Best banks for payday loans in Canada
Your bank can make a payday loan easy or difficult. Lenders check your income through your bank, then collect repayment by debiting your account on payday. Some banks handle that smoothly. Others cause delays, failed checks and declined applications.
Banks ranked for payday loans
Ranked from easiest to hardest for lenders to work with. The dots show how smoothly lenders can verify your account and collect repayment.
- 1TD Excellent. Lenders favour it.
- 2CIBC Excellent. Lenders favour it.
- 3Scotiabank Good. Generally works well.
- 4BMO Fair. Stricter with overnight debits.
- 5RBC Fair. Stricter with overnight debits.
- 6Tangerine and PC Financial Difficult. Bank verification often fails.
- 7KOHO and other card-load accounts Not recommended. Many lenders can't debit them.
Ranking reflects general lender experience, not a guarantee of approval at any bank.
Why each bank ranks where it does
TD and CIBC: the best choices
Lenders favour these two. Their accounts connect easily for income verification, and payments a lender schedules for payday usually go through as planned. If you bank with either one, you're in the strongest position.
Scotiabank: generally fine
Scotiabank accounts work well for most borrowers. Saskatchewan credit unions, such as Conexus, also tend to work well.
BMO and RBC: stricter with overnight debits
Many lenders pull repayment overnight, just after your pay arrives. BMO and RBC are stricter with these early debits, so they fail more often. A failed debit means NSF fees from your bank and sometimes from the lender.
You can still get a payday loan with BMO or RBC. Make sure the money is in the account before payday and leave it there until the debit goes through.
Tangerine and PC Financial: hard to verify
Lenders often verify your banking with tools like Flinks or Inverite. Tangerine and PC Financial accounts often fail that step, which can slow your application or end it. Both banks also tend to post some deposits, such as the Canada Child Benefit, a day early, which can confuse automated checks.
If you only have one of these accounts, you can still apply. Be ready to send PDF bank statements instead.
KOHO and card-load accounts: not recommended
Prepaid cards and digital accounts that you load money onto often can't accept pre-authorized debits. If a lender can't collect from the account, most won't lend against it. Use a regular chequing account at a bank or credit union where your pay is deposited.
How to improve your chances, whatever bank you use
- Use the account your pay goes into. Lenders want your income and the repayment debit on the same account.
- Keep the repayment amount in the account on payday. Don't move your pay out the same day.
- Have 3 months of bank statements ready. Complete statements speed up approval.
- Choose a direct-deposit chequing account. Prepaid cards rarely work.
- Borrow only what you can repay. Payday loans are expensive. Check that your lender is licensed in your province.
Frequently asked questions
Can I get a payday loan with RBC or BMO?
Yes. Those banks are just stricter with early debits, so keep the repayment amount in the account before payday.
Why was my bank account rejected during the application?
Verification tools can't always connect to Tangerine, PC Financial and some credit unions. Sending your bank statements directly usually solves it.
Do I need to switch banks to get a payday loan?
No. If switching isn't practical, use the tips above to improve your chances with the bank you already have.
Can I use a prepaid card or KOHO account?
Usually not. Many lenders can't debit prepaid or card-load accounts, so they won't lend against them. A regular chequing account where your pay is deposited works best.
Need a loan? Apply with AppleTreeCash
- Open 7 days a week
- Funded by e-transfer
- New customers send 3 months of bank statements. Once we have everything, applications can be funded in about 20 minutes.
We can't debit KOHO accounts. If you bank with one of the banks above and have questions about your account, email us before you apply.
Apply now