Loans During or After a Consumer Proposal

A consumer proposal can help you get out of debt and get your finances back on track. But it also hurts your credit score, so if you find yourself short on funds, you might find it difficult to qualify for a loan.

The good news is that it is possible to qualify for loans while in a consumer proposal or after, if you know where to look.

Where can I get a loan during or after a consumer proposal?

While you won’t qualify for a loan from a traditional lender, you may be able to find funding from online lenders, payday lenders and cash advance apps that work with bad-credit borrowers.

That said, it’s not recommended that you borrow money—especially through high-interest loans—while you’re in a consumer proposal or soon after completing it. Instead, first try to identify and fix the financial issues that led you to enter a consumer proposal in the first place. That’s where expert advice from a credit counsellor can help.

However, if you’ve decided a loan is necessary for your situation, explore your options below.

Compare personal loans if you’re in a consumer proposal

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Finder Score	APR Range	Loan Amount	Loan Term	Broker Compliance	Key Features
Promoted Finder score 8.8 Great LoanConnect Personal Loan	Finder score 8.8 Great	8.99% - 35.00%	$500 - $60,000	3 - 120 months	Note: LoanConnect is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.	Key features: Loan search platform for all credit scores	Go to site View details Compare product selection Compare	loading
Promoted Finder score 8.6 Great Loans Canada Personal Loan	Finder score 8.6 Great	8.99% - 35.00%	$500 - $50,000	4 - 60 months	Note: Loans Canada is a loan search platform. Apply once to get matched with lenders based on your credit and borrowing requirements.	Key features: Loan search platform with the largest lender network	Go to site View details Compare product selection Compare	loading
Promoted Finder score 8.5 Great Fat Cat Loans Personal Loan	Finder score 8.5 Great	6.99% - 35.99%	$300 - $50,000	3 - 84 months	Note: Fat Cat is a loan search platform. Apply once to get matched with lenders based on your credit and borrowing requirements.	Key features: Loan search platform for all credit	Go to site View details Compare product selection Compare	loading

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Compare other products

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How we picked these

Finder Score for personal loans

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 40+ personal loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

Read the full methodology

Compare cash advance apps

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Finder Score	Costs	Loan Amount	Loan Term	Rebate	Key Features
Finder score 8.7 Great KOHO Cover	Finder score 8.7 Great	0% + monthly fee from $2	$20 - $250	Flexible	Key features: Instant, no credit check or income required	Go to siteView details Compare product selection Compare	loading
Finder score 8.8 Great Bree Early Pay	Finder score 8.8 Great	0%	$20 - $500	Next pay cycle	Key features: Instant e-transfers, 24/7, no credit check	Go to siteView details Compare product selection Compare	loading
Finder score 9.3 Excellent Nyble Credit Line	Finder score 9.3 Excellent	0%	$30 - $250	31 days, extendable	Use code CFIND1J to get 500 extra points and a $5 higher approval. T&Cs apply.	Key features: Instant e-transfers, 24/7, no credit check	Go to siteView details Compare product selection Compare	loading

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Finder Score for cash advance apps

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 5+ cash advance apps are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

Read the full methodology

Compare payday loans (last resort only)

Payday loans are one of the easiest loans to get with low credit, but it’s best to avoid them, because they could worsen your financial situation. We show licensed lenders below as last resort options.

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Cost	Loan Amount	Loan Term	Serviced Provinces	Key Features
Wagepay Wage Advance Loan	$14 per $100 borrowed	$100 - $1,500	Up to 62 days	BC and ON	Key features: 24/7 approval and e-Transfer, no credit check	Go to siteView details Compare product selection Compare	loading
iCash Payday Loan	$14 per $100 borrowed	$100 - $1,500	7 - 62 days	AB, BC, MB, NB, NS, ON, PEI	Key features: 24/7 instant approval and e-Transfer, accepts bad credit	Go to siteView details Compare product selection Compare	loading
Venue Financial Payday Loans	$14 per $100 borrowed	$50 - $1,500	Up to 62 days	BC	Key features: Instant loans, no credit check	View details Compare product selection Compare	loading
Cashco Financial Payday Loans	$14 per $100 borrowed	$50 - $1,500	Up to 62 days	AB, BC and SK	Key features: Instant approval, no credit check	View details Compare product selection Compare	loading

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Can you get installment loans while in a consumer proposal?

Many lenders don’t offer loans for people in a consumer proposal, but some may be willing to work with you. Some online and alternative lenders specialize in loans for people with bad credit and offer fast access to funds. These lenders will look beyond your credit report and consider your income and employment situation when deciding whether to approve your loan application.

But there are a few key things to watch out for:

• High rates. The lender will likely view you as a high-risk borrower due to your poor credit history, so your loan will have a high interest rate. Learn more about the latest personal loan rates.
• Fees. Check the fine print for any fees that apply to your loan, such as origination, late payment and NSF fees.
• Income and employment. To get approved, you’ll typically need to be steadily employed and earn sufficient income to afford loan repayments as well as your consumer proposal obligations.
• Scams. Watch out for sketchy lenders. Research the lender thoroughly to make sure it’s a reputable provider.

Can you sign up for a cash advance app while in a consumer proposal?

Yes, it’s possible to get a cash advance during or after a consumer proposal. Cash advance apps do not check your credit and they offer small loan amounts, even smaller than payday loans, making them less risky for lenders. Cash advance apps typically require recurring income, but in KOHO’s case, there are no job or income requirements to worry about.

Can you get a payday loan while in a consumer proposal?

Yes, it’s possible to get a payday loan while in a consumer proposal. Payday lenders have lenient eligibility criteria and may even skip credit checks. So, if you have sufficient income to cover your loan repayment, you can qualify for a fast payday loan.

Loans of up to $1,500 are available, and the money you borrow will usually have to be repaid by your next payday. But there are two downsides:

• Payday loans are very expensive. Depending on where you live, the lender can charge you $14 for every $100 borrowed.
• Short repayment periods make it difficult to spread out loan repayments, so you could end up in even more financial trouble.

That’s why you should consider a range of payday loan alternatives before applying.

Can you get a student loan while in a consumer proposal?

You may be able to get a government student loan while in a consumer proposal. However, if your consumer proposal already includes government student loan debt, you may be denied further funding.

Private lenders may not approve you for a student loan unless you can prove you receive a stable, recurring income.

Can you get a car loan while in a consumer proposal?

Yes, you may be able to get a car loan while in a consumer proposal. While the negative impact a proposal has on your credit score will once again limit your financing options, you can still get approved for funding.

Because the vehicle you buy with the loan is also used as collateral for the loan, the lender’s risk is reduced. If you default on the loan, the lender can repossess and sell the vehicle to recover its losses, so this helps your chances of getting approved. But you’ll need to settle for a higher interest rate than you’d get with good or excellent credit. Bad credit car loan interest rates are typically .

Can you get a loan to pay off a consumer proposal?

It’s generally not recommended and often difficult to get a loan to pay off a consumer proposal. A consumer proposal lets you repay your debt interest-free, but taking out a loan to pay it off means you’ll start paying interest and possibly extra fees. Since lenders view borrowers in a consumer proposal as high risk, these loans also tend to come with very high interest rates.

How long after a consumer proposal can you get a loan?

A consumer proposal stays on your credit report for three years after you finish paying it off or six years after you sign the proposal—whichever is sooner. You may still be able to qualify for financing from alternative lenders during this period, but you typically won’t meet the strict eligibility requirements of banks and other traditional lenders.

So, rather than asking, “How long after a consumer proposal can you get a loan?” the question should be, “How long should I wait after a consumer proposal before getting a loan?” While there are lenders that will approve you for a loan right now, you’ll only be able to qualify for high interest rates. Taking on a high-interest loan could see you end up in the same sort of financial trouble that led you to file a consumer proposal in the first place.

Rather than taking out a loan now, take steps to improve your credit score if possible and consider setting up a high-interest savings account. Once you’ve rebuilt your credit, you’ll be in a stronger financial position and might qualify for a lower interest rate on future loans.

Bottom line

There are financing options available if you’re searching for loans while in a consumer proposal, but taking on more high-interest debt is not recommended. So if you can avoid taking out a loan—and access free credit counselling for tips on getting your finances back on track—you’ll be in a good position in the long run.

Frequently asked questions

• Can I get a loan while in a consumer proposal?

  Yes, it's possible to get a loan while in a consumer proposal. While you won't qualify for funding with traditional lenders, some online and alternative lenders that work with bad-credit borrowers may be willing to offer you a loan. However, due to the negative impact of a consumer proposal, any loan you get will typically have a high interest rate.

• Can I get a credit card when I am in a consumer proposal?

  You may be able to qualify for a secured credit card while in a consumer proposal. These cards require you to provide a deposit to get approved, and using your card will help rebuild your credit score.

• What is the best way to build credit while in a consumer proposal?

  A secured credit card can help you rebuild your credit while in a consumer proposal. These cards require you to pay a deposit to qualify for credit, and your credit limit is usually the same as the amount you deposit. You can use the card to pay for purchases and make on-time payments to help improve your credit.

• Can I get a mortgage after I file a consumer proposal?

  It'll be very difficult to get a mortgage after you file a consumer proposal if your consumer proposal is still on your credit report. A mortgage is a large loan, and it's very unlikely that lenders—even private alternative lenders—will take on such a high risk.

• How long will it take me to recover from a consumer proposal?

  It can take many years to recover from a consumer proposal, depending on how long it takes you to pay it off. The proposal will remain on your credit report for three years after you pay it off or six years after signing the proposal (whichever is sooner).

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.

Written by

Tim Falk

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

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Tim has written 508 Finder guides across topics including:

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