PrestoCash review: Should you apply?

What is PrestoCash?

PrestoCash is a Canadian online loan search platform that says it offers “instant e-transfers loans with no credit check.” It is not a direct lender, and it essentially labels itself as an alternative option to payday loans. Just like payday lenders, you can borrow up to $1,500, with no need for a credit check. Instead of considering your credit score, PrestoCash shifts the focus on your income – you must make at least $1,800 per month.

It issues funding via instant e-Transfer or direct deposit.

Is PrestoCash legitimate?

We’re not giving PrestoCash our sign-off on legitimacy. While there are some solid signs that this company is operating a legitimate business, there are a few red flags to consider.

Factors indicating PrestoCash is a legitimate lender include a:

• Better Business Bureau of B+ with a rating of 3.96 out of 5 (based on 96 reviews)
• Trustpilot rating of 4.3 out of 5 (based on 70 reviews)

That said, here are some red flags to watch out for:

• Insufficient contact information. The Laval, Quebec-based company doesn’t have an official office address (it simply lists a mailing address) nor does it have a phone number for customer service. Instead, its contact details are a single email address.
• An overall Trustscore of only 51/100 on Scam Adviser for the PrestoCash website
• No terms of use page on its website
• PrestoCash states that it charges a maximum APR of 59.96%, which is higher than the federal legally imposed limit of 47%
• No privacy policy

Before applying for a loan with any lender, make sure these details are crystal clear.

Information above is as of February 16, 2024.

Alternatives to PrestoCash

Features of PrestoCash loans

If you’re thinking of working with PrestoCash, here are its features:

• Borrow between $400 and $1,500 without a credit check. If bad credit is pulling you down, PrestoCash won’t factor your credit history into your application process at all.
• Loan terms as short as 4 months and up to 12 months or longer.
• Direct deposit or e-Transfer loans. Get your cash quickly and easily via bank transfer or e-Transfer.
• Quick and easy online application process. Apply for your loan completely online and within minutes, with pre-approvals happening rapidly.
• Use the funds for any purpose. Once you’re approved for a PrestoCash loan, you have the freedom to use the money as you’d like. You could use the money to pay bills or cover a financial emergency.
• Unsecured. These loans are unsecured, so you don’t need to put up any collateral.

What to watch out for

There are key red flags every borrower needs to be wary of before proceeding with PrestoCash. They include the following:

• High APRs. You’ll be charged an APR of 24.99% - 59.96% for a loan through PrestoCash, which is higher than the federal government’s maximum APR cutoff of 47%.
• Open loans. PrestoCash loans are open, which means they can be paid off at any time and you will only be charged for the prorated balance. If you want to close your loan in advance, you must email PrestoCash in advance.
• Caps on how much you can borrow. PrestoCash caps its loans at $1,500, so if you need more cash, this may not be your best option.
• Minimum income requirements. To qualify, you must have an income of at least $1,800 per month, and it must be stable for at least the past 3 months. You must not have a history of NSF charges or stop payments in the past 3 months as well.
• Government benefits aren’t accepted. PrestoCash says it does not take child benefits, pensions, social assistance or disability benefits as forms of income.
• Customer service isn’t available in person or over the phone. We don’t like that PrestoCash doesn’t have an office address or a phone number. While you can apply for loans completely online, the only option you have for customer service is email.

How much will a PrestoCash loan cost me?

It depends on how long it takes you to repay your loan. Bear in mind that PrestoCash loans are open-ended so you can pay off your balance at any time and you’re only charged for the pro-rated balance. PrestoCash offers these scenarios to help you envision how much your loan may cost you:

• If you borrow $400 and repay this sum over 3 months, you’ll make 6 bi-weekly payments of $112.54. In total, you’d repay $675.24.
• If you borrow $400 and repay this sum over 4 months, you’d make 8 bi-weekly payments of $97.95. All in, you’d repay $783.60.

Am I eligible for a PrestoCash loan?

To be eligible for a PrestoCash loan, you must meet the following criteria:

• Be at least 18 years old, Canadian and have a Canadian bank account.
• Have an income of at least $1,800 per month. Child benefit, pension, disability and social assistance income do not count.
• Have the same stable source of income for at least 3 months.
• Have less than 3 NSF charges or stop payments in the past 3 months.
• Not have an “excessive” number of short-term loans.

How do I apply for a PrestoCash loan?

Applying for a PrestoCash loan is easy. Simply head to its website and follow the prompts on the application page. PrestoCash says it only asks you 12 questions:

1. To start, provide your full name, mailing address, phone number and email. Provide the company name of your employer and their phone number.
2. Choose the province you live in.
3. Choose your source of income (work, retirement pension, child benefits, EI, disability or self-employed).
4. Identify the frequency of your payroll (weekly, fortnightly or monthly).
5. Specify how much you make per month.
6. List how many short-term loans you currently have.
7. Identify how many stop payments and NSF charges you’ve had in the past 3 months.
8. Specify whether you own or rent your home.
9. Specify whether this is your first PrestoCash loan.
10. Submit your application. You should get pre-approved immediately. The next step is to complete the bank verification process to receive your funds.

Bottom line

If you’re thinking about taking out a payday loan, PrestoCash may be a cheaper alternative. The onus is on you to figure out if it’s worth using as a lender. The website is also missing some key elements, such as a privacy policy, terms of use, office address and phone number. Be sure to compare your loan options to find reputable lenders that will provide you with the best interest rates and terms.