Emergency loans give you access to funds when you need cash on short notice to cover expenses.
Life happens, which sometimes means you get hit with unexpected bills when you are low on cash.
If you have bad credit, getting a traditional personal loan from your bank is nearly impossible. And if you have already maxed out your credit card, an emergency loan or expensive payday loan may be your only option.
Read on to learn about the best emergency loans in Canada, how they work, the potential costs, pros, cons, 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 is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. This company holds an A+ accreditation with the Better Business Bureau and features multiple lenders on its website.
Interest rate: 2.99% to 46.96%
Loan term: 3-60 months.
Maximum loan amount: Up to $50,000.
Eligibility: Resident of Canada and employed for at least 3 months with proof of income.
On Loans Canada’s website
Loans Canada works with various lenders, including those that offer bad credit emergency loans.
Loan terms as short as 4 months are available, and the interest you pay depends on the strength of your credit profile.
To apply, complete the online application, and you can receive pre-approval within minutes.
LoanConnect is a search engine for finding personal loans online from various lenders. You can use it to find a loan that works for your situation regardless of your credit score.
Interest rate: 6.99% to 46.9%.
Loan term: 3-120 months.
Maximum loan amount: Up to $50,000.
Eligibility: Resident of Canada and the age of the majority in your province or territory.
On LoanConnect’s website
LoanConnect is a search engine for finding appropriate loans that meet your current needs.
While not a lender itself, you can use the platform to find all types of installment loans, including those suited for emergencies.
Repayment terms start at 3 months, or you can extend for as long as 120 months.
To get started, complete the online application form, and you could be pre-approved in 5 minutes. In many cases, you can also receive funds on the same day.
Learn more in this review.
Owned by LendingArch Financial, Loanz offers personal loans for those with poor to fair credit. You can be approved instantly and receive your funds in under 24 hours. Loanz offers high approval rates and flexible repayment options.
Interest rate: 29.9% or 46.9%.
Loan term: 12-60 months.
Maximum loan amount: Up to $15,000.
Eligibility: Resident of Canada, the age of the majority in your province or territory, have a chequing account and steady income stream, and not in bankruptcy or collections.
On Loanz’s website
Loanz is a part of LendingArch, a popular lending platform founded in 2015. The alternative lending platform offers emergency loans regardless of your credit score.
To qualify for a loan, you must have a steady income of at least $1,200 per month and not have declared bankruptcy.
Emergency loans on Loanz are available in just 15 minutes.
Along with its other products, Mogo offers flexible personal loans from Lendful and MogoLiquid powered by easyfinancial. You can get a no-obligation pre-approval loan in just 3 minutes and a personalized dashboard and payment plan.
Interest rate: 9.9% to 46.96%.
Loan term: 9 months to 5 years.
Maximum loan amount: Up to $35,000.
Eligibility: Resident of Canada and the age of the majority in your province or territory; minimum income requirements, identity verification, and other conditions may apply.
On Mogo’s website
Mogo is a financial technology company with offices in Winnipeg, Surrey, and Vancouver.
You can borrow a minimum of $500, and this platform requires you to earn at least $15,000 per year.
Emergency Loans Explained
Emergency loans are personal loans designed to take care of short-term financial emergencies.
They are paid out quickly (usually within hours or 1-2 days).
Emergency loans are usually unsecured; however, some lenders may require collateral or ask for a co-signer.
The common types of emergency loans are:
- Online unsecured personal loans
- Payday loans
- Credit card cash advances
- Guarantor loans
You can get an emergency loan from an online lender bank or credit union.
What Are Emergency Loans Used For?
You can use an emergency loan to pay for various kinds of expenses, including:
- Car repairs
- Home renovations
- Application repairs and replacement
- Bill payment, e.g. utilities, rent, mortgage, etc.
- Medical bills
- Emergency travel
- Funeral expenses
Given that emergency loans are generally expensive, you should only apply for one if you have run out of cheaper funding or financing options.
How To Apply For an Emergency Loan
Emergency loan applications can be completed online. You will need to complete an application form and wait for pre-approval and quotes.
The lender typically asks for some documentation, and they will run a credit check.
If your application is approved, you could receive the funds in your bank account via a direct deposit or Interac e-Transfer.
A government-issued ID such as a passport or driver’s license can help confirm your identity, while utility bills can confirm your address.
For proof of income, you can provide your bank statements or copies of your pay stub.
How To Choose an Emergency Loan
Always shop around for the best rates when applying for a personal loan.
Consider these factors:
Interest rates: A lower interest rate means more money in your pocket than a higher rate loan if other loan terms are similar.
Fees: Some lenders charge origination and administration fees. Read the fine print to find out if there are add-on fees you should be aware of.
Prepayment terms: Can you pay back the loan early without penalty?
Loan terms: How much can you borrow and how long? If you need $5,000, you want a lender who offers up to a $5,000 loan.
Credit score requirements: Some lenders require a fair to good credit score (660 or higher), while others accept bad credit scores.
Income requirement: Many lenders will only approve your loan application if you have a steady income from being employed. Find out what the minimum income requirements are.
Emergency Loan Alternatives
Instead of applying for an emergency loan, you could get money from other sources:
- Credit card cash advance: Interest fees usually exceed 20%
- Line of credit
- Home equity line of credit
- Low-interest credit card
- Loans from friends or family
Frequently Asked Questions
There are online lenders and private loans available to individuals with bad credit.
You will likely need a co-signer or guarantor to access a no credit check emergency loan or be approved without a job.
Almost instant emergency loans are available in Canada, with funding within 15 minutes.