Get a payday loan with bad credit

Do you need some extra cash but have a bad credit score? There are options available to you.

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Young woman in thought, chewing on her credit card while staring at her phone

Having a bad credit score can seriously affect your financial options. If you have a fair to poor credit score, which is anything typically under 650, trying to find a loan that you will be approved for can be a difficult task. Minimum credit score requirements can put traditional loans from banks out of your reach, but there are other options available to you. Short term loans for people with bad credit might be what you are looking for.

⚠️ Warning: be cautious with short-term loans

If you're experiencing financial hardship and would like to speak to someone for free financial counselling, you can call Credit Counselling Canada on 1800 007 007. It's open from 8:00am to 5pm, Monday to Friday. When comparing short-term loans, ensure you take into consideration all fees, charges and interest to understand how much your loan might cost in total.

Alternatives to short-term loans

Consider these alternatives before applying for a payday loan:

  • Use online Government resources. The Financial Consumer Agency of Canada website demonstrates how small amount loans work – and suggests alternative options that may help you.
  • Payment plans. Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan or receive an extension on your due date if you’re behind on payments.
  • Contact your creditors. Speak with creditors about extending the due date of your payment, or working out a new payment plan that works for both of you. Seek personal loans elsewhere. Consider a small personal loan from a bank or a credit union. You may qualify for a loan with much lower interest rates than those offered by payday loan companies.
  • Pay with credit card. Consider paying with your credit card to cover your emergency bills or payments. This is not a long term solution, as you’ll need to pay off the balance as soon as possible, but it’s an alternative to a short term loan with high – and immediate – interest rates.

Cash Money Payday Loan

Apply online or in store and get approved for up to $1,500.
  • Minimum loan amount:
  • Maximum loan amount: $1,500
  • Interest Rate: Varies by Province
  • Fees: Up to $17 per $100 borrowed (rounded to nearest dollar)
  • Loan term: 12-14 days. Varies by Province
  • Turnaround time: In as little as 15 minutes with INTERAC e-Transfer® if approved
  • Key requirements: Be 18+ years old, provide proof of recurring income
Cash Money Payday Loan
  • Simple application process
  • Fast turnaround time
  • Extended business hours
Go to site More info

How can I get a loan with bad credit?

Short term lenders are more concerned with your ability to repay your loan than with your credit history. Applying for a short term loan is a simple process that requires you to either go online to a lender website or visit a branch location near you. You will fill out a simple application form, and once you’re approved, you will have your funds in as little as one business day.

While applying is simple, you should keep the following factors in mind to save yourself time and money:

  • 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.

Enquire for loans if you have bad credit

Check the websites of any lenders you’re interested in to confirm they operate in your province or territory of residence.

Name Product Max. Loan Amount Serviced Provinces/Territories Turnaround Time Loan Term Interest Rate
Cash Money Payday Loan
Nova Scotia
New Brunswick
British Columbia
In as little as 15 minutes with INTERAC e-Transfer® if approved
12-14 days. Varies by Province
Varies by Province
Apply for your first $300 payday loan at a $20 borrowing cost (excludes Alberta, Manitoba, New Brunswick or Saskatchewan applicants).

Compare up to 4 providers

*The products compared on this page are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order or perfect ranking system for the products we list on our Site, so we provide you with the functionality to self-select, re-order and compare products. The initial display order is influenced by a range of factors including conversion rates, product costs and commercial arrangements, so please don't interpret the listing order as an endorsement or recommendation from us. We're happy to provide you with the tools you need to make better decisions, but we'd like you to make your own decisions and compare and assess products based on your own preferences, circumstances and needs.

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.

Find out how much lenders can charge across Canada

What are the benefits and drawbacks of a bad credit payday loan?

Here are the pros and cons of taking out a payday loan when you have 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.
  • 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.
  • 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.

What other options do I have for a loan?

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 short term 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.

How to apply

Once you find a lender, make sure you meet the eligibility requirements for the loan. These may vary between provinces and providers, however 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

Bottom line

If your credit is below 650, which is considered fair to poor, you can consider a bad credit payday loan. Before you settle for a loan, always take time to compare your options and view the eligibility requirements before you submit your application.

Frequently asked questions

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