Young Loans for April 2024

Get a young loan at one of the lenders verified by our specialists. On 12.04.2024 there are 3 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 3
Updated
04.04.2024
17:07
Best Quick Loan Today 12.04.2024*
Mr. Payday
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Rating by Finanso®
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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™
0
300
650
1000
up to $10.000
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Mogo
Personal Loan
Rating by Finanso®
i

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™
0
300
650
1000
$500-$15,000
Rate
i

Effective interest rate on the product

up to 46.96%
Term
i

Loan term for the financial product

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

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™
0
300
650
1000
$500-$50,000
Rate
i

Effective interest rate on the product

7.5%
Term
i

Loan term for the financial product

60 months
Reviews
Royal Bank of Canada
2
Unfortunately, the loan terms offered to me by RBC turned out to be less favorable than those of other banks.
Review
Royal Bank of Canada
4.2
It's very convenient to use RBC's online services to manage my loan and make monthly payments.
Review
Royal Bank of Canada
4.2
I obtained my home loan with RBC, and they were very flexible in setting terms that suited my financial capabilities.
Review
Royal Bank of Canada
4.6
Great service and quick processing of my loan request.
Review
Royal Bank of Canada
1.8
I found the process of getting a loan with RBC to be quite slow and confusing.
Review
Royal Bank of Canada
4.4
RBC provided me with a loan at a very low interest rate, helping me save on loan payments.
Review

What is a Young Loan?

Loans for young people refer to a borrowing arrangement specifically tailored for individuals who are in the early stages of adulthood, typically around 18 years old. Securing a personal loan at this age can pose challenges due to limited credit history and potentially lower income levels. Loans for young people often serve as a financial tool to assist individuals in funding various needs, such as education, personal expenses, or even kickstarting a small business venture. These loans may come in different forms, including secured personal loans, unsecured personal loans, and credit-builder loans, each designed to address the unique financial circumstances of young borrowers.

To navigate the complexities of obtaining a personal loan as a young person, individuals are encouraged to explore alternative lenders, consider securing the loan against valuable assets, or leverage the support of a cosigner. Moreover, the eligibility criteria often involve demonstrating consistent employment, providing proof of income, and, in some cases, presenting a viable business plan for those aspiring young entrepreneurs. By understanding the nuances of young loans and taking proactive steps, individuals can enhance their chances of approval and set the groundwork for responsible financial management in the early stages of their adulthood.

Features

  1. Flexible Loan Amounts. Young borrowers can access a range of loan amounts tailored to their specific needs, allowing them to borrow only what is necessary and avoid unnecessary financial burdens.

  2. Online Application. Many personal loan providers offer the convenience of online applications, streamlining the process for tech-savvy borrowers. This facilitates a quick and hassle-free application experience.

  3. Pre-Approval Process. Many lenders allow young applicants to seek pre-approval without a hard credit check, providing insight into the borrowing capacity and potential interest rates before committing to a formal application.

  4. Diverse Repayment Terms. Lenders offer a variety of repayment terms, allowing young borrowers to choose a schedule that aligns with their financial capabilities and goals.

  5. Educational Support. Some lenders go beyond financial assistance by providing educational resources to help young borrowers understand the loan terms, financial responsibility, and the impact on credit scores.

Pros and Cons

Pros

Easy Access to Funds. Loans targeting young people provide quick access to essential funds, enabling individuals to address immediate financial needs, whether for education, personal expenses, or entrepreneurial endeavors.

Credit History Building. Repaying these loans on time contributes positively to the borrower's credit history, establishing a foundation for future financial transactions and opportunities.

Investment in Future. Young borrowers can use these loans to invest in assets that contribute to their future, such as education, business ventures, or other opportunities that enhance long-term financial well-being.

Cons

Limited Loan Amounts. Young borrowers with limited credit history may qualify for smaller loan amounts, restricting their financial capacity compared to individuals with established credit profiles.

Potentially High Interest Rates. Due to the perceived risk associated with limited credit history, young borrowers may face higher interest rates, increasing the overall cost of the loan.

Risk of Overindebtedness. Inexperienced borrowers may face the risk of taking on more debt than they can handle, especially if unforeseen financial challenges arise, leading to potential difficulties in repayment.

How Can a Young Person Get a Loan

Apply for a Loan

  1. Assess Eligibility. Check the age of majority in your province or territory to ensure you meet the minimum age requirement. Confirm Canadian citizenship or permanent residency with a valid Canadian address. Have an active bank or savings account, as it is a common requirement for loan applications.

  2. Obtain a Copy of Your Credit Report. Request a copy of your credit report from major credit bureaus like Equifax and TransUnion to understand your credit history.

  3. Gather Supporting Documentation. Prepare proof of consistent employment or income, demonstrating your ability to repay the loan. Show that you do not have outstanding debts or financial obligations that could hinder repayment. If applicable, provide a viable business plan for young entrepreneurs seeking business-related loans.

  4. Explore Alternative Lenders. Research and compare offerings from alternative lenders that may consider factors beyond traditional credit scores, such as earning potential. Consider lenders that specialize in loans for young individuals, students, or those with limited credit history.

  5. Compare Loan Options. Evaluate multiple lenders to compare interest rates, loan amounts, fees, and repayment terms. Ensure the loan aligns with your financial needs and objectives.

  6. Get Pre-Approved. Many lenders offer pre-approval processes that provide insights into your borrowing capacity without impacting your credit score. Seek pre-approval to understand potential loan amounts and interest rates.

  7. Fill Out the Application. Complete the loan application accurately, providing truthful information about your personal and financial details. Double-check the application to avoid mistakes, a common reason for loan rejections.

  8. Review Loan Terms. Before finalizing, thoroughly review the terms and conditions of the loan agreement. Seek clarification from the lender if any terms are unclear, ensuring a complete understanding of the commitment.

  9. Submit the Application. Submit the application through the lender's online platform or in-person, following their specified process. Be prepared to undergo a credit check, though some lenders may offer alternatives to a hard credit check during pre-approval.

Requirements

  1. Age of Majority. Borrowers need to be at least 18 years old to qualify for a loan in provinces such as Alberta, Manitoba, Ontario, Prince Edward Island, Quebec, and Saskatchewan. In provinces like British Columbia, New Brunswick, Newfoundland, Northwest Territories, Nova Scotia, Nunavut, and Yukon, the age of majority is 19.

  2. Canadian Citizenship or Permanent Residency. Borrowers are generally required to be Canadian citizens or permanent residents with a valid Canadian address.

  3. Bank Account. Having an active bank account is a common prerequisite for loan eligibility, as it facilitates fund disbursement and repayment.

  4. Proof of Income. Borrowers are typically required to provide proof of consistent employment or a reliable income source, demonstrating their ability to repay the loan.

  5. Credit History. Lenders may request a copy of the borrower's credit report to evaluate their credit history. Some loans are designed for those with limited or no credit history.

  6. Additional Documentation. Depending on the type of loan and lender, borrowers may need to submit additional documentation, such as a viable business plan for entrepreneurial loans.

Conditions

  1. Loan Amounts. Lenders offer varying loan amounts to accommodate different financial needs. Borrowers can select an amount based on their requirements, with some lenders providing flexibility.

  2. Interest Rates. Interest rates can be fixed or variable. Lenders strive to offer competitive rates, but young borrowers, especially those with limited credit history, may face higher rates.

  3. Repayment Terms. Lenders provide diverse repayment terms, allowing borrowers to choose a schedule that aligns with their budget. Loan terms may range from a few months to several years.

  4. Fees. Borrowers should be aware of various fees associated with the loan, including establishment fees, monthly fees, and early repayment fees. Transparent disclosure of fees is a standard practice.

  5. Pre-Approval Process. Many lenders offer a pre-approval process that allows the borrower to understand their borrowing capacity and potential interest rate without undergoing a hard credit check.

  6. Educational Support. Certain lenders go beyond financial assistance by providing educational resources to help borrowers understand loan terms, financial responsibility, and the impact on credit scores.

  7. Unsecured and Secured Loan Options. Lenders may offer both secured and unsecured loan options. Secured loans involve collateral, such as assets, while unsecured loans do not require collateral but may have different terms.

  8. Credit-Builder Loans. Some lenders specialize in credit-builder loans designed to help borrowers establish or improve their credit history. These loans often have unique repayment structures.

Best Places to Get a Young Loan

  1. Bree Early Pay provides a financial solution offering access to funds ranging from $20 to $250, with repayment expected in the next pay cycle. Users can access this credit without incurring interest or mandatory fees, making it an appealing option to prevent overdrafts. The process is swift, with approval in minutes, and users have the flexibility to leave an optional tip instead of facing traditional interest charges.

  2. Nyble stands out with its small credit line model, allowing users to borrow money between $30 and $150. What sets it apart is the absence of interest or fees to access the credit line, providing a cost-effective borrowing solution with credit-building features. The repayment period spans 30 days, extendable as needed. Instant approval and funding within 30 minutes, albeit with a small fee, contribute to Nyble's efficiency in meeting immediate financial needs.

  3. GoDay is a prominent online payday loan lender in Canada, extending loans of up to $1,500 to borrowers nationwide. The repayment is typically required in full on the borrower's next payday, with variations for specific scenarios. The cost of borrowing ranges from $15 to $17 per $100 borrowed, varying by province in accordance with provincial laws. GoDay emphasizes a streamlined process with no mandatory credit checks for payday loans, although a soft credit check may be conducted based on individual circumstances.

  4. DMO Credit positions itself as a micro-lender specializing in no credit check loans, facilitating faster approval processes due to their smaller loan amounts. Despite categorizing as a "payday lender," DMO Credit distinguishes itself by offering comparatively lower interest rates than other companies in the same space, where some charge upwards of 300%. This unique approach aligns with their commitment to providing accessible and efficient financial solutions, particularly for those seeking smaller loan amounts.

Things to Pay Attention to

  1. Interest Rates. Understand whether the interest rates are fixed or variable. Compare rates across multiple lenders to ensure you secure the most competitive option.

  2. Loan Terms. Carefully review the repayment terms offered by different lenders. Choose a term that aligns with your budget, avoiding unnecessarily long repayment periods.

  3. Fees and Charges. Be aware of all fees associated with the loan, including establishment fees, monthly fees, and early repayment fees. Factor these fees into your overall cost assessment.

  4. Repayment Flexibility. Check if the lender offers flexibility in repayment options, such as the ability to make extra payments without penalties. Ensure that the repayment schedule aligns with your income cycle.

  5. Hidden Terms and Conditions. Thoroughly read and understand all terms and conditions outlined in the loan agreement. Look out for any hidden clauses or conditions that may have significant implications.

  6. Alternatives and Comparison. Explore alternative lenders and loan options. Compare features, interest rates, and terms to choose the loan that best suits your financial goals.

  7. Customer Reviews. Research customer reviews and experiences with the lender. Pay attention to feedback regarding customer service, transparency, and overall satisfaction.

How to Repay a Young Loan

  1. Understand the Loan Agreement. Thoroughly review the terms and conditions outlined in the loan agreement. Ensure you have a clear understanding of the repayment schedule, interest rates, fees, and any other relevant details.

  2. Set Up Automatic Payments. Opt for automatic payments if the lender offers this option. Automating payments helps avoid late fees and ensures timely repayments.

  3. Create a Budget. Establish a budget that includes the loan repayment amount. Prioritize loan payments within your budget to avoid financial strain.

  4. Make Timely Payments. Make payments on or before the due date. Timely payments contribute positively to your credit history and avoid late fees.

  5. Consider Extra Payments. If your financial situation allows, consider making extra payments or repaying the loan early. Extra payments can help reduce the total interest paid and shorten the loan term.

  6. Take Advantage of Grace Periods. Some loans may offer a grace period before penalties for late payments kick in. Understand the grace period terms and utilize it if needed.

  7. Communicate with the Lender. If facing financial difficulties, communicate with the lender early. Some lenders may offer temporary solutions or alternative repayment plans.

  8. Stay Informed about Loan Status. Keep track of your remaining balance and overall loan status. Understanding your progress helps in planning and staying on top of repayments.

Reasons for Getting Rejected for a Young Loan

  1. Insufficient Income. If the borrower's income is deemed insufficient to cover the loan repayments, lenders may reject the application. Consistent employment and a steady income are key factors in loan eligibility.

  2. Incomplete or Inaccurate Application. Mistakes or omissions in the loan application can lead to rejection. Inaccurate information may raise concerns about the borrower's credibility.

  3. Unstable Employment. Lenders may consider the stability of the borrower's employment. Frequent job changes or a lack of a full-time sustainable employment history may impact eligibility.

  4. Previous Loan Defaults. A history of defaulting on previous loans or financial obligations may negatively impact loan approval. Lenders view past payment behavior as an indicator of future repayment reliability.

  5. Excessive Recent Credit Inquiries. Multiple recent credit inquiries can signal financial distress or desperation for credit. Excessive inquiries within a short period may lead to concerns about the borrower's financial stability.

  6. Age Requirements Not Met. Failure to meet the age requirements set by the lender or the legal age of majority in the respective province or territory can lead to rejection.

Alternatives

  1. A secured credit card is a financial product designed for individuals with limited or poor credit history. To obtain a secured credit card, the cardholder is required to make a cash deposit as collateral, typically equal to the desired credit limit. This deposit mitigates the risk for the credit card issuer and allows individuals to build or rebuild their credit. As the cardholder makes timely payments and demonstrates responsible credit use, they may eventually qualify for an unsecured credit card with a higher credit limit.

  2. Peer-to-peer (P2P) lending involves a decentralized lending platform that connects borrowers directly with individual lenders, bypassing traditional financial institutions. These online platforms facilitate loans by matching borrowers' funding needs with individual lenders willing to provide the funds. P2P lending often offers more flexible terms and lower interest rates than traditional loans, and borrowers may include individuals seeking personal or business loans. The lending process typically occurs online, providing a streamlined alternative to conventional banking.

  3. Student loans are financial instruments specifically designed to assist individuals in funding their education expenses. These loans are tailored to students pursuing higher education, covering costs such as tuition, books, and living expenses. Student loans often come with favorable terms, including deferred payment options while the borrower is in school and lower interest rates compared to other types of loans. Repayment typically begins after the student completes their education, providing a grace period to secure stable employment.

  4. Payday Alternative Loans (PALs) are short-term, small-dollar loans offered by credit unions as a consumer-friendly alternative to traditional payday loans. PALs aim to provide individuals with access to emergency funds without the high fees and predatory practices associated with payday lending. These loans come with restrictions on fees and interest rates, making them a more affordable option for borrowers facing unexpected expenses. PALs often have lower borrowing costs and more reasonable repayment terms, promoting responsible lending practices within the credit union community.

Editorial Opinion

Loans catering to individuals in the early stages of their financial journey, present both opportunities and challenges. On the positive side, these loans can serve as a valuable tool for young people to establish credit history, manage immediate financial needs, or invest in education or business ventures. They provide a bridge to financial independence and can contribute to building a positive credit profile. It's crucial for borrowers to approach such financial products with careful consideration. The potential risks, such as higher interest rates for those with limited credit history, should be weighed against the benefits. Responsible financial management, understanding loan terms, and exploring alternatives are essential aspects for young individuals navigating the lending landscape.

Important

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.

Methodology

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.

FAQ

Can a 16-year-old get a loan?

In most cases, borrowing money for a 16-year-old independently presents a challenge. The legal age of majority, which grants individuals the right to enter into a binding contract, is typically 18 in many jurisdictions. Lenders often require borrowers to meet the age of majority to qualify for a loan. Some financial products, like student loans or accounts with parental involvement, may be accessible to minors, but they usually require a co-signer or guardian to take responsibility for the debt.

Can I get a loan with 0 credit history?

Yes, it is possible to get a loan with zero or limited credit history, especially for individuals who are just starting to build their credit. Lenders may offer options such as secured credit cards, credit-builder loans, or bad credit loans. Additionally, having a co-signer with an established credit history can enhance the likelihood of loan approval and potentially secure more favorable terms.

Can you get a bank loan if you are 17?

Typically, it is challenging for a 17-year-old to independently secure a bank loan. The age of majority, which grants legal capacity to enter into contracts, is usually 18. Some banks may offer specific financial products for minors, such as student accounts or educational loans, often requiring parental involvement. In other cases, a co-signer, typically a parent or guardian, may be needed to increase the chances of loan approval. It's essential to check with individual banks and financial institutions about their specific policies regarding loans for individuals under 18.

Loan Terms