Cash Money Payday Loan
Borrow from $100
- Simple application process
- Fast turnaround time
- Extended business hours
Looking to get your hands on some fast cash to tide you over until your next paycheque? You might think about taking out a payday loan. But while they’re convenient and easy to get, payday loans are expensive and risky, often throwing borrowers into a cycle of debt.
We’ve designed this guide to help you navigate the ins and outs of cash advance payday loans in New Brunswick, so that you have as much information as possible to make an informed decision before you sign on the dotted line.
Yes, payday loans are legal in New Brunswick. Each province has it’s own regulations surrounding payday loans, and in New Brunswick, the Cost of Credit Disclosure and Payday Loans Act help protect those who take out payday loans.
Here are the rules surrounding payday loans in New Brunswick:
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|
Although New Brunswick has laws in place to protect consumers from predatory lending, you’ll still need to pay a maximum of $15 in fees for every $100 that you borrow. Payday lenders can’t give you a loan for more than 30% of your net paycheque and the loan agreement must list all of the charges, terms and conditions of the loan.
Example: If your previous net pay is determined to be $1000, the most you can borrow is $300. If you take out a 14 day payday loan, the chart below shows you the maximum you can be charged.
|Net Pay||Max loan||Max charge||Cost of interest||Repayment Amount||APR (%)|
|$1,000||$300||$15 per $100||$45||$345||391.07%|
You have two business days to cancel a contract for a payday loan without having to pay a fee. The comparison below shows the fees you will pay for a payday loan versus a typical credit card.
|Loan Amount (over 2 weeks)||Payday loan fee||Credit card fee (23%)|
Most lenders won’t do a credit check when issuing a payday loan. Instead, they’ll be more interested in you having:
This lenient criteria can be easy to meet – with the added bonus of not having to prove you’re a responsible borrower. However, some lenders who don’t do credit checks might be more likely to be predatory and illegitimate. This is why it’s important to do your research and use a reputable lender – whether they do a credit check or not.
If you’re struggling to make it between paycheques, a short-term loan has the potential to help you through your financial troubles. But keep in mind payday loans can be the most expensive solution for your short-term financial problems. You could save big if you think about other ways to solve your money issues.
If you do decide to take out a payday loan, it’s important to borrow only as much as you’ll be able to repay and to budget your repayments accordingly. If you default on your loan or the loan goes into collections, you’ll receive a negative mark on your credit report that can stay there for up to six years. Make sure to budget for the amount of money you plan to take out, and use a licensed lender.
The best way to make sure a lender is legit is to check their credentials with the Financial and Consumer Services Commission. Look for the following signs to make sure you’re working with a reputable business.
Online lenders can be a quick and easy way to get your hands on some fast cash, but they’re often difficult to regulate and don’t have to comply with provincial licensing regulations. Unlicensed online lenders can be problematic for a number of reasons. Watch out for the following:
Unlicensed lenders can operate out of New Brunswick – or even outside of Canada – making it difficult for the province to prosecute them. That’s why it’s so important to make sure your lender is licensed to operate in New Brunswick before you sign a contract and borrow money.
You can contact the Financial and Consumer Services Commission (FCSC) toll-free at 1-866-933-2222 to discuss your options for filing a complaint. The FCSC will conduct an investigation on your behalf if they believe that a payday loan business has breached New Brunswick’s consumer protection laws.
If the FCSC finds that your lender violated provincial law, it could take legal action against the business. This includes revoking its license, slapping it with a penalty and even filing a civil action to get a settlement for customers if the lender is facing numerous complaints.
Payday loans are one of the most expensive ways to access short-term loans. If you’ve had no luck asking family or friends for a helping hand, you might like to consider these other programs and lenders before you settle for a payday loan.
New Brunswick has some programs that can help lower the costs of everyday expenses for some residents and newcomers who are struggling to make ends meet.
Some credit unions and local banks offer less expensive small-dollar financing amounts with longer repayment terms. You could also look into credit builder loans, which come in small amounts and can help you improve your credit score by reporting every on-time repayment you make to credit bureaus. You also typically have more time to pay it off.
If you’re swimming in debt or can’t seem to reign in your personal finances, you might like to look into a credit counselling program. These can help you make a budget and manage or consolidate your debts.
If you’re interested in applying for a payday loan in New Brunswick, you’ll need to meet the following eligibility criteria:
To complete your application successfully, prepare to submit some basic information:
If you’re considering taking out a payday loan, familiarize yourself with the laws of New Brunswick to make sure you’re aware of the maximum amount of fees you can be charged, as well as other lending rules. As with all forms of credit, be prepared to pay for both the principal and the fees. Should you have other financing options, turn to those before settling for an expensive payday loan.
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