If you’re searching for a $700 loan in Canada, you have options. Many lenders online offer $700 loans in the form of installment loans and payday loans.
Interest rates vary between lenders and based on your financial situation, so keep reading for details on how to find the best $700 loan for you.
Eligibility requirements for $700 installment loans
While eligibility requirements vary between lenders, you will generally need to meet the following criteria:
Be 18 years of age or older
Be a Canadian citizen or permanent resident
Have a steady source of income (employment income preferred)
Have a valid bank account
Meet the minimum credit score
Some personal loan lenders have minimum loan amounts of $1,000 or higher, so you’ll need to look for a lender that provides small loan amounts.
Good vs bad credit
If you have a good or excellent credit score, you’ll find it much easier to qualify for an installment loan and access lower interest rates. However, many alternative lenders also offer personal loans for borrowers with bad credit – rather than looking at your credit history, they look for borrowers with a steady source of income so they can afford to repay the loan.
How to get a $700 installment loan
You can get a $700 loan in Canada by completing the following steps:
1. Check your credit score
Review your credit score to find out whether you have good or bad credit and to work out what type of lender to approach. If your score leaves a little to be desired, you might want to work to increase your credit score before borrowing any money.
2. Research lenders
Next, make sure you only consider loans from reputable lenders. Check whether a lender is properly registered and licensed, check what other customers have to say about the lender on independent review sites, and watch out for any red flags that could indicate a sketchy lender (like promising guaranteed approval). Check out our guide to personal loan scams for more info.
3. Compare loans
Now it’s time to look at the specifics of different loans to find one that suits your needs. Some lenders offer personal loan pre-approval, which essentially allows you to view a “quote” that details roughly how much the loan will cost. This can be very useful when comparing loans, but check that it won’t affect your credit score before you apply. Consider the APR, any fees such as prepayment penalties that may apply, the loan term, your monthly payment and the total cost.
4. Submit an application
You can fill out an online application with your name, date of birth and contact details. You’ll also need to provide proof of ID, details of your income and employment and your bank account details.
5. Review the loan offer
If your application is approved, take the time to double-check the loan details before you sign on the dotted line. Make sure you know how much your loan will cost you overall.
6. Get funded
You’ll get your money on the same day you apply or the next day via Interac e-Transfer or direct deposit.
High-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. View payday costs and regulations by province here. 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.
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Maximum borrowing costs of payday loans per province
Always refer to your contract for exact repayment amounts and costs.
Province
Max. cost of borrowing a $100 payday loan
Cooling off period to cancel loan
Max. penalty for returned cheque or pre-authorized debit
Alberta
$15
2 business days
$25
British Columbia
$15
2 business days
$20
Manitoba
$17
48 hours excluding Sundays and holidays
$20
New Brunswick
$15
48 hours excluding Sundays and holidays
$20
Newfoundland and Labrador
$14
2 business days
$20
Nova Scotia
$15
Next business day (2 days for online loans)
$40 (default penalty)
Ontario
$15
2 business days
$25
Prince Edward Island
$15
2 business days
N/A
Quebec
Limit of 35% AIR
N/A
N/A
Saskatchewan
$17
Next business day
$25
Eligibility requirements for $700 payday loans
Eligibility criteria vary from one lender to the next, but most payday lenders don’t carry out credit checks. To qualify for a payday loan, you will generally need to meet the following criteria:
Be 18 years of age or older
Have a steady source of income
Have a valid bank account
How to apply for a $700 payday loan online
You can apply for a payday loan by completing the following steps:
Visit the lender’s website.
Provide your name, contact information and Social Insurance Number.
Provide proof of ID (such as a driver’s licence or passport).
Provide details about your employment and proof of income (such as pay stubs and bank statements).
Provide your bank account details.
The lender’s systems will automatically assess your application, and if you’re approved, they’ll offer you a loan.
Review all the loan details carefully before you sign.
The money will be sent to your account within a few minutes via Interac e-Transfer.
There are a few key risks you should be aware of before taking out a payday loan:
They’re expensive. With high interest rates and fees, payday loans are very expensive to repay. These loans commonly have APRs of 300% or more, so there are much more affordable ways to borrow money.
They have short loan terms. Payday loans are designed to provide the money you need until your next paycheque arrives. They have very short loan terms of 62 days or fewer, so you will need to get the money together quickly to repay the loan on time.
They can suck you into a cycle of debt. Thanks to their high cost and short terms, payday loans are difficult to pay back on time. This can lead you to borrow more money to make ends meet before your next paycheque arrives. Before long, you could find yourself in a cycle of debt.
There are some dodgy lenders out there. Payday loans are notorious for being associated with disreputable lenders and scammers. Make sure any lender you use has a payday lending licence in your province, is transparent about loan costs and abides by all the payday lending regulations where you live. Learn more about payday loan scams and legit lenders.
Can I get a $700 loan with bad credit?
Yes. If your credit score is lower than you’d like, it’s still possible to qualify for a $700 loan. Online lenders often specialize in loans for people with bad credit, and they’ll look past your credit score to consider your income and whether you can afford to pay back what you borrow.
The other option is to apply for a payday loan. Many payday lenders don’t check your credit score when assessing your loan application and will instead consider your income and bank balance before deciding whether to offer you a loan. Best bad credit loans in Canada
Cost of a $700 loan
How much does it cost to repay a $700 loan? That depends on the interest rate, fees and loan term.
To give you an idea of what sort of repayments you can expect, let’s take a look at the cost of repaying a $700 payday loan in Ontario vs a $700 installment loan with a six-month term and a variety of different APRs.
Payday loan
Installment loan with 12.99% APR
Installment loan with 19.99% APR
Installment loan with 46.95% APR
Loan amount
$700
$700
$700
$700
Payment
One payment of $805
$121.13 per month
$123.56 per month
$133.15 per month
Total cost of loan
$805 ($105 interest)
$726.76 ($26.76 interest)
$741.37 ($41.37 interest)
$798.92 ($98.92 interest)
As you can see, not only is the payday loan the most expensive option, but it also needs to be paid back within two weeks. The installment loan provides a more manageable monthly payment over six months, but a higher rate can make a sizeable difference to the total cost of the loan.
Should I get a payday loan or installment loan?
The right type of loan for you will of course depend on your personal financial situation. However, both installment loans and payday loans are very expensive options. It’s worth considering other alternatives – such as applying for a personal loan with a cosigner or accessing a line of credit – first to check whether you can find a better deal.
Payday loans should be a last resort
If it comes down to an installment loan or a payday loan, a payday loan should be a last resort. While provinces around the country have laws in place to limit the maximum cost of a payday loan, they’re still extremely expensive – they often have APRs of between 390% and 780%. For comparison, even if you have bad credit and can only access a high interest rate installment loan, you’ll still get a much lower APR of around 47%.
The other major issue with payday loans is that they have very short loan terms. You’ll have to repay your loan in full by your next payday in most provinces. Installment loans, meanwhile, give you the convenience of longer loan terms and regular monthly payments to gradually pay off your debt.
This makes it easier to budget for repayments and is another reason why an installment loan is a better choice.
Other ways to borrow $700
Installment and payday loans are expensive, so it’s worth considering a range of payday loan alternatives first:
Credit card cash advance. A credit card cash advance allows you to access cash from your card balance. They tend to attract a higher interest rate than credit card purchases – but lower than the rate on a payday loan or bad credit installment loan – and you’ll often also need to pay a cash advance fee.
Line of credit.A line of credit allows you to withdraw money as you need it, but up to a pre-determined limit. You can use as much of your approved credit limit as you want, while interest is charged only on the money you borrow rather than the full credit limit. Interest rates are typically lower than on personal loans and credit cards, but watch out for any fees that also apply.
Car title loans.Auto title loans require you to use your car as collateral and generally allow you to borrow 25–50% of the vehicle’s value. Typically offered by alternative lenders, they’re an option worth considering if you have a low credit score but you own a car. However, these loans usually involve higher loan amounts and your vehicle could be repossessed if you default on the loan. You’ll also need to watch out for high interest rates and fees.
It's possible to get approval and funding for an installment loan within 24–48 hours. Payday lenders can provide access to funds in as little as one hour, but payday loans come with high interest rates, high fees and very short loan terms.
Yes, some payday lenders will allow you to borrow $700 without requiring a credit check. However, payday loans are very expensive and have short loan terms, so they should only be used as a last resort.
Steer clear of any lender that promises guaranteed approval to loan applicants – this is a red flag that may indicate an illegitimate lender. Before approving a loan application, a responsible lender will assess your financial situation carefully to determine whether you can afford to repay the amount you want to borrow.
The money you borrow will usually be sent to your bank account via Interac e-Transfer or direct deposit.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
Read our guide to payday loan regulations in your province or territory.
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