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Best bad credit loans in Canada

Apply online for the best bad credit loans in Canada and get fast approval and funding.

Bad credit shouldn’t prevent anyone from getting financing, plus you can use a new loan to help rebuild your credit. But be prepared to pay more interest, since bad credit loans are offered at higher interest rates. If you’re looking for financing, this guide covers some of the best bad credit personal loans in Canada.

How can I get a loan with bad credit in Canada?

To borrow money with bad credit, you can apply to alternative lenders. Many alternative lenders in Canada offer loans online to people with less-than-perfect credit scores. These loans vary widely in loan amounts, loan terms, rates, fees and eligibility requirements, so compare your options before applying.

Competitive Rates

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  • Options for all credit scores
  • Fast application
  • Quotes from multiple lenders
  • Pre-approval in five minutes
  • Low interest rates
  • Funds in as little as 24 hours

Flexible Terms

Go to site

  • Accepts bad credit borrowers
  • Easy online application
  • Quotes from multiple lenders
  • Access cash within 1-3 business days
  • High loan amounts of up to $50,000

Fast Financing

Go to site

  • Accepts bad credit borrowers
  • Same day funding
  • 100% online
  • No hidden fees
  • No prepayment fees
  • Established lender

Summary of the best bad credit loans

How we found the best bad credit personal loans

To find the best bad credit loans in Canada, Finder experts collected more than 70 points of data for more than 60 lenders operating in Canada. Finder used this data to create a proprietary weighting formula that scores each lender based on rates, fees, terms, loan amounts, application process, funding speed, customer support, and reputation, among other features. Keep in mind that the products listed are based on providers available through Finder and online in the Canadian loans marketplace. These loans are not representative of the entire market. Read more about the Finder personal loan ratings and review methodology.

464+

hours invested

112

lenders vetted

4,608

data points analyzed

Best bad credit loans in Canada

1.Loans Canada

Loans Canada Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$300 – $50,000
Loan amount
6.99% – 46.96%
APR
3 - 60 months
Term
Loans Canada is an online broker partnered with over 60 lenders. Fill out one application and get your matches for free. Full Review

Why it's one of the best

  • Search a large lender network. Loans Canada works with over 60 verified lenders.
  • Get approved. Only see lenders that match your profile.
  • Work with an established company. Loans Canada has been in business since 2012. It has BBB accreditation with an A+ rating.
  • Easy online application
  • Quick deposits
  • High loan amounts
  • No collateral required to secure your bad credit loan
  • High rates for bad credit
  • No online quotes provided
  • Limited to its network
Loan amount $300 – $50,000
APR 6.99% – 46.96%
Term 3 - 60 months
Min. credit score 300
Fees No application, origination or brokerage fees
Turnaround time Receive funds within as little as 24 hours.
Serviced provinces All of Canada

Finalist — Best Personal Loan Search Platform category

Loans Canada earned the Finalist award in the Best Personal Loan Search Platform category in the Finder: Personal Loans Customer Satisfaction Awards 2023. Loans Canada scored 75.15% in the overall customer satisfaction score and secured a spot in Canada's Top 15 Best-Rated personal loan providers in 2023.

2. Spring Financial

Spring Financial Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $35,000
Loan amount
10.8% – 46.99%
APR
6 - 60 months
Term
Spring Financial offers fast approval and funding. If you don't qualify for a bad credit personal loan, however, it'll offer you its credit builder loan. With this loan, you won't access the loan funds until after you've made all your payments on time. Full Review

Why it's one of the best

  • Get a loan from an established lender. Spring Financial has been providing bad credit loans in Canada since 2015 and has over 200 employees with headquarters in Vancouver, BC.
  • Improve your credit score. Spring Financial reports payments to the credit bureaus so you can increase your credit score.
  • Get quick funding. If you provide the required documents on time, you can get your bad credit loan the same day you apply.
  • 100% online
  • Fast funding via e-Transfer
  • No prepayment penalties
  • High rates for bad credit
  • C- BBB rating, received complaints about the credit builder loan
Loan amount $500 – $35,000
APR 10.8% – 46.99%
Term 6 - 60 months
Min. credit score 500
Fees No fees except $30 NSF fee
Turnaround time Within 24 hours
Serviced provinces All of Canada

Most Recommended + Best-Rated

Spring Financial made it to both the Top 15 Most Recommended and the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

3.LoansLoans.ca

LoansLoans.ca Installment Loan
Finder Score:
★★★★★
Go to site
$500 – $1,000
Loan amount
28% – 32%
APR
3 months
Term
LoansLoans.ca is a broker that helps people with bad credit find a short-term loan. It doesn't do any credit checks and accepts many types of income as long as it's over $1,200. You may be required to pay a broker fee. Full Review

Why it's one of the best

  • Avoid payday loans. LoansLoans.ca's installment loans have longer loan terms than payday loans, which means you can break up your repayments.
  • Qualify. LoansLoans is open to many types of income as long as they're recurring. And since it doesn't do credit checks, you can qualify with bad credit.
  • Work with an established broker. NCR Financial Services, the company that owns and operates LoansLoans.ca, has been around for over 15 years.
  • No credit check
  • Apply online in minutes
  • Funding on the same day or next day
  • High rates and fees
  • Not very transparent about broker fees
Loan amount $500 – $1,000
APR 28% – 32%
Term 3 months
Min. credit score 300
Fees Late payment fee (2.66% per month), $45 NSF fee, broker fee
Turnaround time Receive funds in less than 24 hours
Serviced provinces All of Canada (except Manitoba)

4.LoanConnect

LoanConnect Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $50,000
Loan amount
8.99% – 46.96%
APR
3 - 120 months
Term
LoanConnect maintains a large database of lenders and matches you with several offers based on your unique profile. Full Review

Why it's one of the best

  • Save time. Your application will be cast wide and you'll get your results right after you apply.
  • Easily compare offers. Compare offers from multiple lenders and log in regularly to see if new offers are available.
  • Choose between secured and unsecured loans. Find a secured bad credit loan if you have an eligible asset or get a loan with no collateral.
  • Pre-approval in five minutes
  • Many bad credit loan options
  • BBB-accredited with an A+ rating
  • Fast funding
  • Not a direct lender
  • High rates for bad credit
  • Miss out on offers from lenders not partnered with LoanConnect
Loan amount $500 – $50,000
APR 8.99% – 46.96%
Term 3 - 120 months
Min. credit score 300
Fees No application, origination or brokerage fees
Turnaround time Receive funds within as little as 24 hours.
Serviced provinces All provinces

Most Recommended

LoanConnect made it to the Top 15 Most Recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

5. Mogo

Mogo Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $35,000
Loan amount
9.9% – 46.96%
APR
6 - 60 months
Term
Mogo is a Canadian fintech company that offers various financial products, including personal loans and lines of credit for bad credit. Full Review

Why it's one of the best

  • Get an instant decision. Get your free quote in three minutes without lowering your credit score.
  • Apply easily online. Set up an account within minutes and get approval and funding within one to two days.
  • Work with an established company. Mogo was founded in 2003 and is traded on the Toronto Stock Exchange.
  • Convenient mobile app
  • No prepayment penalties
  • Bank-level security
  • High rates for bad credit
  • Some negative Mogo reviews online
  • Loans are powered by Lendful and easyfinancial
Loan amount $500 – $35,000
APR 9.9% – 46.96%
Term 6 - 60 months
Min. credit score 500
Fees Non-sufficient funds fee of $20 to $50
Turnaround time Within 24 hours
Serviced provinces BC, AB, SK, MB, ON, NB, NS, PE, NL, YT, NT, NU

Best-Rated

Mogo made it to the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

6. Get Loan Approved

getloanapproved.com Vehicle Title Loan
Finder Score:
★★★★★
Go to site
$1,000 – $50,000
Loan amount
9.95% – 29%
APR
12 - 72 months
Term
Get Loan Approved offers personal loans with your car as collateral, also known as a car title loan. You can continue to use your car as you pay off your loan. To qualify, your car must be less than 10 years old, in good condition and fully paid off. Full Review

Why it's one of the best

  • Lenient. Get Loan Approved specializes in personal loans for people with damaged credit. It doesn't do any credit checks, and you don't need to be employed.
  • Apply easily. Apply online and then either drive to a Get Loan Approved agent near you or have an agent come to you for a car appraisal. The whole process can be completed within 24 to 48 hours.
  • Increase your chances of approval. Since you'll be reducing the risk for the lender with collateral, you'll have a higher chance of getting approved.
  • No credit check
  • No employment requirement
  • 24/7 customer service
  • Potentially high rates
  • Vehicle must be fully paid off
Loan amount $1,000 – $50,000
APR 9.95% – 29%
Term 12 - 72 months
Turnaround time In as little as one hour
Serviced provinces AB, BC, MB, NB, NL, NS, ON, PEI, SK

7. Loanz

Loanz Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$1,000 – $15,000
Loan amount
29.9% – 46.9%
APR
12 - 60 months
Term
Loanz is an online-only lender of bad credit personal loans. But if you don't qualify for a loan from them, they may direct you to another lender. Full Review

Why it's one of the best

  • Get funded fast. Apply to get instant approval and receive funds in as little as 15 minutes.
  • Improve your credit. Loanz will report every payment to the credit agencies to help boost your credit score.
  • Skip the documents. You won't need to send any paperwork if you choose instant bank verification.
  • Simple online application
  • Positive customer reviews
  • No prepayment penalties
  • High rates
  • High minimum loan amount
Loan amount $1,000 – $15,000
APR 29.9% – 46.9%
Term 12 - 60 months
Min. credit score 570
Fees N/A
Turnaround time 24 hours or less
Serviced provinces All of Canada (excluding Quebec)

8. FlexMoney

FlexMoney Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$500 – $15,000
Loan amount
18.9% – 46.9%
APR
6 - 60 months
Term
FlexMoney is an online-only lender offering fast bad credit personal loans in Canada. Full Review

Why it's one of the best

  • Get an instant decision. FlexMoney's automated system enables it to give you a no-obligation quote within minutes.
  • Get your funds fast. Funds should reach your account on the same day or the next day.
  • Rebuild your credit. FlexMoney will report regular, on-time payments to the credit bureau.
  • Make payments weekly, bi-weekly, semi-monthly or monthly
  • Easily make extra payments via e-transfer
  • High interest rates
  • Minimum income required ($2,000 per month)
  • Only employment & pension income accepted
Loan amount $500 – $15,000
APR 18.9% – 46.9%
Term 6 - 60 months
Min. credit score 500
Fees No application, origination or prepayment fees
Turnaround time Receive funds within as little as 24 hours
Serviced provinces Alberta, British Columbia, Newfoundland, Nova Scotia, Ontario, PEI, Saskatchewan and Yukon

Most Recommended + Best-Rated

FlexMoney made it to both the Top 15 Most Recommended and the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

9. Magical Credit

Magical Credit Installment Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$1,500 – $20,000
Loan amount
19.99% – 46.8%
APR
12 - 60 months
Term
Magical Credit specializes in online personal loans for people with bad credit and/or low income. It's been in business since 2014 with offices in Concord and North York, Ontario. Full Review

Why it's one of the best

  • Get a fast loan. Apply online and validate your information with instant bank verification to get a fast loan decision (with funds sent within 24 hours).
  • Rebuild your credit. Magical Credit reports on-time payments to the credit bureaus to increase your credit score.
  • Use non-employment income to qualify. Magical Credit accepts many types of income, such as most government benefits, private pensions and maternity benefits.
  • Receive funds within as little as 24 hours
  • Accepts child tax credit, EI, CPP, OAS, private pensions and more
  • Refer-a-friend program
  • High interest rates
  • May charge an administration fee
  • You must show income history for six months (if you receive employment income)
Loan amount $1,500 – $20,000
APR 19.99% – 46.8%
Term 12 - 60 months
Min. credit score 300
Fees A single administration fee of $194
Turnaround time Receive funds within as little as 24 hours
Serviced provinces Canada-wide (excluding Manitoba, Saskatchewan and Quebec)

Most Recommended

Magical Credit made it to the Top 15 Most Recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

10. easyfinancial

easyfinancial Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$500 – $100,000
Loan amount
9.99% – 46.96%
APR
9 - 120 months
Term
easyfinancial helps Canadians access financing when banks aren't an option. It offers bad credit loans across Canada online and in hundreds of locations. Full Review

Why it's one of the best

  • Get a quick quote. Apply in minutes with no commitment and it won't affect your credit score.
  • Work with a well-known lender. easyfinancial is one of the biggest lenders of bad credit personal loans in Canada.
  • Improve your credit score. According to easyfinancial, one in three customers graduate to prime rates after making regular, on-time repayments.
  • Secured and unsecured bad credit loans
  • High approval rate
  • BBB-accredited with an A+ rating
  • Steep rates for bad credit
  • Many negative customer reviews
Loan amount $500 – $100,000
APR 9.99% – 46.96%
Term 9 - 120 months
Min. credit score 300
Fees you may come across non-sufficient funds fees, late payment fees, missed payment fees or admin fees
Turnaround time Approval within 30 minutes
Serviced provinces all provinces

11. Alpine Credits

Alpine Credits Home Equity Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$10,000 – $500,000
Loan amount
10% – 22.99%
APR
Up to 60 months
Term
Alpine Credits offers personal loans using your home equity as collateral. Before applying for this loan, make sure you can afford the payments because if you default, your lender has the right to repossess your house. Also watch out for fees, such as title search fees and appraisal fees. Full Review

Why it's one of the best

  • Work with an established lender. Alpine Credits has been around for over 50 years and is BBB-accredited with an A+ rating.
  • Increase your chances of approval. Offering your house as collateral reduces the risk for the lender and boosts your chances of getting a loan.
  • Get approved fast. You should hear back in less than 24 hours.
  • Easy online application
  • Flexible loan amounts
  • High interest rate for bad credit
  • Potential to lose your house
Loan amount $10,000 – $500,000
APR 10% – 22.99%
Term Up to 60 months
Min. credit score 300
Fees 5.00% - 8.00% of the APR covers closing & admin fees
Turnaround time 24 hours
Serviced provinces AB, BC, ON, QC

12. Money Mart

Money Mart Installment Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$500 – $15,000
Loan amount
29.9% – 46.9%
APR
6 - 60 months
Term
Money Mart offers installment loans and payday loans to people with bad credit. It's been in business for over 40 years and is one of the largest alternative lenders in Canada. Full Review

Why it's one of the best

  • Get your loan fast. Same-day funding is available, depending on the transfer method.
  • Apply online or in-store. Get your loan online or at one of Money Mart's 500+ store locations.
  • Get some leniency. Money Mart is less strict with its requirements than banks, credit unions and some alternative lenders. You can qualify with a chequing account and a regular source of income.
  • Established lender
  • Convenient mobile app
  • Accepts non-employment income such as government benefits and private pension
  • High interest rates
  • In-store and online availability varies across provinces
Loan amount $500 – $15,000
APR 29.9% – 46.9%
Term 6 - 60 months
Min. credit score 300
Fees None
Turnaround time Less than 1 day
Serviced provinces AB, BC, MB, NB, NS, NT, ON, PEI, SK, YT

13. Lend for All

Lendforall Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$100 – $50,000
Loan amount
2.99% – 46.96%
APR
3 - 120 months
Term
Lend for All is a loan-matching company that uses an automated process to match people with various lenders and financial institutions. It is based in Toronto, Ontario, and has an A+ BBB rating. Full Review

Why it's one of the best

  • Save time. It works with a network of lenders that offer quick approval for customers with bad credit.
  • Get fast pre-approvals. Lend for All provides quick pre-approvals within minutes by doing a soft check on your credit report.
  • Find a loan for various purposes. Lend for All will match you with offers based on your needs.
  • A+ BBB rating
  • AI technology gives you viable loan matches
  • Potential for multiple offers
  • Many loan types
  • Online broker (not a direct lender)
  • Small network of lenders compared to other brokers
  • High rates for bad credit
Loan amount $100 – $50,000
APR 2.99% – 46.96%
Term 3 - 120 months
Min. credit score 300
Fees Varies by lender
Turnaround time Varies
Serviced provinces All provinces

14. 24Cash

24Cash Installment Loan
Finder Score:
★★★★★
$500 – $850
Loan amount
Starting at 22%
APR
90 - 120 days
Term
24Cash connects applicants to a short term installment loan with no credit check. It is an alternative to payday loans. Expect a $225 broker fee to be added to your payments (the exact amount is set at the broker's discretion). Full Review

Why it's one of the best

  • Get approval in one hour. Apply with instant bank verification and get approved quickly.
  • Apply easily online. Fill out one quick form and provide your bank details to get approved. Get cash on the same day if approved before 2:30 PM EST.
  • Established online broker. The company is active online and has solid customer reviews on Google and Trustpilot.
  • No credit check
  • Lower APRs than payday loans
  • No paperwork required via instant bank verification
  • Manual review available
  • Three months to repay
  • Government assistance not accepted as a form of income
  • Very expensive
  • Small maximum amount
  • May not improve your credit score
Loan amount $500 – $850
APR Starting at 22%
Term 90 - 120 days
Fees Broker fee applies
Turnaround time Within 24 hours
Serviced provinces Canada-wide except Manitoba, Quebec and Saskatchewan

15. AAR Financial

AAR Financial Personal Loan
Finder Score:
★★★★★
$1,000 – $50,000
Loan amount
14.9% – 46.7%
APR
24 - 120 months
Term
AAR Financial offers personal loans with large loan amounts and long loan terms. The company serves customers in Manitoba, Saskatchewan, Alberta, Ontario and British Columbia. Full Review

Why it's one of the best

  • Increase your odds of approval. AAR Financial claims to approve 99% of applications.
  • Get a secured or unsecured bad credit loan. Use your home to secure your loan and get a more competitive rate, or get an unsecured personal loan.
  • Work with an established lender. AAR Financial has been in business for over 15 years with headquarters in Winnipeg, Manitoba.
  • Flexible loan amounts
  • No prepayment penalties for unsecured loans
  • High rates
  • Fees not clearly disclosed online
Loan amount $1,000 – $50,000
APR 14.9% – 46.7%
Term 24 - 120 months
Fees Fees may include insurance fees, administration fees and NSF/late payment fees.
Turnaround time Within 24 hours
Serviced provinces MB, SK, AB, ON, BC

16. Cashco

Cashco Flex Loans
Finder Score:
★★★★★
Customer Survey:
★★★★★
$100 – $7,000
Loan amount
Up to 48.99%
APR
6 to 60 months
Term
Cashco offers unsecured bad credit loans called Flex Loans. Apply for a loan online or in-store. Full Review

Why it's one of the best

  • Get some flexibility. You can choose a payment schedule, loan amount and loan term that works best for you.
  • Rebuild credit. Cashco reports payments to the credit bureau, which will help improve your rating.
  • Get a quick loan. You can get approval within minutes and receive your money within 24 hours.
  • Fast bad credit loans
  • Flexible terms
  • No prepayment penalties
  • High rates
Loan amount $100 – $7,000
APR Up to 48.99%
Term 6 to 60 months
Fees Up to 10% of your loan amount to set up your loan, NSF and late payment fees of $25.
Turnaround time Within 24 hours
Serviced provinces BC, AB, SK and ON

Finalist — Alternative Personal Loan Lender category

Cashco Financial was the finalist in the Best Personal Loan Alternative Lender category in the Finder: Personal Loans Customer Satisfaction Awards 2023. Cashco Financial scored 86.55% in the overall customer satisfaction score and secured a spot in Top 15 Most Recommended and the Top 15 Best-Rated lists.

17. Credito

Credito Installment Loan
Finder Score:
★★★★★
$500 – $850
Loan amount
Starting at 22%
APR
90 - 120 days
Term
Credito is a broker that helps people with bad credit find a short-term installment loan. You won't need to go through a credit check to get approved, but expect to be charged interest plus a $225 broker fee (the exact amount is at the broker's discretion). Full Review

Why it's one of the best

  • Qualify. Since Credito doesn't do credit checks and offers smaller loans, it may be easier to get a loan from them versus other alternative lenders.
  • Avoid payday loans. Credito's bad credit loans are an alternative to payday loans, allowing you multiple repayments and longer terms.
  • Get funded fast. You can get your money within 24 business hours.
  • 100% online
  • No credit check
  • High Trustpilot score
  • High rates
  • High broker fee
Loan amount $500 – $850
APR Starting at 22%
Term 90 - 120 days
Fees $225 brokerage fee (amount set at broker's discretion)
Turnaround time Within 24 hours
Serviced provinces ON, PE, BC, AB, NB, NS, NL, NU, NT, YU

Finder: Personal Loan Consumer Satisfaction Awards

In 2023, we completed the Finder: Personal Loan Consumer Satisfaction Awards — an annual ranking of personal loan providers in Canada, based on customer satisfaction feedback. Read more about these awards and the methodology used to find the best personal loan providers, based on customer service scores.

Best bad credit personal loans: By the numbers

Loan providerInterest rateLoan amountLoan termKey features
LoanConnect8.99% - 46.96%$500–$50,0003 - 120 monthsLoan search platform, pre-approval in 5 minutes
Spring Financial10.8% - 46.99%$500–$35,0006 - 60 monthsFast application, same-day funding
Loans Canada6.99% - 46.96%$300–$50,0003 - 60 monthsLoan search platform, largest lender network
LoansLoans.ca28.00% - 32.00% + broker fee up to $300$500–$1,0003 monthsNo credit check, funding in 24 hours
Mogo9.90% - 46.96%$500–$35,0006 - 60 monthsQuotes in 3 minutes, flexible eligibility requirements
Get Loan Approved9.95% - 29.00%$1,000–$50,00012 - 72 monthsUse your paid-off car as collateral (less than 10 years old), you can continue to use your car
Loanz29.90% - 46.90%$1,000–$15,00012 - 60 monthsInstant decisions, funding in 15 minutes
FlexMoney18.90% - 46.90%$500–$15,0006 - 60 monthsInstant decisions, same-day funding
Magical Credit19.99% - 46.80%$1,500–$20,00012 - 60 monthsApproval in 1 day, low income or non-employment income are okay
easyfinancial9.99% - 46.96%$500–$100,0009 - 120 monthsApproval in 30 minutes, flexible eligibility requirements
Alpine Credits10.00% - 22.99%$10,000–Up to 60 monthsYour home as collateral
Money Mart29.90% - 46.90%$500–$15,0006 - 60 monthsInstant decisions, offers personal and payday loans
Lend for AllFrom 2.99%$100–$50,0003 - 120 monthsSearch platform for loans, secured and unsecured loans
24Cash22.00% + broker fee$500–$85090 - 120 daysBroker, short-term loan, no credit check
AAR Financial14.90% - 46.70%$1,000–$50,00024 - 120 monthsSecured and unsecured loans, high approval rate
CashcoUp to 48.99% $100–$7,0006 to 60 monthsFlexible repayment terms, unsecured loans
Credito22.00% $500–$85090 - 120 daysNo credit check, funding in 24 hours, short-term installment loans

Other loans for bad credit

If you can’t find a bad credit personal loan for your needs, there are other online options to consider.

LoanHow it worksHow it compares to bad credit personal loans
Payday loanBorrow up to $1,500 and repay by your next dayFaster, easier to qualify, much more expensiveLearn more
Pay advance appBorrow up to $250 and repay by your next paydaySmaller loan amounts, often no credit check required, pay a fee for express serviceLearn more
Line of creditBorrow up to a limit, pay the interest and repay the balance any timeCan be harder to qualify for, open loan term requires discipline in repayments and spendingLearn more
Cash-secured credit cardWorks like a standard credit card, but you’ll pay a cash deposit for collateralLower rates, cash collateral requiredLearn more

How to get the best online bad credit loan

  1. Compare lenders. Look at features such as annual percentage rates (APRs), fees, loan amounts, loan terms and eligibility requirements.
  2. Apply to top choices. Pick the best bad credit loans for you and apply online. Provide personal details such as name, contact information, housing information and employment details.
  3. Choose the best offer. Pick the loan that best fits your budget. Your lender of choice may ask you to provide extra information or documents.
  4. Get approved. Your lender will verify your income and identity and confirm approval of the loan if everything checks out.
  5. Submit the contract. Review your contract carefully before signing. Submit the signed contract and get your money on the same day or the next day.

Am I eligible for the best bad credit loans in Canada?

Before you proceed with any application, check the lender’s eligibility criteria to save time and effort. Here are the basic eligibility requirements you may come across for personal loans:

  • Be at least 18 years old or the age of majority in your province
  • Be a Canadian citizen or resident
  • Meet the minimum income or employment requirements
  • Meet minimum credit score requirements, if applicable
  • Have an active bank account

How to compare the best bad credit personal loans in Canada

Not all bad credit lenders are the same. Consider the following as you compare the best bad credit loans in Canada.

Other things to watch out for with personal loans for bad credit

  • Annual interest rate plus a surety or broker fee. You may encounter this fee among installment loans with loan terms of less than six months. Find out how much it is because it can make your bad credit loan much more expensive.
  • Pushy customer service. Be wary if the lender is pressuring you to sign. Carefully read your contract and know exactly what loan you’ll be getting and how much you’ll be paying.
  • Loan insurance requirement. Lenders in Canada cannot require or insist that you pay for insurance in order to get a bad credit loan. Insurance is 100% optional and will add to the cost of your loan.
  • Upfront fee. Steer clear of lenders asking you to pay some sort of fee before you get the loan. This is a common scam.
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Looking ahead: Bad credit personal loan rates in 2024

In 2024 the federal government plans to lower the maximum personal loan rate allowed in Canada from 47% APR to 35% APR to make loans more affordable for Canadians. This is particularly relevant if you have bad credit because applicants with the riskiest profiles are charged the highest rates. Lowering the maximum rate allowed means you could save on interest. However, according to experts in non-prime lending, this drop will also cause lenders to be more selective with their approvals, which means fewer people with bad credit will be able to get a personal loan.

Once the maximum rate is lowered, this year and the following years will help the government and participants of the lending market to evaluate whether 47% APR was the appropriate rate charged because of the actual credit risk of the borrower or whether it was the rate charged because it was the maximum that was allowed. We’ll be keeping an eye on this.

How much will my bad credit personal loan cost me?

The cost of your bad credit personal loan will depend on the loan amount, loan term and interest rate. To illustrate, let’s assume you get a $5,000 loan over 3 years. Here’s how the overall cost breaks down with a 35% APR vs 47% APR:

Feature35% APR47% APR
Loan amount$5,000$5,000
Loan term3 years3 years
Monthly payment$226.18$261.39
Total cost$8,142.49 ($3,142.49 interest)$9,410.07 ($4,410.07 interest)

The savings difference between 35% APR and 47% APR is $1,267.58.

Can I get a loan with bad credit and no guarantor?

Yes. If you have poor credit and no guarantor, you can still get a loan. Many alternative lenders specialize in secured or unsecured bad credit loans in Canada with no guarantor needed, and it’s possible to get them as soon as the same day. But be prepared to pay more in interest and to get approved for lower loan amounts.

The lenders included in our list (above) do not require a guarantor to be approved for a bad credit loan.

Tips to get approved for the best bad credit loans in Canada

  • No short-term loan debt. Having an active payday loan or other short-term loan debts will lower your chances of approval on a bad credit loan, so try to pay these off before applying.
  • No NSF transactions. It’s also best to wait until you have no NSF transactions in your credit history in the last 60 to 90 days. A few NSF charges may be acceptable to some lenders.
  • Opt for a secured loan. Offering collateral such as your house or car reduces the risk for the lender and increases your chances of getting approved. You could lose your asset if you default, so make sure you can manage the payments.
  • Rebuild your credit first. If you can wait at least six months, improve your credit score first by making on-time payments for your other bills and debts.

What transactions in a bank account would increase an applicant’s chances of approval?

We asked Trust Science, a Canadian company specializing in AI tech that helps lenders assess an application, to share their insights into what would help someone with bad credit get approved for a loan. Here’s what they had to say:

As a general rule, demonstrating consistent income to your account from stable employment sources is a benefit, as are regular outflows that can be identified as regular bill payments. Similarly, debts that you may have taken on that are not reported to the bureau may arise in your historical banking data: showing that you consistently repaid these debts can work in your favour. Having savings available, or having more cash inflows than outflows is always a good sign.

Trust Science

Trust Science

Plans to borrow in Canada

Recent data from the Finder: Consumer Sentiment Survey Q2, shows that 20% of respondents plan to take out a personal loan in the next three months.

The vast majority of respondents plan to borrow less than $15,000, with only 11% of respondents looking to borrow between $15,000 and $20,000 and 8% planning to borrow more than $20,000, in the next three months.

Bottom line

If you have bad credit, you can still apply and get approved for the best bad credit loans in Canada. But watch out for steep interest rates, and only apply to lenders you trust. If you’d like to learn more about how personal loans work, read our guide to personal loans.

Survey methodology

The results of the Finder: Consumer Sentiment Survey Q2 were collected through an online Pollfish survey conducted between April 27 and April 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their past use and current plans to use personal loans and other forms of credit. The estimated margin of error for the survey is +/- 3%, 19 out of 20 times.

Frequently asked questions

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