What Is a Payday Loan?

Also called a cash advance or a payday advance, a payday loan is a short-term emergency loan usually payable on your next paycheck.

What Are the Eligibility Requirements?

Most payday loans companies require the following minimum qualifications for approval of cash advances, although policies will vary from one company to the next:

* Nineteen years of age

* Working with the present employer for at least three months

* Active checking account with a minimum of seven transactions and no NSF charges for the last 30 days

* No bankruptcy filings in the year previous to the application

* Active phone to reach you when your payday loans and cash advances in Ontario are approved

What If I Want to Cancel?

Under Ontario law, you are allowed to cancel two days after filing of your loan application. This is, of course, subject to conditions outlined under said law.

How Do I Get My Money?

You have two options in this regard. You can pick up the cheque from store locations nearest you or you can have it directly deposited to your bank account. Payday loan companies require authorization to debit your account on your payday and/or request your personalized cheque postdated on the agreed day for payment.

How Fast Can I Get My Money?

Most payday loan companies process applications within 30 minutes of receipt although high volume of transactions can alter lead time. However, in most cases, you can secure your money within the same day.

Is My Personal Information Safe?

It depends on the company's security network. You must ensure that the company guarantees utmost confidentiality and security in regards to all the information you provide for it. Also, your information must never be provided to third parties in any way.

Do You Accept Applicants with Bad Credit?

The payday loans industry accepts applicants whose credit history may be unacceptable to other lending institutions. Please refer to the abovementioned minimum eligibility requirements for payday loans and cash advances in Ontario as adapted by most companies.

Do You Require Loan Collateral?

With a payday loan, collateral is unnecessary. Your job is your "collateral" subject to requirements like 3 months' employment on a regular basis.

Also, take note that companies may not offer payday loans and cash advances in Ontario to individuals who are employed on temporary and seasonal basis as well as on commission. Likewise, individuals on social assistance, worker's compensation and on disability may be ineligible for payday loans.

How Long Do I Have to Pay the Loan?

It depends on the option you chose in the terms of agreement. Usually, payment will be on your next payday although terms can and will vary.