Are Payday Loans Quick to Process?

Posted on Friday 27 September 2019


Chances are, if you’re thinking about getting a payday loan, you need money as quickly as possible. Every second spent waiting for a loan to be accepted and processed is a second closer to an overdraft fee, a bounced check, late rent payment, cancelled utility service—the list goes on! Time is often essential when it comes to your personal finances, which is why so many Canadians tend to opt for payday loans. Payday loans are the best way to get money quickly—in fact, it’s what they are most commonly known for. Whether you call it a payday loan, a cash advance, or a short-term loan, the basic goal is the same: to get access to funds as quickly as possible. But just how quick are payday loans? How much time are you really going to spend filling out an application and waiting for a lender to decide whether you are approved? In the sections below, we’ll take a look at the payday lending process to show you exactly what you can expect—and how fast you can expect a payday loan to really be.

wp-content/uploads/2019/09/passing-money-in-car.jpeg

Are Payday Loans Quick to Process ?

First Things First: What is a Payday Loan?

Before we dive into the step-by-step process of getting a payday loan, let’s talk basics. What is a payday loan? A payday loan is a simple, short-term loan that is designed to last from one paycheque to the next, usually in 30-day increments. All payday lenders are different, but most will let you borrow in amounts starting at $100 to as much as $1,500 . There are plenty of reasons that people choose to take out a payday loan, but here are some of the most common: And finally, the most popular reason to choose a payday loan is to get access to funds as quickly as possible . Payday loans let you skip the hassle of filling out long applications and waiting days to hear back on an approval, making for a seamless borrowing process.

  • Because their credit score is too low to qualify for a traditional bank or credit union loan
  • Because they don’t meet income requirements for another lender
  • Because their bank account is running low between paycheques
  • Because they need to cover an urgent, last-minute expense

Payday Lending Process: Step By Step

Just like banks and credit unions, payday lenders are not created equal, and all have different processes and requirements. Some payday lenders may ask borrowers for additional information, such as whether you are a homeowner or a renter, or require that you fax additional verification of employment and income before getting a payday loan. However, there are some common threads among payday lenders that make payday loans the quickest options for borrowers that need cash right away. Here’s the general process:

1. Apply online

Payday lenders offer an entirely online application process, meaning you can apply for a loan from anywhere you have an internet connection. Whether it’s from the couch corner, your favourite coffee shop, or sitting in traffic, payday lenders make it easy to apply. Even better, applications can be filled out in 15 minutes or less, fitting nicely into even the most hectic of schedules. Say goodbye to scheduling time to sit in a stuffy office and talking with a loan officer—with an online application, you can get a loan completely on your time.

2. Get approved

Approval for a payday loan can be granted within minutes of submitting your application, erasing all of the stress and anxiety that comes with sitting and wondering whether you will be approved. You’ll get an email notifying you of your approval, which will take you to a loan agreement and all of the repayment details.