Zaplo offer fast and convenient payday loan service for residents in Ontario and BC. For more information on hoe to apply, visit our website.

1. How Do Payday Loans Work?

2. Anyone who watches television or listens to the radio on
a semi-regular basis has probably seen or heard more
than a couple ads for payday loans. The payday loan
concept has been growing in popularity for some time,
as more and more people take advantage of this form of
borrowing.
Payday loans have both good points and bad points, so
keep reading to learn exactly what they are and how the
process works.

3. What Is a Payday Loan?
A payday loan is a short term loan, where you essentially
borrow money against your upcoming pay cheque. The
amount of a payday loan is generally only a few hundred
dollars, and it is not designed for any long term financial
solutions.
Many storefront payday loan places can be found in
most cities, and you can also access payday loans online.

4. Why Would I Want One?
The reason that most people look into payday loans
online is to bridge the financial gap between right now
and the next payday. Little financial ‘emergencies’
happen to everyone in life, and if you find yourself short
of funds a payday loan can help you out.
So, basically a payday loan is there to help with any
short term financial problems you might encounter
between pay cheques.

5. Payday Loan Qualifications
Since a payday loan online or through an offline office is
still a loan, there are qualifications that must be met.
The exact details may vary depending on the lender, but
some common qualifications include:
 Active bank account
 Permanent address
 Steady job with proof of pay

6. What About Credit?
With a short term loan such as a payday loan, credit is
still an issue but not as big of an issue as with a larger,
long term loan. Some places will do credit checks and
some won’t, but for the most part it is the pay cheque
and the way it is set up that secures your loan.
With payday loans online and physical storefronts, you
will be paying back your loan amount right from your
account, so proof of employment, income amount and
your bank account number is often enough.

7. Terms and Conditions
As with all contracts, it is important to read over your
payday loan agreement carefully. Some of the terms
and conditions should include:
 Loan amount and when it must be repaid
 Up-front fees and charges
 Service fees and charges
 Options for repayment
 Interest rate
 Fees and charges for early or late repayment

8. Steps to Take
When you are looking to get payday loans online, there
are a series of steps you must take in order to get your
money. Generally, you’ll have to:
 Select the amount you want to borrow
 Select the loan term
 Complete the application
 Confirm who you are
 Accept the terms of the loan
 Wait for your money to be deposited

9. Pros and Cons
There are pros and cons involved with getting payday
loans online.
Pros:
 Helps you solve a short term financial problem
 Fast and easy process
 Convenient
 Don’t have to put up any real collateral

10. Pros and Cons cont…
Cons:
 Typically much higher interest rate than a standard
loan
 Can result in abuse, where people try to use them for
long term financial issues
 May include hidden fees and costs that inflate your
borrowing rate

11. References
https://www.zaplo.ca/howto
Zaplo
http://www.cbc.ca/news/background/personalfinance/payda
CBC News