What are $700 Loans?

A $700 loan in Canada typically refers to a financial arrangement where an individual borrows $700 from a lender, often in the form of a payday loan or a personal loan. Payday loans are short-term loans that are usually intended to cover immediate financial needs until the borrower's next paycheque. These loans are often accessible to individuals with bad credit scores, and the application process may involve only a soft credit check.

Features

Loan Amount. A $700 loan represents the specific amount borrowed by the individual, and it is typically on the lower end of the loan spectrum.
Loan Type. These loans can be either payday loans or personal loans. Payday loans are usually short-term loans intended to be repaid by the next paycheque, while personal loans may have longer repayment periods.
Credit Check. Many payday lenders providing $700 loans do not place a heavy emphasis on the borrower's credit score. This makes these loans accessible to individuals with bad credit.
Interest Rates. The interest rates on $700 loans can be relatively high, especially in the case of payday loans. Borrowers should carefully review and understand the interest rates to assess the total cost of borrowing.
Repayment Terms. The repayment terms for $700 loans vary. Payday loans are often due on the borrower's next payday, while personal loans may have more flexible monthly payment options. Understanding the repayment schedule is crucial to avoid late fees.

Pros and Cons

Pros

Quick Access to Cash. $700 loans provide a fast solution for individuals facing immediate financial needs. The application process is often streamlined, and funds can be disbursed quickly, especially with payday loans.

Accessible for Bad Credit. Many lenders offering $700 loans do not heavily rely on credit scores for approval. This makes these loans accessible to individuals with a low credit score or a history of poor credit.

Flexible Repayment Terms. Depending on the type of loan, borrowers may have flexible repayment terms. For example, personal loans may offer more extended repayment periods compared to payday loans, providing borrowers with some flexibility.

Various Lenders and Options. Borrowers in Canada have a variety of options for $700 loans, including payday lenders, credit unions, and other financial institutions. This allows individuals to compare offers and choose the most suitable option for their financial situation.

Cons

High Interest Rates. One of the main drawbacks of $700 loans, especially payday loans, is the high-interest rates associated with them. Borrowers should be aware of the overall cost of borrowing and the potential financial strain caused by these rates.

Short-Term Nature. Payday loans, in particular, are designed for short-term needs. If borrowers are unable to repay the loan by the next paycheque, they may face additional fees and higher costs, leading to a potential debt cycle.

Risk of Debt Accumulation. For individuals with poor financial habits, taking out a $700 loan can lead to a cycle of debt if not managed properly. The convenience of quick cash may tempt some borrowers to borrow more than they can afford to repay.

Limited Loan Amounts. While $700 may be sufficient for certain immediate needs, it may not cover larger expenses. Borrowers requiring more substantial funds may need to explore alternative loan options or financial assistance programs.

How to Get a $700 Loan?

Apply for a Loan

Research Lenders. Start by researching different lenders that offer $700 loans in Canada. This can include payday lenders, credit unions, and other financial institutions.
Check Eligibility Criteria. Review the eligibility criteria of potential lenders. This may include having a Canadian citizenship or permanent residency, an active bank account, and proof of income.
Gather Required Documentation. Prepare the necessary documentation for the loan application. This may include proof of identity, proof of income, bank statements, and any other documents the lender requires.
Submit the Loan Application. Complete the loan application process with the chosen lender. This often involves filling out an online or in-person application form.
Review Loan Terms and Acceptance. Once the lender reviews your application, they will provide you with the loan details, including the interest rate, repayment terms, and any associated fees. If you agree, accept the loan offer, and the funds will typically be deposited into your active bank account.

Requirements and Conditions

Requirements

Age of Majority. Be the age of majority in the province or territory in which you reside. This is typically 18 years or older, but it can vary by region.
Citizenship or Permanent Residency. Be a Canadian citizen or a permanent resident of Canada.
Stable Source of Income. Have a regular source of income that has remained consistent for a specified period, often three to six months. This income could come from employment, self-employment, government benefits, or other stable sources.
Active Bank Account. Possess an active bank account that allows both direct deposits and withdrawals. Lenders usually require this for the efficient transfer of funds and to set up automatic repayments.
Contact Information. Maintain an active phone number and email address. These contact details are crucial for communication during the loan application process and throughout the repayment period.

Conditions

Loan Amount. The loan amount is typically $700, representing the specific amount borrowed by the individual.
Interest Rates. Interest rates on $700 loans, especially payday loans, can be relatively high. Borrowers should carefully review the interest rate to understand the total cost of borrowing.
Repayment Terms. The repayment terms outline when and how the borrower is expected to repay the loan. For payday loans, this is often on the borrower's next payday. Personal loans may have more flexible monthly payment options.
Loan Duration. The loan duration specifies the period within which the borrower must repay the loan in full. Payday loans are typically short-term, while personal loans may offer longer durations.
Loan Fees and Charges. Lenders may impose fees and charges, such as origination fees or late payment fees. Borrowers should be aware of these additional costs and factor them into their repayment plan.

Best Places to Get a $700 Loan

Easyfinancial is a Canadian lender that offers various financial products, including personal loans. Unlike traditional banks, they may consider individuals with less-than-perfect credit and provide options for different loan amounts.
Fairstone is another Canadian financial institution that offers personal loans. They cater to a range of credit profiles and provide installment loans with fixed repayment terms.
Mogo is a fintech company that offers a variety of financial products, including personal loans. They often focus on providing a quick and convenient online application process.
Spring Financial is a lender that specializes in providing loans to individuals with poor credit. They aim to offer affordable loan options to help improve the borrower's credit situation.

Ways to Receive the Money

Direct Deposit. Direct deposit is a widely used method where the lender transfers the loan amount directly into the borrower's active bank account.
Interac e-Transfer. Some lenders may use Interac e-Transfer, a popular electronic money transfer service in Canada. In this case, borrowers receive an email or text notification with instructions on how to deposit the loan amount into their bank account.
Wire Transfer. In certain cases, lenders may use wire transfers to send funds directly to the borrower's bank account. This method is less common for smaller loan amounts like $700 but may be used for larger transactions.
Cheque or Money Order. In some instances, especially with traditional lenders or in-person transactions, lenders may issue a cheque or money order payable to the borrower. However, this method is less common for smaller loans due to the longer processing time.

Things to Pay Attention to

Credit Score and Approval. Pay attention to the minimum credit score required by lenders offering $700 loans. Some lenders, especially most payday lenders, may offer guaranteed approval with a focus on the borrower's ability to repay rather than their credit history.
Loan Options and Companies. Explore various loan options and companies, including personal loan lenders, credit unions, and other alternative lenders. Compare their terms, such as annual percentage rates (APR), minimum loan amounts, and repayment terms.
Interest Rates and Overall Credit Score. Understand the interest rates associated with $700 loans. Interest rates may vary based on the borrower's overall credit score. Individuals with an excellent credit score may qualify for lower rates compared to those with a bad credit score.
Repayment Terms and Installment Loans. Review the repayment terms, especially if you're considering an installment loan. Ensure that the terms align with your financial situation and ability to make monthly payments.
Credit Checks and Soft Checks. Be aware of the type of credit checks performed by lenders. Some lenders may conduct soft checks, which do not impact your credit score, while others may perform traditional credit checks.
Alternatives and Financial Situation. Consider other alternatives before borrowing. Evaluate your financial situation and assess whether borrowing $700 is necessary. It's essential to explore all options, including negotiating with creditors or seeking financial assistance programs.

How to Repay a $700 Loan?

Review Loan Agreement. Carefully review the loan agreement to understand the repayment terms, including the due date, interest rates, and any associated fees.
Set Up Automatic Payments. If possible, set up automatic payments through your bank to ensure timely repayment. This helps you avoid late fees and ensures that you meet your repayment obligations.
Monitor Your Bank Account. Keep an eye on your bank account to ensure that you have sufficient funds available for the loan repayment on the agreed-upon date.
Contact Lender for Assistance. If you encounter financial difficulties and cannot make the payment on time, contact the lender promptly. Some lenders may offer flexibility or alternative repayment arrangements.
Complete Repayment on Time. Ensure that you complete the repayment of the $700 loan on or before the specified due date. Timely repayment can positively impact your credit history and avoid additional fees.

Reasons for Getting Rejected for a $700 Loan

Low Credit Score. If your credit score is below the lender's threshold, especially for loans requiring credit checks, you may be considered a higher risk borrower, leading to rejection.
Insufficient Income. Lenders often assess your income to ensure you can comfortably repay the loan. If your income doesn't meet the lender's criteria, it could result in a rejection.
High Credit Utilization. A high credit utilization ratio, which is the amount of credit you're using compared to your total available credit, can signal financial stress and impact loan approval.
Negative Credit History. A history of late payments, defaults, or other negative entries on your credit report can contribute to loan rejection.
Limited Repayment Ability. If the lender determines that you might struggle to repay the loan based on your financial situation, they may reject the application.

Alternatives

Credit Cards. Using a credit card can be an alternative to a $700 loan. It provides a revolving line of credit, and you can borrow up to your credit limit. Make sure to manage credit card balances responsibly to avoid high-interest charges.
PALs (Payday Alternative Loans). PALs are small-dollar loans offered by some credit unions as an alternative to traditional payday loans. These loans often have lower interest rates and more favorable terms than typical payday loans.
Vehicle Title Loans. If you own a vehicle, a title loan allows you to use the vehicle as collateral for a loan. Keep in mind that failure to repay a title loan may result in the loss of your vehicle.
Installment Loans. Installment loans provide a lump sum upfront, and the borrower repays the loan through fixed monthly installments over a set period. This alternative can offer more structured repayment terms compared to payday loans.

Editorial Opinion

In the landscape of financial options, $700 loans in Canada play a role in providing individuals with a relatively small, short-term influx of funds. Such loans, often offered by various lenders, including credit unions and specialized loan companies, may be particularly accessible for those with a need for more immediate financial assistance, with less emphasis on traditional credit checks. However, it is imperative for borrowers to carefully consider the associated costs, including the annual percentage rate (APR) and potential fees. While these loans can serve as a quick solution for unexpected expenses or financial gaps, users should exercise caution, acknowledging that short repayment periods and higher costs can make them an expensive option. Individuals contemplating such loans should weigh the convenience against the potential drawbacks, keeping in mind their specific financial circumstances and the importance of meeting the fully repaid commitment within the agreed short period. Additionally, exploring alternative financial resources and lenders offering soft checks instead of hard pulls may offer a more comprehensive view for borrowers seeking suitable options to borrow money aligned with their needs and following criteria.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

Make sure to confirm whether the lender is licensed to operate in your province. You can verify this information with your state regulator or attorney general.
Check if the lender is a member of a reputable association, such as the Canadian Lenders Association (CLA). Membership in such organizations may provide an extra level of reliability.
Carefully review all the terms and conditions of your payday loan contract.
Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

$700 Loans for December 2024