A 90 day loan can give you access to some extra cash, even if you have bad credit.
If you need a small amount of financing for a short period of time, a 90 day loan, also known as a three-month loan, could be a short term solution. A 90 day short term loan can help you bridge a small financial gap, pay for an urgent car repair or fund an emergency home renovation.
Keep in mind, short term loans, also known as payday loans, often come with high interest rates as they are tailored toward those with poor or bad credit.
Cash Money Payday Loan
- Minimum loan amount: $50
- Maximum loan amount: $1,500
- Loan term: 12-14 days. Vary by province
- Turnaround time: Within 2 hours with INTERAC e-Transfer® if approved
- Key requirements: Be 18+ years old, provide proof of recurring income
A 90 day loan is a short term loan that has a loan term of three months, or 90 days. Short term loans, also known as payday loans, typically come in amounts between $100 to $3,000. Repayments are usually made bi-weekly or monthly and are withdrawn directly from your bank account. Short term loans can be found online or applied for in person.
In many provinces and territories, there are regulations surrounding the maximum amount a lender can charge per $100 borrowed, as well as some regulations surrounding the number of payday loans or the total amount you can borrow at one time.
While most short term loans are unsecured, it is possible to find a 90 day secured short term loan. While you’ll need to offer up an asset as collateral, you’ll likely score a more competitive interest rate with a secured loan.
Payday loans are available in all provinces and territories across Canada. You should be aware that payday loans are regulated by individual provinces, which means costs and fees can vary. Ensure that any lender you choose abides by the laws of the place you live.
At the time of writing in January 2019, Newfoundland and Labrador, the Yukon, Nunavut and the Northwest Territories do not have legislation regulating payday loans at the provincial or territorial level. Payday loans are regulated in these provinces and territories at the federal level only.
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
Check your options before you borrow:
- For information about other options for managing bills and debts, call 1-866-398-5999 from anywhere in Canada to talk to a credit counsellor from Credit Counselling Canada.
- Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
- Speak with creditors about extending the due date of your payment.
- Consider a small personal loan from a bank or credit union. You may qualify for a loan with lower interest rates than a payday loan.
- Pay with your credit card with credit available to cover your emergency or payment. This is not a long term solution, rather an alternative to a short term loan with higher rates.
- The Financial Consumer Agency of Canada website shows you how small amount loans work and suggests other options that may help you.
Consider the following features when comparing short term loans:
- APR. Short term loans come with notoriously high interest rates and fees. Look at the annual percentage rate (APR) of the loan to understand the true cost. The APR includes both the interest rate and any fees you will be charged.
- Loan amounts. Short term loans typically come in amounts between $100 to $3,000. You’ll pay interest on the amount you take out, so only apply for the amount you actually need.
- Processing time. Some lenders can send you your funds within a few hours while others may take a few days. Consider how quickly you need access to the funds.
- Repayment flexibility. Find out if the lender charges a fee for repaying your loan early or for making extra repayments throughout the loan term.
- Secured vs. unsecured. While many short term loans are unsecured, it is possible to score a more competitive interest rate by securing your loan with an asset such as your vehicle or equity in your home.
- Lender reputation. With many disreputable lenders in the online world, it’s essential to do some background research on a lender before choosing to enter into a loan contract with them.
- Excruciatingly high APR’s. Short term loans are known for their incredibly high APR’s. Before settling for a high interest rate and big fees, compare a variety of different lenders to find the most competitive rates you’re eligible for.
- Taking on a loan you can’t afford. If you know you can’t afford the loan repayments, avoid taking out a short term loan in the first place and consider other financing options.
- Choosing an untrustworthy lender. There are plenty of dishonest lenders in the payday loan space. When choosing a lender, be sure to do some background research to find out if they’re legit and follow any local laws and regulations.
- Skimming over the loan contract. Properly read over the loan contract to understand the terms and conditions. This can help you avoid any nasty surprises down the road.
While the eligibility requirements can differ between lenders, you typically need to meet the following:
- You are at least 18 years of age, or the age of majority in your province or territory.
- You are a Canadian citizen or a permanent resident with a valid Canadian address.
- You have a working bank account.
- You have proof of an income.
A 90 day loan can come in handy if you need access to a small amount of cash for a short period of time. These types of loans can help you pay an urgent bill, cover emergency car repairs or simply help you cover basic expenses until your next few paycheques come through.
If you’re looking to learn more about short term loans, read our guide to learn how these loans work and what to watch out for.