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Bad credit loans in Toronto

Compare lenders that offer bad credit loans in Canada's largest city.

Having bad credit can limit what type of loan you qualify for in Toronto, but there are still plenty of options to choose from. The two main types of bad credit loans in Toronto are installment loans and payday loans. Learn more about the features of each loan type and compare lenders to find the best option for your unique personal situation.

Option 1: Compare bad credit installment loans in Toronto

1 - 5 of 5
Name Product Interest Rate Loan Amount Loan Term Requirements
LoanConnect Installment Loan
32.00%
$500 - $2,500
3 - 6 months
Requirements: min. credit score 300
SkyCap Installment Loan
19.99% - 39.99%
$500 - $15,000
9 - 60 months
Requirements: min. income $1,666/month, full time employment/pension, min. credit score 575, no bankruptcy
Loans Canada Installment Loan
8.00% - 46.96%
$500 - $50,000
4 - 60 months
Requirements: min. credit score 300
Spring Financial Installment Loan
17.99% - 46.96%
$500 - $15,000
9 - 48 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
Mogo Installment Loan
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Requirements: min. income $13,000/year, min. credit score 500
100-day money-back guarantee. If you're not happy with your loan, pay back the principal and get your 100 days of paid interest and fees back.
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What are installment loans?

Installment loans let you borrow large amounts over a long term (usually up to five years). They come with lower interest rates than payday loans, but you’ll need to undergo a credit check.

  • Loan amounts: $500 to $15,000 for bad credit
  • Loan terms: 6 - 60 months, sometimes shorter
  • Interest rates: 18% to 46.96% for bad credit

Eligibility requirements for bad credit installment loans in Toronto

You’ll usually have to meet the following criteria to qualify for bad credit installment loans:

  • Be the age of majority. You have to be at least 18 years old.
  • Steady source of employment income. Although there are some lenders that accept non-employment income, many require you to have a full-time job.
  • Meet the minimum credit score. Lenders typically require a minimum of 500 to 550.
  • Valid bank account. You’ll need to provide a void cheque or fill out a pre-authorized debit form to link your bank account.

Benefits and drawbacks of installment loans for bad credit

Benefits

  • Easy application. Apply online in a few minutes by filling out a simple online application.
  • Fast. Get pre-approval within a few minutes and formal approval usually within 24 hours. Get your money within 24 to 48 hours.
  • Longer term. You can pay your loan back over six months to five years.
  • Manageable rates. Starting rates for installment loans are around 18%, which is much lower than what you’ll pay with payday loans.

Drawbacks

  • Interest rates are still high for bad credit. You’ll pay rates starting at 18%, which is almost on par with what you’ll pay for a credit card and higher than a good credit loan.
  • Stricter eligibility criteria than payday loans. You may need to meet a higher credit score or income requirements than you would with payday loans.
  • Repayment takes longer than with payday loans. You’ll make payments on your loan for a much longer period than you would have to with a payday loan.
  • Late or missed payments can damage your credit. The longer you repay, the higher the chance you’ll miss a payment, leading to high fees and damage to your credit score.

Best bad credit loans in Canada

How to apply online for Toronto bad credit loans

Getting a personal loan is within reach even with bad credit. Here are the steps to apply:

  1. Check your credit. Get a free copy of your credit report from Equifax or TransUnion. This will help you figure out if you meet the eligibility criteria for various loans. You can also get your credit score from companies that offer credit score monitoring.
  2. Compare lenders. Apply for personal loan pre-approval with several lenders to compare the real rates you might qualify for (not just the rates advertised).
  3. Pick the best lender. Your lender will do a hard credit check and verify your income and identity.
  4. Review and sign your final loan offer. Once your lender verifies your identity and income, you’ll receive your final loan offer. Read it over carefully before signing.
  5. Get your funds and start repaying your loan. Your funds should be available within one business day. From there, you’ll repay your loan weekly, bi-weekly or monthly.

Bad credit installment loans if you prefer to visit a Toronto branch

LenderLoan amountLoan termAPRLocation in Toronto
Fairstone$500 – $25,0006 - 60 months26.99%-39.99%4+ locations
Check on Google
easyfinancial$500 – $100,0009 - 120 months9.99% – 46.96%18+ locations
Check on Google
Money Mart$500 – $15,00012 - 60 months29.90% - 46.90%16+ locations
Check on Google

Option 2: Compare payday loans for bad credit in Toronto

⚠️ Warning: Be cautious with payday loans
Payday loans are expensive. 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). Consider payday loan alternatives:
  • Visit 211.ca. A free and confidential service that connects you to organizations that can help with finances, food, housing and more.
  • Debt relief companies. There are services to help you reduce your debt payments.
  • Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
  • Side jobs. Sell unwanted items online, sign up for food delivery and more.
1 - 2 of 2
Name Product Loan Amount Loan Term Interest Rate Turnaround Time Serviced Provinces Offer Table description
Cash Money Payday Loan
$100 - $1,500
5 - 40 days
Varies by province
As little as 15 minutes with INTERAC e-Transfer
BC, NL, NS, ON, SK
Apply for your first $300 payday loan at a $20 cost (excludes SK applicants).
Instant decision and e-Transfer funding. Income of at least $1,000/month required.
iCASH Payday Loan
$100 - $1,500
7 - 62 days
Varies by province
As little as 2 minutes with INTERAC e-Transfer
AB, BC, MB, NB, NS, ON, PEI
Get up to 20% in cash back once your payday loan is fully repaid. Conditions apply.
24/7 instant approval and e-Transfer funding. Income of at least $800/month required.
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What are payday loans?

Payday loans let you borrow emergency cash, often without a credit check. They come with a maximum term of 62 days and are the most expensive loan type in Ontario.

  • Loan amounts: $100 to $1,500
  • Loan terms: Repay by your next payday, up to 62 days
  • Interest rate: $15 for every $100 borrowed

Eligibility requirements of bad credit payday loans in Toronto

You’ll usually have to meet the following criteria to qualify for bad credit payday loans:

  • Be the age of majority. You have to be at least 18 years old.
  • Steady source of income. In most cases, you’ll need to connect your bank account via instant bank verification, so the lender can verify your income and identity.
  • Valid bank account. You’ll typically be asked to provide a void cheque or fill out a pre-authorized debit form to link your bank account.

Benefits and drawbacks of payday loans

Benefits

  • Easy application. Fill out an application with most lenders in under five minutes.
  • Fast. Get approved almost instantly, with funds often provided through Interac e-Transfer within a couple of minutes. The fastest payday loans are completed within one hour of applying. Learn more about instant payday loans.
  • Bad credit doesn’t matter. Your credit score truly doesn’t matter for most payday loans.
  • Easy eligibility criteria. As long as you have a steady source of income, you can qualify.

Drawbacks

  • Very expensive. You’ll pay a maximum fee of $15 for every $100 borrowed, which can add up to an APR of 300% or more (an extremely high cost compared to installment loans).
  • Small amounts. It’s only possible to borrow up to $1,500, so these loans are not suitable if you need a large amount.
  • Short terms. If you miss paying your loan by your next payday, you’ll pay an NSF fee and a late payment fee.
  • Don’t help to build credit. Your credit score will not improve when you make repayments on a payday loan.
  • Missed payments damage credit score. In addition to high fees, your credit score will go down if you fail to make on-time repayments.

How to apply online for a Toronto bad credit payday loan

You can apply for payday loans in Toronto by following the steps below:

  1. Look for a reputable lender. Payday lenders in Toronto charge the same rate, so you’ll want to look at other features such as the company’s reputation, speed, business practices and how much they’re willing to lend to you.
  2. Fill out an application. Pick the best lender for your needs and fill out an application. This should take only a few minutes.
  3. Connect your bank via instant bank verification. Your lender will get a read-only copy of your bank statements through a secure portal.
  4. Review and sign your final loan offer. Once your lender verifies your identity and income, you’ll receive your final loan offer. Read it over carefully before signing.
  5. Get your funds and start repaying your loan. Your funds should be available almost immediately. You’ll need to repay your loan in two weeks to around two months.

Must read: If you take out 3 payday loans in Toronto within 63 days, your lender must let you pay your third loan and (loans after that) in installments.

Bad credit payday loans if you prefer to visit a Toronto branch

LenderLoan amountLoan termAPRLocation in Toronto
Money Mart$120 – $1,5001 - 62 daysVaries by province16+ locations
Check on Google
Cash Money$100 – $1,5005 - 40 daysVaries by province18+ locations
Check on Google
Cash 4 You$1,000 – $1,500Up to 62 daysVaries by Province6+ locations
Check on Google
Pay2Day$300 – $1,500Up to 62 daysVaries by province1 location (622 Yonge St)
Check on Google

Tips to pick the best bad credit loan in Toronto

Compare the following features to get the best bad credit loans in Toronto:

  • Annual percentage rate (APR). APR is the interest rate you’ll pay plus fees. Aim to get pre-approved with a few installment loan lenders to find the best APR for your credit score.
  • Fees. Read the fine print to make sure you don’t get saddled with additional fees. These include NSF fees, late payment fees, origination fees, prepayment penalties or fees for loan insurance.
  • Repayment flexibility. Look for a lender that will let you pay the loan back on your own schedule. With installment loans, you may also want to see if you can prepay your loan with no penalty.
  • Lender reputation. Checking a lender’s online presence and customer reviews can give you a good indication of the quality of service you can expect to encounter with your loan. If you notice a pattern of complaints, that could be a red flag. Learn more about personal loan scams and legit lenders.

Are there no-credit-check loans in Toronto?

It depends on the lender. Many payday lenders won’t check your credit as long as you’re a Canadian resident who is the age of majority in your province. The majority of installment loan lenders will conduct a credit check, and those that don’t usually expect you to have a high income or have regular full-time employment.

Just remember that you’ll pay very high interest rates for any bad credit loans in Toronto that don’t require a credit check.

Are there loans with guaranteed approval in Toronto?

Even if you find bad credit loans in Toronto advertising “guaranteed approval”, they likely won’t be legitimate. Guaranteed approval loans are one of the most common sources of loan fraud. The lenders offering these loans may promise to give you money so they can collect fraudulent upfront fees.

Frequently asked questions

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