How to Apply for a No Credit Check Loans Canada

Does your car need urgent repairs? Did the plumbing in your house go for a toss? A simple way to get some extra money for any kind of sudden expense is to apply for a loan. If you’re worried that you might not get one with your poor credit score, there are other ways to procure a loan that does not really require a credit check.

Such no credit check loans in Canada are a preferred choice for borrowers with a bad credit score as compared to traditional bank loans that insist on seeing your credit-worthiness before approving the loan.

Be Prepared With Alternatives To Credit Score While Applying For No Credit Check Loans Canada

While trying to apply for a no credit check loan in Canada, you’ll soon realize that even though lenders won’t ask for your credit score, they will need to see some alternative to assess your financial standing.

Here are a few things you could be asked to prove:

  • Banking transactions: If you don’t want to disclose your credit score, most lenders will ask to see your bank statements, so that they can verify how frequently you have money moving in and out of your account and what kinds of spends you conduct.

This ideally helps them understand the kind of financial responsibilities you already have and if you are capable of repaying a loan. You might need to give access to your bank statements through the lender’s choice of software app or you could simply send them e-statements.

  • Proof of Income: As a rule of thumb, no credit check loans are usually not approved for unemployed people. You must have a steady source of income (employment, business, etc) for 1-2 consecutive years to prove that the additional loan will not be another financial burden on you.
  • Collateral to secure the loan: If you’re able to provide collateral, providers of no credit check loans are likely to approve your loan faster. Collateral not only makes the credit score (almost) irrelevant, it even offers protection to the lender. By securing the loan, you will significantly increase the chances of getting larger loans – higher than $5000 too.
  • You have a Guarantor: You can also find yourself a guarantor with a good credit score and ideally, a higher income. Make sure you appraise the person about the risks before appointing them as your guarantor. He/she will be responsible for repaying the loan in case you default. Also, although yours may be ignored, the guarantor’s credit-worthiness will certainly be verified before granting the loan.

Where can you get loans without a credit score?

If you approach a traditional bank or financial institution for a loan, they are bound to ask for your credit score. So when you want to apply for no credit check loans, you might want to explore other options. Browse online for alternate lenders that are typically willing to deal with borrowers who were rejected by banks. Many private lenders too, offer loans on slightly relaxed terms as compared to banks.

Benefits and Risks of No Credit Check Loans

Before you apply for it, you must understand how they can be good for you, and what kind of risks they pose to the borrower.


  • Poor credit is okay: This is the obvious one. Someone who wants a loan but has bad credit health still has the opportunity to get a loan without authorizing a credit check.
  • Quick approval: Those looking for no credit check loans are often in urgent need of some extra cash. Such lenders know this and can usually provide the loan on the same day as requested.


  • Higher interest rates: If you opt for no credit check loans, such as payday loans, you will likely have to repay it with a huge interest and within a short period of time. This pressurizes the borrower who often ends up taking another payday loan to pay for the old one.
  • Predator lenders: When lenders quickly approve loans to people who actually might not be able to afford to repay them, they are probable prey on these borrowers and lead them into a vicious cycle of continuous debt.

Loans that don’t require a credit check

There are various kinds of no credit check loans in Canada. Most of them are provided at    high-interest rates and must be repaid within short durations. Before you borrow, talk to the lender to find one that’s affordable to you.

  • Payday Loans: These are small loans (up to $1500) offered for 14 days or less with very high-interest rates. The borrower is expected to repay on his next payday, hence the name payday loans.
  • Loans on Car Title: Keeping your car as collateral, these are small loans offered based on your car’s equity. Although repayment can be done within 3 years, some lenders may still require a credit check.
  • Guarantor Loans: If you know someone with a better credit score and income than you, you could get no credit check loans in your name, with that person as your guarantor. Only they will need to have their credit checked.
  • Installment Loans: These loans offer more flexibility by allowing the borrower to repay loans in multiple fixed installments routinely (weekly/fortnightly/ monthly) instead of as a lump sum amount. The cost of borrowing installment loans is also relatively lower than other no credit check loans.

Credit scores can be tricky to maintain since there are so many factors determining it. For example, soon, even the rent you pay can affect your credit score. Good credit health always has its advantages and it is definitely recommended to better the poor scores.

Nowadays, there are even plenty of apps to help improve your credit score. Yet, for those who are unable to do so, and require some cash on an urgent basis, no credit check loans in Canada can be a savior.

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