How to Get Loans for No Credit

It is possible to obtain loans for no credit in Canada. Read this article and explore the ways to get a loan with no credit check in Canada.

Won't impact your credit score!
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When obtaining a loan, most people go with traditional lending institutions like banks or credit unions. However, these institutions run credit checks to determine whether you’re eligible for a loan.

If you recently turned 18 or are new to Canada, this system might not work to your advantage. An 18 year old has merely begun their credit journey, which means their credit report won’t have much to show.

The same is true for an individual who just moved to Canada – their credit report won’t have much information to assess. So what do you do if you need financing but have no credit?

Fortunately, there are loans for no credit available in Canada, thanks to the internet. There are online lenders that don't care much about your credit as long as you can show your ability to repay.

Types of Loans for No Credit

Here are some common types of loans you can get without a credit score in Canada:

No credit check loans

No credit check loans are designed for people who have the means to repay but have bad or no credit.

To take out a loan with no credit check, you'll need to provide your name, Social Insurance Number, employment status, and income. You'll also need to submit contact information like your email, phone number, and current address. Your employment and income are the most important since that’s how the lender will assess your ability to repay.

Payday loans

Payday loans are usually small, unsecured loans that don’t count towards your credit score. They are paid back by the next agreed-upon payday.

As long as you provide your bank details and employment records, most online payday lenders approve a loan quickly. You can even get funded on the same day of application. These loans require no credit check.

Installment loans

As its name suggests, an installment loan offers a lump sum of money and the freedom to pay back in installments.

This type of loan comes with lower interest rates compared to payday loans. Another advantage is it's easier to repay because of the longer term.

Documents Needed to Get Loans with No Credit

Before you get a no credit loan in Canada, it is important for you to understand the requirements. You need to provide:

Personal Documents:

Your lender will need to ensure you are who you say you are and that you live and work in Canada. To that end, try to provide the following in your application:

  • Government issued ID, such as a passport, driver’s license, or health card
  • Your Social Insurance Number
  • A birth certificate
  • Proof of citizenship
  • Utility bills, or some other proof of your address

Keep in mind that the exact personal documents required may vary depending on the lender.

Professional & Employment Documents:

You also need to show you’re gainfully employed and can pay the loan back:

  • Proof of income: It could be a recent pay stub, your tax returns, a bank statement, or anything else verifying your income.
  • Proof of employment: You would most likely need to request a letter from your employer verifying your position and pay.
  • Other documents: Including a statement of assets, statement of liabilities, mortgage or rent statement, any additional sources of income, and so on. Each lender will specify what other documents they’d like to see.

Where to get a Loan with No Credit?

There are generally two ways to apply for a loan - traditional methods and online platforms. Getting a loan online is much easier than having to go to a bank or another traditional lending institution. Let’s take a closer look below.

The traditional loan method involves going to the physical branch of a lender and applying directly for a loan. As long as you meet the lender’s criteria, you shouldn’t have a problem.

However, this method can be slow and inconvenient. In addition, you might have to visit the branch multiple times, which means taking more time away from work and other obligations.

That is where online lending platforms come in. They offer speed and convenience, while also providing the same benefits as traditional lenders. You can apply for financing from the comfort of your home.

Often, you’ll hear back about approval within a few hours. Take WeLoans as an example. The platform connects lenders and borrowers in a safe environment. Thereby allowing the latter to access different types of financing solutions for their needs quickly and securely.

With WeLoans, you can find lenders who offer loans to individuals with no credit. You can apply for a loan, get offers from different lenders, and choose which works best for you. Once your application is complete, you can expect to get the funds in 24 hours.


Still have some questions before you begin applying? WeLoans compiled the most commonly asked questions and answers for loans with no credit below.

How to get approved for instant personal loans with no credit check in Canada?

The first thing you need is to find a lender who is willing to work with your circumstances. Some lenders specialize in quick loans, while others offer services like debt consolidation.

Also, be sure not to apply for more money than you need. This way, you can lighten the financial burden on yourself. Plus, you become less of a financial risk for the lending company.

Finally, try to apply with a co-applicant - especially one with a high credit score. This increases your chances of getting approved for a loan much faster as well as accessing a lower interest rate.

How does a no credit check loan affect your credit?

A no credit check loan can have a positive or negative impact on your score. Fortunately, since no credit check is performed, there is no initial impact. Once you’re approved, the rest is up to you. If you make full, timely payments, your credit score will improve.

But if you fail to make payments in full or on time, your credit score will fall. So long as you manage your debts responsibly, you’ll see it reflected in your credit score!



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Written by

Veronica OttExperienced Financial Writer
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Reviewed by

Lucia JensenEditor-in-chief & Co-founder

Updated on: Mar 28, 2023

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