Can I get a personal loan with no credit score?
You can, though your options are much more limited. You might be able to qualify if you apply for the loan with a cosigner. Or consider borrowing from friends and family.
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Your credit score is one of the most important factors in a personal loan application. Lenders often won’t consider you if you don’t meet their minimum credit score requirement. However, it’s only one of several factors they look at when determining your eligibility. Learn more below about what credit score is needed for a personal loan in Canada.
Minimum credit score for personal loans varies from lender to lender. Major financial institutions like banks and credit unions will want to see good to excellent credit (above 660), while online lenders can approve personal loans even if you have fair credit (560 to 659) or bad credit (below 560).
Below is a breakdown of different lenders with their minimum credit score requirements for personal loans.
Lender | Minimum credit score | Other requirements and lender type | |
---|---|---|---|
![]() | 500 | Min. income of $1,800, min. credit score of 500, 3+ months employed Lender type: Online lender | Go to siteRead review |
![]() | 500 | - At least 20 years old - Proof of monthly income for the past 3 months - Income of at least $2,000 per month - Valid Canadian ID to confirm your identity, address and phone number - Valid email address and phone number Lender type: Online lender | Read review |
![]() | 300 | Canadian citizen or permanent resident, age of majority in your province of residence, current debts must total less than 60% of your income Lender type: Online broker | Go to siteRead review |
![]() | 500 | Canadian citizen or resident, age of majority in your province of residence, min. net annual income of $13,000+, have a credit report, not currently in bankruptcy or insolvency, bank statement showing last payroll deposited and the last 30-days activity, valid ID showing home address Lender type: Online lender | Go to site |
![]() | 300 | Canadian resident, age of majority in your province of residence Lender type: Online broker | Go to siteRead review |
![]() (Unsecured personal loan) | 525 | - Be a citizen or resident of Canada (excluding Nunavut) - Be the age of majority in your province or territory - Provide personal identification, secondary ID, proof of income, housing information and mortgage verification - Have an established credit history - Able to make monthly repayments on your loan Lender type: Online lender | |
![]() | 650 | - 18 or over - Regular income of $1,200 per month - Hold a Canadian bank account - Have been a Canadian resident at least 3 years Lender type: Peer-to-peer lending platform | Go to siteRead review |
Major banks | Not specified. Typically requires a good-excellent score >660. | – Age of majority in your province – Be a Canadian resident – Have a valid bank account – Haven’t declared bankruptcy in the last several years – Have not been declined credit in the last several months | Bank loans |
You would need to have excellent credit to get the lowest rates and largest loan amounts that a personal loan lender offers. However, you can often get a favourable deal even if your credit score is considered good.
Below is a breakdown of credit score ranges according to credit bureau Equifax.
How to get a low interest loan
Although credit score plays a key role in whether or not you’ll get approved for a personal loan and how high or low your interest rate will be, it is just one of several factors that lenders examine. For example, you could have a decent credit score, but if the level of your monthly debt payments relative to your monthly income is high, lenders may hesitate to approve you.
Below are some important factors that lenders look at.
Understanding what credit score is needed for a personal loan won’t help you know if you’re eligible unless you know your credit score. You can check your credit score using one of the following methods or services.
The score you receive is usually based on a soft credit inquiry, which doesn’t affect your credit rating but may not be as accurate as a hard credit pull. When lenders evaluate a loan application, they’ll do a hard pull on your credit, which will temporarily decrease your credit score.
There are several steps you can take to potentially qualify for better rates by improving your credit score before you apply for a personal loan:
You can, though your options are much more limited. You might be able to qualify if you apply for the loan with a cosigner. Or consider borrowing from friends and family.
Lenders don’t usually put restrictions on how you can use your personal loan funds. That flexibility is one of the reasons why a personal loan is such an appealing financing option. That being said, some lenders may not be willing to lend you money for certain use cases.
Our research found that 41.3% of Canadians took out personal loans to buy a car, 19.5% to finance a mortgage, 15.8% to consolidate debt and 13.2% to finance home renovations. Here are some common ways people tend to use personal loans:
Overall representative example
If you borrowed $20,000 over a 5-year term at 9.50% APR (variable), you would make 60 monthly payments of $420.04 and pay $25,202.23 overall, which includes interest of $5,202.23. The overall cost for comparison is 9.50% APR representative.
You can get a personal loan with almost any credit score — or even no credit score. But you have more options if you have good to excellent credit. If you aren’t in a rush, consider taking the time to improve your credit rating so you can get an even more favorable deal.
Want to know more about how it all works? Check out our guide to personal loans.
Find out how lenders use instant bank verification to validate your personal information, and learn if it’s safe.
It all comes down to whether you make repayments on time. Find out exactly how personal loans can impact your credit score in our helpful guide.
Find out how a guarantor loan can help you qualify for the money you need.
Wondering how to get out of a cosigned loan? Learn how plus learn more about how you can protect yourself and your finances.
Many lenders accept a personal loan with a cosigner because it reduces their risk. In turn, cosigners can help the borrower secure a lower interest rate and better financing conditions.
Thinking about cosigning a loan? Find out what you need to know before you sign anything.
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Find out how long you’ll have to wait to get your personal loan funds.