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Cash loans for bad credit
Get a cash loan no matter what your credit score looks like.
Having bad credit can make it difficult for you to get a loan, but there are still options available if you need some extra money. Learn more about your options below.
⚠️ Warning: Be cautious with payday loansPayday loans are expensive. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). Consider alternatives instead of a payday loan:
- Local resources. Government programs and nonprofits offer free financial services and help with food, utilities and rent.
- Debt relief companies. There are services to help you reduce your debt payments.
- Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
- Side jobs. Sell unwanted items online, sign up for food delivery and more.
GoDay Payday Loan
- Loan amount: $100 - $1,500
- Loan term: Up to 62 days
- Borrowing costs: Varies by Province (Between $15-$19 per $100 borrowed)
- Bad credit borrowers: OK
How does a cash loan for bad credit work?
There are two ways to apply for a bad credit cash loan: you can apply in person at a store where you will likely be given your funds shortly after approval, or you can apply online where you will have to wait one or more business days to receive your loan directly into your bank account.
The application process and the amount you can borrow depend on the type of loan you apply for.
- Payday loans. Payday loans are designed to be repaid by your next paycheque, whether that is one week, two weeks or one month from the time you receive it. You can borrow a smaller amount with payday loans than you can with other types of loans, but they come with high costs. There are many lenders who will consider you despite your credit history, as lenders are more interested in your ability to repay your loan.
- Installment loans. Installment loans are similar to payday loans in that they are often costly, but they have the added benefit of letting you pay in increments over months instead of in one lump sum just a few days or weeks later. There are many lenders who will consider you even if you have bad credit, so this is a good option for people who need money and require a longer time to repay it than a payday loan usually offers.
- Personal loans. Personal loans are harder to get if you have bad credit, but they offer the best terms as far as repayment schedules and interest rates. Although rates and fees may be more affordable than payday and installment loans, you must often borrow more money at one time in order to receive financing.
With these loan types, it’s important to remember that you need to budget for the repayments. Since it’s quick cash, lenders will charge you high interest rates. If you think you may have trouble repaying your loan, it’s best not to take one out in the first place.
Compare cash loans for applicants with bad credit
Check the websites of any lenders you’re interested in to confirm they operate in your province or territory of residence.
Maximum borrowing costs per provinceAlways refer to your contract for exact repayment amounts and costs as they may vary from our results.
|Province||Maximum allowable cost of borrowing|
|Alberta, British Columbia, New Brunswick & Ontario||$15 per $100 borrowed|
|Manitoba & Saskatchewan||$17 per $100 borrowed|
|Newfoundland and Labrador||$21 per $100 borrowed|
|Prince Edward Island||$25 per $100 borrowed|
|Northwest Territories, Nunavut & the Yukon||$60 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
Factors to consider when comparing cash loans
Here are some features you should consider in order to find the right loan for you.
- Interest. Although some provinces have regulations that may put a cap on the amount of interest a lender can change you per $100 borrowed, interest is still generally high and not all provinces and territories have regulations. Some lenders will charge less interest than others to remain competitive, so be sure to compare different lenders when you’re looking for an affordable loan.
- Loan terms. Payday loan terms usually vary between 14 and 31 days, although it could be more or less depending on where you live and when you get paid from your workplace. Personal and installment loans usually have terms of up to 24 months, so if you’re looking to pay your loan off during a longer time period, a payday loan may not be right for you.
- Loan amount. The amount you will be able to borrow depends on any provincial regulations as well as the lender you apply with. Additionally, your income may play a role. You can borrow more through a personal or installment loan than you can with a payday loan, sometimes as much as $10,000. Payday loan amounts tend to sit between $100 and $1,000 so find a lender who matches your financial needs.
- Processing time. If you apply in person at a store, you can usually receive your funds on the same day. If you apply online, you’ll likely receive your funds by the next business day, although this may take longer depending on your bank.
Pros and cons of applying for a bad credit cash loan
- Bad credit is OK. You can apply for a payday loan even if you have a bad credit score. Lenders are more interested in your ability to repay your loan.
- Apply without a bank account. Most lenders require that you have a working bank account, as this makes it easier to check your credentials, as well as disburse the loan and automatically debit the repayments. However, you can find some lenders that offer cash loans to customers without bank accounts.
- Apply if you’re unemployed. Some loan providers will consider you for a loan even if you’re unemployed, as long as you’re receiving some sort of income, such as government benefits, pension, welfare, self-employment income or investment income.
- High interest rates. People with bad credit are riskier borrowers, meaning payday lenders cover their bases by charging higher interest rates and fees.
- Short repayment terms. If you opt for a payday loan, you’ll have to repay it quickly, sometimes in as little as 7 days.
- Disreputable lenders. There are some disreputable lenders operating in the payday loan space, so be sure to do some background research on the lender you take a loan out with.
Things to consider before you apply
- Your budget. If you’re thinking about applying for a bad credit cash loan, it’s important to take your income and expenses into account. If you feel you might have difficulty budgeting for your loan repayments, reconsider taking out the loan in the first place and think about alternative financing options.
- Your needs. Take time to understand the differences between payday loans, installment loans and personal loans. After doing some research and taking your individual financial situation into account, you can then pick the one that best suits your needs.
- The loan terms. Before you sign and accept a loan contract, review its terms and conditions carefully. This should give you a clear indication of how much the loan might end up costing you based on a few different scenarios, such as late repayments or refinancing options.
Are payday loans available in my province or territory?
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, the Yukon, Nunavut and the Northwest Territories do not have legislation regulating payday loans at the territorial level. Payday loans are regulated in these territories at the federal level only.
Frequently asked questions about cash loans for bad credit
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