Getting a $6,000 loan should be fairly easy, even for people with bad credit. This is because lenders are more likely to issue small amounts with fewer eligibility criteria since there’s less risk of you defaulting. You’ll usually have to pay higher interest rates for a $6,000 loan, but you’ll be able to pay it off quickly if you make reasonable monthly payments.
You can get a $6,000 loan from banks, credit unions, private lenders and peer-to-peer lending services in Canada.
Bank loans usually come with mid-level interest rates and you’ll need a high credit score to qualify for a $6,000 loan. You may be able to borrow money with bad credit if you secure your loan with an asset or get a cosigner.
Credit union $6,000 loans may come with slightly lower interest rates and more flexible repayment terms than banks. You may be able to apply with bad credit if you get a credit builder loan, secured loan or cosigned loan. You’ll usually need to be a member to apply.
Online lenders usually offer loans with less strict eligibility criteria and higher than average interest rates. You’ll often get your funds deposited in less than 24 hours and there’s less paperwork involved. Borrowers may qualify for a $6,000 loan with bad credit or low income. You can compare $6,000 loan options in our curated list of online lenders in the table above.
P2P loans are usually offered through an online platform that connects you to other Canadians who want to lend you money. Interest rates for these loans will usually be lower than bank or private loans, and you may be able to apply for a $6,000 loan with bad credit in some cases.
You’ll have to choose an unsecured vs a secured loan as well as a variable rate vs a fixed rate loan. The most popular loan type for $6,000 loans is an unsecured fixed rate loan.
To get a $6,000 loan in Canada, you’ll usually need to meet the following criteria:
Follow these steps on how to apply for a personal loan to get the $6,000 loan you want.
Do the math to figure out how much you can afford to pay back each month. Try to choose the shortest term possible that still gives you affordable monthly payments. This will help to cut down on the amount of interest you pay over time.
Compare, compare, compare! This is the best way to get a full picture of how much you should pay based on your credit score and other personal factors. Try comparing lenders with a personal loan broker or get quotes from numerous lenders individually.
Aim to get preapproved for several $6,000 loans so you can see the actual rates you’ll need to pay (instead of the advertised rates). Getting preapproved for a personal loan won’t affect your credit score and can give you an idea of where you might find the best deal.
Fill out an application once you’ve decided on the lender that will give you the best rates and conditions for your loan. You’ll usually need to submit contact details and financial information to apply as well as submit to a credit check.
Your monthly payments on a $6,000 loan will vary depending on your interest rate and term length. You can use the loan calculator below to calculate the monthly payment on any $6,000 loan offer you’re considering.
|Loan terms (in years)|
orCompare personal loans
This example will look at the payments you’ll make on a $6,000 loan over 5 years based on having different interest rates. As you can see, you’ll pay higher monthly payments and a significantly larger loan amount as your interest rates go up.
|Interest rates||Total interest||Total loan cost||Monthly payment|
This example will look at the payments you’ll make on a $6,000 loan over three different loan terms – all with the same interest rate of 8.5%. With this example, your monthly payments will go up with a shorter term but you’ll pay less in interest over time.
|Term||Interest rates||Total loan cost||Monthly payment|
You can try these strategies to find a low interest $6,000 loan in Canada:
While you’ll have fewer $6,000 loan options if you have a bad credit score of 659 or less, there are still options. Use these tips to secure a $6,000 loan with bad credit:
Bad credit lenders
Your best bet is to find lenders who specialize in offering loans of $6,000 loans to bad credit borrowers, which will likely be alternative online lenders – like the ones listed above. Look at eligibility criteria for loans before you start applying and make sure you meet income/credit score requirements.
Credit builder loan
Check with your local credit union for credit builder loans, which come with lower rates and are designed to increase your credit score. However, you should know that with this type of loan, you will not receive the $6,000 until after you make your on-time loan repayments (with interest).
Secured or cosigned loan
Asking someone with a better credit score than you to cosign on the loan can help increase your chances of getting approved for a $6,000 loan for bad credit. You can also consider using an asset to secure your payments, which reduces your overall risk factor for the lender and may help you get a approved.
If you’re looking for a $6,000 personal loan with good credit (above 660), you have more lower interest rate options, especially from traditional lenders such as banks or credit unions. For reference, National Bank’s interest rate range (as of May 31, 2022) for fixed-rate personal loans is 10.9% – 11.30% and prime+6.5% for variable-rate personal loans.
You can ask yourself the following questions to evaluate your $6,000 loan offer and make sure that the loan is right for you:
Look for the following signs to make sure you’re working with a reputable lender before moving forward with any $6,000 loan offer:
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