Not all loans need a credit check. In fact, many lenders provide no credit check loans in Canada.

Payday lenders provide loans without the need to assess your creditworthiness. This means that you can apply for the loan even you have a bad credit history, has an existing loan, or don’t even have a credit score yet.

What is a credit check?

Before a lender approves a loan, they usually do a credit check. Your credit history is recorded by major credit-reporting agencies, Equifax Canada and TransUnion Canada. Lenders can get your credit history from them.

These agencies compute your credit score. To calculate your score, they need the amount of your debt, payment history, and the duration of using credit.

Although credit check is very important to establish your credit profile, payday loans don’t need it. You can get approved in the short-term loan without worrying about your credit score.

How to qualify for loans without a credit check?

Lenders in Canada can provide loans of up to $1, 500. It is called payday loans or unsecured loans because you don’t need collateral like a car, house, or pricey possession to get approved.

It is easy and fast to get this type of loan because it only takes some minutes to finish the application online. You only need a few requirements like your bank information, employment, and personal details.

Most lenders only ask for these proofs:

  • You must be a Canadian resident.
  • You are above 18 years of age.
  • Proof of employment.
  • Bank account information.

How long should you wait to get approved?

As mentioned, lenders provide quick cash. You can receive it within 24 to 48 hours.

They deposit the money into your bank account. In some cases, they can hand you the money or deposit in your prepaid card.

When you take the loan, you sign an agreement that summarizes the total of your loan that includes fees and charges and the date that you should pay. It’s important that you fully understand the agreement to avoid misunderstanding that can mess up your finances.

The cost of loans with no credit check

You may have heard that payday loans are an expensive type of loan. That is certainly true. It’s because the loan comes up with huge interest and fees that are higher than credit cards and other personal loans.

The annual percentage rate is 400 percent. For every $100, you pay between $15 and $30 for the charges and interest.

Paying your loan is not the only issue here. For every credit, you need to pay a $5 administration fee.

The high interest and fees make it more difficult for borrowers to return the total cost of the loan at the right time. Usually, they default or go on a rollover. In some cases, the loans can trap them into a debt cycle.

Consequences of not paying your loan on time:

When you don’t pay your loan at the right time, you’ll likely incur big interest and fees.

  • The lender can connect with your family, friends, and employer in an attempt to collect the money you owe them.
  • They will charge you big time for the money you owe.
  • Your bank may charge you an overdraft fee if your account reaches zero.
  • Your loan will earn interest and charges continuously.
  • The lender may sell the loan to a collection agency. When this happens, it can reflect in your credit report and affect your credit history.
  • The lender can file a legal case against you for not paying your financial obligations.
  • The lender can seize your properties.

Although no credit check lenders provide you quick cash to solve your financial woes, you should think twice before getting one. It is easy to acquire money but the hard part comes when you need to pay it.

You may consider other options before applying. There are other alternatives that don’t cost that much.

You can ask family and friends to lend you without interest.  Keep in mind that you must be careful when borrowing because it often ruins relationships when you are unable to pay on time.

You may also opt to ask your employer for a cash advance. It is safer than other options because you can even request them to deduct it to your paycheck on an installment basis.


Cheryl Posner is the owner of Winey Mommy. Of course, she loves wine, her family, and writing about it all (in no certain order).

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