Compare short-term loans in Canada

Short-term loans can give you access to quick cash even if you have bad credit. These loans are designed for emergencies and should only be used if you run out of other options since they can be very expensive.

Follow this guide to learn more about short-term loan options in Canada and compare lenders.

The following are the various types of short-term loans and cash advances in Canada:

• Cash advances
• Installment loans
• Payday loans

Get short-term loans from cash advance providers

One option to get a short-term loan is from a cash advance provider. You pay no interest on these cash loans, but you may pay a monthly subscription fee.

Get short-term loans from installment loan providers

Another short-term loan option is to apply online for an installment loan.

Finder Score for personal loans

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 110+ personal loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

Read the full methodology

Get short-term loans in Canada from payday loan lenders

You can also get a short-term loan by applying online for instant approval from a direct payday lender.

What are short-term loans?

Short-term loans in Canada are loans with terms typically lasting anywhere from 2 weeks up to 2 years. For comparison, standard personal loans often come with loan terms up to 5 years. You’ll need to make sure you can afford repayments, because these types of loans – especially short-term loans for bad credit – tend to come with very high interest rates.

Types of short-term loans

There are several types of short-term loans available to Canadians. The main differences between each type comes down to how long you have to pay back the loan and the interest or fees involved. The 4 main types are short-term loans are:

1. Short-term installment loans: Loan terms of 3 months to 2 years
2. Payday loans: Repayment by your next payday or up to 62 days
3. Small cash advance apps: Repayment with your next paycheque or opt to rollover the loan
4. Credit card cash advances: Flexible loan terms, but ideally repay as soon as possible

Option 1: Short-term installment loans

Installment loans are paid off with monthly payments and loan terms as short as 3 months, which makes them a potentially affordable short-term loan solution compared to payday loans.

Some examples of direct lenders are LoansLoans.ca and Spring Financial, while brokers include Loans Canada and LoanConnect. Short-term installment loans come with the following features:

• Unsecured (no collateral required)
• Loan terms of up to 2 years
• Loan amounts of up to $5,000
• Rates typically between 18% and 35%

Pros and cons of short-term installment loans

Am I eligible for short-term installment loans?

You may need to meet these eligibility criteria to qualify for short-term installment loans:

• Be a Canadian citizen or permanent resident
• Be the age of majority in your province
• Have a source of income and regular employment
• Have a Canadian bank account
• Be willing to get a credit check
• Meet credit score requirements

Dive deeper: Best installment loans in Canada

Compare short-term installment loans

Option 2: Short-term payday loans

Payday loans in Canada come with very high interest rates and are typically paid back by your next payday – making them viable short-term loans for people looking for quick, emergency cash.

If your prioirty is a fast turnaround time, consider payday loan providers like iCASH and GoDay that can e-transfer funds directly to your account within 2 minutes. Some other payday lenders that offer short-term loans in Canada include Loan Express, Speedy Cash and My Canada Payday.

Payday loans come with the following features:

• Unsecured (no collateral required)
• Short loan terms of up to 62 days
• Loan amounts of up to $1,500
• Borrowing fee of $14 for every $100 borrowed

Pros and cons of short-term payday loans

Am I eligible for short-term payday loans?

You’ll typically have to meet these criteria to qualify for short-term loans like payday loans:

• Be a Canadian citizen or permanent resident
• Be the age of majority in your province
• Have a source of income and/or regular employment

Dive deeper: Best payday loans in Canada

Compare short-term payday loans

Option 3: Short-term cash advance apps

These are small, short-term loans that typically must be paid back with your next paycheque. Nyble and Bree are examples in Canada. Both apps don’t charge any interest, but Nyble has a membership fee of $11.99 per month and Bree charges a $2.99 monthly membership fee. These types of apps tend to have the following features:

• Unsecured (no collateral required)
• Amounts are typically capped at $150 or $200
• Turnaround time is anywhere from less than 30 minutes to a few days
• There’s usually no interest, but you may need to pay for a monthly subscription
• Repayment is typically made with your next paycheque, but you may be able to roll over to next month

Pros and cons of short-term pay advance apps

Am I eligible for short-term loan via pay advance apps?

These are the most basic requirements you’ll need to meet to be eligible to get a short-term loan from pay advance apps:

• Be the age of the majority in your province
• Have an active bank account
• Meet minimum income requirements
• Legal resident of Canada

Compare short-term pay advance apps

Option 4: Credit card cash advance short-term loans

Credit card cash advances let you borrow money against the credit limit on your credit card, which can be a viable short-term loan option for Canadians. They come with the following features:

• Unsecured (no collateral required)
• Amounts capped at a percent of your credit limit
• Comes with 17.99% to 29.99% interest
• Payment due up to 21 days after you receive your statement
• Can get cash directly from an ATM – no application

Pros and cons of using credit card cash advances as short-term loans

Am I eligible for a credit card cash advance?

If you want to use a credit card cash advance as a short-term loan solution, you’ll typically need to meet the following criteria:

• Be a Canadian citizen/resident and age of majority
• Have a credit card that offers cash advance services (or be able to qualify for one)
• Have available space on your credit card
• Be able to visit a bank or ATM in person to withdraw money

How much do short-term loans cost?

Below is an example of how much a $700 loan would cost if you get a short-term installment loan, payday loan or credit card cash advance.

Representative example: Mark, a resident of Ontario, needs $700

Mark, an Ontario resident, needs to borrow $700 for some urgent car repairs. He searches for short-term loans in Ontario and compares the cost of his 3 short-term loan options.

	Short-term installment loan	Payday loan	Credit card cash advance
Loan amount	$700	$700	$700
Loan term	6 months	14 days	14 days
Interest rate	35%	$14 for every $100 borrowed	22.99% + 5% fee
Repayments	$128.86 per month for 6 months ($73.17 interest)	1 full payment of $798 ($98 interest)	1 full payment of $741 ($41.17 interest)

What can I use short-term loans for?

You can use short-term loans in Canada for anything, but they’re designed for financial emergencies. You may want to use the money you borrow for car repairs, hospital bills or other expenses that come up unexpectedly between paycheques. It’s best to avoid using borrowed money for vacations, shopping sprees, investing or other unnecessary costs.

Can I get short-term loans for bad credit?

Yes, there are many short-term loans for bad credit borrowers, but just keep in mind that you’ll be charged higher interest rates. Many short-term installment loan lenders, like LoansLoans.ca, Spring Financial and Mogo, offer bad credit loans. Pay advance app providers also tend to focus more on your income than your credit score. Pay advance apps like Nyble don’t check your credit score at all during the approval process.

Can I get short-term loans with no credit check?

You can get a short-term loan with no credit check from installment loan, payday loan and pay advance loan providers. Some online short-term loan providers, like LoansLoans.ca, offer no credit check installment loans, which have much smaller APRs than payday loans. Pay advance apps, like Nyble, also don’t do credit checks.

Before you apply for short-term loans with bad credit

Follow these tips when applying for short-term loans with bad credit to avoid common pitfalls:

• Know how much the loan will cost you
• Check the payday lender is licensed and follows regulations
• Make sure you can pay off an installment loan early without any penalties
• Pick a lender that doesn’t guarantee approval (which could imply they’re fraudulent or charge extremely high fees)
• Don’t be pressured into signing a contract
• Watch out for payday loan scams and personal loan scams

How can I tell if an online short-term loan provider is legit?

When browsing short-term loans online, make sure you apply with a legitimate lender by looking for the following features:

• The lender displays its licence prominently on its website
• The lender is upfront about interest rates and fees
• The lender does not guarantee approval
• The lender reviews your income to make sure you can repay the loan

How to apply for short-term loans online

Follow these steps to apply online for short-term loans in Canada:

1. Visit the website for the lender you’re interested in by clicking the green “Go to site” button in the table of lenders above
2. Click on the link for the application form (usually under “Apply now” on the home page)
3. Input contact information such as full name, address, phone number and email
4. Provide income and employment information (pay stubs, bank statements, etc.)
5. Send in the required documents to support your application
6. Submit the application package and wait for an agent to contact you
7. Read your loan agreement carefully and sign it to finalize the transaction
8. Get your funds deposited into your bank account (or pick them up in store)
9. Repay your loan in full on your payday or with regular installments

Frequently asked questions about short-term loans in Canada

• Will short-term loans affect my credit?

  Short-term loans will only affect your credit temporarily if your lender does a hard pull on your credit report to find out your score. Your credit score will also go down if you fail to make your repayments on time.

• How much will I pay for short-term loans in Ontario?

  It will cost up to 35% APR for installment loans and $14 for every $100 borrowed for payday loans in Ontario.

• How much will I pay for short-term loans in Alberta?

  It will cost up to 35% APR for installment loans and $14 for every $100 borrowed for payday loans in Alberta, plus a required minimum loan term of 42 days and at least 2 payments.

• How much will I pay for short-term loans in BC?

  Up to 35% APR for installment loans and $14 for every $100 borrowed for payday loans in BC.

• What common fees should I watch out for with short-term loans in Canada?

  Watch out for origination fees to set your loan up, prepayment penalties to pay your loan off early, NSF fees and late payment fees.

• Can I apply for short-term loans in Canada if I'm unemployed?

  It will be much more difficult to apply for short-term loans in Canada if you don't have a job. The only way you can usually qualify with some lenders is if you have a reasonable source of income from other sources (such as EI, disability or child support/child benefit).

• Is ACE Cash Express in Canada?

  No, ACE Cash Express is not available in Canada. In order to be eligible for an ACE Cash Express loan, you need to reside in the States and have a valid Social Security Number or Individual Taxpayer Identification Number.