How to get a $5,000 loan

Need to borrow up to $5,000? Compare loan options, even if you have bad credit.


Fact checked

When you have a poor credit history, you’re usually not eligible for a loan from a bank or a traditional credit lender. However, there are other loan options available to you, even if you have bad credit. To get a loan with bad credit, you’ll need to show that you can repay the loan by providing evidence of a steady income.

How do I apply for a $5,000 loan online?

Follow these 6 steps to apply for a $5,000 loan:

  1. Compare lenders. Compare loan amounts, rates, terms and eligibility requirements to find an option you can afford and qualify for.
  2. Fill out the application. Go to the lender’s website and complete the application. Want to use a lender from our table? Click the Go to Site button to get started.
  3. Review and submit. Double-check your application for mistakes before submitting it.
  4. Upload required documents. Typically, lenders ask to see proof of income, bank statements and a valid photo ID when you apply for a $5,000 loan.
  5. Sign and submit your agreement. Carefully read your loan’s terms and conditions before signing anything.
  6. Get your funds. Most lenders offering this amount can send it to your bank account as soon as 1 business day.

Compare $5,000 personal loans

Name Product Interest Rate Max. Loan Amount Loan Term Fees Min. Credit Score
Fairstone Personal Loan (Unsecured)
26.99% - 39.99%
6 months - 5 years
Fairstone offers unsecured personal loans up to $20,000
Cash Money Installment Loan
6 months - 5 years
Vary across provinces/territories
Cash Money offers installment loans up to $10,000 for AB, MB and NB residents.
Fairstone Personal Loan (Secured)
19.99% - 23.99%
3-10 years
Varies by province
Fairstone offers secured personal loans up to $35,000.
Cash Money Line of Credit
6 months - 5 years
Vary across provinces/territories
Cash Money offers line of credit loans up to $10,000 fo AB and ON residents.
Refresh Financial Credit Builder Loan
3-5 years
No administration or origination fees.
No funds are provided by Refresh upfront. Instead, funds are placed into a secured account to be accessed later. Your payments are reported to the credit bureaus, potentially impacting your credit score.
LendDirect Personal Loan
19.99% - 46.93%
No end dates
Borrow up to $15,000, based on your income and credit history, with a personal line of credit from LendDirect.
LendingMate Personal Loan
43% (British Columbia and Ontario) and 34.90% (Quebec)
1-5 years
LendingMate offers loans to Canadians with poor credit with no credit checks. Guarantor required for application.

Compare up to 4 providers

3 tips to get approved for a loan with bad credit

There’s no one surefire way to ensure you’re approved for a loan, though the following may be able to help:

  • Check the eligibility criteria before applying. Most lenders have specific requirements you need to meet in order to qualify. If you’re not sure you’re eligible, call the lender’s customer service team to discuss your situation.
  • Order a copy of your credit report. Your credit report is the only true record of your financial history and what lenders will use to judge your creditworthiness. You can order a free copy from each of the three major credit bureaus once a year.
  • Compare options before applying. Every application you submit shows up on your credit report and lowers your score. To avoid this, compare lenders before applying to find the best fit for your needs.

Options for a $5,000 loan with a good credit rating

If you have good credit score (usually a minimum score of 650 or higher) you could be eligible for a loan from a bank, credit union or a standalone lender at a more competitive interest rate than you’d get from providers who lend to people with bad credit. You may be able to borrow up to a limit of $10,000 without providing collateral such as your car or house.

Type of LenderTypical Interest RateEstimated Turnaround Time
Traditional Bank10%Pre-approval decision in 1-3 business days
Funding within 7 business days
Bad Credit Online Loan30%Pre-approval decision same day
Funding within 1-3 business days
Peer-to-Peer Personal Loan9%Pre-approval decision same day
Funding within 7 business days

What to consider when comparing $5,000 loans

Weigh these factors before applying for an installment loan.


  • Online application. Most installment loan providers offer convenient online applications that take just minutes to fill out.
  • Bad credit OK. Many installment loan providers are willing to work with borrowers of all credit types.
  • Repayments line up with payday. You’ll generally have your repayments lined up to when you get paid, and some lenders will give you the option of how to make repayments.


  • High cost. Due to the risk to the lender, you’ll usually face high fees that equate to APRs in the triple digits, making repayments difficult to afford.
  • Disreputable lenders. It’s common to find disreputable lenders operating online who prey on people with bad credit, so make sure you check reviews before applying.
  • Overdrawing your account. While direct debit loans can be positive, it can prove costly if your account becomes overdrawn by your lender automatically withdrawing owed funds.

Things to avoid with bad credit unsecured loans

There are several risks associated with bad credit loans that don’t require collateral. Here are some things you should avoid:

  • Not being cautious. Taking out a bad credit personal loan can come with high fees and inflexible terms.
  • Not considering the affordability. Make sure you check twice before applying for a bad credit unsecured personal loan up to $5,000. The repayment period is much shorter than standard loans, meaning your repayments can be quite high each week, month or every two weeks, depending on your repayment plan. Lenders usually offer calculators to show an indication of your repayments.
  • Not considering the fees as well as the interest rate. Lenders may charge you an interest rate as well as fees and other charges. Check all fees before you apply and consider the total cost of the loan.

Frequently asked questions

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