If you’re struggling with bad credit, it can be more challenging to qualify for credit or to get approved for a loan. However, you might be able to qualify for a bad credit loan in Québec. Find out what types of loans you might be able to get access to and compare lenders.
Option 1: Bad credit personal loans in Québec
You can apply online for a bad credit loan in Québec and get a decision within minutes. These are unsecured personal loans so you don’t need any collateral.
|Provider||Loan amount||Loan term||APR||Eligibility requirements|
|$300 – $50,000||3 - 60 months||6.99% - 46.96%||Steady source of income|
|$500 – $35,000||6 - 60 months||9.99% - 46.96%||Min. income of $1,800, min. credit score of 500, 3+ months employed|
|$500 – $1,000||3 months||28.00% - 32.00% + broker fee||$1,200 min income paid by direct deposit, employed for 2+ months|
|$500 – $50,000||3 - 120 months||8.00% - 46.96%||Currents debts must total less than 60% of income|
Features of personal loans for bad credit in Québec
Bad credit personal and installment loans in Québec typically have the following features:
- Loan amounts. Borrow $500–$10,000.
- Loan terms. Repay in 3 - 60 months.
- Interest rates. Pay 18%–47% APR.
- How fast you can get it. You can apply online for a bad credit personal loan in Québec within minutes and receive the money within 24 to 48 hours.
Eligibility requirements of bad credit personal loans in Québec
Bad credit personal loan lenders in Québec will have varying loan qualifications, but you will usually need to meet the following requirements:
- Be at least 18 years old
- Be a Canadian citizen or a permanent resident with a valid Québec address
- Have a valid bank account
- Have proof of regular income
- Meet the minimum credit score
Option 2: Payday loans for bad credit in Québec
While it’s possible to get a payday loan in Québec, your options will be limited. The Québec government has set the maximum annual interest rate (AIR) on payday loans to 35%, which has essentially banned payday lenders from the province.
Instead payday lenders in Québec tend to offer loans worth a few hundred to a few thousand dollars that you can repay over several installment payments.
Some example lenders in Québec advertising payday loans or quick, small loans include:
- Get My Pay Today
- Argent Rapido Presto
- I Need Money Now
⚠️ Warning: Be cautious with payday loansHigh-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. View payday costs and regulations by province here. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives.
Features of payday loans for bad credit in Québec
Main features of payday loans in Québec include:
- Interest rate. You can’t be charged more than 35% annual interest rate (AIR).
- Cooling-off period. High risk loans have a 10-day cooling-off period in Québec.
- Lender limits. Lenders cannot ask you to sign a form that transfers your wages directly to them or offer to sell you any products or services in connection with the payday loan.
Basic eligibility requirements for payday loans in Québec
- Be at least 18 years old
- Provide proof of 3 months of continuous employment
- Show proof of address (e.g., they can ask to see a utility bill)
- Have an active chequing account
Before you apply for payday loans with bad credit in Québec
- Check your budget. Make sure you can repay the loan on time and you’ll have enough money left for other expenses.
- Make sure the lender is legitimate. Check that the lender is licensed to operate in Québec and follows Québec payday loan regulations.
Option 3: Secured personal loans for bad credit in Québec
Secured personal loans in Québec allow you to use assets such as your house, vehicle and investments as collateral, which can make your application more appealing to lenders if you have bad credit.
|Provider||Loan amount||Loan term||APR||Eligibility requirements|
|$300 – $50,000||3 - 60 months||6.99% - 46.96%||Steady source of income, have a home or car you own|
|$500 – $50,000||3 - 120 months||8.00% - 46.96%||Currents debts must total less than 60% of income, own a home|
|$5,000 – $50,000||36 - 120 months||19.99% - 24.49%||Canadian resident, age of majority in your province of residence, home equity to use as collateral|
|$15,000 – $100,000||72 - 120 months||9.99% - 25.99%||Steady source of income, own a home|
Features of secured personal loans for bad credit in Québec
Securing your loan makes your application less risky for lenders, which can increase your chance of approval for a loan with bad credit and potentially lower your interest rate. However, you could lose your collateral if you default on payments.
Vehicle title loans in Québec
Vehicle title loans are loans secured to the title of your vehicle. Your car must be paid off to qualify for the loan, but you can still drive your car while you’re repaying it.
- Loan amount. You can typically borrow up to 25% or 50% of the value of the car, udually up to $50,000. Once you’ve applied, you may have to get your vehicle appraised so your lender has a clear idea of its market value.
- Loan term. Take up to 3 - 60 months to repay the loan.
- Interest rate. Rates tend to range between 9% and 49% APR.
- Turnaround time. You can usually get a bad credit auto title loan in Québec within 24-48 hours.
- No credit check. Vehicle title loan lenders in Québec tend to accept bad credit borrowers and some might not even run a credit check when you apply.
Home equity loans in Québec
If you’re a homeowner in Québec and have some equity built up in your house, you can use that equity as collateral for your next loan.
- Loan amount. Borrow a percentage of your home equity, typically up to 65% or 80%. To determine your home equity, you can minus your house’s value from however much you have left to pay on your mortgage.
- Loan term. Home equity loans for bad credit in Québec tend to come with longer loan terms of up to 240 months.
- Interest rate. Because home equity loans are secured, they come with lower APRs from 10%–29%.
- Turnaround time. You can get a home equity loan with bad credit in Québec in as little as 2 business days, although it could take longer since your home will need to be appraised.
Option 4: Lines of credit for bad credit in Québec
|Provider||Loan amount||APR||Eligibility requirements|
|$5,000 – $35,000||9.90% - 21.50%||Steady source of income|
|$500 – $50,000||19.99% - 46.96%||Steady source of income|
Features of lines of credit for bad credit in Québec
Some key features to look out for when comparing bad credit lines of credit in Québec include the following:
- Loan amount. You may be able to qualify for a bad credit line of credit in Québec worth up to $10,000.
- Loan term. A line of credit is an open account, so you can pay off the balance anytime and re-access the money when you want to. Remember to repay you balance quickly because line of credit rates for bad credit are high.
- Interest rate. If you have a poor credit score, you could be charged up to 47.42%, but you’ll only pay interest on what you borrow.
- Turnaround time. You can typically get a line of credit for bad credit in Québec within 24 to 48 hours.
Option 5: Pay advance apps for bad credit in Québec
Pay advance apps offer small, short-term loans that typically must be paid back with your next paycheque.
Features of pay advance apps for bad credit in Québec
- Loan amounts. You can typically borrow up to $200 with a pay advance app.
- Loan term. You’ll usually need to pay back the loan with your next paycheque.
- Fees and interest. These apps don’t typically charge interest on what you borrow, but you may be charged a monthly membership fee of less than $10.
- Turnaround time: You can usually get these mini loans for bad credit within 24 hours, or sooner for a fee.
How do bad credit loans work?
If you need to cover unexpected or emergency expenses, you might be looking at loans for bad credit in Québec. These types of loans are just like regular loans, except they’re designed for borrowers with low credit scores. This means they usually come with higher interest rates and stricter repayment terms. Most will also come in the form of installment loans, where you’ll make repayments monthly over a set term.
The only requirement for most bad credit loans in Québec, is that you have enough income coming in to be able to realistically pay them back. You’ll have to show proof of income (which can also be in the form of EI, disability assistance or the Canada Child Benefit). If you’re approved, you’ll be required to pay your loan back on time or your credit score will take a hit.
What is considered to be bad credit in Québec?
Credit scores in Canada range from 300 to 900, with 600 being the mark of “fair credit”. A bad credit score in Québec usually sits below this number. If you want to get approved for a loan, you’re more likely to qualify if you’re closer to 600. If you’re down around 300 to 400, you might need to start looking at other options.
What bad credit loan options do I have in Québec?
Secured loans come with the best interest rates because they’re secured against some form of collateral (like your house or vehicle). These loans are riskier for you (the borrower) since the lender can sell off your asset if you don’t make your repayments on time.
Unsecured loans rely more heavily on your credit score, so you won’t have to put up an asset to take money out. These loans are riskier for lenders because they have no way to reclaim their money if you default on your loan. The risk to you is that your credit score will go down if you don’t make your payments.
If you have someone with good credit who’s willing to cosign your loan, you may be eligible for lower interest rates and a bigger loan. Keep in mind that your cosigner will be saddled with the repayments if you don’t hold up your end of the bargain.
Installment loans are a type of quick loan in Québec. They typically have smaller loan amounts, shorter loan terms and higher interest rates than the average personal loan.
Benefits and drawbacks of bad credit loans
- Designed for bad credit. Bad credit loans are specifically designed for borrowers who have a credit score below 600 (and can’t qualify for traditional loans).
- Quick cash. They are a quick way to get cash if you need to cover unexpected or emergency expenses.
- Online application. Many online lenders offer bad credit loans, so you can apply from the comfort of your own home.
- Can build your credit score. If you take out a credit builder loan, your lender will report your on-time payments to the credit bureau, which can help to build your credit score.
- High interest rates. You’ll pay much more in interest for bad credit loans in Québec, so it’s best to take them out over a shorter period of time.
- Smaller amounts. If your credit score is low, the amount you’re eligible to receive will usually be smaller.
- Rigid repayment terms. Lenders will have less flexibility with repayment and you may risk losing the collateral you put up to secure your payments if you can’t make them.
- Require proof of income. You’ll need to prove that you have enough money coming in to cover your debt. This can include showing proof of income from employment, pension or government benefits.
How do I apply for a bad credit loan in Québec?
If you’ve decided that a bad credit loan is the right fit for you, then you’ll need to follow a couple of simple steps to apply.
- Compare lenders. The best way to find the right loan for you is to compare three to four lenders in the table above. Look for the best interest rates and terms for your loan.
- Fill out your application. Most places will ask you to provide your personal and banking info through an online or in-person application.
- Apply for loans selectively. You should apply for one loan at a time since your credit score will go down every time a lender checks your credit.
- Verify your identity. You’ll need to prove your identity by providing a government-issued piece of ID like your Québec driver’s licence or passport.
- Show proof of income. You’ll have to submit pay stubs, tax returns or bank statements to show that you have enough money to make repayments.
What is the cost of a loan for bad credit in Québec?
The total cost of a bad credit loan will vary depending on the loan type, loan amount, loan term, interest rate and any other fees. Below is an example of how much a $1,000 loan might cost a borrower in Québec.
|Loan amount||Interest rate||Loan term||Total loan cost||Interest charged|
|Unsecured personal loan||$1,000||46.93%||6 months||$1,141.25||$141.25|
|Payday loan||$1,000||$15 for every $100||14 days||$1,150||$150|
|Vehicle title loan||$1,000||35%||12 months||$1,199.56||199.56|
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Other options available for people struggling with bad credit
- Get a cosigner. If a friend or family member with a better credit score is willing to cosign your loan, it could increase your chances of approval. However, keep in mind that if you default, they’ll be responsible for making the payments.
- Get a secured loan. Securing the loan with some collateral makes you a less risky borrower and will increase your chances of approval.
- Government subsidies. You should look into government subsidies like social or child assistance payments sponsored by the government of Québec.
- Credit builder loans. Lenders will report every on-time payment you make to help you build your credit score faster.
- Credit counselling services. If your credit score is really low and you feel like you’re drowning in debt, consider visiting a credit counselling service that can help you tackle your bad credit so you can get back on your feet.
- Borrowing from friends or family. You may need to swallow your pride and ask your family or friends for support. It’s possible that they can also help you by cosigning a loan so that you get better interest rates or a larger amount.
What is considered bad credit in Québec?
In Canada, including Québec, credit scores range from 300 to 900. While credit reporting bureaus like Equifax tend to categorize bad credit as any score between 300 and 560. That said, many lenders consider any score below 600 to be bad. Bad credit scores make it difficult to qualify for standard loans and credit cards.
Bad credit loans in Québec come with higher interest rates and fees. That’s why it’s important to carefully compare your options before agreeing to any loan.
How to improve your credit score
Got some time? Consider taking steps to improve your credit score before you apply to qualify for lower rates, higher amounts and an all-around better deal:
- Check your credit report for mistakes that could be negatively affecting your credit, and contact the creditor if you see anything off.
- Stay on top of your bills and reach out to your creditors if you think you might be late on a payment. The most important factor in your credit score is your history of on-time repayments.
- Pay off debts can increase your credit score and make it easier to qualify for a loan when you apply. Focus on paying off higher-interest debts to save the most on interest.
- Keep your credit cards open even after you pay off your credit card debt. The more access to unused credit you have, the lower your credit utilization ratio — which also plays into your credit score.
- Consider a credit-builder loan if your credit history is too thin. A credit-builder loan can add a history of positive repayments to your credit report — often while helping you build an emergency fund.
If you have bad credit and want to take out a loan in Québec, you have options. Learn how to apply for bad credit loans and explore some alternatives if you don’t think they’re the right fit for you.
Frequently asked questions about bad credit loans in Québec
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