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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.
We’ve chosen the products on this page based on the providers available through Finder and online in the Canadian installment loans marketplace. These loans are not representative of the entire market. When choosing the best installment loans, we considered each lender’s rates, fees, terms, borrowing amounts, funding speed, provincial availability, borrower perks and customer feedback. No single installment loan will be the best choice for everyone, so compare your options before applying.
Based in London, Ontario, LoanConnect is an online broker partnered with lenders across the country to help borrowers find the best installment loans. Fill out 1 application online in just minutes to get matched with lenders that are willing to qualify you. You can apply with bad credit, but LoanConnect also has partners for borrowers with good credit who are interested in a low interest loan.
Loan amount: $500 – $2,500
Loan term: 3 - 6 months
APR: 32.00%
Serviced provinces: All of Canada
Eligibility requirements: Current debts must total less than 60% of income
Why it’s one of the best installment loans
Since LoanConnect is a broker and not a direct lender, you can get multiple offers with just 1 application. People 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.
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. But if you don’t qualify for an installment loan, Spring Financial might promote its credit builder loan instead, The Foundation. With this loan, you won’t receive any of the money until you make all your on-time payments (with interest). And if you miss a payment or more, you won’t qualify to receive the money at all.
Loan amount: $500 – $35,000
Loan term: 6 - 60 months
APR: 9.99% - 46.96%
Serviced provinces: All of Canada
Eligibility requirements: Min. income of $1,800 /month, 3+ months employed
Why it’s one of the best installment loans
Spring is one of the most established direct lenders of online installment loans in Canada. It offers fast approval and funding for people facing financial emergencies. You’ll get a phone call right after you apply and you can get your installment loan within 24 hours.
Loans Canada is a specialty online platform you can use for free to connect with partnered lenders. Fill out 1 online application with Loans Canada, and this broker will pair you with lenders that offer installment loans for your financial situation, such as bad credit, a history of bankruptcy or alternative forms of income.
Loan amount: $500 – $50,000
Loan term: 4 - 60 months
APR: 8.00% - 46.96%
Serviced provinces: All of Canada
Eligibility requirements: Steady source of income
Why it’s one of the best installment loans
Loans Canada has 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. Established in 2012, Loans Canada is also accredited by the BBB with an A+ rating.
LoansLoans is a broker of short-term installment loans. It’s operated by NCR Financial, which has been in business for over 15 years. Online installment loans from this provider are best used if you need emergency funding and you’re looking to avoid payday loans.
Loan amount: $500 – $1,000
Loan term: 3 months
APR: 28.00% - 32.00% + broker fee
Serviced provinces: All of Canada (except Manitoba)
Eligibility requirements: $1,200 min income paid by direct deposit, employed for 2+ months
Why it’s one of the best installment loans
The flexibility of its eligibility requirements makes LoansLoans one of the best in its category. LoansLoans is open to many types of non-employment income as long as they’re legitimate and recurring. It’s doesn’t do any credit checks, 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 of up to $300.
SkyCap Financial is an online direct lender established in 2013 with headquarters in Kingston, Ontario. It’s an alternative to banks and credit unions, offering online installment loans to borrowers with fair to good credit. SkyCap will look at your employment and income instead of concentrating on your credit score.
Loan amount: $500 – $10,000
Loan term: 9 - 60 months
APR: 19.99% - 39.99%
Serviced provinces: All provinces and territories except Quebec and Nova Scotia
Eligibility requirements: Min. income $1,666.67/month, full time employment/pension, no bankruptcy
Why it’s one of the best installment loans
SkyCap is focused on responsible lending and is upfront about fees. It has high Google and Better Business Bureau (BBB) ratings, with consistent comments about its helpful and kind service. It also has a fast application process for its installment loans online, allowing you to get approved and funded within 24 to 48 hours.
Mogo is a Canadian fintech company that offers borrowing, spending and investing options as well as the ability to track your credit score. It has over 1.6 million customers. You can apply for installment loans in Canada with good, fair or bad credit.
Loan amount: $200 – $35,000
Loan term: 6 - 60 months
APR: 9.90% - 46.96%
Serviced provinces: British Columbia, Alberta, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island
Eligibility requirements: Min. income of $13,000 /year
Why it’s one of the best installment loans
Mogo’s application process for its installment loans is free, easy to use and completely online. It aims to give approval and funding within 1 to 2 business days. It also has a unique perk: return the principal of your installment loan within 100 days, and you can get your interest and fees back (but this is not available to all borrowers).
High interest rates for bad credit (up to 46.96%).
Some negative reviews about bad customer service and high interest rates.
7. Fairstone (online and in-person installment loans)
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 installment loans. You can apply for a free, no-obligation quote that won’t affect your credit score.
Eligibility requirements: Able to make monthly repayments, homeowner
Why it’s one of the best installment loans
Fairstone is an established business and a major player in the Canadian lending space. Its selling point is its speed. You can apply quickly (without hurting your credit score) and receive your loan in as little as 1 day after applying.
FlexMoney is a direct lender of installment loans online. It’s a newer company compared to others on this list, having launched in 2021.
Loan amount: $500 – $15,000
Loan term: 6 - 60 months
APR: 18.90% - 46.93%
Serviced provinces: Alberta, British Columbia, Newfoundland, Nova Scotia, Ontario, PEI, Saskatchewan
Eligibility requirements: Min. income of $2,000 /month, 3+ months employed
Why it’s one of the best installment loans
FlexMoney’s quick automated process is what sets it apart. Apply online within minutes without needing to send any paperwork and get an instant decision. Once you sign off on your loan agreement, you can get your money within 24 hours, directly to your bank account. FlexMoney is also BBB accredited with an A rating.
Pros
Flexible loan amounts and loan terms.
Accepts pension income.
Flexible repayment plans.
Cons
High interest rates as high as 46.93%.
No in-person customer service.
9. Magical Credit (online installment loans)
Magical Credit specializes in installment loans online for people who may not get approved by a financial institution because of their low credit score or income. It’s been in business since 2014 with offices in Concord and North York, Ontario.
Loan amount: $1,500 – $20,000
Loan term: 12 - 60 months
APR: 19.99% - 46.80%
Serviced provinces: Canada-wide (excluding Manitoba, Saskatchewan and Quebec)
Eligibility requirements: Min. $1,200/month monthly income
Why it’s one of the best installment loans
Magical Credit provides fast installment loans online. You can get your loan within 24 hours of submitting your application. This lender also has flexible eligible requirements as it’s open to bad credit scores and many forms of income, such as government benefits, maternity benefits and private pensions.
Pros
Flexible loan amounts and loan terms.
No fees to pay off your loan early.
Secured and unsecured loans available.
BBB-accredited with A+ rating.
Cons
Interest rates as high as 46.96%
10. Blue Copper Capital (online and in-person installment loans)
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.
Loan amount: $1,000 – $100,000
Loan term: 6 - 36 months
APR: 14.00% - 33.00%
Serviced provinces: BC and Alberta
Eligibility requirements: Recurring employment income
Why it’s one of the best installment loans
Blue Copper Capital provides various types of loans and works with applicants to help them get approved. It’s known for its excellent customer service and offers lower rates if you successfully pay off your loans with them but you’re constantly stuck in a cycle of debt. This lender has an A+ rating with the BBB.
Pros
Installment loans for fair or bad credit.
No prepayment penalties.
No need to own a car or home to get approved.
Accepts cosigners.
Opportunity to get out of cycle of debt.
Cons
Interest rates start at 14% up to 33%.
Administration fee applies.
Not as flexible with income compared to other installment loan providers.
11. AAR Financial (online and in-person installment loans)
AAR Financial offers installment loans with large loan amounts and long loan terms. Apply online or at a store location in MB, AB.
Loan amount: $500 – $50,000
Loan term: 12 - 96 months
APR: 19.99% - 46.70%
Serviced provinces: MB, AB
Eligibility requirements: Recurring income
Why it’s one of the best installment loans
AAR Financial has a high approval rate of 99%. People with lower credit scores can apply online or in person. It’s been providing personal loans since 2003 and has been BBB accredited since 2014. You can lower your rate or increase your chances of approval if you offer collateral.
Pros
Apply online or in person.
Established direct lender.
Secured and unsecured loan options.
Cons
High interest rates.
Not widely available across Canada.
12. Money Mart (online and in-person installment loans)
Money Mart is another major direct lender of installment loans. It was founded in 1982 and operates over 500 store locations across Canada.
It’s possible to get funded on the same day when you apply to Money Mart. You can apply via its website, app or in person at a store location. Money Mart also accepts non-employment incomes as long as they’re regular and verifiable. This means you can apply and get approved if you’re receiving government benefits, private pensions or other forms of income.
Pros
Apply online or in person.
Established alternative lender.
Cons
High interest rates
13. easyfinancial (online and in-person installment loans)
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.
Loan amount: $500 – $100,000
Loan term: 9 - 120 months
APR: 9.99% - 46.96%
Serviced provinces: All of Canada
Eligibility requirements: Min. $1,200 monthly income
Why it’s one of the best installment loans
Like Fairstone, easyfinancial is a major player in the Canadian lending space. 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 1 in 3 of their customers graduate to prime rates.
Pros
Flexible loan amounts and loan terms.
No fees to pay off your loan early.
Secured and unsecured loans available.
BBB-accredited with A+ rating.
Cons
Interest rates as high as 46.96%
14. Affinity Credit Union (in-person installment loans)
Affinity is a credit union serving residents of Saskatchewan. Its personal loans are available to Affinity members with good to excellent credit, while its Restart Loan is designed for members who can’t access traditional loans from financial institutions.
Restart Loan details
Loan amount: $200 – $3,000
Loan term: 2 - 24 months
APR: 17.99%
Serviced provinces: SK
Eligibility requirements: Recurring income
Why it’s one of the best installment loans
If you get an installment loan from Affinity, you’d be getting a loan from a reputable lender. Affinity is one of the largest credit unions in Saskatchewan and has over 18 years of experience. Its Restart Loan also has a competitive rate as a product for borrowers who may not have access to traditional funding. You won’t need to undergo a credit check, as this loan is based on your income.
Pros
No credit check.
Established lender.
Cons
Not widely available across Canada.
Cannot apply online.
15. Vancity Credit Union (online installment loans)
Vancity is one of the largest credit unions in Canada, serving residents of British Columbia. The Vancity Fair and Fast Loan doesn’t involve credit checks. To qualify, you must be a Vancity member and show you’re earning enough income to take on a new loan.
Fair and Fast Loan details
Loan amount: $100 – $2,500
Loan term: 2 weeks - 24 months
APR: 19.00%
Serviced provinces: BC
Eligibility requirements: Recurring income
Why it’s one of the best installment loans
If you apply to Vancity, you’d be working with an experienced, reputable lender. Its Vancity Fair and Fast Loan has easier requirements than traditional personal loans, and its interest rate is competitive compared to other loans in its category. You can get funded without a credit check since approval is based on your income. To increase your chances of approval, you must not have NSF transactions in your bank account.
Pros
Apply online.
Established direct lender.
No credit check.
No prepayment penalties.
Cons
Not widely available across Canada.
What are installment loans in Canada?
Installment loans in Canada share these key 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.
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.
How to find the best installment loans in Canada
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.
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.
Can you get no credit check installment loans?
Yes. Some alternative lenders offer no credit check installment loans. These loans are usually less than $1,750 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.
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 the 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 you’ll 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.
Survey methodology
The results of the Finder: Consumer Sentiment Survey Q2 were collected through an online Pollfish survey conducted between April 27 and April 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their past use and current plans to use personal loans and other forms of credit. The estimated margin of error for the survey is +/- 3%, 19 out of 20 times.
Frequently asked questions
That depends on how you manage your installment loan account and monthly repayments. If you make your payments on time, your installment loan will boost your credit score. On the other hand, if you have late or missed payments, your lender will report this to the credit bureaus, and your credit score will be negatively affected.
On a whole, you can generally use installment loans for any legitimate purpose. Typically, they’re used for financial emergencies, though. This might include paying off overdue bills or paying for car or home repairs.
You should avoid taking out an installment loan if you can qualify for another loan with lower interest rates and better terms. They should be used as a last resort if traditional personal loans aren’t available to you. Avoid installment loans if your budget doesn’t have the wiggle room to manage more debt, too. The last thing you want is to sign up for an installment loan you can’t pay off, which will hurt your credit score.
Leanne Escobal is a publisher for Finder. She has over 11 years of experience in financial services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University.
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