Same Day Loans Canada
Are Same Day Loans Worth It?
This is a tough question as same day loans are often needed in times of crisis. They provide cash to Canadians when they need to pay for things cover things like medical emergencies or bills. They even help when you have a chance to invest in something new. A same day personal cash loan unlocks the money you need when other sources are not available.
There are many lenders in Canada that provide same day loans. Depending on the history of your finances you may encounter different terms and rates. Lend for All uses their algorithms to figure out which are the best choices for you. You can trust that their partners have been vetted.
Most lenders offering same day personal cash loans will let you apply online. You’ll find out in near real time if you are approved. This type of loan is short term, and will often be in smaller amounts, meaning you can apply even without collateral.
When it comes to choosing the right partner for a same day loan, it’s worth checking out each available option. This makes sure you end up with a repayment schedule you find easy to manage. Once you know what to look for, it’s easy to find a lender that will get you access to immediate money.
Will a Same Day Loan Put Money In My Account Today?
Same day personal cash loans really do exist. In Canada they are used to get money fast when emergencies appear out of nowhere. In most cases the entire process can happen online. Once you’ve been approved, you’ll provide your direct deposit bank details. The funds will be deposited that very day, although usually this must take place within their open hours of operation. All you need is a few documents and then you’ll be ready to sign the contract, authorizing the transfer of funds.
What Steps Do I Take To Get A Same Day Loan?
It’s fairly easy to get a same day personal loan. Follow the steps below and you’ll soon have cash in your accounts.
Step 1: Apply Online
This type of loan is available in a small enough amount that it can be sent directly to your account, sometimes even using e-Transfer. You’ll head to the lenders website, fill out their online form and submit the application. Most lenders also have offices that you can visit to manage your account in person. If you do apply this way, make sure to have all your documents on hand.
Step 2: Wait for Decision
Short term same day loans tend to be accessible to most Canadians, even those with bad credit. This may come at the cost of extra fees and higher interest rates, but it creates an expedited approval process.
Step 3: Sign Agreement
You’ll receive a document with all the terms of your same day loan. This will include the maximum principal that can be borrowed and define the schedule for paying it back. It will include the interest rates and other fees. If you agree, you’ll have to sign this contract.
Step 4: Get Money
You’ll provide the lender with your bank account details. Then your cash will be deposited into your account.
Step 5: Repayment
The last step is the part where you pay back your same day loan. When you agree to borrow the money, there is an understanding that your payments will be at regular intervals in the agreed upon amount. Paying down your loan on time is advised as it will have help boost your credit score.
What Are Same Day Loan Interest Rates Like?
It’s clear now you can get a same day loan pretty quickly and easily. The main way lenders make money on your loan is with interest. This will show up as your APR (annual percentage rate) and will impact the total amount of you have to pay back. Below you’ll see an example of how big of a deal this can be:
- 1 Year Loan with 6% APR and $10,000 principal
o Monthly Repayment – $860.66
- 1 Year Loan with 21% APR and $5,000 Principal
o Monthly Repayment – $931.14
What Are Standard Same Day Loan Requirements?
Each province in Canada may have their own unique standards for same day loans, they tend to ask for the same things. Any borrower needs to be over the age of 18, with an active bank account, permanent residence, and an ongoing source of income.
You need an active bank account so they can deposit that money directly into your account. Repayment is often done with automatic withdrawals. You’ll need to prove you have money coming in, that will be there at the time when these payments are set to leave your account.
The rule of thumb for same day loans is you need to show lenders that you can reasonably pay back the total amount, with your current level of income. Part-time jobs are accepted as long as you have been employed for a certain amount of time.
What Pros Are There For Same Day Loans
Getting money fast is one of the main benefits of same day loans. They are a lifeline when out of nowhere bills and other expenses appear. Below are some reasons to get a same day loan:
Most People Get Approved
Same day loans specialize in bad credit scenarios and know how to manage risk in a way to get funds into the hands of those who need it. By limiting the total amount and working out unique terms they can work around the limits that face most banks. You will not need any collateral nor any consigners.
No Limits on Spending
Larger cash loans tend to be attached to a specific purchase, like a car, mortgage or even investing in a business. Same day personal loans are designed to give you the freedom to use the money to pay for anything you want.
Smaller amounts make it simpler to send money via faster methods like e-Transfer. The second your sign your loan agreement, the lender will send the money directly into your bank accounts. The entire process is streamlined to make sure you can get the money, on the same day.
Manage Everything Online
You can apply for a same day loan online, on the lender’s website. You’ll supply any documentation through their form. You’ll sign your contract with e-Sign and then your money will be transferred online. Certain loan providers even offer tracking via email or an app.
Are There Risks With Same Day Loans?
The benefit of a same day loan is that you’ll get the money you need quickly however this does come with a cost. Before entering into a loan agreement make sure you think about the following factors:
High Interest Rates
Interest rates are one of the main ways the loan provider makes money. This rate helps determines how much you will pay in addition to the principal amount. This is one of the things that can change drastically between different lenders, where you will see numbers ranging from 20% to 40%. Make sure you know the APR attached to your loan.
Risk of Endless Debt
When you miss a payment, there will be additional fees and penalties. This can increase the amount you need to pay on a regular basis and extend your repayment schedule. Make sure that when you agree to a loan amount, you can afford to make EVERY payment, even if you run into a rocky patch along the way. You also need to make sure that your minimum payments will go towards the principal of your loan and not just the interest.
Because of the smaller amounts, same day loans are not subject to the same level of government regulation. This means that every now and again bad actors will appear. Make sure to look up the company you want to borrow from and make sure they are a lender in high repute. Responsible lenders will not try and push you to take bigger loan than you can afford.
Who Needs a Same Day Loan?
The versatility with same day loans means that both individuals and small businesses can benefit from that quick influx of cash. These loans come with high fees but can be crucial to help meet deadlines. Since same day loans don’t require an intended use of the money they can help in a wide variety of scenarios.
Why Individuals Get Same Day Loans:
• Medical Emergencies (this can help keep you afloat while insurance processes claims)
• Mechanic Bills (Sometimes your car breaks down out of nowhere)
• Plumbers (Home repairs can be complicated to manage)
• Utilities (If those late fees are stacking, this may keep your lights on)
• Any expense that makes a borrower feel they need cash.
Why Businesses Get Same Day Loans:
• Dealing with supplier invoices when credit terms are up
• Additional ability to manage day to day expenses by increasing capital
• Keeping workers on the job when facing unpaid wages
• Dealing with facility maintenance like utility bills or repairs
Same Day Loan FAQs
What Are the Same Day Loan Repayment Options?
The standard arrangement will be automatic withdrawal from your bank account. However, depending on the lender you can pay back your same day loan with post-dated checks or even payments made directly with cash.
How Much Money Can I Borrow With A Same Day Loan?
The typical same day loan amount in Canada will range from $500 to $5,000, however each lender has their own limits. When determining how much you can borrow, they will run a risk assessment based on your current debts and expenses and your total amount of income. Having collateral or consigners will increase the amount of principal you can take on.
What do I Need To Watch For When Taking Out a Same Day Loan?
The main thing to know with short term loans is whether your minimum payments will go towards the principal you owe or if it covers the interest. If the minimums only cover your interest, you will need to pay above that amount to actually pay down your loan. You should also compare interest rates and review all conditions in your contract. Make sure you understand what is expected of you.
Are There Penalties When Missing A Loan Payment?
This can differ between lenders but typically there are fees for missing any same day loan payments. You may receive additional fees or even have to deal with loan extensions. Each payment you miss will also have a negative impact on your credit score. By only borrowing the amount you need, you can make sure you avoid falling into a debt trap.
Can Same Day Loans be Used to Repay Other Debts?
Since there are no restrictions on how same day loans are used, you can use your loan to pay down other debts. Make sure that taking out this loan will actually save you money once all fees are taken into consideration.
Are bad credit same day loans available?
Most same day loans are designed for Canadians with bad credit situations. As long as you can prove that the loan is something that fits into your budget, you should be good to go.
What do I Need in Order to Qualify For a Same Day Loan?
It’s fairly simple to get a same day loan in Canada. You’ll need to prove you live in the province and are above the age of 18 years old. Lenders will ask for documents showing you have an active bank account and records of your employment (or other income sources). A valid piece of government issued photo ID is also required.
You’ll need to agree to the terms and conditions of your loan. This is an important requirement because it acknowledges you read the contract and understand what your loan entails. Once you sign the funds will be transferred into your bank account.