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Compare short-term loans in Canada
Whether you're looking for loan terms as short as a couple of weeks or up to a couple of years, you have short-term loan options even if you have bad credit.
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:
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 either an optional or required monthly fee depending on the provider.
Loan provider
Interest rate
Loan amount
Loan term
Key features
Early Pay
No interest or fees to access cash advance, fee for express funding (varies based on advance)
$20–$250
Next pay cycle (61 days max.)
Easy to apply, no interest, same-day funding for a small fee, no credit check
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.
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.
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
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:
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.
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 to $17 for every $100 borrowed
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 allows customers the option to leave a tip. 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 are usually no loan fees or 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
Pros
0% interest
More affordable than other types of short-term loans
No credit check required
Convenient apps available for iOS and Android
Possibility to increase borrowing amount up to $500 from Nyble
Cons
Can take up to several days to receive funds
Very small short-term loan amounts
Pay extra for faster funding
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:
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
Pros
No application for cardholders
Can often get a credit card cash advance online
Lower rates than payday loans
No credit check required
Quick and easy to get
Cons
Interest accrues as soon as you withdraw
Usually comes with additional fees
Eats up the balance on your credit card
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
46.96%
$15 for every $100 borrowed
22.99% + 5% fee
Repayments
$133.16 per month for 6 months ($98.94 interest)
1 full payment of $805 ($105 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:
Visit the website for the lender you’re interested in by clicking the green “Go to site” button in the table of lenders above
Click on the link for the application form (usually under “Apply now” on the home page)
Input contact information such as full name, address, phone number and email
Provide income and employment information (pay stubs, bank statements, etc.)
Send in the required documents to support your application
Submit the application package and wait for an agent to contact you
Read your loan agreement carefully and sign it to finalize the transaction
Get your funds deposited into your bank account (or pick them up in store)
Repay your loan in full on your payday or with regular installments
Frequently asked questions about short-term loans in Canada
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.
It will cost up to 46.96% APR for installment loans and $15 for every $100 borrowed for payday loans in Ontario.
It will cost up to 46.96% APR for installment loans and $15 for every $100 borrowed for payday loans in Alberta, plus a required minimum loan term of 42 days and at least 2 payments.
Up to 46.96% APR for installment loans and $15 for every $100 borrowed for payday loans in BC.
Watch out for origination fees to set your loan up, prepayment penalties to pay your loan off early, NSF fees and late payment fees.
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).
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.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
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