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Payday loans in Toronto: Everything You Need to Know

Toronto is the most populous city in the Province of Ontario. The city also houses some of the wealthiest neighborhoods in Canada which makes it an ideal city to live in. Besides the high cash flow and part time jobs in the area, there are a horde of exciting things to do and see in Toronto. Some of the great features in Toronto include:

Payday loans might be the most expensive loans in Toronto but they sure offer financial quick-fix. Unlike other loan products, such as car loans, processed within days, payday loans are processed within minutes. With many emergency loans lenders operating online, providing all the required details might see you getting approved within an hour of your application. This helps you take care of your short term loan needs in cases of unforeseen circumstances.

The payday loans in Toronto industry is growing. With it, more and more lenders are coming up and so are scammers. It is likely to get ripped off today than it was a few years ago. As a consumer, you need to avoid any pitfalls that can see you lose money. This guide gives you all you need to know to apply and successfully repay your payday personal loans in Toronto without falling for scammers.

Do You Qualify for Payday Loans in Toronto Online?

Are you in need of quick cash? Most online payday loans in Toronto have a simple application process giving you a loan after a short notice. Usually, these are small value loans that you take a few weeks before your next pay day. While you can walk into banks and other financial institutions, it is more convenient to apply for payday loans in Toronto online.

Payday loans are unsecured; the lender cannot ask for either collateral or guarantee for the loan. Granted, you will only need to provide the payday loan lender with a pre-authorized debit or a post-dated cheque and you are assured of easy cash advances.

Besides not asking for collateral or guarantee, most lenders will not consider your credit score when approving your application. However, they may require:

  • that you be employed for at least three consecutive months before application and prove it
  • that you give proof of residence – you might be asked to present a home utility bill
  • that you have a chequing account

The lender will ask for more details including your personal information, your employment details, and your banking details to prove the three requirements above before approving your application. As long as you are a resident of Toronto, and you are employed, getting safe quick approvals for payday loans is easy.

Government Limitations on Online Payday Loans in Toronto

The government keeps you protected just as it keeps fast cash advance lenders protected. For a lender to offer payday loans in Toronto no credit check, they need to be licensed by the Government of Ontario and should follow all rules as stipulated by the Payday Loans Act of 2008. The lender also needs to provide you with as much information about the payday loan as possible including:

  • loan amount
  • duration of the loan
  • charges associated with the loan

Payday loans in Toronto are not automatically deducted from your wage; the government does not allow that. Again, the government requires that lenders give a flyer or display the cost of taking a loan over time.

As a borrower, lenders are not allowed to offer you more than 50 percent of your income in a single application. The lender will determine how much to offer you based on your income. Again, these lenders cannot charge you more than $15 for every $100 loaned. The $15 charge includes all charges the lender might levy on the loan awarded. Lenders of online payday loans in Toronto will always show these charges as an annual percentage in adverts and loan agreements.

How to Find Good Payday Loans in Toronto with no Credit Check

There are many factors to consider before applying for Payday loans in Toronto online. With so many lenders online, it is tempting to pick the lender with lenient terms and conditions and forget to do thorough research.

Is The Lender Licensed?

Before applying for any payday loans in Toronto, you need to ensure that the lender is licensed. The government requires that the lender have a valid payday license and besides that, a legitimately licensed business is less likely to defraud you. Again, you need to be wary of businesses that pose as payday lenders online but are in real sense ‘lead generators’ who will collect your personal details and sell them to payday lenders. These lead generators expose you to cases of identity theft.

Since there are no minimum credit score requirements, payday loans are easy to apply but you are prone to scams when applying. As such, ensure to check with the government that the lender is licensed. On the website, select ‘License/Registration >> Lender/Loan Broker and search the name and address of the lender in the fields provided.

Most lenders will display their license number, their address, date the license was issued and date of expiry, and the legislation that binds the lender (that is, the Payday Loans Act, 2008). If a lender does not offer details such as address, ask from their support.

Resources for Finding Good Payday Loans in Toronto

While it is mandatory that a lender be licensed, that does not mean the business will offer you the best payday loans. After ensuring a lender is licensed, go on and research the lender’s reputation.

One of the places to research a business’ reputation is BBB Ontario. While the site will not offer you deep details such as whether a lender offers Payday loans in Toronto for ODSP, it will give you a rating and reasons for the rating. Good businesses should have A or A+ ratings on BBB. However, it is worth noting that just because a business is not BBB accredited doesn’t mean it is not legitimate.

Another great resource is Loans Geeks. Unlike BBB and TrustPilot, among other review websites, Loans Geeks specializes on loans. The website operates independently helping you compare different lenders and different loan products to get you the best deals. They help you find the most competitive loan APR.

You can also check other review sites such as TrustPilot to see what other consumers are saying. If consumers are unanimously negative about certain loan places, you need to reconsider these places.

The Application Process for Payday Loans in Toronto

You can apply Payday loans in GTA online or in a nearby payday loan store. Today, most banks have moved their operations online allowing you great convenience. While sitting on your couch at home, you can apply for a loan and get almost instant decision and approval on your loan. You can also claim for your payday loans child tax benefit in Toronto online and follow through anything else you need in Toronto.

The documents requested when applying for Payday loans in Toronto will vary depending on where you apply your loan and the loan funding process they follow; online applications or in payday loan storefronts. However, common documents include:

Personal Documents

Payday loans in Toronto are available for Toronto residents. The lender will need proof of residence and citizenship before offering safe instant loans. You might be asked for:

  • Valid ID; your passport or your driver’s license
  • Home address and proof of address
  • Contact details, that is, personal phone number and email address
  • Social Insurance Number, SIN

Note that, payday loans lenders no longer accept OHIP card. Lenders are not allowed by payday loan regulations to contact you more than three times a week and they can never contact you on holidays. Your contact details are, therefore, safe.

The SIN is not needed by many lenders who do not offer short-term loans on the basis of your credit score.

Employment Details

Employment details enable money lenders determine how much loan to offer you; which is not more than 50 percent of your income. Details requested may include:

  • Name and contact details of your employer
  • Payment cycles; that is, weekly, bi-weekly, or monthly or any other
  • Net income after a payment cycle
  • For Payday loans in Toronto for ODSP, or persons with disabilities, proof that the total income is at least $800 is needed

Even after the lender collects your employer details, the law does not allow lenders to automatically deduct the loan from your pay.

Bank Details

Bank details are needed to make direct deposit of quick funds in your bank. Details requested include:

  • Account number
  • Routing and institution numbers
  • Post-dated cheque for consumers who would rather not offer their banking details

On the date the payment comes due, the lender might withdraw the loan amount from your account. However, the lender is keen not to incur overdraft charges and may even forego costs of the loan in case they feel they will cause a large overdraft. Some lenders will offer you payday loans with no bank statement in Canada.

Most of the details requested when applying for different types of online loans are personal. As such, you need to be very careful not to willingly give your personal details to scammers online.

How Late Fees Work for Payday Loans in Toronto

Sometimes, much as you want to make the payment date, you aren’t able to repay your loan. Do not worry because the law protects you lenders who may have bad financial practice.

If you realize you cannot make the payment within two business days after loan agreement, the law allows you to cancel the contract without any additional fees. Cancellation, however, only works in situations where you still have all the loan money awarded. If you have already used the money or it is past two business days after opening the contract with a lender, you need to resort to other means to reduce penalties the lender might levy on your loan.

Fortunately for you, the law ensures the lender acts with decorum when collecting loans that are due. When you cannot pay the loan on time, you will suffer a few consequences that may cripple you financially.

Insufficient Funds Fees for You

Usually, Payday loans in Toronto are collected through a pre-authorized debit from the borrower’s chequing account. On the payment day, the lender will try to withdraw funds from your debit account – something they are allowed to do. However, if there are insufficient funds, the lender will charge you a fee for insufficient funds. Your bank, on the other hand, will also charge you a fee for insufficient funds.

Late Payment and Arrears Penalties

Most online and traditional lenders will charge a fee for late payment. This fee varies from one lender to the next. When filling out a loan contract, the lender should clearly indicate the charges for late payment and arrears. If the charges are not shown on the contract or they are not clear, you should ask before applying for instant cash. Your loan goes into delinquent accounts, if you do not pay on the agreed date.

Loan Collection Fees

In cases where you fail to repay your loan in time and the lender tries to reach you repeatedly in vain, your debt goes into collection. All administrative fees that go into the collection process will be levied on you. The administrative fees will vary from lender to lender.

All the fees that a lender levies on your payday loan Toronto have an impact on your credit score. While you can get payday loans in Toronto no credit check, increased fees will make it more challenging to pay your loan thus giving you a bad credit history.  Again, you cannot get another payday loan in Toronto before you repay the one you have. Before signing for a loan, learn all you can about loans and the law.

Tips for Avoiding Additional Fees with Payday Loans on Child Tax Benefit in Toronto

If you can’t repay your loan on the payment date, your best play is to call the lender and work out a new payment plan for your quick loans. Some lenders will not give you any leeway and will instead penalize you for failing to make payments. However, most lenders will allow you an extension with a little fee. Even then, the lender will not offer you a new loan before you pay off the loan you already have even if you still have financial issues that need settling.

Pay Your Loan Fast

In cases where you are running late on bills and you still need to repay your payday instant loans, you can resort to:

  • Credit card advances
  • Take a personal loan from friends or family
  • Use your RRSP funds (your retirement account) – work with Financial Services Commission, Ontario to avoid withdrawal charges

Take a Loan You Can Afford

While a payday loan is a fast loan to take care of financial needs that can’t wait, you still need to be careful before applying for it. To do that, you need to:

  • plan ahead so there is enough money in your account on the payment day
  • know all the fees that will be levied on your account in case you fail to pay on time
  • consider your budget vis-à-vis the loan you want to borrow
  • ask the lender the steps to follow if you do not manage to repay the loan on time
  • ensure that the lender does not charge you more than $15 for every $100 loan amount
  • Check for payday loans child tax benefit in Toronto before applying.
  • You can also make advance payment if you feel like you will mismanage your income

Ensure you have all the details about the loan you are applying to avoid huge tax penalty.

How will the Lender Contact You?

Payday loans in Toronto are paid back in one installment. Whether you have payday loans child tax benefit in Toronto or you applied the loan as person with disability, you miss the payment and your loan is considered default. Payday loan lenders contact borrowers on phone or visit you in person.

However, the lender is restricted by law and can only contact you between 7 am and 9 pm on Monday to Saturday and between 1 pm and 5 pm on Sunday. The lender is not allowed by law to contact you more than three times in a 7-day period and on holidays.

During the calls, the lender is not allowed to threaten you; they should not swear, bully or harass you into repaying the loan. If cases where the lender cannot reach you, they are allowed to call your employer, or those close to you, to ask how to reach you. However, the lender should never disclose loan details to your friends, family, or your employer.

Frequently Asked Questions

How do payday loans work in Toronto?

With a payday loan in Toronto, receive a quick advance on your next paycheck.

How to get out of payday loans in Toronto?

If you do not think you’ll be able to repay the loan, notify your lender as soon as possible and work with them to create a repayment plan. The debt will not just disappear without you confronting it.

Who does payday loans in Toronto?

There are too many payday lenders in Toronto to count. Thankfully, we at Loans Geeks have sorted through the pile to present you the most reputable.

How to consolidate payday loans in Toronto?

You really should only have one payday loan in Toronto legally. If you somehow have more than one, work with a debt consolidation service to receive a lump sum and pay them all off.

Who uses payday loans in Toronto?

People of all varieties use payday loans in Toronto to meet financial obligations and cover unexpected emergencies.

Which payday loans are easy to get in Toronto?

You’ll find that the payday loans we list on our site are among the easiest to apply for and receive in Toronto.

Who does payday loans without a bank account in Toronto?

Payday loans in Toronto that don’t require a bank account are almost impossible to find. This is because lenders will use your bank account to collect repayment.

How many payday loans can you get at one time in Toronto?

Provincial law permits you to only receive one payday loan in Toronto at a time.

How do payday loans check your credit in Toronto?

Most payday lenders in Toronto will not check your credit score.

How do payday loans affect credit in Toronto?

Applying for the loan itself should not affect your credit score; failure to repay will impact your score much like doing the same for another type of loan would.

5 Fun and Free Things to Do in Toronto

Toronto is great for tourists and Toronto residents. Even though this large city has prices that match its status, you can still find a horde of free things to do for free. Here are just fine you can try:

There are many more free things to do in Toronto that may not require you to apply Payday loans in Toronto online. You can also attend free festivals and events to keep your evening occupied as you enjoy the rich culture of Toronto residents.

Average Income by Age in Toronto

Toronto contributes up to 20 percent to Canada’s economy. It is a hub of all industries within Canada. Industries such as finance, media, tourism, and technology have taken centrestage in Toronto. It houses the third largest stock exchange in America, Toronto Stocks Exchange, with numerous international banks in the city.

According to the 2017 census data, the average income in Toronto is as follows:

  • Age 16 and above – $48,500 pa
  • Age 16 to 24 years – $12,700 pa
  • Age 25 to 54 years – $56,900 pa
  • Age 25 to 34 years – $44,900 pa
  • Age 35 to 44 years – $61,200 pa
  • Age 45 to 54 years – $65,500 pa
  • Age 55 to 64 years – $56,700 pa
  • Age 65 and over – $38,300 pa

Map of Toronto

Toronto Travel Guide

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