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If you don’t have a long credit history because you’re a new credit user, or if you’ve struggled with debt in the past, then you might have bad credit, which can make it hard to get approved for a loan. You might also want to avoid having your credit checked for other reasons. For instance, to limit the number of hard inquiries on your credit report.
Luckily, there are many lenders who can offer you a basic loan without having to check your credit at all. Instead, your loan amount, approval odds, and interest rate will depend on your overall ability to make payments as agreed.
Yes, you can get a no credit check loan in Canada. This means you can qualify for a loan without having the lender pull your credit report. While these loans often have high-interest rates, they can be particularly useful for those who have a bad credit history. Those with bad credit can still qualify for a no credit check loan so long as they meet the lender’s other criteria including income and debt-to-income ratio.
Amount | Interest Rate | Term | Province Availability | ||
![]() | $500 - $35,000 | 2.99% to 46.96% | 4 - 60 months | Across Canada | Learn More |
![]() | Up to $1,500 | Varies by province* | Max 62 days | BC, AB, MB, ON, NB, NS, PEI | Learn More |
![]() | $500 - $750 | Varies by province* | 90 - 120 days | BC, AB, ON, PEI | Learn More |
![]() | Up to $1,500 | Varies by province* | Up to 62 days | BC, AB, ON | Learn More |
![]() | Up to $1,500 | Varies by province* | Next payday | BC, ON | Learn More |
![]() | $120 - $1,500 | Varies by province* | Max 62 days | BC, AB, SK, MB, ON, NS | Learn More |
![]() | $50 - $1,500 | Varies by province* | Up to 31 days | BC, ON, NS | Learn More |
![]() | Up to $1,500 | Varies by province* | Up to 60 days | ON, BC, AB, MB, SK, NS | Learn More |
There are a few personal and financial elements that you’ll need to provide to get approved for a favourable no credit check loan. Although requirements may vary from lender to lender, here are some of the things they may inspect when you apply:
In Canada, loans come in all shapes and sizes, and so do the lenders that offer them. However, since prime lenders like banks have stricter regulations, the lenders that don’t check credit are often privately owned, which allows them to set their own approval policies. Here are some common types of no credit check loans that you can access by applying with an alternative or subprime lender:
While you may see payday loans advertised in many areas, you can only find them at select sources, known as payday lenders. On the other hand, almost every lender in Canada, bank or otherwise, offers some form of personal loan.
Personal loans come in various sizes, sometimes ranging into the tens of thousands. They can also have different repayment term lengths and installment frequencies, as well as fixed or variable interest rates.
There are two types of personal loans you can find in Canada
You need to provide collateral in order to get approved. This must be an asset, such as your house or vehicle (you must own its title to qualify). Be careful, because the lender will have the right to seize the asset if you miss too many payments. Nonetheless, providing security can help you access more credit, lower rates, and better repayment terms.
are sometimes smaller and come with higher interest rates, but are easier and safer for anyone who doesn’t have or doesn’t want to risk collateral. Repayment terms are often shorter as well, because you may be considered a higher risk client when you don’t have security. As such, the approval process will be more dependent on your income.
Check out the difference between a personal and payday loan.
Another form of security that some no credit check lenders will allow is a cosigner, also called a guarantor. This must be a stronger borrower than yourself, someone with healthy finances who can “guarantee” that your payments will be made on time, even if you cannot afford them.
Not only can a guarantor help you access a better loan when you don’t have good credit, but you’ll also have a backup plan if you experience financial problems. Be sure to inform your guarantor or co-signer that they will become responsible for your loan if you default and their finances could be damaged if they also can’t afford the payments.
If your vehicle has some value and you’re its official owner, you may be able to use it as collateral in exchange for better loan conditions. Similar to any asset, the lender may be more willing to waive a credit check because you’re providing loan security.
However, before you offer your vehicle as collateral, you must once again be fully aware of the potential danger. While you may be more eligible for a better no credit check loan, your lender will own the vehicle’s title until you complete your payments and will have the right to sell it if you default.
A payday loan is normally a small sum of $100 – $1,500, with a short repayment term of 14-days (longer terms may be available with some companies). Like most loans, the funds will be deposited directly into your bank account soon after approval.
Payday loans are appealing because they are fast and easy to get. You usually only have to wait one or two days to receive funding and there are very few approval restrictions. Essentially, as long as you have a steady income and you’re a permanent Canadian resident that’s over the age of majority in your province/territory, you can get approved for a payday loan.
Province | Max cost per $100 borrowed | Max Penalty for Returned Cheque | Cooling Off Period | Loan Rollover or Extension |
Ontario | $15 | n/a | 2 business days | Not allowed |
British Columbia | $15 | $20 | 2 business days | Not allowed |
Alberta | $15 | $25 | 2 business days | Not allowed |
New Brunswick | $15 | $20 | 48 hours (not including Sundays and holidays) | Not allowed |
Manitoba | $17 | $20 | 48 hours (not including Sundays and holidays) | Allowed |
Saskatchewan | $17 | $25 | Next business day | Not allowed |
Nova Scotia | $19 | $40 (default penalty) | Next business day (or 2 days for online payday lenders) | Not allowed |
Newfoundland and Labrador | $21 | $20 | 2 business days | Allowed |
Prince Edward Island | $25 | n/a | 2 business days | Allowed |
Quebec | 35% AIR | n/a | 10 days | Not allowed |
As mentioned, it’s essential to compare lenders before you apply for any credit product, especially a no credit check loan. You can avoid some of the associated risks by asking them (and yourself) these questions:
First, you should check the lender’s credentials to avoid any scams, overcharging, or illegal upfront fees. Find out how long they’ve been a legitimate business, check out their customer reviews, and look them up in the Better Business Bureau database.
Thankfully, there are federal and provincial government rules that prohibit lenders from charging illegal rates. That said, your loan payments can quickly add up over time, so it’s best to find a lender who offers the lowest rates and fees possible.
It’s also important to consider the length of your repayment plan. You could be making loan payments for months, even years. Think about what would happen if you lost your job or had an emergency. If your finances couldn’t handle those costs, look elsewhere.
Ask the lender if there’s any room for flexibility when it comes to your repayment plan. Can your payments be increased or decreased? Can you make prepayments without penalty? What happens if you make a late or partial payment, or miss one entirely?
APR | Monthly Payment | Total Interest | Total Cost |
10% | $87.92 | $54.99 | $1,054.99 |
20% | $92.63 | $111.61 | $1,111.61 |
30% | $97.49 | $169.85 | $1,169.85 |
40% | $102.47 | $229.66 | $1,229.66 |
Unfortunately, it can be hard to get approved for a loan from a bank if you don’t have decent credit. In fact, a credit check is a mandatory part of almost every bank’s lending process. This can limit your options to subprime lenders, where restrictions are easier.
That said, subprime lenders are able to offer no credit check loans to potentially risky clients because they balance out the equation with higher interest rates and fees. So, while you won’t have as much difficulty getting approved as you would with a bank, no credit check loans can be more expensive overall.
Before you apply, make sure to research several lenders in your area and ask them about their associated costs. While you’re doing this, keep in mind that the weaker your finances are, the less affordable loans tend to get. Additionally, your credit situation could get even worse if you miss any of your future payments.
There are plenty of reasons why a no credit check loan would be perfect for you, including but not limited to the following benefits:
Although there are many good things about no credit check loans, it’s essential to consider the downsides, which no credit product is without:
Despite payday loans being an easy way to receive financing without a credit check, it’s important to understand how hazardous they can be to your finances. This is because:
If you’d prefer to avoid all these risks, it may be better to leave payday loans in your rearview mirror and consider one of the following alternatives instead:
If so, don’t worry. Loans Canada is here to lend a helping hand. Whether a no credit check loan is or isn’t the right option for you, we’re always here with the information you need.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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