Emergency loans in Canada offer a great way for you to access cash quickly and with less hassle. Obviously, you don’t have time to deal with traditional lenders as they usually have a very complicated, long process.
Plus, traditional lenders aren’t known for their speed. Even if you’re approved, you make not get your money for days or weeks. That’s the last thing you want to happen when you need to handle an emergency.
Luckily, you do have options. One of the fastest and easiest ways to access money quickly is through online emergency loans in Canada. These loans aren’t offered by all lenders and even if the lender offers them, you’ll want to ensure they are reputable.
Here are a few factors to consider to help you find the best possible lender and the fastest emergency loans in Canada.
Look for a Specialist in Online Emergency Loans in Canada
Certainly, you will find many lenders that offer personal loans and payday loans. However, most aren’t tailored to emergencies. Consequently, the process plods along and you get frustrated.
Luckily, some lenders offer loans specifically designed for emergencies. Their process is very fast, fully-automated, and online.
The benefits of applying online are manyfold. Firstly, you don’t need to visit an office when you’re already in a panic and time is of the essence.
Secondly, their application process is straightforward. Normally, you can complete your form in less than 15 minutes.
Finally, since these loans are intended for emergencies, funds release usually occurs in less than 24 hours. In some cases, you may get your money in just a few hours.
How Does the Lender Define Emergency?
Unfortunately, just because you think a situation is an emergency many lenders won’t agree. For instance, some lenders only grant emergency loans in Canada for things such as a car repair, dental work, or a funeral.
However, when you need to buy a plane ticket to visit an ailing relative it could be a different matter. Some lender won’t even lend you money if someone steals your laptop and you need it for your job.
Fortunately, some lenders offer emergency loans in Canada, but aren’t concerned with the details of your crisis. Certainly, they will check that you have the resources to repay your loan, but that’s about it. If you earn a steady income, chances are you could qualify.
Do They Offer the Loan Amount You Need?
This may seem an obvious first consideration, but it is an important one. Many emergency loan lenders only offer a narrow range of amounts.
If you need a substantial amount of money, you’ll soon discover that many of emergency loans don’t offer it. Often times, you’re limited to a few thousand dollars.
Should you only need to borrow $500, you’ll also the minimum loan amount through many lenders is at least $1,000. Consequently, you’re forced to take on more debt than necessary and you’ll pay interest on the unneeded money.
Fortunately, a few lenders offer a broad range of amounts for their emergency loans in Canada. You can borrow as little as $500 and as much as $15,000, quickly and easily.
Check Their Repayment Terms?
Another important consideration is the time you have to repay. If you’re facing an emergency, chances are you will want to spread your payments out over time. You don’t want to be forced to make steep payments, because the lender prefers you repay quickly.
Equally, if you only need the money for a short time, you shouldn’t be forced to drag out your payments. Regrettably, the minimum repayment term for many lenders is one year since they want to earn interest on your loan. Consequently, a short term isn’t worth their while.
Fortunately, some lenders do offer emergency loans in Canada with terms as short as 6 months and as long as 5 years.
Review Their Fees
This is a biggie. Many lenders take advantage of desperate people and charge them unnecessary fees. They hope the person won’t look too closely, since they need money now.
One of these is an origination fee. This is an administrative charge for setting up your account. It can be substantial as it is based on a percentage of your loan amount.
Percentages range between 0.5% and 8.0%. Should you borrow $15,000, you could pay as much as $1,200. Luckily, good lenders do not charge this fee as they believe administration is a normal cost of doing business.
Another cost borrowers can face unnecessarily is a pre-payment penalty. Some lenders levy this when you want to pay off more of your loan, or even pay it off completely. This fee is meant to compensate the lender for the interest they would have earned if the borrower had paid regular payments.
Luckily, some emergency loans in Canada do not include either of these unnecessary charges. A good lender welcomes extra payments at any time.
Do They Have a Minimum Credit Score Requirement?
If you have less than pristine credit, it can be discouraging when you need credit quickly. Most lenders consider your credit the most important factor when you apply for a loan.
This is unfortunate, since many people are perfectly capable of repaying a loan even if they have a small problem on their credit file. Nonetheless, many lenders set a minimum credit score requirement and stick to it. If you don’t meet this requirement, they’ll turn you down.
Luckily, some lenders use their own system to analyze your finances. They look at many factors, not just your credit score. By utilizing a pre-approval process, they get a good overview of where you stand at this moment.
These lenders also use a soft credit inquiry that does not impact your credit score. This isn’t the case with many other lenders who use a hard credit inquiry. This lowers your credit score by a few points, whether they grant you credit or not. Plus, the inquiry stays on your file for up to three years.
Do They Want Proof of Income?
This is another factor you will definitely want to check before you spend time completing an application form. Many lenders ask for proof of income, and that’s takes time. You need to dig up pay stubs or get a letter from your employer. Then you must upload it to the lender’s website.
Fortunately, some emergency loans in Canada use digital income verification instead. The lender asks your permission to verify your direct deposits through bank statements. You don’t need to do anything, your data is encrypted, and the process is safe and fast.
How Quickly Do They Make a Decision?
It’s an emergency – you sure don’t want to be sitting around on pins and needles wondering whether you have the loan, or not.
Does the lender tell you how long it will take them to make a decision? Or do they expect you to guess?
Fortunately, good emergency loans in Canada offer almost instantaneous decisions. You should know whether you got the loan within minutes, not hours or days.
When Will You Get Your Money?
You’d think that you would get your money quickly once you’re approved. However, some lenders take their time.
They might take a day or two to prepare your loan contract. Then they could take their time before they send it to you for signature. By the time you receive it, it’s been way longer than it should be. Now you need to wait again until they decide to release funds.
Fortunately, the best emergency loans in Canada have money in your bank account very quickly. If you sign your loan contract within business hours, it could be the same day. Otherwise, it won’t take longer than 24 hours.
Emergency Loans in Canada Through FlexMoney
FlexMoney offers the best emergency loans in Canada. Here’s a quick summary of what we offer:
- We fund any emergency need
- 100% online process
- Simple application form
- Artificial intelligence assessment
- Soft credit inquiry that does not lower your credit score
- Digital income verification – no proof of income required
- Decision in minutes
- Terms between 6 months and 5 years
- Loans between $500 and $15,000
- No origination or prepayment fees
- Fast funds release
FlexMoney also has very straightforward requirements. If you meet them, you have a good chance of approval:
- Canadian citizen
- At least 20 years old
- Steady source of income from the same source for at least the last 3 months
- Net monthly income of $2,000 per month (We consider income from employment, self-employment, the Canada Pension Program (CPP), Old Age Security (OAS), and other private and public pension programs).
- Valid telephone number and email address
- Active bank account with a Canadian financial institution with at least three months of transaction and banking history
- Paid by direct deposit.
Sorry, we can’t consider your application if you’re currently enrolled in an active bankruptcy, consumer proposal, or credit counselling program. We also exclude applications from those whose income source is Employment Insurance (EI), Disability Benefits, Canada Child Benefit, Student Aid or COVID-19 relief benefits.
FlexMoney lends in Ontario, British Columbia, Alberta, Nova Scotia, Saskatchewan, Newfoundland & Labrador, Prince Edward Island, and Yukon Territory.
Please visit our website for more information or to start the application process now. We offer the best emergency loans in Canada. We also bust many of the myths surrounding Canadian emergency loans here. Get one now!