Same Day Pay Day Loans - are they really same day?
If you need money quickly, the first thing that jumps into your head might be to ask a friend or relative, or to use an existing source of finance, such as a credit card. However, getting a pay day loan can be quicker than any of these forms, even if you've never had one before.
How does it work
To apply for pay day loans, all you need to do is fill in the basic application form online. Your application will be evaluated, and, if approved, you'll be emailed immediately. The money is then paid straight into your bank account.
To apply, you need to have a regular income, be aged 18 or over, be an Ontario resident, and have a bank account. Your 'signature' for the loan is taken online by you clicking to state you agree to the terms, and there's no paperwork to fill out.
The payment is made by CHAPS transfer, which means that pay day loans should reach your bank account within 48 hours, but usually this is done on the same day.
Pay day loans can be for any amount, usually up to $1500. There is a fixed charge for the amount you borrow. The full amount, plus the charge, are owed back on your next payday.
The benefits
As there is a fixed charge, pay day loans are clear and straight forward, with no hidden or additional costs. With the money being paid back in full on your next pay day, it doesn't hang around for months, meaning it can be dealt with as quickly as it was paid.
Credit card borrowing, on the other hand, can be subject to a variety of hidden costs and charges, making it difficult to know exactly how much you'll end up paying back. Many people only pay the minimum back on their card, meaning the debt can take years to repay – in fact the amount owed can go up, despite repayments!
If using credit card cheques, the money can take over a week to hit your account, whilst the amount you can take out as cash on a credit card is limited and charged at a higher than normal rate.
If you have an existing balance on your credit card, the interest on cash will normally keep increasing until the whole balance is paid off.
All of this can cause a lot of hassle and confusion with your overall finances, for the sake of being unable to pay something one month. A pay day loan remains separate from your other finances. As well as usually being faster, pay day loans also avoid the problems surrounding borrowing from friends or family – a common cause of disagreement and damage of relationships with those around you - and mean that you can keep your personal finances personal.
