Payday loans FAQ: straight answers
The questions we hear most, answered plainly and kept up to date with federal and provincial rules.
The federal limit is $1,500 for up to 62 days. Your own limit is usually lower, because lenders size the loan to your take-home pay. In Ontario and BC a single loan can be at most half your net pay, so someone bringing home $1,200 every two weeks could borrow up to $600.
Lenders can charge at most $14 for each $100 you borrow, and that covers every fee. Multiply your loan by 0.14 to get the ceiling: $300 costs up to $42, $1,000 up to $140. The calculator on our home page does the same sum and shows the APR for the number of days you pick.
Most do not pull a full report from Equifax or TransUnion. Some run a soft check, which you can see but other lenders cannot. Either way, they will still confirm who you are, that your pay is deposited regularly, and that the account is yours.
Once you sign, the lender sends an Interac e-Transfer. On a weekday that is often within a few hours. Late-night or holiday applications usually fund the next business day, and a bank security hold can add time.
Ontario, BC, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, PEI and Newfoundland and Labrador. Quebec residents cannot get payday loans, and options in the three territories are limited. The provinces page covers each one.
You need to be an adult resident of a province where the lender is licensed, have regular income deposited to a Canadian bank account, and have a valid email and mobile number.
At $14 per $100, a 14-day loan has an APR of about 365%. A 62-day loan at the same fee works out to about 82%. Shorter loans have higher APRs.
Applying through Jessica’s House does not involve a hard credit inquiry with most lenders, so it does not lower your score.
Contact the lender before the due date. You may face a default fee limited by your province and an NSF fee from your bank. Unpaid debts can be sent to collections, which can affect your credit.
Yes. In Ontario you can cancel within two business days at no cost by returning the money. Other provinces have similar cancellation periods.
Some lenders accept regular benefits such as CPP or disability payments as income. Others require employment income. The lender decides.
In Ontario, a lender cannot give you a new payday loan until the previous one is repaid, and rollovers are prohibited. Holding several loans with different lenders is risky and often leads to a debt cycle.
No. Using our site and applying is free. The lender charges the cost of borrowing shown in your agreement.
Your application is encrypted in transit, and we never sell your personal information. See our privacy policy.
Still have a question?
Email us and a person on our team will answer, usually within one business day.