Payday loans in Vancouver
Learn how to get a short-term loan in Vancouver.
Payday loans are short-term, high-interest loans offered by businesses to help borrowers cover unforeseen expenses between paycheques. These loans are one of the most expensive forms of short-term debt, but can do the trick if you need a quick and easy solution to make ends meet.
We’ve designed this guide to help you navigate the ins and outs of cash advance payday loans in Vancouver, so that you have as much information as possible before you sign on the dotted line.
⚠️ Warning: be cautious with short-term loans
If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call Credit Counselling Canada on 1800 007 007. It's open from 8:00am to 5pm, Monday to Friday. When comparing short-term loans, ensure you take into consideration all fees, charges and interest to understand how much your loan might cost in total.
Alternatives to short-term loans
Consider these alternatives before applying for a payday loan:
- Use online Government resources. The Financial Consumer Agency of Canada website demonstrates how small amount loans work – and suggests alternative options that may help you.
- Payment plans. Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan or receive an extension on your due date if you’re behind on payments.
- Contact your creditors. Speak with creditors about extending the due date of your payment, or working out a new payment plan that works for both of you. Seek personal loans elsewhere. Consider a small personal loan from a bank or a credit union. You may qualify for a loan with much lower interest rates than those offered by payday loan companies.
- Pay with credit card. Consider paying with your credit card to cover your emergency bills or payments. This is not a long term solution, as you’ll need to pay off the balance as soon as possible, but it’s an alternative to a short term loan with high – and immediate – interest rates.
Cash Money Payday Loan
- Minimum loan amount:
- Maximum loan amount: $1,500
- Interest Rate: Varies by Province
- Fees: Up to $17 per $100 borrowed (rounded to nearest dollar)
- Loan term: 12-14 days. Varies by Province
- Turnaround time: Within 2 hours with INTERAC e-Transfer® if approved
- Key requirements: Be 18+ years old, provide proof of recurring income
Can I get a payday loan in Vancouver?
Yes. Short-term loans are legal in Vancouver. The Consumer Financial Protection Action Plan helps protect people who take out payday loans.
Each province has its own rules that govern pricing. The most money you can borrow in a payday loan in British Columbia is $1,500 and the maximum term for this type of loan is 62 days.
Four quick facts about payday loans in Vancouver
- Maximum loan amount: $1,500
- Minimum loan term: 1 – 2 weeks
- Maximum loan term: 62 days
- Maximum interest: $15 for every $100 that you borrow
Compare payday loans in Vancouver
Check the websites of any lenders you’re interested in to confirm they operate in your province or territory of residence.
What fees will I have to pay?
Payday lenders in Vancouver are allowed to charge up to $15 for every $100 borrowed, which is one of the lowest rates in Canada. You also won’t be able to take out a loan worth more than 50% of your net paycheque.
Example: If your previous net pay is determined to be $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.
|Net Pay||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. The table below shows the fees on payday loans versus the typical costs of borrowing other types of loans for the same amount.
|Loan Amount (over 2 weeks)||Payday loan fee||Credit card fee (23%)||Line of Credit (7% + $5 fee)|
Can I get a no credit check loan in Vancouver?
There are some lenders that will offer no credit checks in Vancouver, but this may signal that they’re unlicensed or working unethically. These types of loans often accompany higher fees and rates, and can be tempting if you have a bad- or poor-credit rating. For your own security, it makes more sense to look for a lender willing to do a soft credit check, which won’t affect your credit rating. Oftentimes you’ll qualify for a loan, even if your credit score isn’t up to snuff.
What should I keep in mind before applying?
Payday loans are a particularly risky kind of debt because they have high interest rates and short-term repayment conditions. Some payday lenders will offer cheaper loans than others, so make sure you shop around for the best rate before you accept the terms of your contract. If you don’t think you can meet your repayment terms, it might make sense to think about short-term loan alternatives.
How can I tell if a lender in Vancouver is legit?
The easiest way to make sure a lender 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 lender displays a British Columbia licence number. Make sure that the business you’re aiming to use displays it’s license number on-location. You can contact Consumer Protection BC at 1-888-564-9963 to make sure the license is legit.
- The lender displays fees. Payday lenders are required to prominently display the rates and fees they charge at their physical location as well as online and in your contract.
- It doesn’t allow rollovers or multiple loans. You aren’t allowed to take out more than one loan at a time or roll your loan over to pay for a previous loan.
- It provides same-language contracts. Your contract is written in a language that you can speak comfortably.
- It follows consumer protection laws. Stay away from lenders who charge more than $15 per $100 loan.
Watch out for unlicensed lenders
The internet has made it easier than ever to get access to payday loans. While some predatory or unlicensed lenders work in Vancouver, the majority set up shop online. If you’re thinking about taking out an online payday loan, know the risks and your rights before you agree to the terms of your contract.
- Illegally high interest rates or fees. Some lenders will offer rates above $15 per $100 of your loan, which means you might end up paying much more for your loan that you would otherwise.
- Identity theft. Online lenders have been known to work with third-party companies to steal customer’s personal and banking information. Avoid handing over direct deposit information or other information that could put your security at risk.
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.
How to file a complaint against a lender
You can contact Consumer Protection BC at 1-888-564-9963 to discuss your options for filing a complaint. They also have a complaint form that you can fill out online. The organization will typically conduct an investigation if they believe that a payday loans company has breached BC’s consumer protection laws.
Short-term loan alternatives in Vancouver
If you’re not sure you want to take out a high-interest payday loan, you have other options. Here are some programs and lenders you might want to check out.
Vancouver assistance programs
Vancouver has a number of programs that can provide some much-needed relief for residents and newcomers who are struggling to make ends meet.
- BC Employment and Assistance Program helps people in financial need with monetary support and employment assistance.
- Affordable Housing program offers a range of housing support programs, as well as affordable and subsidized housing for low-income families and seniors.
- Disability assistance gives financial support to individuals who are designated as Persons with Disabilities (PWD) in the province.
Local financial institutions
If you don’t qualify for social assistance benefits, you might like to try your local credit union or bank for short-term loans. Some of these institutions are working to counteract payday loan providers by offering low-interest, short-term loan programs to help customers with unforeseen emergency expenses at a fraction of the cost.
When you’re buried in debt, any measures you take to save money or get your finances in order can feel hopeless. If you need a helping hand, it might be time to consider a credit counselling program for free debt and credit help. Credit Counselling Society of BC is one option that can help you with budgeting and consolidating your debts.
How can I apply for short-term loan?
You’ll need to meet the following eligibility criteria to apply for a loan in Vancouver.
- Be at least 19 years old
- Prove 3 months of continuous employment
- Give proof of address (e.g., they can ask to see a utility bill)
- Have a chequing account
To complete your application successfully, prepare to submit some basic information:
- Personal details, such as your name, date of birth, Social Insurance Number and a valid form of ID
- Contact details, such as your residential address, email address and phone number
- Details about your employment and income
If you’re looking for a quick and easy solution to deal with a short-term financial problem, then a payday loan might be just the ticket. Make sure you’re in the position to repay your loan by the deadline set in your contract. If you don’t think that you can pay back your loan on time, look into other alternatives like borrowing through a line of credit from your local bank or taking out a cash advance from your credit card.