How payday loans work in Canada
A payday loan is a quick, short-term cash advance. People use them in-between paycheques for things like groceries or repairs. You may need to do a credit check and give proof of income.
In most provinces in Canada, payday loans are regulated, though they often have high fees, interest and penalties for late payments. This can make them an expensive way to borrow.
So we built something better–Cover. It’s a pay advance, like a payday loan, but a more fair alternative.
Why choose Cover instead of a conventional payday loan?
Need cash today? Get Cover with KOHO. No payday loan needed.
No checks
Unlike some loans, we won’t ask for a credit check or proof of income. This is handy if you have low credit scores or are a newcomer to Canada.
No hidden fees
No matter how much we spot you, we’ll never charge you interest or add surprise fees. We just charge a small monthly service fee.
Cash in a flash
A quick online application and instant approval. So you get the same-day pay you need.
Flexible repayment
Many payday loans will ask you to repay at your next pay day. With Cover, you can pay back the pay advance anytime, as long as you pay the service fee.
Apply for a Payday Loan Alternative Online
Step 1
Choose a KOHO Plan that’s right for you.
Apply for a Payday Loan Alternative Online
Step 2
Find Cover on your app homepage and subscribe.
Apply for a Payday Loan Alternative Online
Step 3
Get approved right away for a $20 to $250 cash advance and have the money in your account the same day.
What our customers say about Cover
FAQS
It’s a short-term loan that gives you instant cash. They often have a short pay-back window, of around 2 weeks or at your next paycheque. They can be an expensive way to borrow, with high fees and interest.
It varies across Canadian provinces and with each lender. Sometimes the lender will do a credit check and ask for proof of income. So it can be tricky to get one if you don’t have a job or you have low credit.
You can apply on a lender’s website or app. To get Cover, head to the KOHO app and apply in minutes. You’ll get same-day cash, guaranteed.
With Cover, an alternative to a payday loan, we don’t ask for a credit check, which is super helpful if you’re new to Canada or you have low credit.
If you’re new to Canada or in-between jobs, you might need some extra cash. Unlike many payday lenders, you don’t need to be employed to get Cover, our pay advance.
You can with Cover. We know sometimes everyone needs extra cash in a pinch. So we’ve made it easy to borrow. No credit check needed.
Payday loans are regulated in many provinces, so there is a maximum amount you can borrow.
To protect yourself, check what’s allowed in your province, and always use a licensed lender with a loan agreement.
Many lenders will give you the money within 24 hours of applying. With Cover, you get a same-day loan.
Payday loans are usually not reported to credit bureaus in Canada. But, if you don’t pay back your loan, the lender may sell your loan debt to a debt collector. They could report this debt to a credit bureau which could hurt your credit scores.
With Cover, we’ll never sell your debt and the loan won’t impact your credit scores.
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