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Best bad credit loans

Which loan company is best for bad credit in Canada?

If you have bad credit, your loan options may be more limited, but you do have options. While you may find yourself paying higher interest rates than other borrowers, if you can demonstrate that you have the ability to repay a loan, there are lenders that will work with you.

Best personal loans for bad credit

Best broker: LoanConnect Personal Loan

$500 – $50,000
Loan amount
1.9% – 46.96%
APR
3 - 120 months
Term
LoanConnect isn't a direct lender but a specialty online platform that you can use for free to find lenders and compare loan offers. When you apply for a personal loan, it will use your information to match you with the best lenders for your particular needs.
  • LoanConnect works with multiple lenders, so it's easy for you to do some comparison shopping before settling on your best option.
  • You'll usually get your money within 24 hours of applying if you meet the eligibility criteria.
  • You'll be able to apply for loans up to $50,000.
  • Bad credit is okay because loan decisions are based on factors like your income.
  • Interest rates are high, ranging from 1.9% for secured loans to between 5.75% and 46.96% for unsecured loans.
  • There is limited access as you'll only get quotes from companies that LoanConnect works with.
  • LoanConnect is completely online so you won't receive in-person customer service.
Loan amount $500 – $50,000
APR 1.9% – 46.96%
Term 3 - 120 months
Interest Rate Type Fixed
Min. Credit Score 300
Fees No application, origination or brokerage fees
Origination Fee 0
Turnaround Time Receive funds within as little as 24 hours.
SkyCap Financial Personal Loan
Finder Rating: ★★★★★ 4.1 / 5 Go to site Read review

Best for speed: SkyCap Financial Personal Loan

$500 – $10,000
Loan amount
12.99% – 39.99%
APR
9 - 36 months
Term
SkyCap Financial Personal Loans are most suitable for borrowers who need money fast or are having trouble qualifying for a bank loan. You can fill out an online application in less than 5 minutes and you may even get approved for financing of up to $10,000 in as little as 24 hours.
  • Apply online within 5 minutes to get approved for financing in as little as 24 hours. If your application checks out, it's possible to get money deposited into your account on the same day that you apply.
  • Apply for up to $10,000 in one shot, which is more than many other lenders offer.
  • Lock in a term lasting as long as 3 years so that your payments are more affordable.
  • You can qualify for a SkyCap loan with bad credit, and you won't need to use your assets as collateral to secure your loan.
  • You'll need to make over $$1,200 per month to qualify.
  • You'll be stuck with fees and charges for late, missed and NSF payments.
Loan amount $500 – $10,000
APR 12.99% – 39.99%
Term 9 - 36 months
Interest Rate Type Fixed
Min. Credit Score 550
Fees No fees except $50 NSF fee
Origination Fee N/A
Turnaround Time 24 hours
Spring Financial Personal Loan
Finder Rating: ★★★★★ 4 / 5 Go to site Read review

Best for easy application: Spring Financial Personal Loan

$500 – $15,000
Loan amount
17.99% – 46.96%
APR
9 - 48 months
Term
Spring Financial makes applying for a loan quick and easy, either online or over the phone. If you don't qualify for a standard Spring Financial personal loan, you may be offered a Foundation credit builder loan instead.
  • The application process takes just minutes over the phone or online. Keep an eye on your phone once you've applied as a Spring Financial representative may be in touch to review your loan options.
  • Anyone can apply, including those with bad credit or who have filed for bankruptcy or a consumer proposal.
  • You can apply for financing without putting up any collateral or providing a cosigner for your loan.
  • APRs for Spring Financial personal loans start at 17.99% and go up to 46.96%, meaning you could be paying a lot more in interest.
  • You may be asked to provide personal references and verification of your employment.
Loan amount $500 – $15,000
APR 17.99% – 46.96%
Term 9 - 48 months
Interest Rate Type Fixed
Min. Credit Score 500
Fees No fees except $30 NSF fee
Origination Fee N/A
Turnaround Time Within 24 hours

Best for larger loan amounts: Alpine Credits Home Equity Loan

$10,000 – $500,000
Loan amount
10% – 22.99%
APR
Up to 60 months
Term
The Alpine Credits Home Equity Loan offers loans in amounts of $10,000 to $500,000 using the equity in your home as collateral. Get approved in as quick as 24 hours with any credit score.
  • Easy application
  • Quick approval
  • Fast deposits
  • Financing for self-employed
  • Bad credit doesn't matter
  • High interest rates
  • High fees
  • Uses your house as collateral
  • Not available in some provinces
  • No home equity lines of credit
  • No in-person service
Loan amount $10,000 – $500,000
APR 10% – 22.99%
Term Up to 60 months
Interest Rate Type Fixed
Min. Credit Score 300
Fees Between 5% - 8% of your APR will cover closing and admin fees.
Turnaround Time 24 hours

Best for repayment options: Cash Money Installment Loan

$500 – $10,000
Loan amount
Starting at 46.93%
APR
6 - 60 months
Term
With Cash Money, choose your repayment schedule according to your cash flow. You can make loan repayments weekly, fortnightly or in monthly installments. Make additional repayments at any time or pay off your loan in its entirety without any early repayment penalties or fees.
  • Convenient application process, with online, in-store or over-the-phone options.
  • Flexible loan terms (between 6 months and 5 years) and flexible repayment options (weekly, fortnightly and monthly).
  • No penalties or fees for early repayments, so you can make additional repayments without incurring charges.
  • Cash Money personal loans come with an interest rate of 46.93%, which is incredibly high.
  • Loan amount is only up to $10,000, so if you're looking for a higher maximum amount, you should look into other options.
  • Read the fine print in your contract because you may come across establishment fees, missed payment fees and default penalty fees.
Loan amount $500 – $10,000
APR Starting at 46.93%
Term 6 - 60 months
Interest Rate Type Fixed
Min. Credit Score 560
Fees Vary across provinces/territories
Turnaround Time in as little as 15 minutes with INTERAC e-Transfer® or on the spot at your nearest Cash Money store
Fairstone Unsecured Personal Loan
Finder Rating: ★★★★★ 3.9 / 5 Go to site Read review

Best for reputation: Fairstone Unsecured Personal Loan

$500 – $25,000
Loan amount
26.99% – 39.99%
APR
6 - 60 months
Term
With roots in Canada since 1923, Fairstone has over 230 branches coast to coast. With free no-obligation online quotes that don't affect your credit score, you could be approved for an unsecured personal loan up to $25,000. Fairstone also offers secured loans.
  • Multiple personal loan options, including secured and unsecured loans, installment loans and debt consolidation loans, depending on your needs.
  • You can borrow up to $25,000 with no collateral from Fairstone to cover unexpected expenses like a home or car repair, consolidate debt and more.
  • Fairstone offers bi-weekly, semi-monthly and monthly repayment plans. You can set up automatic payments to come out of your bank account on a day that's convenient for you.
  • There are no early repayment fees if you decide to pay off your unsecured personal loan before the loan term is up.
  • Interest rates can be as high as 39.99%, which makes these loans very expensive.
  • Extra fees may be charged for secured loans. These fees may include administration and insurance fees.
  • Application must be finalized in-branch for a secured loan.
Loan amount $500 – $25,000
APR 26.99% – 39.99%
Term 6 - 60 months
Interest Rate Type Fixed
Min. Credit Score 560
Fees No application, origination or prepayment fees
Origination Fee None
Turnaround Time Within 24 hours

Best for secured: Refresh Financial Credit Builder Loan

$1,250 – $10,000
Loan amount
19.99% – 19.99%
APR
3-5 years
Term
With Refresh, your funds are placed into a secured loan account that can be accessed once you pay off the loan. You must pay off the loan via automatic payments before you receive access to your funds and your loan repayments are reported to the 2 major credit bureaus to help you rebuild credit.
  • You can receive an interest rate of 19.99%.
  • Flexible borrowing amounts range from $1,250 to $10,000.
  • Borrowing terms range from 3 to 5 years.
  • No credit check required since these loans are for bad credit.
  • Assists you in rebuilding your credit.
  • The loan is secured, so you must pay for the funds before you gain access to them.
Loan amount $1,250 – $10,000
APR 19.99% – 19.99%
Term 3-5 years
Interest Rate Type Fixed
Min. Credit Score 300
Fees No administration or origination fees.
Origination Fee $0
Turnaround Time Same day

How we selected the best personal loans for bad credit

We reviewed several personal loan providers to come up with a list that best suits the needs of a borrower with bad credit. We included lenders with a credit requirement of 300 and up and considered factors like APR, loan amounts and terms available. We also took into account benefits that might appeal to bad-credit borrowers and lenders that offer funding based on factors other than credit.
No single personal loan will be the best choice for everyone, so compare your options before applying.

How to get the best bad credit loans in Canada

Getting a personal loan is still within reach even if you have bad credit. It can take a few more steps compared to borrowers with good credit, but here’s what you ought to keep in mind to make sure you get approved:

Eligibility requirements for bad credit personal loans

Before you proceed with any application process, make sure you check all of the boxes for your lender’s eligibility criteria to save you time and effort. Here are the eligibility requirements you may come across:

  • At least 18 years old or the age of majority in your province. Provide government-issued ID, such as your passport, driver’s licence or citizenship card.
  • Meet minimum income requirements. Some bad credit lenders require a minimum monthly income via employment while others are OK with government benefits. You’ll need to provide evidence of a steady income via bank statements or pay stubs.
  • Meet minimum credit score. Some lenders of bad credit loans may have a minimum threshold you’ll need to watch out for.
  • 3+ months employed. Some lenders don’t require any employment income at all, but some do. If they require employment income, they’ll typically ask that you’ve been employed for at least 3 months.
  • Active bank account. You’ll need an active bank account to receive your funds and to set up loan repayments.
  • Social Insurance Number, full mailing address and active phone number. Your SIN and address may be used to pull your credit score.

How much will my loan cost me?

How much your loan costs depends on key factors, such as the following:

  • Your loan amount
  • Your interest rate
  • Your loan repayment terms
  • Other charges and fees, including prepayment penalties, NSF fees and late or missed payment fees

Interest rate vs. APR

When searching for bad credit loans in Canada, you might see lenders using the terms “interest rate” and/or “APR”, which stands for “annual percentage rate”. This can cause confusion because the 2 terms are different.

  • Interest rate: This is the amount the lender charges you for borrowing money from them. It is a percentage of the amount you borrow, and it is usually an annual interest rate.
  • APR: This is the annual cost of a loan that includes the annual interest rate plus other fees you need to pay. Looking at the APR is useful because it gives you a broader view of the cost of the loan. Sometimes, a loan doesn’t have other fees. In this case, the APR is the same as the annual interest rate.

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6 tips to get a personal loan with a low credit score

  • Check your credit report. Request a free copy of your credit report from one of the major credit bureaus. Contact your creditor if you notice any mistakes.
  • Rebuild your credit. If you aren’t pressed for time, rebuild your credit before applying.
  • Shop around. If you can’t wait to rebuild your credit, take the time to prequalify with a few lenders to fund the best offer available to you.
  • Apply with a coapplicant. Adding a family member to your application who has good credit and a high income can significantly increase your chances of approval.
  • Opt for a secured loan. Lenders may be more willing to offer you personal loan – and at lower rates – if you back it with collateral.
  • Watch out for scams. Check review sites like the Better Business Bureau to verify the lender is legit. Also read over your loan agreement carefully so you know all the costs before you sign.

      How to improve your credit score

      Got some time? Consider taking steps to improve your credit score first to qualify for lower rates, higher amounts and an all-around better deal:

      • Stay on top of your bills. The most important factor in your credit score is your history of on-time repayments. Reach out to your lender if you think you might be late to see if they can adjust your term.
      • Pay off debts. Having a high debt load can decrease your credit score and also makes it harder to qualify for a loan when you apply. Focus on higher-interest debts to save the most on interest.
      • Keep your credit cards open. After you pay off your credit card debt, keep those cards open. 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. These low-cost small-dollar loans are designed to add a history of positive repayments to your credit report — often while helping you build an emergency fund.

      Credit builder loans

      Compare more personal loans for bad credit

      Name Product Interest Rate Loan Amount Loan Term Requirements Link
      Spring Financial Personal Loan
      Finder Rating: 4 / 5: ★★★★★
      Spring Financial Personal Loan
      17.99% - 46.96%
      $500 - $15,000
      9 - 48 months
      Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
      Go to site
      More Info
      If you're not eligible for an unsecured loan, you may be offered a credit builder loan to help improve your credit score.
      LoanConnect Personal Loan
      LoanConnect Personal Loan
      Secured from 1.90%, Unsecured from 5.75%-46.96%
      $500 - $50,000
      3 - 120 months
      Requirements: currents debts total less than 60% of income, min. credit score 300
      Go to site
      More Info
      Fill out one application with this broker and get pre-approved by different lenders in 5 minutes.
      Loans Canada Personal Loan
      Loans Canada Personal Loan
      Secured from 2.00%, Unsecured from 8.00% to 46.96%
      $300 - $50,000
      3 - 60 months
      Requirements: min. credit score 300
      Go to site
      More Info
      A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders.
      FlexMoney Personal Loan
      Finder Rating: 4 / 5: ★★★★★
      FlexMoney Personal Loan
      18.90% - 46.93%
      $500 - $15,000
      6 - 60 months
      Requirements: min. income $2,000/month, 3+ months employed, min. credit score 500
      Go to site
      More Info
      Apply in less than 10 minutes and if approved, receive financing in as little as 24 hours. Pay off your loan any time without penalty.
      Mogo Mini Line of Credit
      Mogo Mini Line of Credit
      47.42%
      $1,000 - $3,500
      No end dates
      Requirements: min. income $13,000/year, min. credit score 500
      Go to site
      More Info
      Apply online and get pre-approved in just 3 minutes. Non-employment income also accepted. Pay back loan at any time.
      Loan Away Personal Loan
      Finder Rating: 3.6 / 5: ★★★★★
      Loan Away Personal Loan
      19.90% - 45.90%
      $1,000 - $5,000
      6 - 36 months
      Requirements: min. credit score 300
      Go to site
      More Info
      A lender that approves loans in as little as 20 minutes. Get affordable monthly repayments with any credit score.
      Money Mart Installment Loan
      OFFER
      Money Mart Installment Loan
      29.90% - 46.90%
      $1,000 - $15,000
      12 - 60 months
      Requirements: min. credit score 300
      Go to site
      More Info
      Get a $100 eGift card when you apply online, connect your bank account using Express and make your first payment.
      LoanConnect Installment Loan
      LoanConnect Installment Loan
      32.00%
      $500 - $2,500
      3 - 6 months
      Requirements: current debt must total less than 60% of income, min. credit score 300
      Go to site
      More Info
      Get approved by different lenders in as little as 60 seconds with any credit score.
      Loans Canada Installment Loan
      Loans Canada Installment Loan
      8.00% to 46.96%
      $500 - $50,000
      3 - 60 months
      Requirements: min. credit score 300
      Go to site
      More Info
      A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders.
      Mogo Installment Loan
      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.
      Go to site
      More Info
      Get a free quote without affecting your credit score and get a loan on the same day. Track your credit score for free.
      SkyCap Installment Loan
      SkyCap Installment Loan
      12.99% - 39.99%
      $500 - $10,000
      9 - 36 months
      Requirements: min. income $1,200/month, stable employment, min. credit score 550
      Go to site
      More Info
      Apply in less than 5 minutes and if approved, receive financing in as little as 24 hours.
      Loan Away Installment Loan
      Loan Away Installment Loan
      19.90% - 45.90%
      $1,000 - $5,000
      6 - 36 months
      Requirements: min. credit score 300
      Go to site
      More Info
      A lender that approves loans in as little as 20 minutes. Get affordable monthly repayments with any credit score.
      Refresh Financial Credit Builder Loan
      Refresh Financial Credit Builder Loan
      19.99%
      $1,250 - $10,000
      3-5 years
      Requirements: min. credit score 300
      Go to site
      More Info
      No funds are provided by Refresh upfront. Instead, funds are placed into a secured account to be accessed later. Payments are reported to the credit bureaus, potentially impacting your credit score.
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      Bottom line

      If you have bad credit, you might only be eligible to apply with a handful of personal loan providers. But you aren’t totally out of options. You can compare more options for all credit types by reading our guide to personal loans.

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