Dive deeper: Cash advance apps
3 credit card alternatives to borrow money
Need some extra cash? Check out these three ways to borrow money without using a credit card.
Credit cards are convenient, but they have their downsides. With high interest rates and the risks associated with being able to access credit at any time, it can be easy to find yourself buried under a mountain of debt. So if you’re looking for credit card alternatives in Canada, here are three options worth checking out.
1. Cash advance apps
- How it works: Cash advance apps like Nyble, Bree and KOHO Cover offer small cash advances of approximately $20 to $500. It’s quick and easy to apply online or via a mobile app, and you won’t need to complete a credit check to get approved. Advances are typically designed to be repaid on your next payday or you can extend the payment term as needed, and you won’t pay any interest on the funds you borrow.
- Cost: 0% interest, small monthly fee may apply. Additional fee may apply for instant advances.
- Ease of approval: Very easy.
Pros
- No interest charges
- No credit checks
- Instant funding available
- Quick and easy to apply
- Highly rated apps
Cons
- Only small loan amounts
- A monthly subscription fee often applies
- You may need to pay a fee to get an instant advance
Compare cash advance apps
3 of 3 results
Finder Score for cash advance apps
To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 5+ cash advance apps are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.
2. Personal loans
- How it works: A personal loan provides a lump sum of money you can use for any legitimate purpose. You can apply with a bank, credit union or online lender, and you have the option to provide collateral for a secured loan to lock in a better interest rate. You’ll then repay the principal plus interest in regular installments, and some lenders will let you pay your loan off early without penalty.
- Cost: Interest rates range from 6.99% to 35% depending on your credit score and other factors. A loan origination or brokerage fee may also apply.
- Ease of approval: You’ll need good to excellent credit to qualify with banks, but online lenders have more lenient eligibility criteria.
Pros
- Lower rates than credit cards (if you have good credit)
- Wide range of lenders and loans to choose from
- Access larger loan amounts
- Suitable for large purchases or projects
- Repay anytime without penalty if it’s unsecured
Cons
- High rates for bad credit
- Watch out for brokerage fees and other charges
- Strict eligibility criteria at traditional lenders
Compare personal loans
Compare other products
We currently don't have that product, but here are others to consider:
How we picked theseFinder Score for personal loans
To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 40+ personal loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.
3. Lines of credit
- How it works: A line of credit allows you to borrow as much money as you need, up to your pre-approved credit limit, whenever you need funds. There’s no fixed repayment term, and you only pay interest on the money you use. You also have the option to choose either a secured or unsecured line of credit.
- Cost: The average interest rate is 4.56% for a secured line of credit and 8.42% for an unsecured line of credit. Establishment, annual and transaction fees may also apply.
- Ease of approval: You’ll need good to excellent credit to qualify with banks, but online lenders have more lenient eligibility criteria.
Pros
- Flexible access to funds when you need them
- Higher loan amounts than credit cards
- Lower interest rates than credit cards
- Useful when you don’t know exactly how much you’ll need to borrow
Cons
- Same temptation to overspend that you get with a credit card
- High rates for bad credit
- Cost of repayment could increase if interest rates rise
- Difficult to qualify with traditional lenders
Dive deeper: Line of credit interest rates
How to pick the best loan for you
The best credit card alternative for you depends on factors such as:
- How much you need to borrow.
- Why you need the money.
- How disciplined you are with your spending.
- Your credit score.
If you only need a small amount of less than $500, a cash advance is likely the best option. With no credit checks required and no interest charges to worry about, it’s an easy and affordable way to borrow money.
But if you need a larger amount, you’ll need to choose between a personal loan and a line of credit. If you know exactly how much you need and you like the security of a fixed repayment amount, consider a personal loan.
If you’re not sure exactly how much money you need, or if you just want flexible access to funds when required, consider a line of credit. However, you’ll need to be disciplined enough to avoid the temptation to overspend.
Ultimately, make sure you compare a range of lenders, financing options and loan costs to find the best loan for you.
Sources
More resources on Finder
More guides on Finder
-
5 Home Trust Secured Visa Card Alternatives
Compare five cash advance apps and secured credit cards to find the best alternative to the Home Trust Secured Visa.
-
5 Capital One Secured Mastercard Alternatives
Compare Capital One secured credit card alternatives when you need to build credit or access a short-term loan.
-
5 Neo Secured Credit Card Alternatives
Build credit or get an easy short-term loan with these alternatives to a Neo Financial Secured Mastercard.
-
4 best credit cards for fair credit in Canada
Check out the best credit cards for fair credit, and learn how a fair credit score of 560-659 can impact your card options.
-
US dollar credit cards in Canada
Do you travel, work or spend money in the US frequently? Find out if a US dollar credit card is the right fit for you.
-
What credit score is needed for a credit card in Canada?
Find out about the minimum credit score for a credit card in Canada, and compare your card options.
-
Using a credit card internationally
Going abroad and wondering whether you can use your credit card while travelling? Here’s the lowdown on credit cards vs. cash, fees, and which cards to get.
-
What’s the best credit card for kids & teens under 18 years old?
Find out how old you have to be to get to get a credit card for teens in Canada, and learn how your child can qualify if they’re under 18.
-
Best credit cards in Canada with instant approval
Find out how you can apply for an instant approval credit card in Canada and get a response within 60 seconds.
-
What is the most prestigious credit card in Canada?
Discover the features, fees and eligibility requirements of the most prestigious credit cards in Canada.