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Bad credit loans in Quebec

Find out if a bad credit loan is the right fit for you and compare lenders in Quebec.

Name Product Interest Rate Loan Amount Loan Term Requirements Credit Score Link
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 5.75%-46.96%
$500 - $50,000
3 - 120 months
Currents debts must total less than 60% of income
Min. credit score: 300
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An online broker who helps inform clients towards better finances. Get pre-approved by different lenders for unsecured or secured loans in 5 minutes with any credit score.
Spring Financial Personal Loan
17.99% - 46.96%
$500 - $15,000
9 - 48 months
Min. income of $1,800 /month, 3+ months employed
Min. credit score: 400
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An online lender offering unsecured personal loans and credit builder loans. Those filing for bankruptcy or a consumer proposal can also apply. If you're not eligible for an unsecured loan, you may be offered a loan to help rebuild your credit.
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$300 - $50,000
3 - 60 months
No min. income or employment requirements
Min. credit score: 300
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More Info
An online broker with the largest lender network in Canada. Get matched for free with lenders offering both unsecured and secured loans through one quick application regardless of your financial situation.
LoanConnect Installment Loan
32% + brokerage fee
$500 - $2,500
3 - 6 months
Currents debts must total less than 60% of income
Min. credit score: 300
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More Info
Get approved by different lenders in as little as 60 seconds with any credit score. Access resources to help you work toward better finances.
Loans Canada Installment Loan
8.00% to 46.96%
$500 - $50,000
3 - 60 months
No min. income or employment requirements
Min. credit score: 300
Go to site
More Info
An online broker with the largest lender network in Canada. Get matched with lenders for free through one quick application regardless of your financial situation.
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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. Find out what types of loans you might be able to get access to and compare lenders.

How do bad credit loans work?

If you need to cover unexpected or emergency expenses, you might be looking at a bad credit loan. 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 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 Quebec?

Credit scores in Canada range from 300 to 900, with 600 being the mark of “fair credit”. A bad credit score in Quebec 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 Quebec?

  • Secured loans. 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. 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.
  • Guarantor loans. 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. Installment loans are a type of personal loan. 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

Benefits

  • 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.

Drawbacks

  • High interest rates. You’ll pay much more in interest for bad credit loans, 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?

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.

  1. Compare lenders. The best way to find the right loan for you is to compare three to four lenders. Look for the best interest rates and terms for your loan.
  2. Fill out your application. Most places will ask you to provide your personal and banking info through an online or in-person application.
  3. 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.
  4. Verify your identity. You’ll need to prove your identity by providing a government-issued piece of ID like your Quebec driver’s licence or passport.
  5. 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.

Other options available for people struggling with bad credit

  • Government subsidies. You should look into government subsidies like social or child assistance payments sponsored by the government of Quebec.
  • 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.

Bottom line

If you have bad credit and want to take out a loan in Quebec, 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

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