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Payday loans in Canada with no credit check
Find out where you can get a payday loan in Canada with no credit check, and what to consider before applying.
Most people, according to the Financial Consumer Agency of Canada, use payday loans to cover unexpected expenses or bill payments that come due before payday. If you’re in a similar situation and have bad credit, you may be considering payday loans in Canada with no credit check. While these loans have lenient eligibility requirements, they come with very high fees and can be risky. Learn more about your options below.
⚠️ Warning: Be cautious with payday loansHigh-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. 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). You may also want to consider payday loan alternatives.
Popular payday loans in Canada with no credit check
|Payday loan||Serviced provinces||Can you apply online?||Turnaround time|
|AB, BC, MB, NS, ON, SK||As little as 1 hour after getting approved|
Mr. Payday Loan
|AB, BC, ON||30 minutes to get approved during business hours, and another 30 minutes to get an e-mail transfer once approved||Read review|
Focus Cash Loans
|AB, BC, ON||Approval within 30 mins. during business hours, e-transfer within 30 mins. after approval||Read review|
PAY2DAY payday loan
|ON, BC, NS||Within 1-2 hours via e-Transfer once approved||Read review|
Can I get payday loans in Canada with no credit check?
Yes, some lenders in Canada offer payday loans with no credit check, while many others do require credit checks. Payday lenders that do not run credit checks will use other factors like your income and debt-to-income ratio to assess your application. So you’ll often need to demonstrate you have steady income by providing copies of your pay stubs or bank statements.
How can some payday loan lenders in Canada not do credit checks?
When it comes to payday loans, lenders generally see credit checks as just one way of deciding your loan eligibility, along with other factors like your employment history, income and debt-to-income ratio. Lenders are usually more concerned about your ability to repay the loan than your specific credit score number. So even if a payday loan lender does run a credit check and you have bad credit, it doesn’t necessarily mean you’ll be denied.
Will payday loans with a credit check impact my credit score?
It depends. For example, payday lender GoDay says a credit check will likely not impact your credit score, but it also depends on your credit history.
How to get payday loans with no credit check in Canada
Follow these steps to find the right no credit check payday loan:
- Compare types of advances. Read up on your different borrowing options before deciding what type of lender you want to work with. See if some payday loan alternatives, like the ones listed below, may be a better fit.
- Compare providers. Rule out any providers you can’t qualify with before comparing factors like cost, turnaround time and how repayment works. You can easily compare no credit check payday loan providers in the table above.
- Apply. After deciding on a lender, complete the application and submit it along with any required documents, such as pay stubs and bank statements. That can usually be done online without having to go into a physical store.
- Get your funds. You’ll likely get your money deposited directly into your bank account, often within the same business day – or even within the same hour – once you’re approved. Some payday lenders also offer cash, cheque, money orders or prepaid debit cards.
Pros of getting no credit check payday loans
- There are multiple no credit check options available
- You could potentially get funds the same day or within an hour
- Same fixed fee for most borrowers
Cons of getting no credit check payday loans
- Not all options are available in all provinces and territories
- You’ll pay the equivalent of around 120% to over 390% APR on payday loans
- It’s easy to get caught in a cycle of debt
Features of no credit check payday loans in Canada
- Loan amount. You can borrow between $100 and $1,500, although some provinces or lenders have rules where you can only borrow up to a certain percentage of your income. So, for example, if the rule is that you can borrow up to 50% of your income, and your next paycheque is $2,000, the maximum payday loan you could get is $1,000.
- Loan term. The maximum term is 62 days, but you typically need to repay the loan within 1 to 4 weeks.
- Borrowing fee. Depending on your province, the fee can be anywhere between $14 to $17 for every $100 borrowed. Expressed as an annual percentage rate (APR), it would be in the triple digits. This is an extremely expensive loan that can put you in a cycle of debt if you don’t repay it in time. Because of this, payday loans should only be a last resort.
- Flexible eligibility requirements. Payday loans are one of the easiest loans to get approved for. Those with poor credit or no credit history can be approved. You can also apply if you’re unemployed but have benefits like disability income, employment insurance, social assistance or pension.
Eligibility requirements for no credit check payday loans
The specific requirements will vary between lenders, but the criteria for payday loans in Canada with no credit check usually includes:
- Age. You must be at least 18 years old, or the age of the majority in your province or territory.
- Income. Applicants must prove that they receive a regular income.
- Banking statements. To assess income and expenses, lenders usually require read-only access to bank statements.
- Liabilities. Applicants must provide details of any other liabilities including outstanding loans or credit card repayments.
As long as the eligibility requirements are met, people can apply for these loans online, though approval is not guaranteed. If approved, the lender can usually make the deposit on the same day.
Watch out for these no credit check payday lender traps
In return for these quick and easy no credit check loans, some payday loan lenders in Canada set up a number of traps that can result in borrowers getting into more financial trouble than when they started.
- Excruciatingly high interest rates. A lender’s fees may appear reasonable at first. For example, a $25 fee on a $100 loan doesn’t seem high, but this is actually a 470.96% APR. These astronomical rates keep borrowers in debt with their payday lenders.
- NSF fees. Payday lenders often set up automatic repayments directly from the borrower’s bank account. If an attempt by an online payday lender to withdraw payment results in insufficient funds, the borrower will face another fee from the bank this time.
- Late fees. If you default on your loan, you can be on the hook to pay late fees. In Ontario, for example, a payday lender can charge you up to 2.5% per month on the outstanding principal.
- Bank account closure. If a bank account maintains a negative balance for an extended amount of time, the bank may close the account. People are then forced to look to high-fee debit cards to pay bills since regular banks will no longer do business with them.
What are 3 alternatives to getting a payday loan?
Before opting for an expensive no credit check payday loan in Canada, consider these 3 other, cheaper alternatives.
1. Credit card cash advance
A credit card cash advance usually comes with a fee of around 23%, which is much cheaper than the triple digit APR typical of payday loans. Keep in mind that interest on a cash advance starts to accumulate immediately, so the sooner you can pay it off the better.
2. Installment loan
Installment loans are specific type of personal loan lenders specifically offer to bad credit borrowers. Loan amounts can range from $500 to $10,000, with interest rates from 18% to 46.96% and term lengths from 3 - 60 months. While these lenders may do a credit check, you may still be approved even with bad credit depending on the lender.
3. Bank account overdraft
It’s common for banks to allow you to go into overdraft on your account often up to several hundred dollars. Overdraft fees are typically fixed at around $5, which makes it much less expensive compared to payday loans. But you might have to pay an additional $5 per day, week, month or item charged until you recover your balance.
Compare other payday loans
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.
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
Maximum borrowing costs of payday loans 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 & Prince Edward Island||$15 per $100 borrowed|
|Manitoba, Saskatchewan & Nova Scotia||$17 per $100 borrowed|
|Newfoundland and Labrador||$14 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
Even if you have bad credit or no credit history, payday loans should generally be a last resort since they’re so expensive. If you do decide on getting payday loans in Canada with no credit check, be absolutely sure that you can afford it. Otherwise, you could incur late fees and place yourself in more debt. Before applying, have a plan in place for how you will repay your loan by your next payday.
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