Loans for 20-Year-Olds for April 2024

Get a loan for 20-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.

As a 20-year-old in Canada, there are various loan options available to meet different financial needs. Personal loans are one avenue worth exploring, allowing individuals to borrow a specified amount for personal use. These loans can be either secured, requiring collateral such as valuable assets, or unsecured, where no collateral is needed but typically with higher interest rates. It's important to consider your credit history, as those with limited or no credit may find lenders who specialize in assisting individuals with such credit situations. Exploring online lenders, known for their fast processing and consideration of factors beyond traditional credit scores, can provide young borrowers with diverse options.

While the loan amount may initially be lower, responsible repayment can contribute to a positive credit history, opening doors to better loan terms and options in the future.


  1. Flexible Loan Amounts. Personal loans for 20-year-olds typically offer flexibility in loan amounts, allowing borrowers to choose an amount that suits their specific needs, whether it's for education, starting a business, or handling unexpected expenses.

  2. Unsecured Nature. Many personal loans for young individuals are unsecured, meaning they don't require collateral. This can be advantageous for those who may not have valuable assets to secure a loan but should be mindful of potentially higher interest rates associated with unsecured personal loan options.

  3. Credit History Consideration. Lenders often consider factors beyond traditional credit scores when offering personal loans to 20-year-olds. This is beneficial for those with bad or low credit score, providing them with an opportunity to access financial assistance with bad credit loans.

  4. Online Application. To cater to the tech-savvy younger generation, personal loans often come with the convenience of online applications. This enables a quick and efficient process, allowing borrowers to apply from the comfort of their homes.

  5. Co-Signer Option. For 20-year-olds with limited income or credit history, having the option to include a co-signer—such as a family member or friend with good credit—can increase the likelihood of loan approval.

  6. Loan Term Options. Personal loans often come with various repayment terms. Young borrowers can choose a loan term that aligns with their financial capabilities, whether they prefer a shorter period for quicker repayment or a longer term for lower monthly payments.

Pros and Cons


Financial Flexibility. Personal loans offer 20-year-olds financial flexibility to address various needs, such as education expenses, starting a business, or handling unexpected bills.

Quick Access. Many lenders, especially online platforms, provide a swift application and approval process, offering young borrowers quick access to funds when needed.

Credit Building. Responsible repayment of personal loans can contribute to building a positive credit history, essential for future financial endeavors like mortgages or car loans.


Higher Interest Rates. Unsecured personal loans, particularly for those with limited credit history, may come with higher interest rates compared to secured loans.

Limited Loan Amounts. Young borrowers, especially those with no credit or limited income, may be approved for smaller loan amounts initially, which might not cover substantial financial needs.

Potential Fees. While some lenders offer transparent fee structures, others may impose origination fees or other charges that can add to the overall cost of the loan.

How to Get a Personal Loan as a 20-Year-Old

Apply for a Loan

  1. Check Your Credit Report. Before applying for a personal loan, review your credit report. Even if you have limited credit history, checking for any inaccuracies is crucial. Dispute any errors to ensure your credit report accurately reflects your financial status.

  2. Establish a Credit History. If you have no credit history, consider building it by obtaining a credit card or applying for a credit builder loan. Timely payments will contribute positively to your credit profile and increase your chances of loan approval.

  3. Determine Your Credit Limit. Clearly define the purpose of the loan and calculate the amount you need. Whether it's for education, a major purchase, or debt consolidation, having a specific purpose will guide your loan application.

  4. Research Lenders. Explore lenders that specialize in personal loans for young borrowers or those with limited credit history. Online lenders and fintech platforms may offer more flexible terms compared to traditional banks.

  5. Compare Interest Rates and Terms. Compare interest rates, loan terms, and fees from different lenders. Look for the most competitive rates and favorable terms that align with your financial situation.

  6. Gather Necessary Documents. Prepare essential documents such as proof of income (pay stubs, bank statements), identification, and, if applicable, any collateral information. Organizing these documents in advance can expedite the application process.

  7. Consider a Co-Signer. If your income or credit history is limited, having a co-signer with good credit can improve your chances of approval. Keep in mind that the co-signer is equally responsible for loan repayments.

  8. Apply Online or In-Person. Many lenders offer online applications for convenience. Submit your application, ensuring accuracy and completeness. Be prepared to provide details about your income, employment, and personal information.

  9. Review Loan Terms. Once you receive loan offers, carefully review the terms, including interest rates, repayment periods, and any associated fees. Ensure you fully understand the terms before accepting any offer.

  10. Accept the Best Offer. Choose the loan offer that best suits your needs and financial capacity. Pay attention to the total cost of the loan, including interest and fees, to make an informed decision.


  1. Age. Typically, borrowers must be at least 18 years old to qualify for a personal loan. Some lenders may have a higher minimum age requirement.

  2. Income Verification. Lenders often require proof of a regular income to assess the borrower's ability to repay the loan. This can include pay stubs, tax returns, or bank statements.

  3. Credit History. While some lenders specialize in catering to individuals with no credit or limited credit history, others may have requirements, such as fair credit score. Borrowers should be aware of their credit status.

  4. Employment Status. Lenders may consider the borrower's employment status and stability. Having a steady job or a reliable source of income can positively impact loan approval.

  5. Residency. Borrowers may need to provide proof of residency, such as utility bills or rental agreements, to establish their current living situation.

  6. Identification. A valid government-issued ID, such as a driver's license or passport, is typically required for identity verification.

  7. Bank Account. Many lenders require borrowers to have an active checking or savings account. This is often used for loan disbursement and automatic repayment.


  1. Interest Rates. Lenders provide information on the annual percentage rate (APR) and interest rates associated with the personal loan. Rates can vary based on creditworthiness and other factors.

  2. Loan Amounts. Lenders specify the minimum and maximum loan amounts they are willing to offer. This depends on the borrower's financial profile, credit history, and the purpose of the loan.

  3. Loan Terms. The loan term refers to the duration for which the borrower will be repaying the loan. Lenders offer various terms, such as 12 months, 24 months, or longer, and borrowers can choose based on their preferences.

  4. Fees. Borrowers should be aware of any origination fees, application fees, or prepayment penalties associated with the loan. Transparent lenders provide clear information on all fees involved.

  5. Repayment Schedule. Lenders outline the repayment schedule, indicating the frequency of payments (monthly, bi-monthly, etc.) and the due dates. Some lenders may offer flexible repayment options.

  6. Credit Reporting. Lenders may report the borrower's payment history to credit bureaus. On-time payments can positively impact the borrower's credit score, while missed payments can have adverse effects.

Best Places to Get a Personal Loan as a 20-Year-Old

  1. GoDay stands out as a lender offering a unique blend of flexibility and convenience. With a willingness to accommodate credit scores below 620 and the provision of personal loans reaching up to $15,000, they cater to a diverse audience. The round-the-clock customer support and high TrustPilot ratings underline their commitment to excellent service. Noteworthy features, such as perks, discounts, and the ability to provide same-day funding, make GoDay an attractive choice, particularly for borrowers facing challenges with their credit scores.

  2. Spring Financial serves a specific niche by providing personal loans to individuals without an established credit history. Their competitive starting APR makes them an appealing option for those who qualify for lower rates. The absence of late payment fees and prepayment penalties adds a layer of flexibility to the repayment experience. A high TrustPilot rating reflects customer satisfaction, and the promise of a one to two-business-day turnarounds enhances the appeal for borrowers seeking quick and reliable financial solutions.

  3. Captain Cash addresses the need for fast, small-scale financing without the requirement of a credit check. The option to include a co-signer or co-borrower enhances accessibility, and the availability of same-day funding makes it an attractive choice for those in immediate need of funds. While catering to urgent financial needs, Captain Cash acknowledges a maximum loan amount of $750, providing a clear scope for borrowers seeking quick and manageable financial solutions.

  4. Easyfinancial plays a vital role in bridging the gap for borrowers facing difficulties due to a lack of credit history. Offering same-day funding for swift financial relief, easyfinancial stands out. While the APR range is on the higher side, the lender provides perks such as autopay and loyalty discounts. With a flexible loan term ranging from 9 to 120 months and no prepayment penalties, easyfinancial empowers borrowers with the freedom to repay their loans at a pace that suits their financial circumstances.

Things to Pay Attention to

  1. Interest Rates. Compare interest rates from different lenders. Understand whether the rate is fixed or variable. Be wary of exceptionally high interest rates, especially for those with limited credit history.

  2. Fees and Charges. Review all fees, including origination fee, application fee, and late payment fee. Clarify if there are penalties for early repayment.

  3. Loan Terms. Understand the repayment period and choose a term that aligns with your financial capacity. Be cautious of short-term loans with high monthly payments.

  4. Repayment Schedule. Confirm the frequency of payments (monthly, bi-monthly) and due dates. Ensure the repayment schedule fits well with your income cycle.

  5. Credit Score Impact. Clarify whether the lender reports to credit bureaus. Understand how timely payments will impact your credit score.

  6. Loan Purpose and Amount. Clearly define the purpose of the loan. Borrow only the amount needed to avoid unnecessary debt.

  7. Lender Reputation. Research and choose reputable lenders. Check online reviews and testimonials. Verify the lender's legitimacy and licensing.

  8. Loan Flexibility. Look for lenders that offer flexibility in terms of loan amounts and purposes. Consider lenders that provide options for co-signers if needed.

  9. Hidden Terms and Conditions. Read the loan agreement thoroughly to identify any hidden terms or conditions. Seek clarification on any ambiguous language.

  10. Collateral Requirement. Understand whether your option is an unsecured or secured loan. Be aware of the implications of providing collateral.

  11. Prepayment Options. Check if the lender allows for early repayment without penalties. Evaluate if you have the flexibility to pay off the loan ahead of schedule.

  12. Customer Support. Assess the quality of customer support. Ensure there are accessible channels for communication in case of queries or issues.

  13. Co-Signer Consideration. If considering a co-signer, communicate openly about responsibilities and risks. Ensure both parties understand the potential impact on credit scores.

  14. Legal Compliance. Confirm that the lender adheres to all relevant laws and regulations. Be cautious of lenders engaging in predatory or unfair practices.

How to Repay a Personal Loan

  1. Understand the Loan Terms. Review the loan agreement thoroughly to understand the terms, including the interest rate, repayment schedule, and any applicable fees.

  2. Set Up Automatic Payments. Consider setting up automatic payments from your bank account to ensure timely and consistent payments. This can help you avoid late fees and maintain a positive payment history.

  3. Prioritize Loan Payments. Make repaying the personal loan a priority in your budget. Ensure that the allocated amount is sufficient to cover each monthly payment.

  4. Pay More than the Minimum. If possible, consider paying more than the minimum required amount each month. This can help you pay off the loan faster and reduce the overall interest paid.

  5. Avoid Late Payments. Timely payments are crucial for maintaining a positive credit history. Set reminders or use automatic reminders from the lender to avoid missing due dates.

  6. Communicate with the Lender. If you encounter financial challenges or anticipate difficulty making a payment, communicate with the lender in advance. Some lenders may offer temporary solutions or modifications.

  7. Check for Prepayment Penalties. If there are no prepayment penalties, consider making extra payments or paying off the loan early if your financial situation allows.

  8. Monitor Credit Score. Regularly check your credit report to ensure that the loan payments are accurately reported. A positive credit history can open doors to better financial opportunities in the future.

Reasons for Getting Rejected for a Personal Loan

  1. Poor Credit History. Low credit scores or a history of late payments, defaults, or bankruptcies can significantly impact loan approval. Lenders often use credit reports to assess the borrower's creditworthiness.

  2. Insufficient Income. Lenders evaluate your income to ensure you have the financial means to repay the loan. If your income is insufficient to cover the loan amount or doesn't meet the lender's criteria, it can lead to rejection.

  3. High Debt-to-Income Ratio. If your existing debts, such as credit card balances or other loans, are too high in proportion to your income, lenders may view you as a higher-risk borrower, resulting in rejection.

  4. Unstable Employment History. Lenders prefer borrowers with stable employment. If you have a history of frequent job changes or gaps in employment, it may raise concerns about your ability to repay the loan.

  5. Incomplete Documentation. Failure to provide required documentation, such as proof of income, identification, or residency, can lead to rejection. Lenders need these documents to assess your eligibility.

  6. Unfavorable Debt Collection History. Outstanding debts in collections or a history of charge-offs on previous loans can negatively impact your credit report and lead to rejection.

  7. Applying for an Inappropriate Loan Amount. Requesting a loan amount significantly higher than your income or financial capacity may lead to rejection. Lenders assess your ability to repay based on your financial situation.

  8. Age Restrictions. Some lenders may have age restrictions, and if you're below the minimum age requirement, your application could be rejected.

  9. Co-Signer Issues. If you're applying with a co-signer, their creditworthiness and financial stability are critical. If the co-signer doesn't meet the lender's criteria, it may result in rejection.


  1. Peer-to-peer lending is a financial model that connects individual borrowers with individual lenders through online platforms. In this decentralized system, borrowers request loans, and multiple investors contribute small amounts to fund the loan. P2P lending eliminates the need for traditional financial institutions, allowing for potentially lower interest rates and more accessible borrowing for individuals with varied credit profiles. The lending process typically occurs online, offering a streamlined and tech-driven alternative to traditional lending avenues.

  2. A credit builder loan is a financial product designed to help individuals build or improve their credit history. Unlike traditional loans, the borrowed funds are usually held in a savings account or certificate of deposit as collateral. The borrower makes regular payments, and once the loan is fully repaid, they gain access to the saved funds. This type of bad credit loan is beneficial for individuals with limited or poor credit history as it demonstrates responsible repayment behavior, making up a higher credit score over time.

  3. Pawnshop loans are a form of secured short-term lending where individuals can borrow money by offering personal possessions as collateral. Borrowers bring items of value, such as jewelry or electronics, to a pawnshop, and the pawnbroker assesses their worth. A loan is then provided based on the item's value, with the borrower receiving the loan amount. If the borrower repays the loan with interest within a specified period, they retrieve their item. However, if they fail to repay, the pawnshop keeps the collateral. These loans are quick and don't rely on the borrower's credit history, but interest rates can be high.

  4. A credit card is a financial tool that allows users to make purchases on credit, up to a predefined limit. When a purchase is made, the cardholder essentially borrows money from the credit card issuer, and they must repay the borrowed amount within a specified period to avoid interest charges. Credit cards offer flexibility in spending, and users can revolve the balance from month to month by making minimum payments. They are also a means to build a credit history, and different cards may come with various benefits, such as rewards programs or cashback incentives.

Editorial Opinion

Loans for 20-year-olds can be both a valuable financial resource and a potential source of challenges, depending on individual circumstances and responsible financial management. For those with a clear purpose and the means to repay, loans can provide crucial support in achieving personal and educational goals. While loans offer opportunities, the potential risks, including high interest rates and the risk of accumulating debt, underline the importance of informed decision-making and financial literacy for individuals in their early adulthood.


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.


What is the youngest you can get a loan in Canada?

In Canada, the minimum age to legally enter into a financial contract, including obtaining a loan, is generally 18 years old. Individuals below this age may not be eligible to independently apply for a loan. However, for those under 18, there might be specific financial products, such as student loans or credit-building tools, that could be accessible with the involvement of a co-signer or a legal guardian.

What is the easiest bank to get a loan as a 20-year-old?

Determining the "easiest" bank to get a loan from as a 20-year-old can vary based on individual circumstances, including credit history, income, and the purpose of the loan. Generally, credit unions and online lenders may have more flexible criteria compared to traditional banks. Young borrowers should compare offerings, considering interest rates, terms, and eligibility requirements, to find the most suitable option for their financial needs.

How much can you borrow at 20 years old?

The amount that a 20-year-old can borrow depends on various factors, including income, credit history, and the lender's policies. Young borrowers may be approved for smaller loan amounts initially, and this can increase over time as they establish a positive credit history and demonstrate responsible repayment behavior. Individuals must borrow only what is necessary and manageable within their financial means to avoid potential challenges with repayment.

Loan Terms