Do I Qualify for a Payday Loan in Toronto?
Many lenders have their own criteria which can vary, but there are some points that apply to most lenders in Toronto:
- Be at least 19 years of age.
- Be a Toronto resident.
- Have a net income of at least $800 per month.
- Have proof that you have worked with the same employer for the past three months.
- Have access to Interac e-Transfer and an online bank account.
Provided you meet these simple criteria, you probably qualify for a payday loan in Toronto.
Why Do People Opt for Online Payday Loans in Toronto?
There are a number of reasons why people prefer online payday loans to traditional payday loans. Online payday loans are much more convenient, and you can apply for a loan from your own home without having to go through the hassle of finding the lender’s location or filling out a lot of paperwork.
Everything can be done online, from finding a lender to signing the loan contract. Sometimes this involves a lot of searching on the internet to find the right lender, so a way to make this even more accessible is to use an online broker such as WeLoans.
Just fill out the simple online application to get connected with a range of trusted lenders who will provide the best loan offers for you to choose from.
Most importantly, with online payday loans, you can get your cash fast. When you need a loan, you need it now — not in a few days or even weeks. Online services are available 24/7, and everything can be done with a click of a few buttons.
What Documents Do I Need to Get Toronto Payday Loans Online?
The application process is easy. When you fill out an application for an online payday loan you usually need to provide the following documents:
- Proof of your employment such as your most recent pay stub.
- Valid government photo ID.
- Proof of a residential address in Toronto or Ontario.
- A valid mobile phone number.
- Proof of an active Canadian bank account.
Some lenders have different requirements, but most need at least these documents.
What to Consider Before Signing a Payday Loan Contract?
Before you sign a loan contract you should make sure you read it carefully and that you understand all the terms and conditions, especially the following points:
- What is the total cost of the payday loan, including all interest charges and fees?
- Is there a breakdown of the fees, charges, and interest?
- When is the payday loan due?
- What is the maximum cost you will be charged for the payday loan?
- What are the penalty fees for not repaying the payday loan on time?
- Is there a cooling-off period, if you change your mind about taking a payday loan?
If you fully understand and agree to all these conditions, you can sign the agreement.
Why Does a Payday Loan Cost So Much?
Payday loans can be expensive compared to other forms of loans, but to be fair the lenders perform a business service. Since most payday loans are for small amounts the interest rates and fees reflect the costs of running a business and taking risks for the lenders.
Interest tends to be a fixed amount so you can see what it will cost before you sign, and you can avoid late payment fees by making sure you repay the loan on time.
The best way to get an affordable payday loan is to use an online broker like WeLoans who can connect you with multiple loan offers. You can compare them to find the one that you can best afford and that suits your situation.
How Can I Get Off the Debt Cycle of a Payday Loan?
A payday loan is a short-term loan and is great in an emergency when you are short on cash, but to really save money in the long term you should try to strengthen your financial position.
Here are some suggestions to help you get started:
Create a Budget Plan
Review and tighten up your monthly budget to get a clear view of your finances, avoid unnecessary spending, and pay off your debts as a priority. You can make a budget by recording monthly income and expenses by hand, or you can use one of the budgeting apps available to simplify the process.
Build an Emergency Fund
An emergency fund is the money that you put aside to use during emergencies. This can be as small as a few thousand dollars, but over time you should aim to build it up to a larger amount. The emergency fund should be kept in a savings account, so it is easy to withdraw when you need it.
Increase Your Income
If your income just about covers your monthly expenses, an emergency fund may seem impossible. Focus on growing your income by working overtime, finding a second job, or freelancing in the evenings to supplement your regular income and allow you to save for emergencies.