You are thinking of applying for a payday loan in Canada. Payday loans do come in handy in a jam; however, it won’t hurt for you to be careful about the process. Here is how you can do just that –

Reputation

Has your lender been in business for a long time?  Make sure they aren’t a fly by night operation, and check to see what their history is like.  There’s a handy timeline of payday loans available here that you could look at.

Interest Rates

Choose the lender who charges the lowest interest rates. This will give you more value for your money. Remember, payday lenders are private entities. In other words, such lenders are more at risk when it comes to these types of transactions. Therefore it isn’t surprising why they charge higher interest rates as compared to conventional financial institutes like banks. Of course, payday lenders also keep their rates competitive in order to draw borrowers. It shouldn’t be too hard to find a lender who offers interest rates that are more up your alley.

Is it Legal?

Make sure that you do a thorough background check on the lender that you choose. Your payday lender must be allowed to render services in your particular area. In other words, the lender must hold a license for your particular state. You may be held liable for doing business with an illegal business if you aren’t careful.

Online Privacy

Does your chosen payday lender protect your privacy? Does it use reputable software to do so? If it doesn’t its best that you keep looking. Scour each lender’s website and check privacy policies before you commit to anything. You will sleep better at night knowing that your personal information is safe.

Fees

Some payday lenders charge for loans. This is where the real differences in costs come from. Also analyze the maximum amount that each lender offers. Your payday loan might amount to a thousand dollars. Choose a lender that is willing to accommodate the amount you need.

Payday Loan Applications

A legitimate payday lender always states its loan application clearly on its website. If it doesn’t its best that you keep looking for one that does especially if you happen to be new to the process. The instructions should include everything from the application process, to submitting it and getting approved.

Some lenders require you to have a job and a checking account while others won’t check up on your credit history. You can opt for the latter if your credit report isn’t exactly squeaky clean.

Payday loans can come in handy when you are strapped for cash, need to make prompt payments on an investment but can’t wait for your employer to pay you at the end of the month. Of course, every financial entity comes with its fair share of risks and payday lenders are no different. Most Canadians tend to stick with the first payday lender they come across in their hurry to get paid immediately. This is a mistake to say the least. You can’t be too careful when it comes to your finances. Legitimate lenders can help you out of financial quandaries the legal way. Make sure that you do thorough background checks on each lender as well.