What do you do if your car needs urgent repairs or you need emergency dental surgery, but your finances are already stretched to the max? Taking out a loan is one solution. However, if the thought of a financial institution pulling your credit score makes you want to pull up the bed covers, there are other options. Enter the no credit check loan. We’ve put together a list of resources on where to get a loan with no credit check in Canada.
What is a No Credit Check Loan?
Unlike traditional lenders that offer personal loans, a no credit check lender does not run a check on your credit score to assess your creditworthiness. A hard inquiry on your credit score by a financial institution can reduce your score further. If you know your credit score is not great but you need cash, a no credit check loan is one way to protect the rating you do have.
How Do No Credit Check Loans Work?
No credit check loan companies in Canada use other methods to assess your current finances, such as your income and amount of debt you already carry. Depending on the lender you use and the application process, you’ll be required to provide proof of income and access to bank or e-bank statements, so they can assess your debt-to-income ratio. They’ll then build an internal report based on a snapshot of your finances to decide if they will approve your loan.
Where to Get No Credit Check Loans Canada
Loan Provider Loan Amount APR Range Review Moves Financial $500 - $2500 Starts at 15.65% Read More LendingMate $2,000 - $10,000 34.9%–43% Read More LoanConnect $500 - $50,000 4.6% - 46.96% Read More Loans Canada Up to $50,000 Starts at 5.15% Read More
Moves Financial is the first financial service platform that exclusively serves freelancers and independent gig workers. There’s no need to rely on a traditional credit score, as it evaluates each loan application based on your income from an approved gig economy platform. Moves Financial also lays out the cost of borrowing against other loan products. Customers have the choice to pay back loans of up to $2,500 or 26 weeks, or a 13-week accelerated period and no early repayment fees. Moves Financial also offers Ontario residents e-bike financing starting at 0% interest with no credit check, no hidden fees and flexible repayment terms.
- No credit check for loans between $500 to $2,500
- Safe, low-interest loans specifically for freelancers and independent workers.
- Application is easy and approval takes as little as 15 minutes
- Ontario residents can also apply for e-bike financing from 0% interest
- Only available for Canadian residents living in Alberta, British Columbia, or Ontario
LendingMate can lend up to $10,000 to anybody with no credit check, as long as you’re not bankrupt or in an active consumer proposal. All you need to do is provide a suitable guarantor. That means if a friend or family member trusts you will make payments on time, so does LendingMate. The approval rate is 95% and you can receive funds within 24 hours.
Another plus: LendingMate never charges fees, including late penalties. If you are late on a payment, they’ll send you a text as a reminder, then follow up by phone and email before going to your guarantor. While the duration of a loan runs anywhere from 12 months to 60 months, LendingMate also promises never to charge extra for making additional payments or paying your loan off earlier.
- No credit check loans between $2,000 and $10,000
- Requires a qualified guarantor or co-borrower to qualify
- Typically loans paid out within 24 hours
- No hidden fees or charges
- Friendly approach to application and repayment
- Must be a Canadian resident between the ages of 19-75 years to qualify
LoanConnect is an online search engine that will find the best loan options for you. With a single search, it can connect you with dozens of borrowers in as little as five minutes. It offers unsecured loans from multiple lenders of between $500 and $50,000 without a hard credit check. Repayment terms are between 12 months and 60 months. Once you apply online and formally submit an application with the lender of your choice, you will receive your funds between 12 and 24 hours later.
LoanConnect also accepts applications from people with outstanding loans that don’t total more than 60% of their current income, with a consumer proposal, or bankruptcy on their credit report. Note that when applying for a loan, you may be charged a loan origination fee from the lender of around $100, which will be included in your monthly repayments.
- No credit check
- Unsecured loans of up to $50,000
- Multiple loan offers available in under one minute
- Loans funded within 24 hours
- Accepts applicants with a consumer proposal or bankruptcy
- Must be a Canadian resident and the age of majority in your province of residence
- Accepts applicants with a consumer proposal or bankruptcy.
The largest lender network in Canada, Loans Canada has long-established relationships with many top banks, lending institutions, and private lenders. The company doesn’t lend money per se, but rather uses proprietary lender-matching technology to find the most suitable loan for your specific needs. If you’re on the hunt for a no credit check loan, a single search platform can help pair you up with multiple lenders and find the best solution to fit your needs.
- No credit check loans available
- Loans up to $50,000
- Interest rates start as low as 5.15%.
- Must be the age of majority in your province, have proof of employment, and either be a Canadian citizen or permanent resident.
Who Can Benefit From No Credit Check Loans?
First and foremost, Canadians with a poor credit score or cannot secure a personal loan through one of the big banks can benefit from applying for a no credit check loan. With more Canadians joining the gig economy, no credit check loan companies are a welcomed option for people who don’t have the same level of financial security as, say, their parents. However, there are some advantages and disadvantages to a no credit check loan.
Pros and Cons of a No Credit Check Loan
- Even if your credit score is poor, you are likely to receive a loan
- Application is quick, easy, and can be done online
- You don’t have to be employed in secure full time to qualify
- Loans are unsecured so you don’t need to put assets up as collateral
- You may need a suitable guarantor to apply
- Interest rates tend to be higher compared to traditional loans
- If you default, your payments will become the responsibility of your guarantor
- There could be additional fees
Alternatives to No Credit Check Loans
Even if you aren’t able to secure a credit check loan or decide not to get one, there are other avenues available for people with poor credit scores.
Apply For a Bad Credit Loan
If you have a bankruptcy or defaulted on an existing loan, consider applying for a bad credit loan, which is a private lender. Some of these lenders will approve loans despite your past financial mistakes. Like a no credit check loan, these lenders take into account other factors, such as your debt load relative to your income. Bad credit loan companies offer both secured and unsecured loans, and may charge fees and penalties for missed payments – so know what you’re signing up for before borrowing.
Build Your Credit Score
A more long-term solution (and to avoid needing a no credit check loan in the first place) is to build your credit score. Granted, rebuilding your credit score will take time.
One way Canadians can speed up this process is through MyMarble.ca — a virtual “credit coach” that can help you achieve your desired credit score ASAP. From the free MyMarble dashboard, you’ll have access to free credit score monitoring, analysis and trends about your finances, and Maestro, a resource that includes over 25 modules on credit, debt, and budgeting. MyMarble.ca helps you build your credit score but also offers paid tools to help you boost your score faster, such as the Score-Up tool — which uses an algorithm to analyze your credit score and advise on what action to take to increase your credit score quickly.
Family and Friends
Many of us are feeling the pinch of 2020 and the impact it’s made in our financial lives. If you are in a position of needing to ask family or friends to be a guarantor for a loan, you may consider approaching them for a loan directly instead. The benefit includes low (or no) interest rates and potentially a more flexible repayment option than a financial lender. If you do go this route, have a frank discussion beforehand about the amount you wish to borrow, any interest rate and your repayment terms.
The Last Word
Everyone stumbles on hard times, and it may be hard to see the light at the end of the tunnel. But there are options out there, even if your credit score is in the dumpster. A no credit check loan may be the thing that gets you over the hump — just as long as it’s used responsibly. Once you’re back in the black, focus on repairing your credit score and building an emergency fund to keep you in the good books.