GoDay Payday Loan
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Payday loans are loans that are meant to cover unforeseen emergency expenses between paycheques. Consumers need to be careful with payday loans. While they can be convenient and easy to get if you’re in a pinch, these loans are a short-term solution and the least affordable way to get your hands on money.
We’ve designed this guide to help you navigate the ins and outs of cash advance payday loans in BC, so that you have as much information as possible to make an informed decision before signing on the dotted line.
Check the websites of any lenders you’re interested in to confirm they operate in your province or territory of residence.
|Province||Maximum allowable cost of borrowing|
|Alberta||$15 per $100 borrowed|
|British Columbia||$15 per $100 borrowed|
|Manitoba||$17 per $100 borrowed|
|New Brunswick||$15 per $100 borrowed|
|Newfoundland and Labrador||$21 per $100 borrowed|
|Northwest Territories, Nunavut & the Yukon||$60 per $100 borrowed|
|Nova Scotia||$19 per $100 borrowed|
|Ontario||$15 per $100 borrowed|
|Prince Edward Island||$25 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
|Saskatchewan||$17 per $100 borrowed|
Yes, payday loans are legal in British Columbia. Each province has its own rules that regulate payday loan terms and costs. Payday lenders have been regulated in BC since 2009, protecting borrowers by setting a maximum allowable cost of borrowing and by providing cancellation rights to borrowers.
The Consumer Financial Protection Action Plan helps protect people in British Columbia who take out payday loans.
Here’s a closer look at the rules surrounding payday loans in BC:
Overall, payday loans are meant to cover a short-term cash shortage until your next paycheque. If you take out a payday loan, make sure you have adequate funds to repay your loan on time by your next paycheque to avoid extra fees and charges.
If you’re interested in applying for payday loans in BC, you’ll need to meet the following eligibility criteria:
To complete your application successfully, prepare to submit some basic information:
Payday loans are notorious for their high interest charges. British Columbia allows lenders to charge up to $15 for every $100 borrowed, which is one of the lowest rates for payday loans in Canada, but one of the highest annual rates for loans. Payday lenders in BC can’t give you a loan for more than 50% of your paycheque and the loan agreement must list all of the charges, terms and conditions of the loan. While the longest term you can take on a payday loan is 62 days in BC, most lenders will require you to pay back your loan by your next payday.
Example: If your previous paycheque is $1,000, the most you can borrow is $500. If you take out a 14 day payday loan, the chart below shows you the maximum you can be charged.
|Paycheque||Max loan||Max charge||Cost of interest||Repayment Amount||Annual percentage rate (APR)|
|$1,000||$500||$15 per $100||$75||$575||391.07%|
Since most payday lenders in BC require that you borrow a payday loan for at least 7 days, the maximum APR you’ll face (with a 7-day payday loan) is 782.14% – no matter the amount you borrow (up to the maximum of $1,500, of course). Let’s take a look at how the APR can change depending on the term of your payday loan.
|Amount borrowed||Cost of loan||Total repayment amount||7-day loan APR||14-day loan APR||30-day loan APR|
You have 2 business days to cancel a contract for a payday loan without having to pay a fee. If your payday loan isn’t paid on time, you’ll likely be on the hook for additional fees and your loan will accumulate interest, making your financial situation worse.
The table below shows the fees you will pay for a payday loan versus a credit card and a line of credit.
|Loan Amount (over 2 weeks)||Payday loan fee||Credit card fee (23%)||Line of Credit (7% + $5 fee)|
Yes, BC lenders provide instant payday loans, which you can get online or in-store. With an instant payday loan, lenders expedite the application process, providing quick approval and instant processing so you can get funding in as little as minutes after loan approval.
For a seamless process, the onus is on you to make sure you’re eligible for the payday loan and that you’ve provided all the documentation required to secure your loan. If you’re missing information, your lender will circle back to ask you for supplemental information, which can delay the application process.
Documents and information you may need to provide include the following:
Lenders that provide instant payday loans in BC include the following:
If convenience is important to you, you may prefer to apply for a payday loan from the comfort of your home. The majority of payday lenders provide borrowers with the option to apply for a payday loan online, while a select few add in-person and over-the-phone services. Online payday loans in BC are subject to the same provincial regulations as in-store payday loans.
If you prefer to apply for a payday loan completely online, simply check on the lender of your choice’s website and navigate to the application page. Most lenders have quick, easy-to-follow applications that can be completed and submitted within 5 to 10 minutes. Compare online payday loans in BC.
This really depends on the lender. In many cases, online payday lenders run a credit check, while others don’t. A credit check is a key step for a lender to determine whether you can manage your loan repayments.
You can receive the funds from your payday loan in BC in various ways, depending on your individual preferences and which payday lender you opt to go with. Payday lenders can provide these options:
The best way to make sure a lender of payday loans in BC is legit is to check their credentials with Consumer Protection BC. Look for the following signs to make sure you’re working with a reputable business:
The Internet has made it easier than ever to get access to payday loans. Some lenders may be across the country or even across the world – which means they’re illegally distributing loans in BC. If you’re thinking about taking out an online payday loan in BC, make sure that you’re dealing with a licensed business and be aware of potential risks.
Check that online lenders are licensed, to be sure they’re following BC laws and not charging excessive interest rates. Read the fine print to make an informed decision about your loan and watch out for red flags to avoid running into further financial difficulties along the way.
You can contact Consumer Protection BC to discuss your options for filing a complaint. You can start a complaint by filling out an online form or by touching base with a customer service agent. The organization will typically conduct an investigation if they believe that a payday loans company has breached British Columbia’s consumer protection laws.
Before taking out a payday loan, try the following alternatives. They can help solve your immediate money shortage, while keeping you out of long-term debt.
British Columbia has a number of programs that can provide some much-needed relief to residents and newcomers who are struggling to make ends meet financially.
Many credit unions and local banks have developed short-term loan programs to counteract payday loan lenders. These programs offer lower costs and processing fees to eligible candidates. Some institutions even offer credit builder programs which provide small loans that can help build your credit score and provide short-term financial relief with longer repayment terms.
If you’re struggling under the weight of unpaid bills, then you might like to consider a credit counselling program. These programs provide free debt and credit help. Credit Counselling Society of BC is one option that can help you with budgeting and consolidating your debts.
If you need to get your hands on emergency money, consider the risks and know your rights before you sign on for a payday loan. Familiarize yourself with payday loan regulations in British Columbia to make sure you’re aware of the maximum amount of fees you can be charged, as well as other lending rules. Be wary of unlicensed lenders and pay back your loan on time to avoid paying additional fees or interest.
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