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Sometimes you need money fast and a no refusal payday loan in Canada is easy to get. Is it a first choice? Maybe not, but if you are in debt or you cannot qualify for a traditional personal loan quickly, these are an option.

Let me explain.

The average Canadian’s credit score is somewhere in the high 600s to the low 700s, which puts these consumers within loan-approval territory. But there are plenty of Canadians with scores well under this level. That means means they don’t have the credit score needed to secure a traditional loan product.

That’s where no refusal payday loans Canada comes into the picture. If your credit score is on the lower end of the spectrum, you can still get access to loan products thanks to these short-term loans. 

Let’s go into more detail about what no refusal payday loans are and the basic eligibility criteria needed to get approved.

Can You Get No Refusal Payday Loans In Canada?

If you have a less-than-perfect credit history, you may be concerned about being turned down for a loan. After all, loan criteria typically includes good to excellent credit, so failing to meet these stringent credit score requirements could put you at risk of having your loan application rejected.

But with no refusal payday loans Canada, your credit score doesn’t matter. As the name suggests, you won’t be refused a loan simply because your credit score is low. As long as you have a reliable source of income, any financial mistakes you’ve made in the past won’t play a role in the lender’s decision about whether or not to approve your application. 

You won’t necessarily be guaranteed approval, however; you’ll still need to meet certain income requirements to ensure you can repay the loan.  

What Are No Refusal Payday Loans In Canada?

A no refusal payday loan is a type of short-term loan that does not require a credit check. Instead of your credit score, lenders rely on other criteria to grant your loan. As such, these loan types are best suited for those who have poor credit and a history of bad financial decisions. 

If you have bad credit, you won’t be turned down for a no refusal loan simply because of your credit score. However, there’s no guarantee of approval, as you’ll still need to meet the lender’s income criteria.

No Refusal Payday Loans Are Fast

The no refusal loan process is also very quick. You can access your borrowed funds within 24 to 48 hours. Since funding is so fast, even those with good credit may consider no refusal payday loans if they require instant money. In this case, these loans may serve as an alternative to traditional loan options offered by conventional lenders.  

How Much Money Can You Borrow Through No Refusal Payday Loans In Canada?

The most you can borrow with no refusal payday loans Canada is $1,500. But in some provinces, the limit may be even less, as loan amounts are capped at anywhere from 30% to 50% of your net income. 

The following provinces enforce specific limits on payday loan amounts based on net income: 

  • British Columbia: 50% of net income
  • Saskatchewan: 50% of net income
  • Manitoba: 30% of net income
  • Ontario: 50% of net income
  • New Brunswick: 30% of net income 
  • Newfoundland and Labrador: 50% of net income

Depending on your take-home pay, your payday loan limit may be less than $1,500. 

Requirements To Get A No Refusal Payday Loan in Canada

Every lender has their own specific loan requirements. But in general, the following are the minimum requirements you’ll need to meet to be eligible for a no refusal payday loan:

  • Be a Canadian citizen or permanent resident
  • Be the age of majority in your province or territory
  • Have a valid Canadian address
  • Have a Canadian bank account that’s been active for at least 3 months and has online banking access
  • Have a valid phone number and email address
  • Receive the same source of income for at least 3 months 
  • Meet the lender’s minimum net monthly income level

Are No Refusal Loans In Canada Also Instant Loans?

Some no refusal payday lenders also offer instant loan approval. In this case, they’ll instantly pre-approve you for a loan as soon as you submit your loan application. Once they verify your identity and the information you provided, you’ll be approved and funded in as little as 15 minutes via e-transfer, or within 24 hours at the latest.

Benefits Of No Refusal Payday Loans In Canada

There are several perks that come with no refusal payday loans Canada, including the following:

  • Fast funding. One of the biggest advantages of a no refusal payday loan is how quickly you can get your money. If you have an urgent need for extra funds, a no refusal payday loan can provide you with fast cash within minutes after approval. 
  • Any credit accepted. Since there’s no credit check required, you can get approved for a no refusal payday loan even with bad credit.  
  • Instant approvals. As soon as you submit your loan application, you’ll be instantly pre-approved. Once your information is verified, the funds will be transferred to you within minutes. 
  • Versatile. There are no restrictions on how you can use your borrowed funds, as long as it’s legal.
  • Employment insurance (EI) loans eligible, meaning you can take out these loans when you’re collecting employment insurance (EI) benefits, as non-traditional sources of income are accepted.

No Refusal Payday Loan Risks To Watch Out For

Along with the benefits of no refusal payday loans Canada are a few drawbacks to consider:

  • High interest. Payday loans are among the most expensive financing products. Annual interest rates can be as high as 500%, which means you’ll end up paying much more in interest than the original loan amount.
  • Short repayment terms. Payday loans must be repaid in one lump sum within no more than 62 days. This quick repayment schedule can make it difficult for you to have enough time to come up with the funds needed to pay back your loan, plus interest. 
  • Small loan limits. You won’t be able to borrow any more than $1,500 with a payday loan. If you need a lot more than that, you may need to look at other options, including personal loans.
  • Many scammers. There are some predatory lenders within the short-term lending sphere to watch out for. These lenders will attempt to enforce unfair fees and terms, which can leave borrowers with loans they’ll ultimately default on.   

How To Spot A Loan Scammer 

Before signing a loan contract, make sure the lender is legitimate. Honest lenders are those who:

  • Have a license to operate in the province they’re lending in
  • Are transparent about loan fees, terms, and conditions
  • Have a process that verifies borrowers to ensure they can repay the loan 
  • Do not guarantee approval or require illegitimate fees, such as insurance 

Best Alternatives To No Refusal Payday Loans In Canada

As mentioned, payday loans can be super expensive and difficult to repay because of their short terms. Fortunately, there are other loan options that you may qualify for, even if you have bad credit.

Bad Credit Personal Loans 

There are several alternative online lenders available that work specifically with bad credit borrowers. If you have a low credit score but prefer a loan product that offers higher loan amounts and an installment repayment schedule, a personal loan might be your best bet. 

Even though interest rates are still higher compared to conventional loans, they’ll likely be much lower than the rates you’d get with payday loans. Plus, you’ll have a longer loan term within which to repay your loan. 

You may also be able to use a personal loan to consolidate any high-interest debt you may have, including no refusal payday loans. Since payday loans are typically very expensive and have short loan terms, you may find it difficult to pay them off in time and in full. 

In this case, the funds from a lower-rate personal loan can be used to consolidate your debt and effectively pay off your no refusal payday loan. Plus, the longer term and installment payment schedule of a personal loan likely makes a personal loan easier to manage. Just be careful about adding more debt to the pile, as this could impact your credit score, especially if you fail to keep up with payments. 

Auto Title Loans 

If you own a vehicle outright without any outstanding loan attached to it, you may qualify for a car title loan. These loans are relatively easy to get approved for, since you’re using your car as collateral. 

The loan process is always easier when there is an asset of value backing the loan. This security reduces the risk for the lender, which can help you get approved for a more affordable interest rate compared to a payday loan. These loans may also come with slightly better terms that can make them easier to repay.

Home Equity Loans

If you own a home and have at least 20% equity in it, a home equity loan may be a great way to access a larger sum of money. Your home serves as collateral, which can help make it easier for you to qualify for the loan, even if you have bad credit.  

You can use the funds for just about any purpose, and the funds are repaid in installments over a longer loan term compared to payday loans. 

Final Thoughts About No Refusal Payday Loans in Canada

Just because you have bad credit, that doesn’t mean there aren’t any loan options available to you. With no refusal payday loans Canada, you can get fast access to cash without having to meet the stringent loan requirements that are typical with conventional loans. That said, be careful with payday loans, as they’re very expensive and can be difficult to repay within such a short window of time.

No Refusal Payday Loans in Canada FAQs

Can I get a loan with bad credit and no co-signer?

Yes, the loan requirements with no refusal payday loans are very lax. You can still get approved without good credit, and you won’t need a co-signer either.

Can I get bad credit loans in Canada with guaranteed approval?

There’s no such thing as guaranteed approval. No refusal loans only promise not to turn you down for a loan based on your credit score, but you’ll still need to meet income requirements.  All legitimate lenders have an underwriting process that vets applicants. Steer clear of any lender that guarantees loan approval.

How much do no refusal payday loans cost in Canada?

The cost for no refusal payday loans Canada varies by province. You could be paying anywhere between $15 to $17 per $100 borrowed, depending on where you live. In Quebec, the annual interest rate (AIR) limit is 35%.  Thankfully, the limited costs associated with payday loans are regulated, so lenders cannot charge any more than the provincial or territorial limit for their payday loans. 

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Lisa Rennie

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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