Cash Money Payday Loan
Borrow from $100
- Simple application process
- Fast turnaround time
- Extended business hours
Payday loans are short-term loans that are meant to cover unforeseen emergency expenses between paycheques. These loans are the least affordable way to get your hands on money, but can be convenient and easy to get if you need a quick solution to make ends meet.
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.
Yes, payday loans are legal in British Columbia. Each province has its own rules that regulate payday loan terms and costs. The Consumer Financial Protection Action Plan helps protect people in British Columbia who take out payday loans.
Here are the rules surrounding payday loans in BC:
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|
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. Payday lenders 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.
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||APR (%)|
|$1,000||$500||$15 per $100||$75||$575||391.07%|
You have two 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)|
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.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.