3-month payday loans in Canada: What you should know

Three-month payday loans in Canada do not exist because payday loans can only have a loan term of up to 62 days. You’ll need to turn to a different type of financing if you need 3 months to pay it back.

• Compare payday loans with terms up to 62 days.
• Jump to alternatives to 3-month payday loans.

Compare payday loans

The payday loans below have terms up to 62 days.

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Name	Product	Loan Amount	Loan Term	Interest Rate	Turnaround Time	Serviced Provinces	Offer	Table description
GoDay Payday Loan GoDay Payday Loan		$100 - $1,500	Up to 62 days	Varies by province	As little as 2 minutes with INTERAC e-Transfer®	AB, BC, MB, NB, NS, ON, PEI, SK		To apply, you'll need to be a Canadian resident over the age of 18 with a valid email address, phone number and an open bank account with a Canadian bank or credit union.	Go to site View details	Compare	loading Fetching your data...
iCASH Payday Loan iCASH Payday Loan		$100 - $1,500	7 - 62 days	Varies by province	As little as 2 minutes with INTERAC e-Transfer®	AB, BC, MB, NB, NS, ON, PEI	Get up to 20% in cash back once your payday loan is fully repaid. Conditions apply.	Same day cash up to $1,500 for car payments, rent, mortgage, home & appliance repair, and more. 24/7 instant approval and e-Transfer funding. Income of at least $800/month required.	Go to site View details	Compare	loading Fetching your data...

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Compare alternatives to 3-month payday loans

If you need short-term financing, below are some alternatives to 3-month payday loans.

1. Installment loans

Installment loans are a specific type of personal loan with smaller loan amounts, shorter terms and higher interest rates than standard personal loans. They also have more lenient requirements. With this loan, borrowers make repayments in installments over a period of time, usually between 6 months to a couple of years, but there are some lenders that can offer 3 months.

Some installment loans are available to borrowers with poor credit. Check the lender’s requirements before you apply.

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Name	Product	Interest Rate	Loan Amount	Loan Term	Requirements
LoansLoans.ca Installment Loan LoansLoans.ca Installment Loan		28.00% - 32.00% + broker fee	$300 - $1,750	3 - 12 months	Requirements: min. income $1,200/month, 2+ months employed. No credit check required. Note: You may be charged a broker fee up to $300.	Go to site View details	Compare	loading Fetching your data...
Loans Canada Installment Loan Loans Canada Installment Loan		8.00% - 46.96%	$500 - $50,000	4 - 60 months	Requirements: min. credit score 300	Go to site View details	Compare	loading Fetching your data...
LoanConnect Installment Loan LoanConnect Installment Loan		32.00%	$500 - $2,500	3 - 6 months	Requirements: min. credit score 300	Go to site View details	Compare	loading Fetching your data...

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2. Personal line of credit

If you need a 3-month loan, you may wish to consider opening a personal line of credit. It works almost like a credit card, giving you a specified credit limit to use how you like and stays open as long as you keep up with payments. The funds are there for you whenever you need them, and interest is only charged on what you withdraw so you can keep the account in your back pocket without making any payments or incurring any charges.

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Name	Product	Interest Rate	Loan Amount	Loan Term	Requirements
LoanConnect Line of Credit LoanConnect Line of Credit		19.99% - 46.96%	$500 - $50,000	3 - 120 months	Requirements: min. credit score 300	Go to site View details	Compare	loading Fetching your data...
Loans Canada Line of Credit Loans Canada Line of Credit		9.90% - 21.50%	$5,000 - $35,000	6 months - 5 years	Requirements: min. credit score 300	Go to site View details	Compare	loading Fetching your data...
MogoMini Line of Credit MogoMini Line of Credit		47.42%	$1,000 - $3,500	No end dates	Requirements: min. income $13,000/year, min. credit score 500	Go to site View details	Compare	loading Fetching your data...

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3. Credit card

If you have available credit (and enough of it), you could potentially use your credit card to cover your expenses. Credit cards typically come with interest-free grace periods of at least 21 days – which means, at minimum, you won’t have to pay any interest until 21 days later. Credit cards usually come with APRs of approximately 19.99% – which means you’ll want to pay off your balance as quickly as possible. You could avoid high interest rates by applying for and using a low interest credit card.

You may even be able to open a new credit card with a 0% interest promotional period of about 3 to 6 months, which would cover your needs. Just make sure you have the funds to repay your credit card balance so you won’t have to deal with the interest rate that kicks in after. Learn more about credit cards.

4. Friends or family

You could potentially turn to friends or family to borrow some extra cash for 3 months. There are plenty of apps and websites that allow you to draw up a contract, which can ensure you make timely repayments and can help keep your relationship intact.

Features to consider with 3-month loans

Before you apply for a 3-month loan, take the time to compare different lenders and loan options. Here are some factors that you should take into consideration:

• Know the fees involved. APRs for personal loans can range from as low as 4.5% to well over 36%. The APR that you’re offered will depend on multiple factors including your credit score, the amount you’re looking to borrow, your repayment period and the lender that you’re applying with. You’ll also want to watch out for any additional fees, including origination fees and late payment and prepayment charges. Paying off your loan early may be a key priority, so make sure your lender doesn’t charge you any penalties for early repayments.
• What kind of repayment flexibility is there? While it depends on the lender, you’ll typically have a loan term anywhere from 3 months to several years. Decide on terms that fit your budget. You don’t want to overcommit too much of your monthly income towards debt repayments, but you also don’t want to extend the life of your loan for longer than you need to.
• What is the processing time? Applying for a payday loan is generally a quick process – especially if you do it online. With in-person applications, you could receive your loan within a few days, while applying with an online lender could see you with loan funds within just a few short hours.

The bottom line

Three-month payday loans in Canada may not exist, but you can turn to other short-term financing options to cover your expenses. These options include using an installment loan or a credit card, or borrowing money from friends or family members. Always compare your options before you apply for a loan. Do your research and compare lenders, loans, fees and repayment terms. If you think you’ll be able to pay off your loan in less than 3 months, look for a lender that charges no prepayment fees.

Frequently asked questions about 3-month loans

• Will taking out a 3-month loan affect my credit score?

  Taking out a 3-month loan will show on your credit report, but provided you keep up with repayments your credit score shouldn’t be affected. In fact, showing you can repay loans on time is generally a good sign to future lenders. It is possible, however, that future potential lenders will see a loan in your credit history as a sign of financial difficulty or disorganization. It’s important to only ever take out a loan if you’re certain you can meet the repayment schedule. If you default on repayments then your credit score could be severely damaged, making it harder to secure credit in the future.

• What is the maximum amount I can borrow?

  Some lenders offer borrowing amounts up to $50,000 or even $100,000, but how much you can borrow personally will depend on your finances.

• Can I repay my loan early?

  Some lenders will allow you to repay your loan early without charging you any penalties or extra fees, but it is common for some lenders to charge prepayment fees – so always check the terms and conditions of your loan. If you’re able to pay your loan back early and won’t be charged any additional fees, you’ll save money by avoiding some interest charges.

• What information will I need on hand for the online application?

  As well as proof of ID, you are likely to need to provide details on some or all of the following: employment, income and expenditure, bank account, contact info.

• Can I get a 3-month loan if I have bad credit?

  You will be credit-checked before you’re approved for a loan, and it is possible that some lenders will decline your application if you have bad credit. However, there are some installment loan lenders that will lend to those with bad credit, but you should expect to pay interest rates as high as 47%. Read through our full guide to getting personal loans with bad credit here.

• If my application is declined can I try again?

  If your application is declined you can generally try again at any time, but the outcome is unlikely to change unless your circumstances have. Remember that seeing multiple applications for credit in a short space of time on your credit report could put off prospective lenders in the future.