No Credit Check Loans in Canada in 2022
You might ask yourself, are there loans with no credit checks in Canada? The simple answer is, yes. The complicated answer is yes, but this comes with some very serious risks.
In this Article
According to Courtney Mo, manager of public policy research and evaluation for Momentum, getting loans from companies that don’t check your credit score can set you up for unclear rates and potentially aggressive tactics. Mo states, “the greatest risk associated with fringe lenders is the cost, which is usually quite unclear.”
Interlinked No Credit Check Loan Companies
Interestingly enough, most of these companies are also owned or operated by the same individuals. While they would not respond to our inquiries, documents portray a web of loan companies attempting to get your interest.
The list of interconnected companies is long. They either share or at one point shared IP addresses. This often indicates they are owned by the same individuals.
Aggressive Tactics
All use a very similar message and nearly all will not publicly disclose loan details, interest rates or the fact that they have affiliations with one another. Mo says, “ it can also include fees, add on products, penalties, and be communicated in a way that is difficult for even someone with a PhD in mathematics to understand.”
Similar Loans to No Credit Check Loans
People in search of no credit check loans often look for similar loans of that nature. For instance, loans such as:
- No Credit Check Loans
- Bad Credit Loans
- Mortgage Loans
- Short-Term Loans
Payday Loan vs. Short-term Loans
Many wonder, what’s the difference between payday loans and short-term loans offered by online companies that do not need to check credit history? According to Mo, “there are a variety of high-cost credit or fringe financial loans in the marketplace. Payday lenders are exempt from the Federal Criminal Code which caps lending at 59.9% EAR. Payday loans are easily accessible but the cost is exorbitant – around 400% in Alberta and higher in other provinces.”
Let’s Take a Closer Look: Short-Term Loan Company Reviews
- Get My Payday Today (Founded in 2004)
- Give Me Cash To Go (Founded ~2006)
- Deposit My Cash Now (Founded ~2004)
*Dates are according to information provided by these websites
A Closer Look: Get My Pay Today
Some may be wary of their aggressive tactics to get you to apply. The website apparently wants you to apply, even before getting all the details of the loan. Additionally, you need to read carefully to potentially avoid misleading information.
For example, “…receive up to $3,000 in less than an hour.” Later on, they clarify that the application process can take an hour. That is if you contact them between the hours of 10:00AM to 6:00PM. Then you recover the money upon approval within a day.
It’s also stated that no documents are necessary. While Get my pay today does not look at your credit history, they will check your credibility in other ways. For instance, “A loan of money without a credit check is approved based on your current income.” We reached out to the company for more details and have yet to hear a response.
Where are the loan details? You need to apply to get the details. Many people will call before applying to get details. Experts warn that you should be wary of providing any personal details to any company before getting some kind of range of the terms of the loan.
A Closer Look: Give Me Cash to Go
With various loan opportunities, Give me cash to go says they will not check your credit for loans between $300 – $3,000. They commit to an easymapplication process, approval verification within “five minutes” and funds can be deposited the next business
As a “licensed and reliable lender,” at least according to their website, they are readily available to help anyone in a pinch. With various loans to choose from such as personal loans, bad credit loans and no credit check loans, each loan is supposedly 100% guaranteed. It’s unclear what that guarantee means and Give me Cash to go has yet to respond to our inquiry.
They are also pushing you to apply and then get the terms after the application process. Many people often call or contact companies to get some sort of range for the terms of the loan. It’s common to get these details before providing any personal information.
A Closer Look: Deposit my Cash Now
Deposit my cash now offers loans up to $3,000. They are one of the few companies that provide more details about both the process and the loan term. The information isn’t easy to find, and you’ll need to be interested in their $2,500 loan with no credit check.
Any applicants approved for a $2,500 loan will receive a 12% interest rate. It’s unclear if these loan details are still valid and in case the page gets updated, here is a screenshot taken Dec 28, 2021.
Note the percentage rate highlighted in red.
Deposit My Cash Now touts their main advantage; specifically that they don’t run a credit check. For instance, “with traditional loan applications: they automatically trigger a credit check and the assignment of a score, which can remain in the history for two years and affect your credit rating to the point of preventing you from taking out loans or applying for other forms of credit in the near future.”
As part of the application process they require various documents:
- Your last two pay stubs
- Proof of address
- Your bank statements for the past 90 day
- Proof of social insurance number
- 2 pieces of photo identification
- A voided cheque
Some people think they should not apply for loans that check their credit due to the statement above. While it may be true, what is not being told to you upfront is the difference of interest you will get.
At least Deposit my Cash Now does not berate you with buttons or techniques to apply now. They request you to ‘submit an application’ to get more details. Often an application does not imply you will take or commit to the loan.
Why Should You Care?
Given the amount of risk involved and the dire need for quick cash, there are not many alternatives for consumers. That leaves a tricky web of companies offering high-interest loans and a path that can be difficult to gain financial freedom.
It’s important to get all the information necessary as one decision can have a long-lasting impact on your financial status.
Do you have a story or experience with loans that either helped or hurt? We want to hear from you. Share your story so others can learn or simply be more aware.
