If you need a fast loan and your credit history is less-than-perfect, a payday loan can provide the funds you need. While there are plenty of established payday lenders to choose from, there are also a range of new payday loans in Canada from lenders in various provinces.
In this guide, we’ll explore a range of new payday loans online in Canada plus introduce you to cash advance apps as a payday loan alternative.
Edmonton-based Cashco Financial offers payday loans in Alberta, BC, Ontario and Saskatchewan. The company was founded in 2007, but it didn't start offering payday loans until 2024. You can apply online or at over 50 store locations, and bad credit won't stop you from getting a loan. Same-day loan approval is also provided.
If you're searching for new payday loans in Ontario, British Columbia, Nunavut, Yukon and the Northwest Territories, Magical Credit is worth a look. It was founded in 2014, but it didn't start offering payday loans until 2024. This private lender accepts a wide range of non-employment income types, and you can get approved within minutes. Loan funds will then be disbursed within one business day.
Bad credit is okay
Accepts a wide range of income types
Get funded within 24 hours
High cost of borrowing
Short repayment period
Only available in limited provinces and territories
Ontario-based fintech and payday lender Lenditt was founded in 2023. It offers online payday loans in Ontario via a user-friendly mobile app with loans approved and funded in a matter of minutes. If your application is approved, you'll be sent funds via e-Transfer.
First launched as Cover Me in 2021, KOHO Cover is an optional feature on KOHO's Essential, Extra and Everything plans. It provides an interest-free cash advance of up to $250 to help you get through to your next payday. You can apply without a credit check and get instant access to funds, but you'll need to pay a monthly KOHO Cover fee as well as a (potentially waivable) monthly KOHO plan fee.
No credit checks
No interest charges
Get funded instantly
Repay any time
Monthly KOHO Cover fee
Monthly KOHO plan fee (waivable on the Essential plan)
Maximum advance of $250
Loan amount
Up to $250
APR
Starting at 0%
Term
Flexible
Fees
0% interest with a subscription fee starting at $2/month
Launched in 2022, Nyble offers an interest-free line of credit of up to $250 designed to help you build your credit history. It's quick and easy to apply with no credit checks, and Nyble reports your payment history to the credit bureau to potentially help improve your credit score. But if you want instant funding, you'll need to pay a premium membership fee.
Can be used to build your credit history
May improve your credit score
No interest or late fees
Easy application process
Late payments are also reported
Maximum advance of $250
It takes up to three business days to get funded with a free account
Loan amount
Up to $250
APR
Starting at 0%
Term
30 days, extendable
Fees
0% interest with optional fees
Turnaround time
1-30 minutes with a paid membership or 1-3 business days with a free membership.
Launched in 2021, Bree provides interest-free cash advances of up to $500. There are no credit checks to apply, it's quick and easy to sign up and it's possible to get funded easily. However, you'll need to pay a monthly subscription fee, and there's an extra optional fee if you want instant access to your advance.
No credit checks
Get up to $500
Interest-free
Get a decision instantly
$2.99 monthly membership fee
Extra fee for instant access to funds
No phone contact details
Loan amount
Up to $500
APR
Starting at 0%
Term
Next pay cycle (65 days max)
Fees
0% interest with a $2.99 monthly membership fee
Turnaround time
Receive funds within 5 minutes with express delivery (the fee is based on the advance amount) and up to 3 business days for standard delivery.
FastForward by MoneyUp offers an interest-free line of credit of up to $1,000. This recently launched service is run by Cashco Financial, which was founded in 2007, and provides early access to a portion of your next paycheque. There are no credit checks and you can get funded within minutes, but you'll pay a small withdrawal fee along with a fee of $2.50 for every $100 you borrow.
No credit checks
No interest
Borrow up to $1,000
Fast access to funds
Maximum APR of over 30.4%
Not available in Quebec or Saskatchewan
Watch out for fees
Loan amount
Up to $1,000
APR
Up to 30.4%
Term
Undisclosed
Fees
$2.50 for every $100 you borrow
Cash advance apps: A new alternative to payday loans
Payday loans are no longer the only option when you need a fast, short-term loan with no credit check. Recent years have seen the emergence of cash advance apps on the Canadian market. These apps offer payday loan alternatives in the form of small, short-term cash advances.
The features they commonly offer include:
Small loan amounts. Some providers offer maximum cash advance amounts of $250, but others offer up to $500 or even $1,000.
Varying loan terms. Some cash advances have flexible loan terms, allowing you to extend due dates as needed, while others are stricter, requiring you to repay within a month or two.
No credit checks. You can typically apply for a cash advance without submitting to a credit check, so bad credit won’t stop you from getting a loan. Most cash advance providers will consider your income before deciding whether to approve funding. Learn more about no credit check loans.
No interest. You won’t pay any interest on the money you borrow with a cash advance.
Fast access to funds. Standard funding can take up to three business days, but instant funding may be available for an extra fee.
Fees apply. You’ll generally need to pay a monthly subscription fee with most cash advance apps, while there may also be an extra fee if you want an instant loan.
Payday loans vs cash advance apps
Payday loans and cash advance apps have some similarities—but also some key differences that make cash advance apps a more affordable option.
Both options offer:
No credit checks
Small, short-term loans
Funding within minutes
Short repayment periods
But the main difference is how much they cost. Payday loans cost $14 per $100 borrowed. So, in the case of a $500 loan with a 14-day loan term, you would need to repay $570 to the lender—that’s an APR of 365%.
Meanwhile, you don’t pay any interest on the funds you borrow from a cash advance app. There may be a monthly subscription fee as well as an additional fee if you want an instant loan, but cash advances are still much more affordable than payday loans. That’s why they’re worth considering before you opt for a payday loan.
While there are plenty of legit online payday lenders in Canada, you also need to be wary of scammers and sketchy operators. The main risk to be wary of when you come across new payday loans in Canada is that you’re dealing with an unknown lender, so you need to watch out for scams.
The simplest way to find out if a lender is legit is to check if they’re licensed to provide payday loans in your province or territory. The lender should display their licence on their website, but you can also check their details with the consumer affairs office in your province.
You can also find out if a lender is legit be checking if they:
Follow payday lending regulations. Check if the lender complies with payday lending regulations where you live. For example, the maximum a lender can charge you for a payday loan is $14 for every $100 borrowed.
Request upfront payment. A lender should never request any money from you upfront when you take out a loan. If they do, look elsewhere.
List contact details. Check the lender’s website to make sure they list phone contact details and a physical office address. If you can’t find this info, they may not be legit.
Have positive customer reviews. While new lenders may not have many reviews, it’s worth checking if the lender has received positive customer feedback on sites like Trustpilot and the Better Business Bureau.
If you need a fast loan with bad credit, there’s a wide range of established and new payday loans online in Canada to compare. But before you do, consider if a cash advance app might offer the funds you need without the high cost of borrowing a payday loan.
Frequently asked questions
Cashco Financial, Magical Credit and Lenditt are three new payday loans online in Canada. They're only available in selected provinces, so check with each lender to find out if they offer loans where you live. Cash advance apps like KOHO Cover, Nyble, Bree and FastForward by MoneyUp also offer affordable payday loan alternatives that are worth checking out before resorting to payday loans.
Payday lenders can charge you $14 for every $100 borrowed. Payday loans are also typically due to be repaid on your next payday, and this short loan term means they have extremely high APRs.
Yes. Aside from the cash advance apps featured in this article, other options include getting an installment loan from an online lender, using your credit card and applying for a personal loan with a cosigner. Some credit unions also offer affordable payday loan alternatives, while you may wish to consider seeking credit counselling for help taking control of your debt. Learn more in our guide to payday loan alternatives.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
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