If you have a bad or poor credit score (below 560), your options to get a loan may be more limited, but you do have options. There are several lenders that specialize in bad credit loans in Manitoba. While these loans can be a good quick fix, they tend to come with higher interest rates, so it’s better if you can pay them back over a shorter term.
Option 1: Personal loans for bad credit
If you have bad credit with steady employment income, below are some loan providers in Manitoba who can consider you.
Option 2: Installment loans
An installment loan, which falls under the umbrella of personal loans, is a fixed amount that you pay back over time. They are shorter-term personal loans that come in smaller loan amounts than the average personal loan but in larger loan amounts than a payday loan.
Installment loans are usually unsecured, which means you don’t need to put up collateral like your vehicle or jewelry. They often come with higher interest rates than a secured loan, which has collateral. Installment loans are usually good for people who don’t have any regular employment income but receive other forms of steady income like employment insurance (EI), Canada Child Benefit (CCB), disability income or retirement income.
Compare installment loans in Manitoba
Loans Canada and LoanConnect are online brokers that can match you for free with lenders who can consider your application.
Option 3: Credit builder loans
Credit builder loans are designed to help you improve your credit score by reporting all of your on-time payments to the credit bureaus. They’re usually targeted towards people with bad credit or no credit history.
When you sign up for a credit builder loan in Canada, you agree to make your loan payments with interest before you get your loan deposited into your bank account. So instead of getting funds at the beginning, you get funds at the end of your loan term.
Apply for a credit builder loan in Manitoba
How do bad credit personal loans work?
With a bad credit personal loan, you borrow money at a higher interest rate and pay it back regularly over a period of time (the loan term). Lenders charge higher interest rates for a bad credit loan because they worry that people with bad credit scores are more likely to default on their payments.
When you apply for a personal loan, your lender will usually check your credit score, make sure you have a regular source of income and make sure you already don’t have too many debts before they approve you. If you qualify, you’ll begin making monthly payments on your loan as soon as it’s issued. You’ll need to make your payments on time so that you don’t damage your credit score further.
Can I afford the repayments?
Use the calculator below to determine your potential monthly payments. When searching for a loan, aim as much as possible for the lowest interest rate and shortest loan term so you pay less interest overall. At the same time, you don’t want your loan term to be so short that your monthly payments become too high and unmanageable.
Calculate your personal loan monthly paymentCalculate how much you could expect to pay each month
|Loan terms (in years)|
What bad credit loan options do I have in Manitoba?
If you have bad credit and looking for a personal loan, online lenders are a solid option, because traditional lenders like banks and credit unions may not approve you. Online lenders offer different types of personal loans:
- Secured loans. This type of loan will require you to put up an asset (like your home or vehicle) to “insure” your payments, which you risk losing if you fail to make your loan repayments.
- Unsecured loans. Unsecured loans do not have collateral. They rely more on credit scores and proof of income to show that you can repay your loan.
- Guarantor loans. You may be able to qualify for lower interest rates if you take out a guarantor loan, which requires a cosigner with good credit to vouch for you.
How do I apply for a bad credit loan?
Applying for a bad credit loan in Manitoba is easy if you follow the steps below.
- Choose a lender. Choose a lender based on the loan amount, interest rates and fees, and eligibility requirements.
- Fill out the application. You’ll need to provide basic personal info like your phone number, address, birth date and email address.
- Wait for pre-approval. Most online lenders will use technology to swiftly determine whether they can approve you or not.
- Get verified. If the lender wants to approve you and you want to sign with them, provide more information, such as proof of identity (i.e. government-issued ID) and proof of income (e.g. pay stubs, tax returns, bank statements)
- Get approved. The lender will provide final approval if everything checks out. Sign the contract after reviewing their terms and conditions.
- Get your funds. Online lenders typically send funds in 24 to 48 hours.
How do I increase my chances of approval?
- Review the eligibility criteria. Before you apply for a loan, make sure you meet the eligibility criteria. Look for things like minimum income, credit score, employment and age requirements.
- Consider a joint application or cosigner. If you don’t meet the credit score requirements, consider applying with a cosigner or another applicant.
- Submit all necessary documents. Check what documents are needed and make sure you’re able to submit everything that is required. Having your information handy can help speed up the loan process too.
Alternatives for people struggling with bad credit
- Government subsidies. The Manitoba government provides funding through its Employment and Income Assistance program as well as Rent Assist.
- Credit counselling services. The Credit Counselling Society of Manitoba is one option that can help you with budgeting and consolidating your debts.
- Borrowing from friends or family. Your friends and family might be able to help you out with a loan if you’re struggling with bad credit.
- Debt relief services. If you’re facing legitimate financial hardship, a debt relief company is an option. Find out if a debt relief company is right for you.
There are lenders that provide bad credit loans in Manitoba, but they often come with steeper interest rates to offset the risk. Compare lenders to find the lowest rates and best terms possible. If you’re approved for a loan, make sure you can afford the repayments before signing the contract.
Frequently asked questions about bad credit loans
More guides on Finder
Compare 2-month payday loans
Compare 2-month payday loan options, including rates and total costs.
Compare Personal Loans
Compare the best personal loans in Canada to finance your next purchase and keep more money in your pocket.
Compare 1-week payday loans
Though it may seem convenient, repayments can be difficult to afford with a 1-week payday loan.
Compare the latest new car technology for 2021
With sensors and computers, new car tech helps make driving safer for everyone on the road. Find out about the latest vehicle technology.
Greenbox Capital business loans review
Get financing for your business from this US-based company.
Buy a car completely online through Clutch, a car-buying platform with over 700 vehicles.
Renfi Renovation Loan Review
Finance your home renovations with a Renfi loan. Borrow up to $150,000.
Swoop Funding Business Loan
Swoop Finance offers a vast range of business loans via its lender portfolio. Businesses of all sizes and funding requirements may be able to qualify. Find out more.
How to get a $300 loan
Compare your $300 loan options to find a fast, affordable loan when you need it.
Get a $600 loan before your next paycheque
If you’re looking for a $600 loan, consider paycheque advance apps, cash advances, overdrafts and other options.