Unsecured Lines of Credit for April 2024

Get an unsecured line of credit 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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Recommended FinScore™
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.

An unsecured line of credit is a financial product offered by a financial institution, providing borrowers with the flexibility to borrow money up to a predetermined limit without requiring any collateral. Unlike a secured line of credit, which is backed by assets such as home equity, an unsecured line of credit is not tied to specific assets. This type of personal lending product allows individuals to access funds for various purposes, such as managing everyday expenses, consolidating debt, covering unexpected expenses, or making larger purchases. Borrowers pay interest only on the amount they use, and the credit limit, interest rate, and payment terms are typically determined based on factors such as credit history and financial situation. Unsecured lines of credit often offer variable interest rates, providing borrowers with flexibility in managing their credit payments.


  1. Flexibility. An unsecured line of credit offers flexibility in borrowing money up to a predetermined credit limit. Borrowers can choose when and how much to borrow, making it suitable for various financial needs.

  2. Credit Limit. The credit limit is the maximum amount a borrower can access. This limit is determined by factors such as credit history, financial situation, and the lending institution's policies.

  3. Revolving Credit. Similar to a credit card, unsecured lines of credit offer revolving credit. As the borrower repays the borrowed amount, the available credit is replenished, allowing for ongoing access to funds.

  4. Online Banking. Many financial institutions offer online banking services, allowing borrowers to conveniently manage their unsecured lines of credit, transfer money, and monitor their account activity.

  5. No Collateral Required. Unlike secured lines of credit, unsecured lines do not require collateral, such as home equity. This makes them accessible to individuals who may not have substantial assets to pledge.

Pros and Cons


Flexibility. Unsecured lines of credit offer borrowers flexibility in accessing funds up to a predetermined credit limit, allowing them to address various financial needs.

No Collateral Requirement. Unlike secured lines of credit, unsecured ones do not require borrowers to pledge collateral, making them accessible to individuals without significant assets.

Revolving Credit. Similar to credit cards, unsecured lines of credit provide revolving credit, allowing borrowers to reuse the available credit as they repay the borrowed amount.

Use for Various Purposes. Borrowers can use unsecured lines of credit for a wide range of purposes, including everyday expenses, consolidating debt, covering unexpected costs, or making significant purchases.


Higher Interest Rates. Unsecured lines of credit often come with higher interest rates compared to secured lines due to the increased risk for the lender. Borrowers may end up paying more in interest over time.

Variable Interest Rates. The interest rates on unsecured lines are usually variable, meaning they can fluctuate based on market conditions, potentially leading to increased monthly payments.

Credit Risk. Approval for an unsecured personal line of credit is contingent on the borrower's credit history. Individuals with a low credit score may face challenges in obtaining favorable terms or approval.

Lower Credit Limits. Unsecured lines may have lower credit limits compared to secured lines, limiting the amount of funds available to borrowers.

How to Get an Unsecured Line of Credit

Apply for a Loan

  1. Check Your Credit Score. Before applying for an unsecured line of credit in Canada, check your credit score. Lenders often use this score to assess your creditworthiness. A higher credit score increases your chances of approval and may lead to better terms.

  2. Research Lenders and Products. Research financial institutions offering secured or unsecured line options. Compare interest rates, credit limits, and terms. Consider reputable banks, credit unions, or online lenders that align with your financial needs.

  3. Gather Necessary Documentation. Prepare the required documentation, including proof of income, employment details, and information about your financial situation. Having these documents ready can streamline the application process.

  4. Submit Your Application. Complete the application process by submitting the required forms and documentation to the chosen lender. Online applications are common, and some lenders may provide instant decisions.

  5. Review and Accept Terms. Once approved, carefully review the terms and conditions of the unsecured line of credit. Understand the interest rates, credit limit, minimum payments, and any associated fees. If satisfied, accept the offer and start utilizing the line of credit as needed.

Requirements and Conditions


  1. Credit History. A good credit history is often a crucial requirement for obtaining an unsecured line of credit. Lenders assess your creditworthiness to determine the risk of lending to you.

  2. Income Verification. Lenders may require proof of a stable income to ensure that you have the financial means to repay the borrowed amount. This could include recent pay stubs, tax returns, or other income documentation.

  3. Employment Stability. Having a steady job or a reliable source of income can positively impact your eligibility for an unsecured line of credit.

  4. Debt-to-Income Ratio. Lenders may evaluate your debt-to-income ratio, which compares your monthly debt payments to your income. A lower ratio may increase your chances of approval.

  5. Minimum Age. You typically need to be at least 18 years old to apply for an unsecured line of credit.

  6. Canadian Residency. Being a Canadian resident or citizen is usually a requirement for accessing financial products in the country.

  7. Documentation. Providing necessary documentation, such as proof of identity, address, and any additional documents requested by the lender.


  1. Credit Limit. The maximum amount you can borrow on the unsecured line of credit.

  2. Interest Rates. The rate at which interest is charged on the borrowed amount. Unsecured lines may have variable interest rates.

  3. Minimum Monthly Payment. The smallest amount you must pay each month, usually based on the outstanding balance.

  4. Payment Frequency. The frequency with which you make payments, often monthly.

  5. Fixed or Variable Interest Rate. Specifies whether the interest rate is fixed (constant) or variable (may change based on market conditions).

  6. Late Payment Fees. Penalties for not making payments on time.

  7. Annual Fees. Charges that may be assessed annually for maintaining the unsecured line of credit.

  8. Repayment Terms. The agreed-upon schedule for repaying the borrowed amount.

Best Places to Get an Unsecured Line of Credit

  1. TD Bank is one of the largest banks in Canada, offering a range of financial products, including secured and unsecured lines of credit. They provide online and in-person banking services, and their eligibility criteria and terms may vary.

  2. Scotiabank is another major Canadian bank with a presence across the country. They offer personal lending products including unsecured personal lines of credit, and like other banks, their terms, interest rates, and credit limits may depend on individual financial circumstances.

  3. First Ontario Credit Union. Credit unions, such as First Ontario Credit Union, often have a community-focused approach and may offer competitive rates on unsecured lines of credit. Credit unions are member-owned, and their offerings may be tailored to the needs of their members.

  4. Vancity Credit Union operates in British Columbia and is known for its commitment to social responsibility. Credit unions, in general, may provide personalized services, and Vancity may offer unsecured lines of credit with terms suited to the local community.

Ways to Receive the Money

  1. Electronic Transfer. Lenders often transfer funds directly to the borrower's bank account through electronic funds transfer (EFT). This allows borrowers to access the money quickly and use it for their intended purposes.

  2. Cheques. Some lenders may issue cheques linked to the unsecured line of credit. Borrowers can then deposit these cheques into their bank accounts or use them for payments as needed.

  3. Visa Access Card. In certain cases, lenders may provide a Visa access card linked to the unsecured line of credit. Borrowers can use this card to make purchases or withdraw money, similar to a credit card.

  4. Online Banking. Many lenders offering unsecured lines of credit in Canada provide online banking services. Borrowers can log in to their online accounts to transfer funds, make payments, and manage their line of credit.

  5. ATM Withdrawals. If the unsecured line of credit is associated with an access card, borrowers may withdraw cash from ATMs, providing a convenient way to access funds.

Things to Pay Attention to

  1. Credit Limit. Understand the maximum amount you can borrow on the unsecured line. A higher credit limit provides more flexibility for various financial needs, such as everyday purchases, emergency expenses, or consolidating debt.

  2. Interest Rates. Carefully review the interest rates associated with the unsecured line of credit. Determine whether the rates are fixed or variable, as this can impact the overall cost of borrowing.

  3. Minimum Payments. Be aware of the minimum monthly payments required to keep the unsecured line of credit in good standing. Understand how these payments are calculated and ensure they fit within your budget.

  4. Fees and Costs. Pay attention to any associated fees, including annual fees or other charges related to using the unsecured line of credit. These can impact the overall cost of borrowing.

  5. Repayment Terms. Review the repayment terms, including whether there are fixed payments or if you have the flexibility to make low minimum payments. Understand how interest payments are applied and how the credit falls over time.

  6. Risk and Benefits. Assess the overall risk and benefits of the unsecured line of credit. Consider factors such as the prime lending rate, the potential to start accruing interest, and the risk losing access to the line.

How to Repay an Unsecured Line of Credit?

  1. Minimum Monthly Payments. Begin by making at least the minimum monthly payments required on your unsecured line of credit. This amount is typically determined by the lender and is crucial to maintaining your account in good standing.

  2. Fixed or Variable Interest Rates. Understand whether your unsecured line of credit has fixed or variable interest rates. If fixed, the interest rate remains constant, while variable rates may fluctuate.

  3. Budgeting and Cash Flow. Manage your cash flow effectively by budgeting for your minimum payments and any additional funds you can allocate toward paying down the entire balance. This helps you stay on track and reduces the overall interest paid.

  4. Additional Payments. Consider making additional payments beyond the minimum requirement to accelerate the repayment process. This can help reduce the principal amount and the total interest paid over the life of the unsecured line of credit.

  5. Debt Consolidation or Refinancing. Explore options for debt consolidation or refinancing if you have multiple sources of high-interest debt. Combining debts into a single, lower-interest unsecured line of credit may streamline payments and save money on interest.

Reasons for Getting Rejected for an Unsecured Line of Credit

  1. Credit History. A poor credit history, including missed payments and defaults, can lead to rejection for an unsecured line of credit.

  2. Income Insufficiency. If your income is deemed insufficient to cover the potential debt, it may result in rejection. Lenders assess your ability to make minimum payments and manage the personal line of credit responsibly.

  3. Debt-to-Income Ratio. A high debt-to-income ratio, where existing debts outweigh income, may raise concerns about managing additional credit, leading to rejection.

  4. Credit Application Frequency. Submitting multiple credit applications within a short period may be perceived as a sign of financial instability and contribute to rejection.

  5. Employment Stability. Unstable employment history or frequent job changes may negatively impact your eligibility for an unsecured line of credit.


  1. Personal Loan. Personal loans are a straightforward alternative, providing a lump sum amount that you repay over a fixed term with a fixed interest rate. They are unsecured, meaning no collateral is required.

  2. Home Equity Line of Credit (HELOC). A HELOC is a secured credit line that uses your home's equity as collateral. It allows you to borrow against the value of your home, providing flexibility and potentially lower interest rate compared to unsecured options.

  3. Credit Cards. Credit cards are a widely used form of revolving credit. They provide a credit limit that you can use for purchases or cash advances. While they often have higher interest rates, they offer convenience and can be a good option for smaller, short-term expenses.

  4. Secured Lines of Credit. Similar to a HELOC, a secured line of credit requires collateral, such as a savings account or a Certificate of Deposit (CD). This collateral reduces the risk for the lender and may result in lower interest rates.

Editorial Opinion

Unsecured lines of credit offer both advantages and considerations for borrowers. These credit options, which include both secured and unsecured lines, provide flexibility in accessing funds based on creditworthiness. With features such as a minimum payment requirement, borrowers can manage their financial commitments more efficiently. However, the convenience of withdrawing money comes with the responsibility of paying interest, a factor influenced by the credit interest rate. While unsecured lines lack the need for collateral, they may involve a trade-off in the form of a potentially higher annual fee or interest rate compared to secured options. Careful consideration of one's financial situation, including the potential to consolidate debt or address unexpected expenses like medical bills, is crucial. As with any financial tool, understanding the terms, risks, and benefits ensures informed decision-making when utilizing unsecured lines of credit.


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.


How hard is it to get an unsecured line of credit?

Obtaining an unsecured line of credit can vary based on individual financial circumstances. Generally, it may be more challenging than secured options due to the absence of collateral. Lenders assess factors like credit history, income, and debt-to-income ratio. A strong credit profile and stable financials increase the likelihood of approval, while a lower credit score or financial instability may pose challenges.

Does an unsecured line of credit affect credit score?

Yes, utilizing an unsecured line of credit can impact your credit score. Factors such as the credit limit, outstanding balance, and payment history contribute to your credit utilization rate and, consequently, influence your credit score. Responsible use, timely payments, and maintaining a low balance relative to the credit limit can positively affect your credit score, while maxing out the credit line or missing payments may have a negative impact.

What credit score is needed for a line of credit in Canada?

The specific credit score required for a line of credit in Canada can vary among lenders. Generally, a good to excellent credit score of 660 or higher increases the likelihood of approval for favorable terms. However, individual lenders may have different criteria, and factors like income and debt-to-income ratio also play a role in the approval process.

What is the difference between a line of credit and an unsecured loan?

A line of credit is a revolving credit account with a predetermined limit that allows you to borrow and repay funds as needed, while an unsecured loan is a one-time lump sum borrowed with a fixed term and fixed payments. The key distinction lies in the flexibility of a line of credit for ongoing use, whereas an unsecured loan provides a fixed amount with structured repayment terms.

What is the main difference between secured and unsecured lines of credit?

A secured line of credit requires collateral, such as a savings account or home equity, to secure the credit. In contrast, an unsecured line of credit doesn't require collateral but relies on the borrower's creditworthiness, typically resulting in higher interest rates.

Loan Terms