What Are the Costs & Fees for a Payday Loan?

Do you need cash fast? No matter why you need the money, a payday loan can help you get the funds you need without having to wait for your next paycheck.

But how much does a payday loan cost? Learn more about payday loans, the cost and fees associated with these types of loans, and how you can easily apply for one. 

What is a Payday Loan?

A payday loan is a type of short-term loan that’s typically paid back by the time you receive your next bi-weekly paycheck. 

How much you can borrow depends on your income, but you can typically borrow up to 50% of your regular paycheck. For first-time borrowers, lenders will typically lend about $300-$500.

At Blue Copper Capital, we strive to build trusting relationships with each one of our clients, allowing us to gradually increase your borrowing limit. No matter how long you’ve been borrowing, how much your paycheck is, or how healthy your credit score is, the maximum payday loan amount in Canada is $1,500.

That said, we can also look into alternative borrowing methods if your needs exceed a payday loan limit. Other options include a line of credit or a personal loan.

How Much Does a Payday Loan Cost?

In Alberta, the cost of a payday loan, if paid back on time, is $15 for every $100 borrowed. So, if you get a $500 loan, the total cost of your loan will be $575.

If you’re unable to pay back your loan, you’ll have to pay additional fees and charges. 

How Do I Apply for a Payday Loan?

It’s easy to get a payday loan if you’re eligible. With most lenders, you’re able to apply in person, online, or over the phone. 

Do I Qualify for a Payday Loan? 

You may qualify for a payday loan if:

  • You have been with your current employer for at least 90 days and can provide current and previous pay stubs 
  • You have an active bank account and can provide a pre-authorized debit agreement
  • You’re at least 18 years old and can provide 2 pieces of valid government-issued ID, including at least 1 piece of photo ID

Do you have more questions about payday loan eligibility or how to apply? Please don’t hesitate to contact us at Blue Copper Capital! We deal with every application on a case by case basis and we’re always here to help. 

Paying Back a Payday Loan

You may have to repay a payday loan by the time you receive your next paycheck. In most cases, the majority of payday loans are paid back over the next few pay periods in multiple payments between 42 and 62 days. 

Other regulations may affect your term, payments and interest, depending on your province. Be sure to ask your specific payday lender for your province’s regulations.

What Happens if I Can’t Pay Back a Payday Loan?

If you can’t pay back a payday loan on time you may incur additional fees and costs. Failing to pay back a loan on time can also lead to other consequences, such as lowering your credit score.  

Depending on what province you live in, you may face any of the following consequences:

  • Your lender can charge additional fees if the money isn’t in your account on the day of your expected repayment 
  • Your financial institution may also charge an additional fee for having insufficient funds in your account 
  • The amount you owe on your payday loan, including additional fees, will continue to increase
  • If your payday loan remains unpaid, your lender has the right to sue you for the amount owed plus interest and any related court fees
  • The lender may turn your account over to a collection agency

If you can’t make your payday loan payments on time, it’s best to talk to your payday lender and ask for an extension as soon as possible. At Blue Copper Capital, we’ll always do our best to help every one of our clients reach their financial goals. 

We’re Here to Help

We’re here for all your lending needs. Regardless of why you need money, we can help. 

With a payday loan, we can help you cover an unexpected expense, pay your monthly bills, or give you financial freedom while you wait for your next paycheck. 

If you have any questions about payday loans, get in touch with our team today. We’re always here to help you experience financial success. 

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