When you require quick cash to cover expenses, emergency loans allow you access to finances.
Life occurs, and when you are strapped for cash, you may occasionally receive a surprise bill.
It is quite difficult to obtain a standard personal loan from your bank if you have poor credit. Additionally, if your credit card has already reached its limit, your only choice can be a costly payday loan or an emergency loan.
Continue reading to find out more about Canada’s top emergency loans, how they operate, potential fees, advantages, disadvantages, and alternatives.
Compare Emergency Loans in Canada
| Loan Interest | Loan Term | Loan Amount | Minimum Credit Score | |
| Loans Canada | 2.99% – 46.96% | 4 – 60 months | $500 – 50,000 | None |
| LoanConnect | 6.99% – 46.96% | 3 – 120 months | $500 – $50,000 | None |
| Loanz | 29.99% – 46.9% | 12- 60 months | $1,000 – $15,000 | None |
| Mogo | 9.9% – 46.96% | 6 – 60 months | $1,000 – $35,000 | Fair |
Best Emergency Loans For Bad Credit
The following online lenders and loan comparison sites provide access to short-term loans you can use for emergencies.
They are available in Ontario, Alberta, Manitoba, British Columbia, Saskatchewan, and many other provinces and territories.
Loans Canada
Loans Canada works with various lenders, including those that offer bad credit emergency loans.
There are loans with durations of as little as four months, and the amount of interest you pay is determined by how strong your credit rating is.
Simply fill out the online application to apply, and you might get pre-approval in a matter of minutes.
LoanConnect
A search engine called LoanConnect can help you locate loans that are suitable for your present needs.
Although the platform is not a lender, you may use it to find all different kinds of installment loans, including ones that are best for emergencies.
Repayment periods can be extended up to 120 months, but they begin at three months.
Fill out the online application form to get started, and in just five minutes you might have your pre-approval. You can frequently get your money on the same day as well.
Read this review to learn more.
The well-known lending platform LendingArch, which was established in 2015, includes Loanz. Regardless of your credit rating, the alternative lending site offers emergency loans.
You must not have filed for bankruptcy and have a consistent monthly income of at least $1,200 to order to be eligible for a loan.
On Loanz, urgent loans can be obtained in as little as 15 minutes.
Financial technology firm Mogo;
Mogo has locations in Winnipeg, Surrey, and Vancouver.
You must make at least $15,000 a year to use this platform, and the minimum loan amount is $500.
What Are Loans for Emergencies?
Personal loans for emergencies are loans intended to cover immediate financial needs.
They receive prompt payment (usually within hours or 1-2 days).
Although most emergency loans are unsecured, certain lenders may request collateral or a co-signer.
These are the typical kinds of emergency loans:
Unsecured personal loans online
Quick loans
Cash advances on credit cards
Secured loans
An online bank or credit union may offer you an emergency loan.
What Purposes Do Emergency Loans Serve?
An emergency loan can be used to cover a variety of costs, such as:
auto repair
home remodeling
Application replacement and fixes
Payment of bills, such as utilities, rent, mortgages, etc.
medical expenses
urgent travel
funeral costs
You should only apply for an emergency loan if you have exhausted all other more affordable funding or financing options, as these loans are typically pricey.
How to Apply for a Cash Advance
Online applications for emergency loans are available. An application form must be filled out, and you must wait for pre-approval and estimates.
The lender will normally request some supporting papers and conduct a credit check.
If your application is accepted, the money may be deposited into your bank account directly or by an Interac e-Transfer.
Utility bills can verify your address, while a government-issued ID like a passport or driver’s license can help validate your identification.
You might offer copies of your pay stubs or bank statements as evidence of your income.
How to Pick a Cash Advance
When applying for a personal loan, always comparison-shop for the lowest rates.
Think about the following:
Interest rates: If other loan terms are identical, a loan with a lower interest rate will put more money in your pocket than one with a higher rate.
Fees: Some lenders tack on administrative and origination costs. Check the small print to see if there are any additional costs you need to be aware of.
Can you repay the loan early without incurring penalties?
Loan conditions: How much and for how long may you borrow? If you require a loan of up to $5,000, you should look for a lender who does so.
Credit score requirements: While some lenders allow bad credit ratings, others need a fair to good credit score (660 or better).
Income requirement: If you have a reliable source of income from employment, many lenders will only approve your loan application. Find out what the required minimum income is.
Various Emergency Loan Options
You may be able to obtain funding from other sources in lieu of applying for an emergency loan:
Interest costs for credit card cash advances typically surpass 20%.
Available credit
credit line for home equity
credit card with low interest
loans from family or friends
Questions and Answers
Can I get a bad credit emergency loan?
Online lenders and private loans are options for those with terrible credit.
Can I obtain an emergency loan without employment?
To obtain a no credit check emergency loan or to be accepted without a job, you probably need a co-signer or guarantor.
Can I receive a fast emergency loan?
In Canada, emergency loans are practically instantaneous and can be funded in as little as 15 minutes.
