Dive deeper: LoanConnect review
10 Best Installment Loans in Canada
We examined rates, amounts, terms, eligibility criteria and more to find Canada's top-tier installment loans.
Installment loans are unsecured personal loans offered by alternative lenders. They have more lenient eligibility criteria than traditional personal loans, so you can apply for them and get approved with fair or bad credit. However, the trade-off for easy approval and funding is higher interest rates.
Check out some of the best installment loans in Canada in this guide and learn how to find the best deal for your situation.
Best installment loans in Canada
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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.
1. LoanConnect: Best for comparing offers
Why it’s one of the best
Ontario-based LoanConnect isn’t a direct lender but an online loan search platform. Fill out one application and get multiple offers. Borrowers of all credit types can apply—ultimately, LoanConnect’s goal is to pair you with lenders who are willing to provide an installment loan, even if you’ve been denied by banks. LoanConnect is also a registered business with BBB accreditation and an A+ rating.
2. Spring Financial: Best for online funding
Why it’s one of the best
With headquarters in downtown Vancouver, Spring joins the ranks of online-only lenders, so you’ll go through the entire application and approval process completely online. It is one of the most established direct online lenders in Canada. Receive a phone call right after you apply, and get your loan funds as soon as the same day.
However, if you don’t qualify for an installment loan, Spring Financial might promote its credit builder loan instead, called “The Foundation.” With this loan, you won’t receive any of the money until you make all your on-time payments plus interest. If you miss a payment or more, you won’t qualify to receive the money at all, and you won’t get a refund of the payments you’ve made so far.
Dive deeper: Spring Financial review
3. Loans Canada: Best for all credit
Why it’s one of the best
Loans Canada is a loan search platform with the largest lender network in Canada, so your application will be cast wide to suitable lenders across the country. It helps people in all credit situations, whether you have good credit, bad credit or a history of bankruptcy. Established in 2012, Loans Canada is accredited by the BBB with an A+ rating.
Dive deeper: Loans Canada review
4. Green Loans: Best for short-term installment loans with no credit check
Why it’s one of the best
Green Loans is a broker of short-term installment loans. It’s operated by NCR Financial, which has been in business for over 15 years. This provider is best for emergency funding and for avoiding payday loans.
The flexibility of Green Loans’ eligibility requirements makes it one of the best in its category. It’s open to many types of non-employment income, such as government disability, private disability, private pension, CPP, OAS, welfare, CCB and workers’ compensation. Credit checks are not required, so it’s possible to apply and get approved with bad credit. You can also get your installment loan within 24 hours. However, watch out for a broker fee in the hundreds.
Related: Green Loans.ca review
5. easyfinancial: Best for borrowers who want to apply to a big lender
Why it’s one of the best
easyfinancial is one of the largest alternative lenders in Canada, with over 400 locations across the country as well as an online application process. It’s been providing installment loans for over 18 years. You can get approval in as little as 10 minutes, and if you change your mind about the loan, you have 14 days to return it, which is a benefit that very few lenders offer. easyfinancial also says that one in three of their customers graduate to prime rates.
Related: easyfinancial review
6. Fairstone: Best for quick, no-obligation quotes
Why it’s one of the best
Fairstone is a well-known direct lender of installment loans in Canada with roots in the country since 1923 and 230+ branches from coast to coast. It offers unsecured loans, though secured loans are an option too. Its selling point is its speed. You can apply online in 10 minutes, get a quote without affecting your credit score, and receive your loan in as little as one day.
Related: Fairstone review
7. Helium Loans: Best for borrowers who need a payday loan alternative
Why it’s one of the best
Helium Loans is a direct lender that helps borrowers avoid payday loans by offering alternatives: personal loans, short-term installment loans and lines of credit. You can apply online, get an instant decision, and get an instant deposit via Interac e-Transfer. If you need some time, you can defer a payment for up to 14 days with no fees, which is a rare perk.
8. Cashco Financial: Best for flexible terms
Why it’s one of the best
Alberta-based Cashco has decades of experience in providing fast installment loans with flexible terms. You can choose terms that best suit your needs and get your funds within 24 hours of submitting your application. This lender is also open to bad credit scores and several forms of income, such as government benefits and private pensions.
Related: Cashco Financial review
9. Blue Copper Capital: Best for progressing to better rates
Why it’s one of the best
Based in Alberta, Blue Copper Capital is another direct lender that provides installment loans to people who may not get approved by a financial institution. It has provided loans since 2006 and has branches you can visit in Calgary and Edmonton. You can apply online, in person or over the phone. In addition to installment loans, it offers payday loans, business loans and lines of credit.
Blue Copper Capital is known for its excellent customer service and offers better rates and terms once you successfully pay off your loan with them. This lender has an A+ rating with the BBB.
10. Fat Cat Loans: Best for bad credit
Why it’s one of the best
Loan search platform Fat Cat Loans is another great option if you want to compare offers by filling out just one application, especially if your credit score isn’t the best. Whether you need to consolidate debt, pay for urgent bills or cover a large expense, Fat Cat Loans has options. Apply online and get your funds as soon as the same day.
Related: Fat Cat Loans review
What are the key features of installment loans in Canada?
Installment loans in Canada share these features:
- They’re usually unsecured. With installment loans, you don’t need to offer an asset as collateral.
- They’re repaid in installments. You’ll repay an installment loan with equal payments over time. If you want, you can make extra payments or pay your loan off early because installment loans do not have prepayment penalties.
- They have higher interest rates. Installment loans in Canada have higher interest rates compared to those on offer from banks and credit unions. Because alternative lenders are taking a bigger risk, they’ll offer higher rates. But, based on the list above, you may be able to secure a lower interest rate if your credit is in great shape.
- They have fixed interest rates. Your interest rate for your installment loan will stay the same throughout its loan term.
- They have varying loan amounts and loan terms. The maximum amount you could qualify for depends on your income and financial situation, but installment loans typically have smaller loan amounts, starting at just $500. Loan terms vary between 3 - 60 months.
- They’re easier to qualify for. While traditional personal loans may be harder to qualify for, installment loans have more lenient eligibility requirements.
How to find the best installment loans
Installment loans in Canada have a variety of features. To help narrow down your top picks, consider these factors:
- Interest rates. Focus on the annual percentage rate (APR), which is your annual interest rate plus fees you’ll pay to take out the loan. Compare personal loan APRs in Canada.
- Fees. Consider fees like loan administration fees (fee to process your loan), broker fees, NSF fees and late payment fees. This disparity between lenders may be what helps you choose which one to proceed with.
- Loan term. Try not to have your loan longer than you need to. Long-term installment loans will give you lower monthly payments, but you’ll stay in debt longer and pay more interest over the life of the loan.
- Repayment flexibility. Check that the installment loan doesn’t come with any fees to pay it off early or make extra payments. This is especially important for installment loans with higher interest rates.
- Turnaround time. You can get your money on the same day or the next morning with the fastest installment loans. If you’re facing a financial emergency, learn more about emergency loans.
- Improves your credit score. Confirm that your lender will report your on-time payments to the credit bureaus, especially if you have a low credit score.
Can you get no credit check installment loans?
Yes. Some alternative lenders offer no credit check installment loans, such as Green Loans. These loans are usually less than $2,000 with an interest rate of around 30% and a broker fee of up to $300. Before applying, check that your lender is legitimate, because scammers use “no credit check” to get people to apply and share their information.
Tips to get approved for installment loans with bad credit
Alternative lenders of installment loans have more lenient requirements, but they can still turn down certain applications. Here are some tips to increase your chances of approval with bad credit:
- Have minimal to no NSF transactions. If you have NSF transactions in your bank account in the last 60 to 90 days, lenders may not qualify you.
- Have no payday loan debt. Lenders of installment loans prefer applicants to not have any short-term loan debts.
- Secure your loan. Offering collateral such as your car or house will improve your odds of approval. However, make sure you can afford the loan because defaulting will give the lender the right to repossess your asset.
How to apply for installment loans online
Ready to get started? Follow these steps to apply for installment loans online:
- Fill out the online application. Include details such as your name, address, phone number, email, employment, income and housing situation. Applications for installment loans usually take less than 10 minutes to complete.
- Wait for personal loan pre-approval. Once you submit your application, you’ll get pre-approved either instantly or within one business day. Pre-qualifying for a loan gives you an estimate of your interest rate. Use pre-approval to compare loan offers.
- Verify income and identity. If you want to proceed, you’ll verify your finances via instant bank verification or send documents, such as government-issued ID, bank statements and pay stubs.
- Get official approval and sign your loan contract. Once your lender verifies your identity and income, you’ll receive your final loan offer. Review your loan agreement before signing.
- Receive your funds. Your lender can issue your installment loan via direct deposit or Interac e-Transfer.
3 questions to ask yourself before you apply for installment loans
There’s no one “best” installment loan. What’s right for you depends on your personal financial situation and what you need the money for. Ask yourself the following questions to find a lender that best meets your needs:
How much do I need to borrow?
Some lenders may approve you for higher loan amounts, but only borrow what you need to avoid increasing your debts.
How much can I afford to pay each month?
Look at your income, bills and other regular expenses to calculate how much you can afford to pay each month. Aim for a loan with a rate and term that gives you a monthly repayment around this amount while still leaving you wiggle room in case an unexpected expense crops up.
What do I need the installment loan for?
Installment loans for fair or bad credit are only suitable for financial emergencies because of their interest rates. If you’re looking to use an installment loan for non-essential expenses, consider building up your savings in a high-interest savings account instead.
4 red flags to watch out for with installment loans
Not all installment loan providers are legit lenders. Look out for these red flags when comparing installment loans:
- Guarantees. Legit lenders won’t guarantee approval or certain rates before looking at your application. Lenders need to look into each borrower’s circumstances and evaluate their credit history before approving any installment loan.
- High pressure. Be wary of lenders that pressure you into signing a contract without explaining the terms of the loan.
- Add-on insurance. Some lenders might encourage you to take out unnecessary insurance, which adds to the cost of your installment loan.
- No physical head office or contact information. Check the lender’s website to see if it has a physical address, email, phone number and any other means of contacting them for customer support. Make sure the lender has a solid presence online, with reviews, BBB accreditation or mentions in the Canadian media landscape.
Plans to get an installment loan in the next 3 months
According to data released in the latest Finder: Consumer Sentiment Survey, more Canadians are planning to take out an installment loan in the next three months. In Q1 2023, only 7% of respondents planned to get a personal or installment loan. That number jumped to 20% of respondents who plan to take out a personal or installment loan in the next three months.
How much Canadians plan to borrow
More than two-thirds (67%) of respondents plan to borrow between $1,000 and $15,000 in the next three months.
Frequently asked questions
Sources
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