Loans for 18-Year-Olds for April 2024

Get a loan for 18-year-olds at one of the lenders verified by our specialists. On 24.04.2024 there are 3 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
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Mr. Payday
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up to $10.000
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Personal Loan
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™

Effective interest rate on the product

up to 46.96%

Loan term for the financial product

up to 60 months
Coast Capital Savings
Personal Loan
Rating by Finanso®

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™

Effective interest rate on the product


Loan term for the financial product

60 months
Royal Bank of Canada
I appreciate the transparency in the loan terms provided by Royal Bank of Canada, with no hidden fees or charges.
Royal Bank of Canada
RBC provided me with a flexible loan repayment schedule, making it easier to manage.
Royal Bank of Canada
I encountered some hidden fees when repaying the loan with RBC, making it more expensive than I expected.
Royal Bank of Canada
Unfortunately, the loan terms offered to me by RBC turned out to be less favorable than those of other banks.
Royal Bank of Canada
It's very convenient to use RBC's online services to manage my loan and make monthly payments.
Royal Bank of Canada
I obtained my home loan with RBC, and they were very flexible in setting terms that suited my financial capabilities.

Securing loans at the age of 18 can be challenging due to limited credit history and potentially low income. However, several options are available for young individuals looking for financial assistance in Canada. Online lenders offer small unsecured personal loans, usually under $5,000, which may be accessible with proof of steady employment and a reasonable income. Additionally, applying for bad credit loans or no credit check loans with online lenders could be a viable option, but it's essential to ensure that the interest rates remain reasonable. Another avenue is approaching traditional banks, where having an established relationship may increase the likelihood of approval, especially if there's evidence of responsible financial behavior, such as regular savings and timely bill payments.

Secured loans, where valuable assets like vehicles or investments are used as collateral, may also be an option, but it's crucial to be aware of the risk of asset repossession in case of loan payment defaults. Lastly, pay advance apps offer short-term loans, typically repaid with the next paycheck, providing a quick financial solution for immediate needs. Exploring these various options and considering factors like interest rates, loan terms, and eligibility criteria can help 18-year-olds find a suitable loan product.


  1. Loan Amounts. These loans often offer flexibility, allowing borrowers to access smaller amounts, typically under $5,000, suitable for immediate needs without overwhelming financial commitments.

  2. Loan Terms. Personal loans for 18-year-olds often come with flexible repayment terms. Borrowers can choose a term that aligns with their financial capacity, avoiding long commitments while ensuring timely repayment.

  3. Fees. Understanding the fee structure is crucial. Borrowers should be aware of potential fees such as establishment fees, monthly fees, and early repayment fees. Transparent disclosure of these fees is a sign of a reputable lender.

  4. Cosigner Options. Recognizing the challenge young borrowers may face, some lenders allow the inclusion of a cosigner, typically a family member or friend with a strong credit history. This can enhance approval chances and secure more favorable terms.

  5. Online Application. Many lenders provide an online application process, simplifying the accessibility of loans for tech-savvy 18-year-olds. Online applications often streamline the submission of required documents and information.

  6. Pre-Approval. To ease the application process, lenders may offer pre-approval options. This allows borrowers to gauge the loan amount and interest rates they qualify for without undergoing a hard credit check.

Pros and Cons


Credit History Building. Timely repayments on these loans contribute positively to the borrower's credit history, establishing a foundation for future financial endeavors.

Investment in Future. Personal loans empower young individuals to afford assets that can contribute to their future, such as education, vehicles, or other essential purchases.


Limited Loan Amounts. Due to the limited credit history of 18-year-olds, they may only qualify for small loan amounts, potentially restricting their financial capabilities.

High Annual Percentage Rate. Until a strong credit and employment history is established, young borrowers may face higher interest rates, affecting the overall cost of the loan.

Risk of Debt Accumulation. Without careful financial planning, there is a risk of taking on more debt than can be comfortably handled, especially if unexpected financial challenges arise.

How Can an 18-Years-Old Get a Loan

Apply for a Loan

  1. Check Eligibility Criteria. Ensure you meet the eligibility requirements set by lenders. Typically, you need to be 18 years old, a Canadian citizen or permanent resident, have a valid Canadian address, and hold a bank account.

  2. Understand Your Credit History. Obtain a copy of your credit report from major credit bureaus like Equifax and TransUnion. This provides insight into your credit history and allows you to understand your creditworthiness.

  3. Gather Supporting Documents. Lenders may require proof of consistent employment or income. Prepare documents such as pay stubs, employment letters, and any other relevant financial information. Having a well-documented case strengthens your application.

  4. Explore Cosigner Options. While not always necessary, having a cosigner can enhance your chances of approval. A cosigner is typically a family member or friend with a strong credit history who agrees to be responsible for the loan if you default.

  5. Research Lenders. Compare multiple lenders to find the one that suits your needs. Consider factors such as interest rates, loan amounts, fees, and terms. Look for lenders willing to work with young borrowers or those offering specific loans for 18-year-olds.

  6. Apply for Pre-Approval. Many lenders allow pre-approval without a hard credit check. This step provides an estimate of the loan amount and interest rates you qualify for, helping you make informed decisions.

  7. Complete the Application. Fill out the loan application form accurately and honestly. Mistakes in the application can lead to rejection, so double-check your personal and financial details.

  8. Review Terms and Conditions. If approved, carefully read and understand the terms and conditions of the loan before signing the contract. Seek clarification from the lender or consult with a trusted individual if needed.

  9. Consider Alternatives. Explore alternative options such as credit-builder loans, secured loans, or loans from online lenders. Each option has its own set of advantages and considerations.


  1. Age of Majority. The age of majority is 18 years old in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec, and Saskatchewan. To be eligible for a personal loan, applicants need to meet the age criteria applicable to their province or territory of residence.

  2. Citizenship/Residency. Borrowers should be Canadian citizens or permanent residents with a valid Canadian address.

  3. Bank Account. A bank account is typically required for loan disbursement and repayment. This ensures a secure transaction process.

  4. Credit Score. While some lenders may consider applicants with limited credit history, a higher credit score improves eligibility and may lead to better terms.

  5. Proof of Income. Lenders often request proof of consistent employment or income. This may include pay stubs, employment letters, or other relevant documentation.

  6. Documentation. Borrowers need to provide personal details, including full name, date of birth, address, email address, phone number, and Social Insurance Number (SIN).

  7. Cosigner (Optional). While not always mandatory, having a cosigner with a strong credit history can enhance approval chances, especially for those with limited credit experience.


  1. Loan Amounts. Lenders specify the range of loan amounts available, allowing borrowers to choose an amount that suits their needs.

  2. Interest Rates. Interest rates, whether fixed or variable, are disclosed. Lenders may offer competitive rates based on the borrower's creditworthiness.

  3. Fees. Various fees associated with the loan are outlined, including establishment fees, monthly fees, and early repayment fees. Transparent disclosure is crucial.

  4. Loan Terms. Lenders provide different loan terms, affecting the size of monthly payments. Borrowers can choose a term that aligns with their budget and financial goals.

  5. Cosigner Terms. For loans with cosigners, terms related to the cosigner's responsibilities and liabilities are clearly defined.

  6. Pre-Approval. Some lenders offer pre-approval, allowing borrowers to assess their loan eligibility and potential interest rates without a hard credit check.

  7. Repayment Terms. Terms related to monthly payments, late payment fees, and overall repayment structure are outlined in the loan agreement.

  8. Eligibility Criteria. Specific eligibility criteria, beyond the basic requirements, may be specified by each lender. This could include minimum income thresholds or credit score benchmarks.

Best Places for 18-Year-Olds to Get a Loan

  1. Cash Money is a financial service provider catering to individuals aged 18 or older who need quick access to funds. To apply, customers need an open bank account, a steady source of income, and a valid photo ID (excluding Health Cards in ON, MB, and NS). Offering personal loans of up to $10,000, Cash Money provides assistance for covering bills or unforeseen expenses. With a straightforward application process, this company aims to help individuals navigate financial challenges efficiently.

  2. My Canada Payday operates as an online lender, specializing in emergency payday loans. The application process is streamlined, with no credit check required, and applicants can receive funds 24/7 through Interac e-Transfer. The loan terms vary by province, with amounts ranging from $100 to $1,500 and a repayment period of up to 62 days. Eligibility criteria include being of the age of majority, having a Canadian bank account, and earning a steady income with an active bank account that receives direct deposit.

  3. Loan Express is an online payday lender offering no-credit-check payday loans. The application process is available 24/7, and same-day funding is provided. Loan amounts range from $100 to $1,500, with a repayment period of up to 62 days. Eligible provinces include AB, BC, MB, NB, NL, NS, ON, SK, YK, NT, and NWT. To qualify, applicants must be of the age of majority in their province or territory, possess an active bank account, and have a steady source of income, with government benefits accepted.

  4. Nyble, established in 2022, specializes in providing pay advances of $150 or less without the need for a credit check. While no interest charges apply, Nyble does have a monthly subscription fee ranging from $4.99 to $7.99. Additional fees are incurred for expedited access to funds. Nyble's eligibility requirements include being 18 years or older, maintaining an active bank account with minimal NSF transactions, and meeting income criteria. The company offers its services across all provinces and territories, aiming to assist individuals in bridging financial gaps until their next payday.

Things to Pay Attention to

  1. Fees and Charges. Carefully review all fees associated with the loan, including establishment fees, monthly fees, and early repayment fees. Transparent disclosure of fees is essential to avoid unexpected costs.

  2. Loan Terms. Examine the loan terms, including the repayment period. Choose a term that aligns with your budget and financial goals. Be cautious of excessively long terms that may result in higher overall interest payments.

  3. Repayment Structure. Understand the repayment structure, including the frequency of payments and whether the loan offers flexibility in making additional payments or repaying the loan early without incurring high fees.

  4. Credit Score Impact. Inquire about the impact of the loan on your credit score. Some lenders may perform a hard credit check during the application process, potentially affecting your credit score. Minimize unnecessary credit checks if possible.

  5. Cosigner Considerations. If considering a cosigner, ensure that both parties fully understand the responsibilities and liabilities involved. The cosigner's credit score and financial stability can significantly impact your loan terms.

  6. Eligibility Criteria. Thoroughly review the eligibility criteria set by each lender. Ensure you meet the requirements related to age, citizenship, income, and other specific criteria.

  7. Online Security. If applying online, prioritize the security of the lender's website. Ensure that your personal and financial information is handled securely to protect against identity theft and fraud.

  8. Customer Reviews. Research customer reviews and testimonials about the lender. This can provide insights into the experiences of others and help you gauge the lender's reputation for transparency and customer service.

  9. Alternative Options. Explore alternative loan options, such as credit-builder loans, secured loans, or loans from online lenders. Consider which type of loan aligns best with your financial situation and goals.

How to Repay a Personal Loan

  1. Understand Loan Terms. Familiarize yourself with the terms and conditions of the loan. Know the interest rate, repayment period, and any associated fees. Understanding the terms helps you plan for timely repayments.

  2. Create a Repayment Plan. Develop a detailed repayment plan that fits your budget. Calculate the monthly installment based on the loan amount, interest rate, and loan term. Ensure that the repayment plan is realistic and manageable.

  3. Set Up Automatic Payments. Opt for automatic payments through your bank. This ensures that your monthly installment is deducted automatically, reducing the risk of missed payments and late fees.

  4. Avoid Late Payments. Timely payments are crucial for maintaining a positive credit history. Late payments can lead to fees, increased interest rates, and a negative impact on your credit score. Set reminders or use automatic alerts to avoid missing due dates.

  5. Make Extra Payments. If possible, consider making extra payments. This can help you pay off the loan faster and reduce the total interest paid over the life of the loan. Check with the lender to ensure there are no prepayment penalties.

  6. Communicate with the Lender. If you encounter financial difficulties, communicate with the lender proactively. Some lenders may offer temporary solutions or hardship programs to help you navigate financial challenges.

  7. Monitor Your Credit Score. Regularly monitor your credit score. Timely loan repayments positively impact your credit history. Conversely, missed payments can have a negative effect. Understanding your credit score is essential for future financial endeavors.

  8. Review Loan Statements. Regularly review loan statements to ensure accuracy. Verify that payments are correctly recorded, and report any discrepancies to the lender promptly.

  9. Financial Counseling. If you're struggling to manage debt, consider seeking financial counseling. Professionals can provide guidance on budgeting, debt management, and long-term financial planning.

Reasons for Getting Rejected for a Personal Loan

  1. Low Credit Score. A low credit score is a significant factor in loan approval decisions. Lenders use credit scores to assess creditworthiness, and a poor credit score may result in rejection.

  2. Limited or No Credit History. Limited credit history or the absence of a credit history can make it challenging for lenders to assess the borrower's risk. Without a track record of responsible credit behavior, approval may be difficult.

  3. High Debt-to-Income Ratio. Lenders evaluate the borrower's debt-to-income ratio to ensure that they can comfortably manage loan repayments. A high ratio, indicating a significant portion of income going towards debt payments, may lead to rejection.

  4. Insufficient Income. If the borrower's income is insufficient to cover the loan amount, lenders may deem them unable to meet repayment obligations, resulting in rejection.

  5. Unstable Employment. Unstable employment history or frequent job changes can be a red flag for lenders. A steady income and stable employment history contribute to loan approval.

  6. Cosigner Unavailability or Credit Issues. If a borrower is relying on a cosigner and the intended cosigner is unavailable or has credit issues, it can impact the approval decision.


  1. Title loans are short-term loans where the borrower uses their vehicle's title as collateral. The borrower temporarily surrenders the title to the lender in exchange for a loan amount, typically based on the vehicle's value. While title loans provide quick access to cash, they come with high-interest rates, and failure to repay can result in the repossession of the borrower's vehicle. Due to the associated risks, title loans are generally considered a last resort for those facing urgent financial needs.

  2. Credit cards are financial instruments that allow users to make purchases on credit up to a predetermined limit. Cardholders can borrow money from the credit card issuer, with the obligation to repay the borrowed amount by the due date or incur interest charges. Credit cards offer flexibility and convenience for transactions but require responsible use to avoid accumulating high-interest debt. They also contribute to building a credit history, influencing credit scores based on the user's payment behavior.

  3. Credit builder loans are specifically designed to help individuals establish or improve their credit history. Unlike traditional loans, the borrowed funds are typically held in a savings account or certificate of deposit. The borrower makes regular payments, and once the loan is fully repaid, they gain access to the saved funds. These loans are beneficial for those with limited or poor credit history, as successful repayment contributes positively to their credit score.

  4. Peer-to-peer lending, or P2P lending, is a method of borrowing and lending money directly between individuals through online platforms. These platforms connect borrowers with individual lenders, cutting out traditional financial institutions. Borrowers may find more flexible terms, and investors can earn returns through interest. P2P lending has gained popularity for its efficiency and accessibility, but borrowers should carefully consider interest rates and terms offered by individual lenders on the platform.

Editorial Opinion

Loans for 18-year-olds can present both opportunities and challenges. On one hand, they offer young individuals a means to access financial resources, allowing for the possibility to invest in education, address immediate needs, or build a credit history. However, borrowers must approach these financial tools with caution and a full understanding of the associated terms and responsibilities. The lack of an established credit history and limited financial experience among many 18-year-olds may lead to higher interest rates and potential difficulties in meeting repayment obligations.


Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your province. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Canadian Lenders Association (CLA). Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.


At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.


Can I get a personal loan if I'm under 18 or 19?

No, individuals under the age of 18 or 19, depending on the province or territory, typically cannot qualify for a personal loan in Canada. To be eligible for a loan, one must be of the legal age of majority in their province or territory of residence.

In some cases, individuals under the age of majority may need a co-signer, usually a parent or guardian, to secure a loan, but this is contingent on the lender's policies. It's essential to understand and adhere to the legal requirements for loan eligibility based on age.

Can I get a student loan with bad credit in Canada?

While it may be challenging, it is still possible to secure a student loan with bad credit in Canada.

Government student loans, such as the Canada Student Loans Program, do not consider credit scores during the application process. However, private lenders or banks may consider credit history when offering student loans. In such cases, having a co-signer with a strong credit history can increase the likelihood of approval.

Additionally, exploring grants, scholarships, and part-time work opportunities can help supplement educational funding without solely relying on loans.

What is the easiest loan to get at 18?

The easiest loan to obtain at 18 may vary based on individual circumstances and financial profiles.

For those with limited credit history, credit-builder loans or secured loans where collateral is provided can be more accessible. Some online lenders or financial institutions may offer specific loan products tailored to young borrowers, taking into account factors beyond credit scores.

It's essential for 18-year-olds to compare various loan options, understand the terms, and consider alternatives to make informed decisions based on their financial needs and capabilities.

Loan Terms