steady source of income.
4. Make sure you have a chequing account, routing and institution numbers (or a pre-authorized debit form from your bank). Some payday lenders also accept post-dated cheques. They’ll use this information to set up your direct deposit and to take withdrawals from your account for loan repayments.

Eligibility requirements will vary between lenders. If you’re looking for an instant approval payday loan, your best bet is to get all of the required documentation in place. That way, your lender won’t have to follow up with you to ask for extra details.

Frequently asked questions

• Can I get online payday loans with no credit check and with instant approval in Canada?

  Yes, you can. Some payday lenders do credit checks before approving your loan, but others don’t. If your lender isn’t considering your credit score in an instant approval loan, it will shift the focus onto your employment history, monthly income and existing debts. In a nutshell, its job is to decipher if you have the cash flow to keep up with loan repayments. Be careful with no credit check payday loans: while they’re an easy way to secure more cash when you’re in a pinch, you may be putting yourself at risk of staying in debt with steep interest rates. If you have bad credit, don’t let it deter you from applying for loans. These days, most online lenders explicitly state that they offer loan options to people with varying credit scores.

• What happens if I'm denied a payday loan?

  If you’re denied a payday loan, it’s likely to be due to a very bad credit score. You have the ability to apply for a loan from another lender, although you might be better off to improve your credit score beforehand.
  After all, payday lenders are among the most generous when it comes to offering loans to people with bad credit scores, and multiple rejected applications in a short amount of time is likely to cause even more damage to your credit score.

  Top 7 reasons for payday loan rejections

• Can I do anything to speed up the process?

  You can speed up the process by ensuring you provide all the information and documents asked for by the lender for with no errors. In many cases, the time of day which your application is made will have a bearing on the speed of application.