$8,000 Loans for Bad or Good Credit

You can apply for an $8,000 loan in a couple of easy steps, even if you’ve got bad credit. Just be prepared to pay higher interest rates. In this guide, we cover lenders offering $8,000 loans, plus what you need to know before filling out an application.

Where can I get an $8,000 loan?

There are a number of lenders in Canada that will give you an $8,000 loan. These include banks, credit unions, private lenders and peer-to-peer lending services.

Banks

Bank loans usually come with mid-level interest rates and tend to require a credit score above 650 to qualify. It will be difficult to apply for an $8,000 loan with the bank if you have bad credit, unless you get a secured or cosigned loan.

• Sample lenders. BMO, TD Bank, RBC, CIBC, Scotiabank and National Bank.

Credit unions

Credit union loans may be a good fit if you want a flexible $8,000 loan with lower interest rates than banks. You’ll usually need to be a member to apply, and there may be options for bad credit as well, such as credit builder loans, secured loans or cosigned loans.

• Sample lenders. Providers include Meridian, Servus, Vancity, Conexus, First West, Steinbach, Alterna Savings and Coast Capital Savings.

Online lenders

There are many legitimate, private lenders operating online that often have less strict eligibility criteria. Borrowers with bad credit or low income can often qualify. Online lenders typically have higher interest rates than banks or credit unions, but the loan funds are usually deposited very quickly – typically in less than 24 hours.

• Sample lenders. Spring, LoanConnect, Loans Canada, easyfinancial, Fig Financial (good credit only), SkyCap Financial, FlexMoney, Magical Credit.

Peer-to-peer lenders

Peer-to-peer loans can be found online through a verified P2P platform. These types of loans are provided by other Canadians, and the interest rate you get will be determined by the platform. In some cases, you may be able to apply with bad credit or low income.

• Sample lenders. Only goPeer is available in Canada, and you’ll need good credit.

Types of $8,000 loans

There are generally two types of $8,000 loans available: unsecured and secured loans. You then may have the choice between getting a variable-rate or a fixed-rate loan. The most popular loan type for an $8,000 loan is typically an unsecured fixed-rate loan.

• Unsecured loans

  Unsecured loans are best suited for borrowers with good to excellent credit. Because lenders take a greater risk by loaning you $8,000 without any collateral to fall back on, they’ll charge you a higher interest rate than they would for a secured loan. Online lenders tend to offer unsecured loans. The application and approval process is usually pretty quick, which means you could secure an $8,000 loan within the same day of applying. Interest rates on unsecured loans typically range from 9.75% to as high as 35%.

• Secured loans

  Secured loans generally come with lower interest rates, often starting at 6.99%, because they require collateral. Collateral you can use to secure an $8,000 loan can be certain assets you own, like a house or investments. Keep in mind that the lender has the right to repossess the asset if you default on your loan or can’t keep up with repayments. It may be easier to get approved for a secured loan since you are reducing the risk for the lender.

• Fixed-rate loans

  The interest rate on a fixed-rate loan stays the same throughout the entire loan term. This type of interest rate structure means your monthly payment will stay the same every month. You can often find fixed-rate loans from banks, credit unions, online lenders and P2P lenders.

• Variable-rate loans

  The interest rate on a variable-rate personal loan fluctuates with the Bank of Canada’s prime rate. That means you’ll pay off more of your principal each month if the rates go down, but end up paying more in interest if the rate goes up. Generally, variable-rate loans have lower starting rates than fixed, but could fluctuate with the market, to where you may end up paying more. Check with banks and credit unions for variable-rate loans.

How to choose an $8,000 loan

Think about the following features when choosing the best $8,000 loan for you:

• Interest rates. Rates depend on factors such as your credit score, income and debts. Compare multiple lenders to make sure you get the best deal. For reference, the average personal loan rate in Canada is currently 8.04%.
• Loan terms. Loan terms can vary from 6 months to 5 years (can be more if you use your house as collateral). Look for the shortest term that will still give you affordable payments to avoid paying too much in interest.
• Turnaround time. Think about how fast you need the money. For a quick turnaround time, you may want to consider fast personal loans.
• Fees. Some lenders charge origination fees, NSF fees, late fees and early repayment fees on your loan. Read the fine print to make sure you don’t end up with hidden charges.
• Eligibility criteria. Check which eligibility criteria are required to apply. You may need to meet specific credit score and income requirements to qualify.
• Lender reputation. Look for a lender that has many customer reviews, a reputation for good customer service and readily available contact information.

Can I get an $8,000 loan with bad credit?

Yes, it is possible to get an $8,000 loan with bad credit if you take the time to compare lenders and get the right type of loan. You’ll likely end up paying much higher interest rates (typically between 18% and 35%) if your credit score is low, which can significantly increase the total cost of your loan.

Here are a few things you can do to help increase your chances of approval for an $8,000 loan with bad credit:

• Apply to a loan search platform. Loan search platforms like Loans Canada and LoanConnect match you with lenders who are open to financing you, saving you time and effort.
• Get a secured or cosigned loan. Ask someone to cosign or use an asset to secure your payments to get an $8,000 loan with bad credit. Your cosigner should know what they’re committing to, and only get a secured loan if you’re certain you can manage the repayments.

Where to get an $8,000 loan with good credit

If you’re looking for an $8,000 loan with good credit (above 660), you have lower interest options. You can also usually qualify with more traditional lenders such as banks or credit unions. As an example of the types of interest rates you can expect on personal loans from banks, ATB’s interest rate for a personal loan when we last checked was around 7.20% - 14.20%.

What is the monthly payment on an $8,000 loan?

The amount you’ll pay for your $8,000 loan will depend on factors such as your interest rate and term length. You’ll usually pay less with a secured loan. You can use the loan calculator below to calculate the monthly payment on an $8,000 loan you’re considering.

• How to use this calculator

  1. Enter $8,000 under Loan amount.
  2. Write the loan term in years (not months) under Loan terms.
  3. Enter the loan’s interest rate if there are no fees under Interest rate. Otherwise, write the annual percentage rate (APR), which includes interest and fees.
  4. Hit Calculate.
  5. Review your results.

Monthly payment on an $8,000 loan based on interest rate

The table below shows how much you’ll pay on an $8,000 loan over 5 years based on different interest rates. It shows how you’ll pay thousands of dollars in interest on an $8,000 loan over 5 years. The higher your interest rates, the more you’ll have to repay for your loan.

Monthly payment on an $8,000 loan based on term length

This example shows how your payments will fluctuate based on different terms with the same interest rate of 9.5%. You can see how your monthly payments will increase if you choose a shorter term, but you’ll pay much less interest over time.

Am I eligible for an $8,000 loan?

You may need to meet the following criteria to qualify for an $8,000 loan.

• Be a Canadian citizen or resident who is of the age of majority in your province.
• Meet income and credit score requirements with your chosen lender.
• Have a working bank account.
• Enlist a cosigner or put up an asset as collateral for some bad credit loans.
• Have an acceptable debt-to-income ratio (usually under 40%)

• How to calculate your debt-to-income (DTI) ratio

  You can calculate your debt-to-income ratio by dividing your monthly bills by your monthly income. Use these steps to figure out your DTI ratio:

  1. Add up all of your monthly bills, including rent, credit cards, student loans, alimony, child support, car loans, utilities and other expenses.
  2. Divide the total cost of your bills by your monthly income.
  3. Convert that number into a percentage, and that is your DTI ratio.

Steps to apply for an $8,000 loan online

Follow these steps to apply for an $8,000 loan in Canada:

How to evaluate an $8,000 loan offer

You can ask yourself the following questions to help decide if an $8,000 loan offer is right for you:

• Am I getting the best rate?
  You’ll want to compare multiple lenders to make sure you’re getting the best interest rate for your financial situation. Rates can be fixed or variable and usually range between 6.99% and 35%.
• How fast do I need the loan?
  Think about how quickly you need the money. Consider online providers if you need the money within the day. If you have the time, it’s worth comparing your options with different types of lenders.
• What will my monthly payments be?
  To cut down on how much interest you pay over time, look for the shortest loan term with monthly payments you can afford.
• What is the payment breakdown?
  Before signing anything, examine the payment breakdown. Know how much of your repayments is going towards paying the interest and how much actually reduces the principal.
• What’s the overall cost?
  Some lenders charge fees in addition to the interest (also known as your APR). Read the fine print so you know exactly how much you’ll end up paying in total.
• Can I get lower interest rates?
  Consider securing your $8,000 loan with an asset or getting a cosigner to bring down the total cost of your loan.
• Do I really need the money?
  If you’re making a non-essential purchase, it may be better to avoid paying interest by saving up first and paying out of pocket instead of taking out a loan.

What are the signs of a reputable $8,000 loan lender?

Before moving forward with any lender offering you an $8,000 loan, look for the following signs to make sure they are a legitimate, reputable company:

1. Online presence. A solid company will have a solid online presence, including a well-designed website and obvious contact details like an email, phone number and office address.
2. Positive reviews. Go with companies that have many positive reviews on Google or sites and forums like Trustpilot and Reddit.
3. Plain language contract. Loan contracts should give you all the information you need upfront and be relatively easy to understand.
4. Business licence. A lender’s business licence should be displayed somewhere on the lender’s website, but you can always ask the lender for it if you’re unsure about its legitimacy.
5. No unsolicited contact. Be cautious of any lenders that reach out to you first, and never do business with unknown callers over the phone.
6. No pressure. If a lender pressures or rushes you into signing a contract, it’s a red flag. Try to avoid those types of lenders.

Can I get an $8,000 loan with guaranteed approval?

No, it’s not possible to borrow $8,000 with guaranteed approval. Legitimate lenders need to review your finances first before approving. If you encounter a lender promising you’ll get approved, be careful because it could be a scam.

Frequently asked questions

• What credit score is needed for an $8,000 loan?

  The credit score you'll need for an $8,000 loan will depend on which lender you choose. Some lenders require a credit score above 650, while others will accept lower scores if you agree to pay higher interest rates.

• Is it hard to get an $8,000 loan?

  It can be hard to get an $8,000 loan from certain lenders if you don't have a good credit score and a solid source of income. Still, there are bad credit loan providers that have lenient eligibility requirements and can often fund loans for borrowers who have trouble getting approved elsewhere.

• How do I qualify for an $8,000 loan?

  You can usually qualify for an $8,000 loan if you're a Canadian citizen or resident who is the age of majority in your province of residence. You may also need to meet income, credit score and DTI ratio requirements with your chosen lender.

• How can I increase my chances of getting approved for an $8,000 loan with bad credit?

  You'll want to make sure that you have no recent non-sufficient funds payments or unpaid debts. It will also help to show that you make enough income each month to cover your payments. If this isn't possible, you may want to consider getting a cosigner or putting up an asset as collateral to secure your loan.

• Can I get an $8,000 loan with no credit check?

  You could be eligible for a no credit check loan if you secure your loan with an asset. However, most reputable lenders will run a credit check to determine your eligibility. Be wary of lenders offering no credit check loans since they may be fraudulent.

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.

Written by

Claire Horwood

Associate editor

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Claire Horwood was a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee. See full bio

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