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Payday loans for bad credit

Browse online bad credit payday loans in Canada. Find a legit lender and learn about key factors to consider before applying.

Name Product Max. Loan Amount Serviced Provinces Turnaround Time Loan Term Interest Rate
Cash Money Payday Loan
$1,500
British Columbia
Nova Scotia
Ontario
Saskatchewan
In as little as 15 minutes with INTERAC e-Transfer® if approved
14-40 days (varies by province)
Varies by province
Apply for your first $300 payday loan at a $20 borrowing cost (excludes Saskatchewan applicants). Residents of Manitoba and New Brunswick cannot apply for a loan online (must apply in-store).
iCASH Payday Loan
$1,500
Alberta
British Columbia
Manitoba
New Brunswick
Nova Scotia
Ontario
PEI
In as little as 2 minutes with INTERAC e-Transfer if approved.
14 - 62 days (varies by province)
Varies by province
Get up to 20% in cash back once your iCASH Payday Loan is fully repaid. Conditions apply.
GoDay Payday Loan
$1,500
Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, PEI, Saskatchewan
In as little as 2 minutes with INTERAC e-Transfer if approved.
Up to 62 days
Varies by Province
To apply for a GoDay payday loan, 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.
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We compare the following cash lenders

⚠️ Warning: Be cautious with payday loans
Payday loans are expensive. If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call Credit Counselling Canada from 8:00am to 5:00pm Monday to Friday at +1 866-398-5999. Consider alternatives before applying for a payday loan:
  • Local resources. Government agencies, nonprofits and local charities may offer free financial services and help with food, utilities and rent for those in need.
  • Debt relief companies. These services can help you find a solution to reduce your debt payments and work toward becoming debt-free.
  • Payment extensions. Talk with your bill providers about a longer payment plan or extension on your due date if you're behind on payments.
  • Side jobs. Today's digital marketplace offers the ability to more easily sell unwanted items, sign up for food delivery or drive for rideshare services.

If you have less-than-perfect credit, your loan options may be limited but bad credit payday loans may still be a viable option. Minimum credit score requirements of about 600 or more can put traditional loans from banks and credit unions out of your reach, but there are other routes available to you. Bad credit payday loans in Canada might be what you are looking for.

But you should always be careful when signing up for a payday loan, even if you have bad credit and it’s the only financing option available to you. Payday loans come with notoriously high interest rates and quick repayment terms capping out at only 2 months at most. You must make sure you have a concrete plan to pay off your payday loan before you take out this expensive debt.

Can I get a payday loan with bad credit?

Yes, bad credit payday loans are available to Canadians across the country. When it comes to payday loans, lenders are more concerned with your ability to repay your loan than with your credit score so they’ll shift the focus to your income instead. You must be able to show your payday lender that you have the steady income stream needed to repay your loan on time.

Bad credit payday loans in Canada are readily available via lenders such as:

They all explicitly state that credit score isn’t the determining factor in granting your loan request. Instead, the emphasis is on your income. Cash Money, for example, says you must have a minimum monthly income of $1,000, while iCASH moves the threshold down to only $800 per month to be eligible. Always check on the eligibility criteria your lender has set out before applying to make sure you can qualify.

Online payday loans for bad credit

Online payday loans for bad credit allow you to go through the entire loan process without having to visit a physical store.

Most payday lenders provide borrowers with the option to apply for a payday loan completely online, while some add in-person or over-the-phone services. You can fill out an application form from your desktop or mobile phone, submit your application and receive a decision on your loan request within hours, if not sooner. Once you’re approved, your payday lender can send your funds via direct deposit, or INTERAC e-Transfer. If you prefer to receive your funding in cash or loaded onto a prepaid debit card, you may have to visit your payday lender’s local branch. Compare online payday loans.

How do I apply for bad credit payday loans?

Applying for a bad credit payday loan is a simple process that requires you to either go online to a lender website or visit a branch location near you. First, you need to do your research, narrowing your search to payday lenders that will approve your loan request even with bad credit. Once you’ve decided on a lender, you will fill out a simple application form, and once you’re approved, you will have your funds transferred to you in as little as 15 minutes.

Even with bad credit payday loans, you can receive an instant decision on your loan request, expediting the process and getting your funds quickly. Your job is to ensure you’re providing all of the required information in your loan application so that your lender can quickly assess your loan request without circling back for missing details.

What to consider before applying for a payday loan with poor credit

  • Compare your options. There are quite a few options available so it’s important to compare them and find the one that best fits your needs. You’ll want to look at the loan amount, repayment terms and the total cost in order to find a loan that fits what you are looking for.
  • Review the eligibility criteria. While these lenders do accept applicants with bad credit, they still have requirements that need to be met. Check the minimum age, income and residency requirements to avoid being rejected.
  • Only apply for the amount you can afford. Although lenders can’t offer you more than you can pay for, the terms may still be difficult for you to meet if the repayment period is short. You should only take out a loan for an amount which you can manage to pay back. Find a loan that works with your budget or else you may get caught in a vicious cycle of debt.
  • Budget to cover your payments. When you’re approved for a loan, your repayments will generally start on your next payday. Make sure that you have enough money set aside from your upcoming pay cheque to cover your loan.

    What requirements will I have to meet?

    Once you find a lender, make sure you meet the eligibility requirements for the loan. These may vary between provinces and providers, but they tend to include:

    Eligibility criteria:

    • Be at least 18 years old, or the age of majority in your province or territory
    • Be a Canadian citizen or permanent resident
    • Have proof of a steady source of income

    You will typically need to have the following information on hand when applying for a loan:

    Required information:

    • A valid form of ID
    • Your contact details
    • Proof of income
    • Your bank account details

    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.

    As of June 2021, 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.

    Maximum borrowing costs
    You should always refer to your loan agreement for exact repayment amounts and costs as they may vary from our results. The table below shows the maximum allowable cost of borrowing under a payday loan for each province:
    ProvinceMaximum allowable cost of borrowing
    Alberta$15 per $100 borrowed
    British Columbia$15 per $100 borrowed
    Manitoba$17 per $100 borrowed
    New Brunswick$15 per $100 borrowed
    Newfoundland and Labrador$21 per $100 borrowed
    Northwest Territories, Nunavut & the Yukon$60 per $100 borrowed
    Nova Scotia$19 per $100 borrowed
    Ontario$15 per $100 borrowed
    Prince Edward Island$25 per $100 borrowed
    QuebecLimit of 35% annual interest rate (AIR)
    Saskatchewan$17 per $100 borrowed

    Features of bad credit payday loans

    Here are the pros and cons of payday loans for bad credit:

    • Easy online application. You can compare lenders online and submit your application within minutes. There’s no need to visit a physical branch in person or fax copies of your pay cheque in.
    • Quick turnaround time. When you apply online, you can have your loan deposited into your bank account in as little as one business day.
    • Bad credit can be considered. The lender will shift its focus on your income instead to see if it can approve you.
    • Disreputable lenders. Not all lenders follow provincial or territorial laws and regulations. Check to make sure yours is licensed and isn’t a scam. Always choose a reputable company that has positive feedback from real customers. Compare legitimate lenders.
    • Short repayment terms. Payday loans are known for being costly because of their quick repayment schedule. Make sure you can comfortably cover your payments with your next pay cheque before you apply.

    Amanda's emergency car repair

    woman car breakdown Amanda’s car broke down on her way to work. She took the morning off to visit the mechanic, who estimated her repair costs at $250. As a shift worker, she had already missed out on that morning’s pay and her pay cheque wasn’t due to come until the following week.

    She needed her car repaired to get to work, but with her low credit score, she wasn’t eligible for a personal loan.

    Instead, Amanda looked at how much a bad credit payday loan would cost her. There was room in her budget for the high fees and, since she was going to be paid soon, Amanda knew she could afford it. By the next day, she had enough to pay for the repairs and was able to take on an extra shift at work to make up the difference.

    How do I know a payday loan is legit?

    There are several ways to determine if a payday lender is legit.

    • Check for BBB accreditation.
    • See if the lender is transparent about fees.
    • Check that the lender abides by the provincial regulations for payday loans.
    • Check that the lender has a licence.
    • Read reviews about the lender.

    Learn more about legitimate payday loans.

      Alternatives to bad credit payday loans in Canada

      Depending on what you need the loan for and how much money you want to borrow, there are other loan options available to those with fair to poor credit:

      • Auto title loan. If you have a car, you could get an auto title loan. This type of loan is secured against the title, which in this case would be your car, so you can get a lower rate while still being able to drive your vehicle as you repay the loan.
      • Installment loan. These loans are similar to payday loans, but they are repaid in installments over a longer period of time. These loans could be an option for you if you need a longer time period to pay back your loan, since payday loans don’t offer long payback periods.
      • Bad credit personal loans.Personal loans are harder to get if you have bad credit, but there are bad credit personal loan options. However, you’ll likely need to borrow more money at once to be approved.
      • Guarantor loan. This option requires that someone with a good credit score cosign on your personal loan. Some lenders will essentially ignore your credit history if your guarantor has an excellent credit score and a high enough income.
      • Debt relief services. If you are facing legitimate financial hardship, debt relief services might be a solution for you.

      Didn’t find a loan that fits your needs? There are alternatives.

      Bottom line

      It’s possible to get approved for a payday loan with bad credit. But before you apply, make sure you can afford the repayments, or you might find yourself in a cycle of debt. Take time to compare your options and review the eligibility requirements before you submit your application. You may also want to consider alternatives, because payday loans should only be a last resort.

      Frequently asked questions

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