Payday loans just keep on proving their convenience as lenders transition to online platforms -- improving the process faster than ever. With citizens all over Canada facing their most complicated financial crisis yet, brought by the Coronavirus pandemic, many have been resorting to short-term online loans like payday loans. However, it is important to keep in mind that these types of loan, as convenient as they are, can cost more than traditional loans. This is why every borrower must take their time to know their rights as well as policies imposed by their local government regarding payday loans.
Even the government is aware of the costliness of payday loans, that is why each province has implemented their own laws and guidelines that protect their citizens from getting overcharged and scammed -- and this includes Alberta. Payday loans, Alberta can be different from payday loans from other provinces. If you are from the area and are interested in applying for this loan in the near future, keep reading as we share with you every information you need to know about payday loans Alberta -- why do you have to get Alberta payday loans, how you can find reputable lenders and more.
Payday Loans Alberta
The first thing that you should know about payday loans Alberta is that they have the lowest interest rates allowed for payday loans -- in the entire country. The usual maximum rate for payday loans is a whopping 21, 978%; however, in 2016, the local government of Alberta have passed a bill lowering the rate to 3, 274%. This means that for every $100 a borrower request for a loan, the corresponding maximum, a rate that a lender can charge is $15 -- a huge difference from the previous $23 per $100. Alberta aims to protect its consumers through its payday loan regulations
The maximum amount for payday loan Alberta is up to $1500. Payday loans are one of the easiest loans that you can apply and get approved for. However, if you want to borrow more than $1500, then you should opt for other loans.
Lenders for payday loans do not check credit scores, so, even though you have bad credit, you can easily get qualified. The most important qualification is that you must be employed or have a steady source of income for several months now. You must present a proof of income or certificate of employment as a supporting document during the application.
You also must be of legal age or at least 18 years old to qualify for a loan. Government-issued identification card or documents are required to prove this.
Lastly, you will also be needing a checking account where the money will be transferred. With technological developments, lenders can now electronically transfer funds to your account.
Some lenders only cater to Canadian citizens which requires them to present their certificate of citizenship or citizenship card, so you must prepare that too, just in case.
Why apply for payday loans Alberta?
Now that you can apply online for payday loans in Alberta, you do not need to go out or even lift your butt from the couch. Especially now that a pandemic is happening and public gathering and exposure are restricted, you can just stay at home and avoid the risk of contracting the disease. The process itself is also much faster -- no more waiting in lines. All you need to do is visit a lender's website, click a button and fill out the online application form. Even sending the funds is convenient now that there are ways where the lender can electronically transfer it to your checking account.
Payday loans are perfect for short-term and small loans. If you only need a couple of hundred dollars to a thousand, then you should apply for this. Not only is the application process fast in itself, but lenders can now also issue your approval in just a day -- making the application and approval be both accomplished in one day. To achieve this, you have to prepare and complete your requirements beforehand, make sure you do not commit mistakes on the forms, and, of course, you apply as early as possible during the day. So, if you need cash as soon as possible, then applying for payday loans Alberta may be the best option for you.
No Credit Check
Most lenders that offer payday loans do not look into your credit score. With the current situation that a lot of Canadians are left unemployed, some of them were not able to establish a good credit score that will help them qualify for traditional loans. If you are one of them, then a payday loan can be one of your options. However, you must be employed to qualify for one, or you could present proof of income in case you are self-employed. This gives the lender assurance that you have the capability to pay back your loan. For payday loans, repayment must be made on or before your next payday.
Where to apply for payday loans?
When finding reputable lenders that offer short-term loans like payday loans, you need to spare some time to do a bit of research. Online loans can be risky -- either other lenders overcharge interests and fees, or they turn out to be loan scams.
The first thing you need to do is to verify the lender's license. You can contact your provincial or territorial consumer affairs offices in Alberta and counter check a license. The government of Alberta has a website where you can verify the license of your lender as well as other businesses operating in the area. You must also communicate with the lender and ask them questions about the costs and their process, ensure that there are no hidden charges and that their website is secure. A great lender will walk you through the process step by step and will answer your questions in a way that you can understand it. They will also be able to advise you whether or not a payday loan is the best loan for you. Make sure that you have asked the right questions and have communicated with them enough before signing any contract. To start your search for a lender, you can look online.
There are a lot of risks that come with online applications for payday loans. They can become prone to scams and fraudulence. However, if you have done enough precautions and preparation, then you have nothing to worry about. Especially with its convenience, this type of loan can be of good help and an excellent option for anyone looking for fast cash. It is also a better way to acquire some money now that the entire world is in a lockdown and you are not able to go out.
The local government of Alberta ensures the safety of its citizens by imposing punishment to those who are caught illegally transacting payday loans. If you have found yourself victimized by an online loan scam, you can submit a complaint with the Consumer Contact Centre.