If you need a little extra cash but don’t want to take out a long-term loan, a 3-month loan might be just what you need. While there may be multiple ways to get a 3-month loan, your choices shrink if you have bad credit. As such, getting a loan from a payday lender may seem appealing, but can you get a 3-month payday loan in Canada?
Let’s go deeper into short-term and payday loans to help answer that question.
Can You Get 3-Month Payday Loans In Canada?
Payday loans are short-term loans that are available to Canadians with bad or good credit who need cash quickly to cover an expense. But while 3-month loans may be considered short-term, they are not available as payday loans in Canada, as they typically only come in loan terms of 2 weeks (14 days) to 2 months (62 days).
If you’re looking for a loan that allows you to have up to 3 months to repay the loan amount, you’ll need to seek an alternative to payday loans, which we’ll get into next.
Note: Payday loans are extremely expensive and can lead to a cycle of debt if you’re unable to repay the full amount borrowed. To Learn about the payday loan laws in your province, click here.
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.
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.
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.
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 $100,000 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.
Cash Money has been helping Canadians access easy and quick loans for more than 30 years. They offer payday loans, personal loans, and line of credit loans from $1,500 to $10,000. User will enjoy their simple online application, personalized options, and same-day funding. Whether you need to cover an emergency expense or simply need to make it to your next payday, Cash Money can a variety of options to meet your needs.
Money Mart is a Canadian financial services provider that specializes in offering short-term financial products, including payday loans, cheque cashing, wire transfers, and installment loans. They're available both in person and online, providing borrowers with different options to apply for loans and access their borrowed funds. Their Payday Boost products are available for up to $1,500, and installment loans are available for up to $18,000. They're known for their easy-to-use services and same-day cash options, making Money Mart a great option for those who have little time to wait for much-needed funding.
LendDirect is an online lender that provides personal lines of credit for Canadians looking for a more flexible financial solution. Unlike traditional loans, LendDirect offers revolving credit, allowing borrowers to access up to $15,000 on an as-needed basis. The approval process is quick, with funds available within 15 minutes via Interac e-Transfer.
GoPeer is a peer-to-peer lending platform that connects borrowers with individual investors who fund loans. Through GoPeer, you can get a personal loan for up to $35,000, with flexible repayment terms and competitive interest rates. Interest rates start at 8.99%, depending on your credit profile. GoPeer's unique peer-to-peer model allows consumers to benefit from a more personalized borrowing approach. The online application process is quick and easy, and funds can be deposited into your account in as little as 7 days.
Cash4You is a financial services company that offers payday loans and installment loans. Payday loans are available for up to $1,500, and installment loans are available for up to $15,000. Cash4You provides an easy and efficient application process, which can be done either online or in-store. Loan applications can be approved very quickly and funding provided shortly after. Cash4You caters to consumers with varying credit scores, so bad credit borrowers may apply.
Magical Credit is an online lender that offers two types of loan products; Magical Cash Loans and Magical Installment Loans. Borrowers can access up to $1,500 with the Magical Cash Loan and up to $20,000 with the Magical Installment Loan. Magical Credit specializes in bad credit loans, so qualifying with them may be easier compared to traditional banks. Moreover, they accept various government subsidies as income for their Magical Cash Loan, providing greater accessibility to those in need.
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.
Cashco Financial is a Canadian financial services company that offers short- and long-term loan options. Payday loans for up to $1,500 are available with no credit checks and instant approvals. Flex loans are available for up to $7,000 with loan terms of up to 60 months and flexible repayment options. Cashco is known for providing same-day funding, ensuring you have access to the money you need quickly.
Loan Away is a Canadian online lender that provides unsecured personal loans and home equity loans. Unsecured personal loans are available for up to $5,000, with funds available in as little as 24 hours or less. Home equity loans are available for up to $50,000 to homeowners with sufficient equity, with interest rates starting as low as 19.9%. Loan Away’s online application process is straightforward and takes only a few minutes to complete.
The following are some alternatives to 3-month payday loans if you’re looking for short-term financing:
Credit Cards
Depending on how much money you need and what your credit limit is, you could put the expense on your credit card. If you can come up with the money you borrowed on credit before the next billing period, you can access the money interest-free. Or else, you can simply pay the minimum payment until you can pay off the amount.
However, if you carry that balance over to the next month, you’ll be stuck paying interest on it, which generally ranges from 19.99% to 22.99%. So keep that in mind before borrowing with your credit card.
Get A Introductory Rate
That said, you could get around this issue by applying for a new credit card that offers a low or 0% interest introductory period, which is usually from 3 to 6 months. During that time, you can use your credit card and carry a balance for this promotional period without having to pay interest. But you’ll need to make sure you can come up with the money before this period is up, as the regular interest rate will kick in and will be applied to your outstanding balance.
3-Month Installment Loans
While most installment loans have a term of 6 months to 5 years, 3-month installment loans may be available with certain lenders. However, they’ll often charge higher interest rates than a regular installment loan.
Unlike payday loans that require the funds to be paid back in one lump sum, personal installment loans allow you to repay the loan amount in installments over the term. In the case of a 3-month loan, you’d make regular payments over the course of 3 months, after which the full loan amount must be repaid, plus interest.
Personal Line Of Credit
Instead of taking out a traditional loan, you might want to apply for a personal line of credit. These financing programs work somewhat like a credit card, in which you’ll be provided with a specific credit limit to spend up to.
As long as you make timely payments, you can keep your line of credit account open. That way, you can continue tapping into this credit account as the need for cash arises without having to repeatedly apply for a personal loan. Moreover, interest is only charged on the amount you withdraw, rather than the entire credit limit.
Cost Of A 3-Month Loan
Let’s compare how much a 3-month loan for $1,500 could cost you based on different financing types. To make things more comparable, we’ll assume that we’re making the same payments on a personal line of credit and credit card as an installment loan:
Installment Loan
Personal Line of Credit
Credit Card
Interest Rate
35%
29.99%
19.99%
Monthly Payment
$529.45
$525.2
$516
Total Cost
$1,588.34
$1,575.59
$1,548
Can You Get A Bad Credit 3-Month Loan?
Conventional lenders, like banks and credit unions, typically require borrowers to have good credit for personal loans. If your credit scores need improvement, you may find it very difficult to get approved for a 3-month loan with these lenders.
Instead, you may have better luck with an online lender. These alternative lenders place more weight on other factors, such as income, assets, and job stability.
Can You Get 3 Month Loans With No Credit Check In Canada?
Yes, some lenders do not conduct a credit check at all, which means you can apply for a bad credit 3-month loan no matter what your credit score is.
Keep in mind, however, that the interest rate associated with bad credit loans will be much higher than traditional loans, which makes them a lot more expensive.
Can You Get 3-Month Loans With No Bank Verification?
When applying for a 3-month loan, you will usually need to provide bank statements as part of the application process. However, if you don’t have a bank account and are unable to provide these bank statements, you’ll likely be unable to qualify for the loan. In such cases, a no bank verification loan can come in handy. A no bank verification loan allows you to qualify for a loan with no documentation from your bank.
Borrow Up To $50,000
What Should You Consider When Getting A 3-Month Loan?
Before applying for a 3-month loan, there are a few important factors to consider:
Fees And Interest Rate
The interest rate you’re charged will have a direct impact on the overall cost of your loan. The higher the rate, the more you’ll pay over the loan term.
Rates for personal loans generally range from 4.5% to 35% (APR). For this reason, you should aim to get the lowest rate possible, which is why it’s helpful to have a good credit score when applying for a loan.
Further, lenders charge fees on loans, such as administrative and origination fees, so you’ll want to know what these fees are before you apply.
Payment Flexibility
Loans come in a variety of term lengths and payment schedules. Your goal is to work out an arrangement with your lender whereby the loan term and payment schedule matches your needs. As such, some flexibility is an important consideration when comparing loans and lenders.
Funding Speed
If you’re in need of quick cash, the underwriting process is important to know. Find out how long it will take to get approved for the loan, and when you can expect to have the funds deposited into your account. Generally speaking, traditional lenders usually take at least a week or longer to process loans, while online loans can be approved and funded within 24 hours.
In general, the longest term for a payday loan is 62 days and the shortest is 1 week.
Can I get multiple payday loans?
Most provinces have laws against more than one payday loan taken out at the same time, including British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick, and Nova Scotia. However, regulations could vary in other provinces.
Will a payday loan affect my credit?
While conventional personal loans usually require a credit check, payday loans do not. As such, payday lenders don’t report these loans to the credit bureaus. That said, payday lenders might sell your debt to a collection agency if you miss your payments, which could have a negative effect on your credit scores.
Can I get a no refusal 3-month loan?
If you have bad credit, a short-term no refusal loan may sound like a good option. However, no refusal loans are typically offered by payday lenders and other high-cost credit lenders.
Can I get instantly approved for a 3-month loan?
Yes, there are many lenders who offer instant approvals. You may even be funded within the same day with certain lenders when you apply by a certain time.
Final Thoughts
A 3-month loan could be just what you need if you require an extra lump sum of cash but don’t want to finance for a long period of time. However, 3-month loans are not available as payday loans here in Canada. As such, you’ll need to apply for a short-term personal loan or a line of credit with your bank, credit union, or online lender.
Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.
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