Available in seven provinces, iCash is an online source of fast, small loans that can be used for any emergency. Approved applications are processed within the same day and no documentation is required before the transfer of your funds. You can borrow up to $1,500 with iCash. Every time you pay the loan back following the agreed-upon deadline, you become a more reputable borrower. The increased trust allows you to borrow more each time. iCash uses a Trust Rating System, an algorithmic function that determines your merit as a borrower.
If you’re looking for an open-ended line of credit with credit limits up to $15,000, Fora is the best choice. Fora’s line of credit lets you withdraw funds from your available credit, and repay and redraw as needed. This makes it an excellent option for those seeking flexibility and quick access to cash as needed.Moreover, interest rates start as low as 19.9% and are only charged on the amount you withdraw.
Spring Financial is an online consumer lending company that offers innovative financial and credit-building solutions designed to give Canadians the opportunity to build credit, save money and borrow responsibly.With many Canadians struggling with high-interest debt and limited financing options, Spring Financial strives to provide Canadians with affordable and accessible financial products that can help them achieve greater financial freedom. Among their growing suite of smart money solutions, Spring Financial offers $1,500 cash advances, personal loans up to $35,000, and a credit-building program that helps you build credit and save money.
Fairstone is a great choice for consumers looking for loans with affordable payments that meet their needs and budget. As Canada’s leading non-bank lender of personal loans, consumers can get unsecured loans up to $25,000. Homeowners can choose a secured loan (backed by the value of their house) to borrow more money and access lower payments compared to an unsecured loan. Whether you’re looking to consolidate debt into one simple monthly payment, cover unexpected expenses or something else altogether, Fairstone is a great option.
If you’re short on cash, Bree offers cash advances of up to $350 with zero interest. Bree is an online financial platform that provides interest-free cash advances to help consumers avoid overdrafts and NSF fees. Their mission is to be a dependable and accessible financial source that consumers can trust when they need financial support. Moreover, you can access the money you need with Bree without having to worry about credit checks, interest charges or late fees.
The MogoMini line of credit offers Canadian consumers a great personal loan alternative. Borrowers can access up to $5,000, spend what they need when they need it, make the automatic minimum payments, and finally control their own principal payments. This Mogo product is flexible and users can test drive their line of credit for 100 days to see if it’s the right fit. Access their easy online application via your MogoMoney dashboard and get pre-approved in 3 minutes with no impact on your credit.
LoanMeNow offers Canadian consumers quick access to the cash they need. They offer loans up to $1,000 with no credit check required. Funds are deposited directly into your bank account within as little as 24 hours. A short-term loan from LoansMeNow can help you cover the cost of an unexpected expense or tide you over until your next paycheque. Whatever your financial needs are, LoanMeNow’s quick approval time means you’ll be able to get back on track as soon as possible.
SkyCap Financial has been helping Canadian consumers take control of their financial futures since 2013. Their main goal is to provide alternative financing to all Canadians, regardless of their financial past or credit history. They provide fast and easy short-term loans ranging from $500 to $10,000 and approve applicants in as little as 24 hours. Consumers can take advantage of SkyCap Financial’s quick application and a team of experienced individuals who strive to make your experience as smooth as possible. SkyCap Financial bases all their lending decisions on three main factors, current income, credibility, and stability, so they can approve more Canadians, especially those who have been rejected in the past based on credit issues.
Nyble helps users quickly access a line of credit of up to $250 without credit score requirements. This is a good option for anyone who wants to avoid overdrafts or needs a small amount of cash quickly. Approval is instant and funding takes up to 3 days. But if you upgrade to a paid membership for $11.99 a month, you can receive your money within 30 minutes. Nyble reports your payment history to the credit bureau monthly and approves you for large amounts as you build trust with the platform. You can also track your credit score, earn reward points for improving your score, and access other features such as credit monitoring and digital identity theft protection.
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Sometimes we’re well equipped to cover unexpected expenses, and other times we’re not. During those times when our bank accounts aren’t adequate enough to pay for large expenses that suddenly come our way, there are short term loans in Ontario available to help.
For more information about loans in Ontario, click here.
What Are Short Term Loans in Ontario?
As the name suggests, short term loans are those that provide certain loan amounts that must be repaid in full within a short period of time. Terms lengths can vary but are generally for one to two years.
The loan balance is paid back in installments, with each payment covering a portion of the principal and a portion of interest. The interest rate charged will affect how much money will inevitably have to be repaid and will vary from lender to lender in Ontario. That said, interest rates for short term loans in Ontario tend to be a little higher than standard loans that have much longer term lengths.
Read this for a look at installment loans in Ontario.
Why Take Out a Short Term Loan in Ontario?
There are several situations where a short term loan in Ontario would very much come in handy, including the following:
Truly, short term loans can be used for just about any situation that may arise.
How Do Short Terms Loans Differ From Payday Loans in Ontario?
Because both payday loans and short term loans in Ontario are only taken out for very short periods of time, many consumers may confuse the two. However, their relatively short terms are where their similarities end.
Repayment
One of the biggest differences between the two loan types is their repayment requirements. While short term loans are designed to be paid back in installments until the full amount is paid off, payday loans must be paid in one lump sum – plus interest – by the due date. Payday loans are typically due for full repayment by the time your next paycheck comes in, which is why they are named “payday loans.”
Take a look at this infographic on the Payday Loan Cycle.
Interest Rate
Another notable difference between the two is the interest rate charged. Generally speaking, payday loans come with extremely high-interest rates and are considered among the highest of all loan types. Many payday lenders in Ontario charge their borrowers as much as 500% or more, depending on various factors.
While short term loans come with rates that are higher than conventional loans, they are typically much less than payday loans, making them a more affordable option.
Wondering if you can beat your lender’s interest rate? Find out here.
Approval Process
Short term loans are usually a little more difficult to get approved for compared to payday loans, though they are still somewhat easier to get approved for compared to conventional loans with longer terms. Payday loans require little more than being the age of majority, having an active bank account and contact information, and being employed.
Short term loans require a little more investigation on the part of the lender, who will usually check things such as credit scores and debt load, in addition to income.
Pros and Cons of Short Term Loans
There are several pros and cons that come with short term loans in Ontario, which should be carefully assessed before you decide to apply for one.
Higher interest rates compared to traditional loans
Risk of perpetuating the debt cycle
Risk of being scammed by shady lenders
Before you decide to take out any type of loan, be sure to carefully weigh their pros and cons first.
To discover more good and bad elements of short term loans, check this out.
What if You Have Bad Credit?
Credit scores play a key role in loan approval. Ideally, borrowers in Ontario should go into a loan approval process with a good credit score. This will make approval with a lower interest rate more likely. Lower credit scores limit the chances of loan approval with lower rates.
That said, it may still be possible to get approved for a short term loan in Ontario with bad credit. In this case, you may want to work with lenders who deal specifically with low-credit borrowers and can be easily found online.
These lenders in Ontario will place more weight on other factors aside from credit scores, including income, employment status, and debt load. If you have a secure full-time job with a high income and have a relatively low debt load, you stand a much better chance of getting approved.
It should be noted, however, that getting a loan with a bad credit score will almost certainly come with a much higher interest rate, which will make the overall loan more expensive.
Want to know how your credit score is calculated? Check out this infographic.
Can Short Term Loans Be Guaranteed?
When looking online for a short term loan in Ontario, you may come across some lenders who guarantee approval. While this might lure you in, it’s important to be very wary of such promises, as they may just be a ploy to scam you. It’s almost impossible to guarantee loan approval, especially without obtaining certain pieces of information from a borrower.
Learn about loan insurance scams with this article.
If a lender in Ontario promises loan approval, this is likely a scam. Unfortunately, there are plenty of lenders out there who exist solely to prey on unsuspecting victims. Always be on the lookout for fraudulent activity among lenders, as it exists and can put you in a precarious financial situation if you fall for their scams. The biggest red flags of a scam is guaranteed approval, so if you see this promise, you would be well advised to look elsewhere.
Frequently Asked Questions
What loan sizes are available for short-term loans?
Short-term loans come in many shapes and sizes. $1500, or less, is the typical loan amount. The terms of these types of loans are usually 2 to 8 weeks, although up to 3 months is not uncommon. Short-term loans can take the form of a payday loan, a credit card, or a personal loan. Shorter terms mean higher interest rates. Credit cards and personal loans usually clock in between 10% and 36% APR, not exceeding the max allowable rate of 60%. Rates of 500% or more are typical of payday loans since they have the shortest terms in this category.
Can I pay off my short-term loan early?
Early payments on a short-term loan will usually save you a decent amount of money. For instance, paying your credit card in full during the grace period (before the statement due date) means no interest charges. However, be mindful of the fact that cash advances on your card do accrue interest from day one. For payday loans in Ontario, a lender cannot charge you any kind of penalty for paying off your loan early. If your personal loan is based on an open-end contract, then you may pay it off early without penalty. However, if it’s a closed-end agreement, then you may incur a penalty for settling the debt before it’s due. Check with your loan provider to confirm these details.
I have bad credit. Can I still qualify for a short-term loan?
Getting a short-term loan with bad credit is still possible. Some providers don’t use a credit check to approve your short-term loan. Other metrics that check your overall financial health are used to determine your ability to repay. This typically means you’ll need to do additional verifications for your identity, banking details, address, and source of income. A vehicle title loan can be a short-term loan that’s easier to get approved for since you are providing a form of collateral. Likewise, a secured credit card is also easier to qualify for since it is backed by your security deposit.
Find the Short Term Loan You Need Today
If you’re in a position where an extra sum of money would come in handy, you may find short term loans in Ontario very useful. There are plenty of loan options out there as well as lenders who offer them. To find the right short term loan for you, be sure to get in touch with Loans Canada to discuss your options.
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