Do short-term loans in Ontario affect your credit score?

Applying for a short-term personal loan could affect your credit score. Multiple applications can result in several hard inquiries on your credit file in a short time, which can push your score lower, but paying off the loan on time and in full could boost your score. Payday loans usually don't affect your credit score because payday lenders don't report your payments to the credit bureaus. Defaulting on a personal or payday loan can decrease your credit score.

What credit score do I need to get approved for a short-term loan in Ontario?

Credit score requirements vary between lenders. While some lenders want borrowers with a good credit score of 660 or above, there are also lenders that specialize in loans for people with bad credit. Some don't require a credit check to approve short-term loan applications.

What are the signs of a legitimate lender of short-term loans in Ontario?

A legitimate lender will be registered in Ontario and be transparent about the cost of a loan. They won't use high-pressure sales tactics or offer guaranteed approval. They will also have a physical address for their head office and be easy to contact via phone and email. Payday lenders must also be licensed with the Government of Ontario.