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Payday Loan VS Wage Advance: Which is better?

In Canada, payday loans and wage advances, also known as pay advances, are very similar. Both are short-term cash advance products that you repay on your next payday. Despite the similarities in nature of the products, a wage advance provided by Wagepay is different from payday loans in the following ways: fees, repayment flexibility, digital accessibility and credit checks.

Fees

Wagepay’s wage advance product is offered at a much cheaper price, compared to traditional payday loans. 

Payday loans are considered an expensive way of borrowing money. Instead of an interest rate, you pay a flat fee between $14-17 for a $100 loan (the flat fee varies depending on provinces). Most payday loan providers also charge a late fee and NSF fee if you fail to pay your loan on time, which can be considerable.

At Wagepay, we charge a flat fee of 8% and a 24% interest rate per annum. For example, for a $100 advance, you only need to pay $8.46 extra*. You can use our payday advance calculator to see how much you can advance and how much you need to pay. We also do not charge late payment or NSF fees; however, your bank may charge a fee for overdrawing your account. 

Payday LoanWagepay’s Wage Advance
Maximum cost of borrowing for a $100 payday loanMaximum penalty for a returned cheque or pre-authorized debitCost of $100 wage advanceMaximum penalty for a returned cheque or pre-authorized debit
British Columbia$15$20$8.46*$0
Ontario$15$25$8.46*$0
Alberta$15$25n/an/a
Manitoba$17$20n/an/a
New Brunswick$15$20n/an/a
Newfoundland and Labrador$14$20n/an/a
Nova Scotia$17$40 (Default Penalty)n/an/a
Prince Edward Island$15n/an/an/a
Saskatchewan$17$25n/an/a

*Example based on a repayment period of 7 days. Repayment examples are only for illustrative purposes, and actual repayments may vary. See the footer disclaimer for a worked example.

Repayment Flexibility

Both payday loans and wage advances are usually repaid on your next payday. For many payday loan providers, the repayment date cannot be changed once the contract is signed, or you will need to contact customer service. Wagepay understands the importance of flexibility in managing financial commitments, therefore we allow you to move your repayment once for each advance without contacting customer service. You can easily postpone your repayment via the app or in the web portal anytime you want.

Payday LoanWagepay’s Wage Advance
Repayment dateNext PaydayNext Payday
Repayment Date AdjustmentNot Possible/Contact Customer ServicePostpone payment function via the app or web portal 

Credit Check

Some payday loan providers conduct credit checks through Equifax, and this may affect your eligibility to apply for a loan. Your credit score can be affected if you do not repay on time. 

At Wagepay, we do not do credit checks as part of our sign-up process. Instead, we use your bank account transaction history for assessment purposes. As a result, using Wagepay’s service will not directly affect your credit score. 

Digital Accessibility

Like many payday loan providers, Wagepay uses Interac e-transfer for fund disbursement 24/7. While most payday loan providers only have a website portal, iCash, Pay2Day, and Money Mart extend their services through dedicated apps. 

To enhance service convenience and accessibility, Wagepay also offers our services via a free, user-friendly mobile app. Our Wagepay app allows you to create an account effortlessly, apply for advances, and repay on your phone.  You will find convenient links to our apps at the bottom of the page.

About Wagepay

Payday loans provide quick and easy access to money for customers facing unexpected financial situations. At Wagepay, we not only provide 24/7 access to wage advances via our user-friendly app and web portal, but we also offer our product at a lower price compared to traditional payday loan products to enhance affordability. 

Wagepay is committed to revolutionising how Canadians in eligible provinces access their pay early. We offer a seamless application process, affordable pricing, and flexible repayment plans. Download our app or sign up via the website portal and apply for up to $1,500 today!

Get in touch today

Have a question about your account? Send us a message from the app or web portal. Our self-service portal is available 24 hours a day, 7 days a week:
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