Short Term Loans with No Credit Checks

What is a Short Term Loan?

A short-term loan is a specific amount of money that you can borrow from a lender anywhere in Canada. You can either borrow this money online or go to the lender’s firm in person. When your application has been processed and approved, the requested fund is deposited into your bank account. If you like, you could collect the cash in hard currency directly from the lender. A short-term loan can be refunded relatively faster than regular loans and is mostly used for quick fixes.

Typically, short-term loans have a payment term of one year or less (it can be more under some circumstances.) The loans are usually for small amounts; they fall under the range of $500 to $5000 and they can be paid back either monthly, weekly, or bi-weekly. The full refund you are meant to pay back usually depends on the rate of interest you are charged. Short-term loans generally have higher interests than traditional loans.

Many short-term loans are quite different from traditional loans because they are unsecured. This means that there is no need for you to provide any collateral to secure the funds you require. For regular loans, you NEED collateral like your house or properties to be able to secure your loan.

What is the Shortest Term that can be Gotten with Short Term Loans?

The loan term you get will depend on the type of short-term loan you apply for, the amount of money you have requested for, and the lender you choose. For example, with installment short-term loans, you can have a loan term that is as short as 90 days while for payday loans, you can have a loan term that is as short as two weeks.

Types of Short Term Loans with No Credit Checks 

There are different types of short-term loan options available in Canada. Each loan option has its characteristics, rates of interest, and loan terms. 

Payday Loans

Payday loans are the most popular type of short-term loan available. 

A payday loan involves a relatively small amount of cash that you apply for online or in-person which will be deposited into your account once it is approved. Payday loans usually involve small amounts of money that range from about $100 to $1500 to be paid back within a short period. Payday loans are usually meant to be refunded when you get your next paycheck, but you can discuss alternate terms with your lender. These loans usually incur high-interest rates; they range from $15 to $25 per $100 borrowed.

Most lenders do not require credit checks when you want to apply for payday loans. What they need are a few documents showing your proof of steady income, your bank account details, proof of permanent residency, and proof that you are at least the age of majority.

Installment Loans

Installment loans can be gotten from traditional lenders or direct lenders online. Installment loans permit you to borrow relatively large amounts of money that are to be paid back over shorter periods than traditional bank loans.

Installment loans are somewhat similar to payday loans because of quick funding and seamless process, but with installment loans, the sums are bigger (they can go from $500 to $30,000.)

The terms of this type of loan can be from a few months to a few years (3 to 5 years), but you will pay back the loans in installments that can be monthly, weekly, every two months, etc. You have to work out a suitable payment plan with your lender.

Most lenders can give out this type of loan with no credit checks and the rate of interest usually ranges from 3% to 45%.

What are Short Term Loans with No Credit Checks Used For?

Short-term loans are best used in a situation where you have a quick need for cash. These loans can be used to cover the cost of emergency expenses and bills. Some of which are:

• Car repairs
• Impromptu travel
• Medical emergencies
• Furniture purchase 
• Consolidating debts
• Household appliances purchase
• Household improvement and repairs 

You should never apply for a short-term loan for frivolous reasons like nights out with friends, vacations, house parties, and things that don’t generally qualify as emergencies.

Eligibility Requirements to Apply for Short Term Loans with No Credit Checks 

Many vendors in Canada have requirements that are specific to their companies, but the general requirement all lenders need for short term loans with no credit checks is:

• You must be a Canadian or a permanent resident in Canada.
• You should have an active checking account.
• You should be at least the age of majority in your province.
• You should have a government-issued ID card.
• You should have a steady source of income.

Conclusion

Short-term loans are a great solution for people that find themselves in a financial crisis and there are many lenders in Canada that you can apply to. But unfortunately, there are lots of predatory companies and scammers that are relying on your need for funds so you have to find a good and legitimate company to borrow from. Any lender that asks you to deposit a “loan insurance” before you can be approved is a scam. In Canada, it is illegal to ask for payment before your loan is deposited.

Before going into business with any company, make your findings of it online. And although you can get a loan with no credit checks, you should put your credit for future purposes.