Did you know all financial institutions, private loan creditors, and third-party lenders in Saskatoon that provide payday loan services are regulated by the Payday Loans Act? This aims to protect payday loan borrowers from possible loan fraud and debt traps. If you’re interested in learning more about payday loans in Saskatoon, continue reading!
Regulations Regarding Payday Loan Services in Saskatoon
Before considering payday loan services in Saskatchewan, it’s important to understand the laws surrounding the industry. Let’s take a closer look below.
The maximum amount you can borrow from a payday loan service provider is capped at $1,500. You are also not allowed to borrow more than 50% of your net income, which will be based on provided bank statements or paycheck records.
Loan fees and charges
For payday loans in Saskatoon, lenders can only charge you up to $17 for every $100 you borrow. This amount already includes interest and other fees associated with the loan. Capped rates ensure the borrower is paying a reasonable amount for their financing.
If you default on payday loans in Saskatoon, lenders may charge you with penalty interest of up to 30% per annum on the loan principal amount. Apart from that, lenders may also charge non-sufficient funds (NSF) fees of up to $25 if your pre-authorized debit or cheque was dishonoured. You can't be charged any other fees or penalties outside of these.
Lenders must follow the collection practices outlined in The Collection Agents Act. According to these laws, lenders are not allowed to perform any form of harassment or threaten borrowers to get payment for a loan. Lenders are also not allowed to access your provided bank account more than 2 times to collect loan payments.
Eligibility Self-checks Before Submitting Your Payday Loan Application
Before getting a payday loan in Saskatoon, you should perform self-checks in advance. This will ensure you meet the criteria before you actually submit an application. You'll need to meet these eligibility criteria to get your payday loan request approved:
- Be at least 19 years old
- Proof of at least three continuous months of employment
- Proof of residency in Saskatoon including utility bills, internet bills and phone bills
- Active chequing account under your name
Upon submission of your loan application, you'll also be required to provide your personal information including your full name, date of birth, Social Insurance Number and valid contact information, such as email and phone. You should also be able to present a valid government-issued photo ID.
Obtaining Online Payday Loans With Bad Credit In Saskatoon
If you are looking for bad credit payday loans in Saskatoon, below is the related information you might want to know. More specifically, credit score considerations and how payday loans work around bad credit borrowers.
How bad is a bad credit score?
In Canada, credit scores range from 300 to 900. Around 574 or lower is considered a bad credit score. However, it depends on the lender and what other factors they assess. Not sure what your credit score is? You can obtain a free credit report from both Equifax and TransUnion each year. In addition, you can check your credit score using free apps like Borrowell.
Can I get loans with bad credit through WeLoans?
Yes, you can obtain loan services for bad credit in Saskatoon through WeLoans. Having a low credit score doesn't mean you can't apply for any loans at all. There are many lenders within our partner network who consider bad credit borrowers.
Advantages of Using WeLoans To Get Your Payday Loans In Saskatoon
Here are some of the reasons why you should consider WeLoans when you need immediate, secure and reliable online financial solutions.
Large Lender Network Across Canada
WeLoans has a network of over a hundred licensed lenders in Canada. This gives you more chances of getting affordable and legitimate loan offers to compare in one place. No need to shop around and compare prices, WeLoans makes it easy for you!
Zero Paperwork Needed & Online Services Available 24/7
We will not require you to mail, print or physically sign any documents as our paperless payday loan services are done entirely online. Our services are available online around the clock – you could visit our website any time of the day and get instant cash right away!
Affordable rates and terms
Thanks to our vast loan lender network, you can receive and compare multiple loan offers to find one with the most affordable rates and terms that are suitable for you.
We value your privacy. That is why we utilize and regularly update security measures. In addition, we use bank-level encryption to keep your information secure as well as to prevent scammers and other unauthorized parties from accessing your data.
Possible Effect On Your Credit Profile After Getting Online Payday Loans In Saskatoon
If the lender checks your credit score before extending a payday loan, the check-up will appear on your credit report. This negatively affects your credit score for a few months, but will eventually drop off.
After you obtain your online payday loan in Saskatoon, you’re responsible for repaying it on time and in full. If you don’t, it could have a negative impact on your credit score. Credit history plays the most important role in determining your score, so be sure to stay on top of your debts!
Some payday loan lenders may not report to the credit bureaus in Canada. You might be thinking that’s great because the loan won’t impact your credit score. However, if you manage to pay on time and in full, your credit score will improve!
Identifying Payday Loan Fraud In Saskatoon
There are many fraudulent loans out there. It's important to be on the lookout for red flags as it is risky to deal with fraudulent lenders. To start, if the offer seems too good to be true, it probably is!
Interest rates or fees that are illegally high
Take note of the maximum fees lenders can charge as stipulated in the province's regulations and compare that with how much the lender is actually charging you. If a lender charges more than what is legal, it can be an indication of fraudulent activity.
Funds debited from your bank account without your permission
Some lenders resort to illegal means to exact payment from their borrowers. If money has been drawn from your account without your permission, contact your bank immediately.
Lenders that require an upfront fee
All legitimate lenders that hold government-issued licenses will not require you to deposit an upfront payment of any kind before you could get your loan proceeds. If a lender wants to charge you upfront, stop the process immediately.
No license to operate in Saskatchewan
Before committing with a lender or any loan service providers and creditors, submit an inquiry to Saskatchewan’s Financial and Consumer Affairs Authority to see if they are fully licensed to operate in the province to avoid.
What should I do if I need money urgently?
If you need money immediately, using an online lender like WeLoans is an optimal solution. Banks and other traditional lenders can take a long time to approve your application for financing. For this reason, it’s best to turn to an online lender who can usually grant you cash in 24 hours or less.
Alternatives to Payday Loans In Saskatoon
Payday loans are generally considered to be an expensive financial solution that may get you into deeper financial trouble. You can always look for cheaper and safer alternatives before taking out a payday loan. Here are some of the options available to residents in Saskatoon.
Saskatchewan assistance programs
Several official assistance programs in the province of Saskatchewan can help if you are facing financial difficulties. Some of these programs are as follows:
- The Saskatchewan Assistance Program (SAP) - This program provides income assistance to individuals and families who cannot meet their basic needs due to various reasons including unemployment, illness, disability or low income.
- Family Health Benefits - This offers assistance for health-related expenses such as basic medical treatment, dental work and prescription drugs to those who are below a certain income level.
- Transitional Employment Allowance (TEA) - This assistance program is for those who are looking for a job and in need of financial help for living and transportation costs.
- Saskatchewan Assured Income for Disability (SAID) - SAID is for people with disabilities and in need of income support.
Installment loans allow you to borrow money and repay it in more affordable equal monthly payments. Some popular examples of installment loans include mortgages, student loans, personal loans and auto financing.
Bad credit loans
Bad credit loans are designed for borrowers whose credit history is no longer spotless. Lenders will consider your overall financial situation and employment status in their decision-making rather than your credit score and report. However, this type of loan generally has higher interest rates and less favourable terms to account for the additional risk the lender is taking on.
No credit check loans
With no-credit-check payday loans, lenders will not perform a hard enquiry on your credit history, making it rather easy to apply for. However, these loans usually have high-interest rates and fees due to the high risk involved.