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The Best Payday Loan Options in Canada: What Makes a Great Payday Loan?

Many companies offer loans to people with less than perfect credit- but how do you know you're getting the best payday loan in Canada?  

These six important factors will help you figure out how to choose the best payday loan for you.

1.  The Payday Loan Company Is Following Provincial Regulations

Before looking at anything else, it's important to double-check that the payday lender is licensed and is not a scam. All provincially licensed payday loan lenders must legally follow all regulations.  You can review the Parliament of Canada Legislation specific to your province.

  • Check the lender's About Us page. If a lender doesn't have provincial license information on their website telling you who they are, how long they’ve been in business, and their approach to payday loans in Canada, it’s a possible red flag.

  • All payday lenders must provide a statement, or easy-access calculator or tool that tells a customer how their fees are calculated before ever applying for a loan in an easy-to-understand way.
  • The best way to tell if the lender is licensed is to check for the Canadian Consumer Finance Association (CCFA) membership designation. This organization helps create consumer protection laws and all quality, licensed payday lenders are members. You can also visit the CCFA website for a full list of licensed members.


2.  The Payday Lender Can Provide Fast Funds

Once you establish the payday lender is legitimate, you can start to get into the different benefits offered, such as fast funding.

Canadian Money

A few years ago, the fastest payday loans took at least a day to appear in your bank account. Technology has helped to speed up this standard, getting borrowers money faster and faster. 310-LOAN funds its loans within 30 minutes or less once approved, which is one of the fastest you will find with a payday loan in anywhere in the country.

 

3.  The Lender Offers Reasonable, Clearly Labeled Interest Rates

With payday loans in Canada, most lenders express their interest rates in terms of fees. For example, a lender may say it charges a 17% fee on its payday loans. This is the same as the lender charging a $17 fee for each $100 that you borrow.

In 310-LOAN’s case, we share both with our customers, which makes it easier to understand what the costs are associated with a payday loan. There are no hidden fees; what you see is what you get. A lender that doesn’t offer this may be worth avoiding.

Since provinces are setting rules on fees, rules will then vary from location to location. That means lenders have to follow different rules that can vary from province to province. As a result, most licensed lenders develop different offers for different provinces. If you go to a payday lender’s website and it prompts you to enter your province, that is a signal that the lender structures loans differently for each province.

 

4.  The Loan, Terms, and Repayment Process Follow Guidelines

In 2006, the payday lending industry became much more regulated than before, to the benefit of customers across the country. As a result, payday loan terms are outlined specifically by province. If a lender is offering you anything outside of these terms, they may not be a legitimate payday loan company.

Last, the repayment options should be crystal clear. 310-LOAN offers step-by-step instructions for repayment options so you know what forms of payment are accepted, how it works, and what to expect.

 

5.  The Best Payday Loans Have an Easy Application Process

When you're getting a payday loan, you don't want to be inconvenienced with a long application process. That’s why the best payday loans around have an application process that includes the ability to apply for your payday loan entirely online or the option to apply over the phone. Woman with mobile

Applying online means not having to fax any paperwork or drive to the lender’s location - all from the comfort of your own home or office. If a phone application is important to you, make sure to ask if the application process can be completed over the phone.

 

6.  The Payday Loan Company Has Respect for Clients

The best payday loan lenders also give you more than just quick money. They try to build a relationship with you and they respect you as a valued client. This can be hard to measure before you've worked together but there are a few clues you can look for on lenders' websites.
Woman on phone with CSR

The first sign: How long the payday lender has been in business. The 310-LOAN team has been providing Canadians payday loans for nearly 20 years- and that success has a lot to do with how we treat our clients.

For example, 310-LOAN provides up to $600 to first-time clients but offers returning customers up to $1,500. We also have a rewards program where if you refer a friend, that friend receives a discount on their fees and you get a cash bonus. Similarly, some lenders let borrowers "level up”; each time a borrower takes out a loan, they get a lower interest rate. Little perks like that can help you gauge how a company treats its borrowers.

Quality Products and Service Are Important  

  • Keep these tips in mind
  • Look for a licensed lender with a transparent process
  • Look for a lender that can get you your funds fast
  • Make sure you receive quality customer service that keeps you coming back when you need to borrow money

Ready to get one of the best payday loans in the country? Start the application today!

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