If you’ve found yourself turned away for credit, a loan with a “no credit check” label might seem like the obvious next step. In Canada, lenders like SimplePret offer exactly that — loans where your credit history isn’t the primary barrier. But before you apply, you need to understand how these work, what they cost, and when they make sense.
This guide explains: what a no-credit-check loan is; how SimplePret offers them; eligibility, costs, risks, and how to borrow responsibly.
What Does “No Credit Check” Really Mean?
“No credit check” typically means the lender doesn’t rely on a hard inquiry of your credit report (which can lower your score) or use your credit score as the main approval factor. Instead, they may:
- Consider your income or deposit history
- Review your bank account behaviour
- Use alternative underwriting methods
For example, SimplePret says “We don’t conduct credit checks.”
They emphasise that even individuals with challenged credit get a “fair chance at approval.”
That said, “no credit check” doesn’t mean zero requirements. You still must meet other eligibility criteria (income, bank account, residency) and you’ll still face higher borrowing costs than prime borrowers.
How SimplePret Offers Loans No Credit Check
Let’s look at how SimplePret’s offering works:
- Loan amounts: from $250 to $1,500.
- Term length: from 4 to 6 months (example) and often repaid in multiple instalments.
- Funds arrival: “receive money via Interac e-Transfer within 45 minutes.”
- Licence: They state they are licensed in Québec.
- Interest / APR: Example: In their “About” section they give: “On a $500 loan paid monthly over 9 months, you will pay $81.15 per month for total of $730.35” (includes optional protection)
So in effect, you can apply quickly, get funds rapidly, and credit score is not the main barrier — but cost is higher, terms shorter, and you still must show you can repay.
Eligibility: What You’ll Need
Even lenders advertising “no credit check” still have eligibility rules. With SimplePret you’ll usually need:
- Canadian residency and legal age (typically 18+ or 19+ depending on province)
- A valid Canadian bank account (to receive and repay funds)
- Some form of income or deposit history (job, benefits, etc) — the lender must assess your ability to repay.
- Government-issued photo ID
Even though the credit bureau check is omitted or minimal, the lender still verifies other criteria to reduce risk. The Finanso review warns: “A severely negative credit history or a recent bankruptcy may still impact approval”.
Costs, Fees & Risk of No-Credit-Check Loans
Because the lender takes on greater risk, costs tend to be higher than conventional loans. Key things to watch:
Higher interest / APRs
For example, SimplePret’s examples show total repayment significantly greater than principal. Terms of 4-6 months with APRs up to ~29% or more when factoring optional protection.
Shorter terms
If you’re repaying over just a few months, each payment may be large relative to your income. SimplePret’s example: ~$81.15/month for a $500 loan over 9 months.
Risk of repeat borrowing / cycle
Taking one no-credit-check loan followed by another can lead to a debt cycle. The lender’s own site warns: “Interest rates are greater than those for other loans … we ask you be mindful … you may repay your loan in full before contract ends.”
Legitimacy & scams
A “no credit check” offer in itself isn’t a red flag — but if a lender demands an upfront fee to approve the loan, that’s a serious warning. For instance, Finder lists “no credit checks” alongside common payday-loan red flags.
Why Borrowers Choose No Credit Check Loans
There are valid reasons someone may opt for this type of loan:
- They’ve been turned down by traditional lenders due to weak credit history
- They have a short-term, urgent expense (e.g., car repair, medical bill) and need funds quickly
- They anticipate repayment ability is strong despite past credit issues
- They’re using the loan as a bridge, not as a permanent financing solution
SimplePret’s marketing emphasises speed, accessibility, and fairness: “We give everyone a fair chance at approval; we don’t conduct credit checks.”
Best Use Cases — When It Makes Sense
To use these loans responsibly, they fit best when:
- You have a single urgent expense (e.g., unexpected bill) that must be met relatively soon
- You must have funds quickly and you’ve already explored cheaper alternatives
- You have a clear repayment plan, and you are confident you’ll be able to repay fully and on time
- You treat the loan as a short-term bridge, not long-term financing
If you’re using no-credit-check loans for everyday expenses, repeated borrowing, or long-term support, you may risk worsening your financial situation.
Alternatives to Consider Before Applying
Even with weak credit you may have other options:
- Talk to your bank or credit union — some offer small personal loans for members with weaker credit
- Use emergency funds or savings if possible
- Seek grants, student aid or other non-loan support for your situation
- Explore secured loans (where you put up collateral) which may have better terms
- Improve your credit score over time and qualify for more conventional loans in the future
Many consumer-finance advisories (including FCAC) encourage exploring alternatives before high-cost borrowing.
Example of How SimplePret Works
Here’s a sample scenario to illustrate:
Borrower: Lauren, age 29, part-time job, credit score ~540 due to past missed payments. She has a valid Canadian bank account and receives consistent paycheques.
Need: Her car breaks down and cost is $800. She cannot wait two weeks to save up, and her bank won’t approve a conventional loan due to her credit.
Solution: Lauren applies at SimplePret online. Because she meets income/bank account criteria, and despite weak credit, she is approved within minutes. She selects a $800 loan with 6 monthly payments of roughly $150 each (hypothetical). Funds are sent via Interac e-Transfer. She uses the funds for the repair, drives to work, continues earning, and repays on schedule.
Outcome: She manages the expense, avoids lost income, uses the loan as bridge funding, and avoids further debt.
Frequently Asked Questions
Q: Will applying hurt my credit score?
A: No. Because the lender doesn’t perform a hard credit check (in many cases) your credit score may not be impacted. SimplePret emphasises “no credit checks”.
Q: Does “no credit check” mean I will always be approved?
A: No. Other criteria (income, bank account, residency) still apply. The Finanso review for SimplePret states: “A severely negative credit history or recent bankruptcy may still impact approval.”
Q: Are these loans legal?
A: Yes. As long as the lender is licensed in your province and complies with regulations. SimplePret states it is licensed in Québec.
Q: What if I can’t repay?
A: If you default, you may incur fees, your alternative underwriting may limit future access, and you risk further financial strain. SimplePret’s terms warn of collection methods.
Q: Can I repay early?
A: Yes. Many lenders allow full repayment before term ends. SimplePret’s disclosure states you may repay your loan in full before contract term.
Conclusion
Loans no credit check are real and offer accessible funding when your credit history is weak. Lenders like SimplePret provide a legitimate option: online application, funds in minutes, no traditional credit-score barrier. But the ease and speed do come with trade-offs—higher cost, shorter terms, and the need for repayment discipline.
Used wisely, these loans can help you manage urgent costs and stay afloat. Used poorly, they can lead to a financial trap. Always borrow only what you need, have a clear repayment plan, and understand all costs before you sign.
If you’re considering a no-credit-check loan, make sure you deal with a licensed provider (like SimplePret), check the full terms, and use the loan as a short-term tool—not a long-term lifeline.