CPP Loans: Instant, No Credit Check Options Available

If you are one of 6.2 million Canadians receiving a monthly Canada Pension Plan (CPP) payment, you might wonder if you can still get a loan. The short answer is yes, some lenders accept your CPP as a steady source of income. This includes specific options like no credit check loans or payday loans that accept CPP disability benefits.

Before you apply, let’s look at how these loans work, where to find reputable lenders, and how to spot predatory scams.

Compare loans for CPP recipients

The providers below are open to all credit scores. Need instant approval with no credit check? KOHO, Nyble and Bree offer this.

Lender	Cost	Loan amount	Loan term
Cash Advance	0% + monthly fee from $2	$20 – $500	Flexible	Go to site
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Personal Loan	8.99% - 35.00%	$500 – $50,000	3 - 120 months	Go to site
Personal Loan	9.99% - 35.00%	$500 – $50,000	3 - 60 months	Go to site
Credit Line	0%	$30 – $250	31 days, extendable	Go to site
Cash Advance	0%	$20 – $750	Next pay cycle (90 days max)	Go to site

Last resort option: CPP payday loan

Payday loans are convenient for emergencies, but their very high costs may impact borrowers in the long run. If you have already considered alternatives and have decided a payday loan suits your situation, ensure the lender you choose is licensed.

Licensed payday lender	Interest rate	Loan amount	Loan term
Payday Loan	$14 per $100 borrowed	$100 – $1,500	7 – 62 days	Go to site

Need more options? We’ve searched the market to find additional relevant lenders.

Compare more CPP loans

What are CPP loans?

When you apply for a CPP loan, you use your pension (CPP retirement pension or the CPP disability benefit) to show lenders that you are receiving sufficient income to repay a loan. This helps you get approved for financing. CPP loans you can apply for include personal loans, cash advances and payday loans.

You can get a CPP payday loan for up to $1,500, which you’ll pay back in full the next time you receive your CPP payment. If you live in Alberta, however, you must repay your CPP payday loan in at least two installments.

Can I get CPP loans with no credit check?

You can get CPP payday loans and other types of loans with no credit check, but make sure you apply to a legitimate lender, because scammers sometimes use the “no credit check” tagline to target borrowers.

Licensed no credit check payday lenders that accept CPP include Money Mart, Cashco, Mr. Payday and Focus Cash Loans. Cash advance apps KOHO, Nyble and Bree are also okay with CPP and skip the credit check.

Dive deeper: Learn more about no credit check loans

Can I get a loan using CPP disability income?

Yes, it is possible to get a loan while on CPP disability benefits if you apply to lenders who accept it as valid income. Like other borrowers, you’ll need to meet the minimum income. Lenders generally require at least $800 to $1,000 per month, such as iCash and Nyble. KOHO, meanwhile, has no income requirements.

How do I apply for CPP loans online?

These are the typical steps you’ll need to follow to apply for a payday loan online:

1. Pick a licensed lender and check that you meet its eligibility requirements.
2. Follow the application prompts. Provide information about yourself, including your full name, contact details and social insurance number.
3. Fill in details about your income, including how much and how often you’re paid. Your CPP payments will need to be visible in your bank account.
4. Verify your bank account through instant bank verification.

Keep in mind, you can also apply in person if the payday lender you’re interested in has a physical storefront near you.

Am I eligible for CPP loans?

While eligibility requirements vary from lender to lender, you can count on the following as the minimum requirements for loans that accept CPP:

• Age. You must be the age of majority in your province or territory.
• Residency. You’ll need to be a Canadian citizen or a permanent resident.
• Income. You’ll need proof of your CPP retirement pension or CPP disability benefit. You can provide proof via bank statements.
• Bank account. Most lenders will require an active bank account.
• Contact information. You should have a valid phone number, email and home address.

How do I get my CPP loan money?

CPP loans can be funded in various ways, such as:

• Interac e-Transfer
• Direct deposit
• Cash, if you’re applying in person at a physical storefront

If you apply online for a CPP loan, you can receive your money via e-Transfer or direct deposit. If you opt for an e-Transfer payday loan, you’ll need to be registered for e-Transfer with your bank first. With e-Transfer, your lender will email you a money transfer link, which you click on to deposit the money into your bank account immediately.

Direct deposits are automatically deposited straight into your bank account with the account information (chequing account number, transit number and institution number) that you provided on your application. This is slower than an e-Transfer.

With an e-Transfer, you can get your money within minutes of approval, while direct deposit can take up to 24 hours.

Tips for getting CPP payday loan approval

CPP payday loans generally come with easy requirements. But to increase your chances of getting approved, make sure you have a Canadian bank account that isn’t in overdraft. If you receive any additional income in cash, arrange to have funds directly deposited into your bank account instead, so lenders can see as much income as possible when checking your bank statements.

While not all payday lenders conduct credit checks, some do. If your credit score is poor (under 560), consider waiting until you’ve paid off some of your debt and improved your debt-to-income ratio before applying for a payday loan. Alternatively, you could apply to payday lenders who don’t do credit checks.

How do CPP payday loans work?

Payday loans come with these key features:

• Use funds for any purpose. From paying down debts to covering everyday expenses, you can use your payday loan for just about anything, as long as it’s legal.
• Steep interest rates and fast payback. With a borrowing fee of $14 for every $100 borrowed and terms of up to 62 days, expect an annual percentage rate of 365%. This makes payday loans one of the most expensive ways to borrow.
• Bad credit is okay. With this type of loan, lenders focus on your income and ability to repay a loan instead of your credit score.
• Unsecured. Payday loans don’t require any collateral.
• Quick. You can get a payday loan in as little as 30 minutes.

Is a CPP payday loan right for me?

Payday loans are notorious for good reason. Here are the main risks to take stock of before signing up:

• Disreputable lenders. The payday lending space is rife with scams. Choose a legitimate payday lender who is properly licensed.
• Short repayment terms. You typically have to repay your loan by your next payday. If you don’t, you’ll be charged fees. Quick terms may keep you in debt if you don’t have a solid exit plan.
• Potential to trigger a cycle of debt. When you repay a payday loan, make sure you’ll have enough income left over to pay for other debts or expenses. Otherwise, you might feel the need to take out another payday loan to cover the shortage.

Watch out for scams and predatory lenders

Because payday loans are typically marketed to people who are desperate for financial assistance but can’t qualify for conventional loans, you may come across illegitimate lenders. Beware of these scams and predatory practices:

• Illegally high interest rates or fees. Make sure the amount the lender is charging you is in line with the payday loan regulations in your province.
• Requiring payment up front. Lenders that ask you to pay an advanced fee or pay processing, administration, insurance, credit protection or origination fees as a condition of loan approval are operating a scam.
• Guaranteed loan approval. Guaranteed payday loans may sound like an easy way to borrow money, but there is no such thing as a guaranteed payday loan. While CPP payday loan providers are pretty lenient with their eligibility requirements and accept poor credit scores, they still have other criteria you must meet.
• Identity theft. Unlicensed lenders sometimes sell personal financial information to third parties, which could potentially lead to identity theft or a hacked bank account.

How to protect yourself as a borrower

Before proceeding with a payday loan application, do your due diligence by following these steps:

• Check the lender’s provincial payday lending licence. Under provincial Payday Loans Acts, payday lending businesses must obtain valid payday loan licences. Legitimate lenders will prominently display their licences in the provinces in which they operate on their websites and as a prompt before borrowers proceed with their applications.
• Check if the lender follows provincial fee regulations. Get familiar with your province’s payday loan regulations, including how much lenders can charge per $100 borrowed. Stay away from lenders who charge more than what’s legally permitted.
• Compare multiple payday loan providers. It may be difficult to gauge the legitimacy of one CPP payday loan website by itself, but you may be able to spot red flags when you look at multiple websites and draw comparisons between them.
• Look for information and reviews online. Negative information (or even a lack of information) online can point to a payday loan scam. Always check for reviews, accreditations, contact information and head office locations.
• Be wary of unsolicited phone calls or emails. Steer clear of lenders that reach out to you with an attractive loan offer that you must pay a fee to get.

Dive deeper: Avoid these payday loan scams

Alternatives to CPP payday loans

If you’re worried about the risks involved with taking out a CPP payday loan, you have other options. Here are some programs and loans you might want to check out.

• Installment loans. These types of loans are for small amounts of money, but you repay in installments as opposed to one lump sum like a payday loan. Learn more about the best installment loans.
• Lines of credit. With a line of credit, you can borrow up to a limit and only pay interest on the amount you borrow. It’s a decent alternative because it has an open term, but you should aim to pay off the balance as fast as possible.
• Credit card cash advances. Since CPP payday loans are so expensive, getting a credit card cash advance may be a cheaper option. Cash advance fees typically cost around 24%, which is much cheaper than a payday loan with an APR of 365%. Keep in mind, it’s important to pay off your credit card cash advance as quickly as possible, since it starts accruing interest immediately.
• Credit counselling. If you’re struggling with your personal finances, you might want to consider enrolling in a credit counselling program. Start with the Credit Counselling Society or Credit Counselling Canada, two national non-profit organizations dedicated to helping Canadians get out of debt. Each non-profit has local chapters across Canada too.
• Provincial assistance programs. From child benefit programs to income assistance and disability assistance, there are provincial programs that can help lower the cost of everyday expenses for residents and newcomers who are struggling to make ends meet.

Compare more lenders that accept CPP

We’ve searched the market for CPP loans and organized them in the tables below. We update them whenever we encounter a suitable lender.

Keep in mind, payday loans have been included for comparison purposes, but only use them as a last resort.

• Personal loans
• Cash advance apps
• Payday loans

Bottom line

If you’re retired and need quick access to cash, the good news is that there are plenty of payday lenders who will accept your CPP as income. Tread carefully, though. Payday loans are pricey and have quick repayment terms. Make sure you have a plan to repay the debt without staying in the red.

If you don’t think you can pay back your loan on time, consider payday loan alternatives, which will often come with better terms and more manageable payment options.

Frequently asked questions

• Can I borrow from my CPP?

  While you can use the monthly income from your CPP to qualify for a payday loan, you can't borrow from your CPP, which is paid out to you in a monthly sum alongside Old Age Security, your private pension and any other applicable government benefits to help you with expenses upon retirement. Instead, you can get a payday loan using your CPP retirement pension or CPP disability benefit.

• Can I cancel a CPP payday loan?

  Yes. Check the payday loan regulations in your province. Depending on where you live, you can cancel a CPP payday loan within one to two business days of getting it.