$10,000 loans in Canada for bad & good credit

If you need to take out a $10,000 loan in Canada, you have plenty of options, including banks, credit unions and online lenders. How high or low your interest rate is—and whether you can get approved in the first place—depends on your financial situation. If you have good credit, you’ll have an easier time getting a $10,000 loan. On the flip side, if you have bad credit, the experience might be more challenging, but not impossible. There are options available to you as well.

Can I get $10,000 bad credit personal loans with guaranteed approval in Canada?

In Canada, legitimate lenders don’t guarantee approval. Your finances will always be evaluated before approval. Bad credit personal loans with guaranteed approval for $10,000 are scams, predatory or not actually guaranteed.

If you want to increase your chances of approval for a $10,000 loan with bad credit, consider legitimate direct lenders that specialize in nonprime loans, like Spring Financial, or loan search platforms that match you with suitable lenders based on your financial profile, like Loans Canada.

Tips to get approved for a $10,000 loan with bad credit

• Show positive cash flow. This means your bank account has more money going in (via income) than going out (via debts and expenses).
• Show stable income. You’re more likely to get approved if you have a stable career and steady full-time employment income.
• Put up collateral. Providing collateral reduces the lender’s risk. Bad credit loans with collateral are usually car title loans. Find out how car title loans work.

I need to borrow $10,000 urgently. How do I get a loan?

If you need a $10,000 loan urgently, you can apply to alternative lenders with an instant bank verification (IBV) process. This allows you to apply online without needing to send any documents, get a decision on the same day, and get your money on the same or next day.

Lenders with quick online processes include Spring Financial, easyfinancial and FlexMoney.

How do I get a $10,000 loan fast with no credit check?

The only realistic way to get a $10,000 loan quickly without a credit check is by applying to a car title loan lender. Your car must be less than 10 years old, in good condition, insured, fully paid off and worth more than $10,000.

If you’re looking for an unsecured $10,000 loan, a credit check is required. If you encounter a lender advertising $10,000 loans with no credit check or collateral required, be very careful because it could be a scam. Learn more about no credit check loans.

Types of lenders of $10,000 loans

You can take out a $10,000 personal loan in Canada from these types of lenders: banks, credit unions and online lenders.

• Banks

  Banks are a solid option for borrowers with strong credit scores. They usually offer some of the lowest interest rates, but the application process takes longer. If you want to take out a $10,000 personal loan from a bank, check your credit report and make bill payments and credit card payments on time to show that you’re a responsible borrower.

• Credit unions

  Credit unions offer personal loans with rates that are equal to or better than banks. However, you’ll need to sign up for a membership to get a loan (usually a nominal fee between $5 to $25). Applying for membership and waiting on approval and funding could take several business days, so this isn’t your best option if you’re looking for a fast $10,000 personal loan.

• Online lenders

  Online lenders are faster than banks and credit unions. It’s possible to fill out a loan application in minutes and receive money the same or next day. Online lenders might offer higher interest rates than banks, but some offer competitive rates to borrowers with strong financial profiles.

Types of $10,000 personal loans

Personal loans come in a variety of forms, from unsecured loans to secured loans, bad credit loans and cosigned loans. Here’s a look at your options to help you decide which type of $10,000 personal loan best suits your needs:

• Secured loans

  Secured personal loans require collateral (like home equity or a car) and generally come with lower interest rates than unsecured loans. If you default on your loan, the lender has the right to repossess and sell the collateral to get repayment. This assurance is why a secured $10K loan can come with a lower rate than an unsecured loan.

• Unsecured loans

  Unsecured personal loans don’t require collateral and may come with higher interest rates than secured loans. Unsecured loans are commonly offered by financial institutions and alternative lenders.

• Fixed-rate loans

  Fixed-rate personal loans have an interest rate that stays the same throughout your loan term (the length of time you have to pay back the loan). This gives you predictable monthly payments and allows you to budget accordingly. Banks, credit unions and online lenders all offer fixed-rate loans.

• Variable-rate loans

  With variable-rate personal loans, the interest rate changes with the Bank of Canada target rate. Banks and credit unions are the primary sources of variable-rate loans. This is not common among alternative lenders.

• Cosigned loans

  If you can’t qualify for a $10,000 loan on your own, ask a family member or close friend to cosign the loan with you. The catch? If you default on payments, your cosigner will be responsible for repayment, and both your credit scores will take a hit.

• Debt consolidation loans

  A $10,000 debt consolidation loan pays your existing debts (like credit cards, bank overdrafts, lines of credit and other unsecured loans), rolling your old debt repayments into one new fixed monthly repayment. The goal of a debt consolidation loan is to get better rates and terms than you currently have.

Can I get a $10,000 loan in Canada with…

No credit history?

It’s possible to get a loan with no credit history if you can demonstrate stable income (the higher the better) and little to no debts. Some lenders may only approve you for less than $10,000 though, in order to reduce their risk.

No job?

Lenders want to make sure you can repay your personal loan. If you need a loan while unemployed, be prepared to show proof that you still receive a steady stream of funds. Lender requirements vary, but some accept alternative forms of income like Employment Insurance (EI), government benefits, private pensions, CPP and OAS, investment earnings, along with other forms of non-employment income.

Instant approval?

Online lenders are a solid option if you’re looking for the fastest way to get approved for a $10,000 personal loan. Many online lenders offer instant pre-approval and approval within 24 hours. Learn more about getting fast, easy loans.

Steps to get a $10,000 loan

1. Compare loan providers. After finding lenders like the ones above that offer $10,000 loans in Canada, compare term lengths, interest rates, fees, requirements and reputation.
2. Get pre-approved. Find out what lenders are willing to give you by applying for loan pre-approval. This can usually be done in minutes, it doesn’t impact your credit score and you’re under no obligation to move forward.
3. Choose a lender and finish applying. Once you’ve selected a lender, submit a full application by providing additional personal and employment information. At this stage, lenders usually do a hard credit check, which temporarily dips your score.
4. Verify your information. Upload or email copies of government-issued ID, proof of income and proof of Canadian residency. Acceptable documents often include recent bank statements, utility bills, pay stubs and tax Notices of Assessment.
5. Sign your loan contract. It could take anywhere from a few hours to several days to get a decision, depending on the lender. If approved, review and digitally sign your loan documents.
6. Get funded. Many $10,000 loan providers send money the same day (or within 24 hours) via direct deposit or Interac e-transfer.

What are the eligibility requirements for a $10,000 loan?

Every lender has its own criteria, but generally you’ll need to meet the following requirements:

• Be at least the age of majority in your province or territory (18 or 19)
• Be a resident of Canada
• Have a Canadian bank account
• Receive regular income

$10,000 personal loan calculator

For reference, Statistics Canada reports that 9.32% is the average personal loan interest rate in Canada. Loan terms usually last up to 60 months, although some can be longer.

Let’s say you get a $10,000 loan with a 10% interest rate and a 5-year term. The monthly payment would be $212.47. After 5 years, you would’ve paid $2,748.23 in interest.

• How to use this calculator to determine the cost of a $10,000 personal loan

  1. Enter $10,000 under Loan amount
  2. Write the loan term in years (not months) under Loan terms
  3. Under Interest rate, enter the interest rate if there are no fees. Otherwise, enter the annual percentage rate (APR), which includes both interest and fees.
  4. Hit Calculate

What is the monthly payment on a $10,000 loan?

Repayments on a $10K loan depend on your loan term and interest rate. Longer terms will give you lower monthly payments, but you’ll pay more interest over the life of the loan.

Example: $10,000 loan over 3 and 5 years with different APRs

Your goal is to commit to a repayment plan you can afford. Don’t overstretch your monthly budget by dedicating too much of your income to loan payments. At the same time, don’t choose repayments that are so low, it takes longer to get out of debt.

How to compare $10,000 loans in Canada

Here’s a quick checklist of what to consider when getting a $10,000 loan.

• Interest rates. Some lenders offer pre-approval loan quotes without impacting your credit score.
• Loan term. Term lengths typically range from 3 – 60 months. A longer term will lower your monthly payments, but you’ll pay more interest over the life of the loan.
• Fees. Ask about NSF fees, late payment fees, prepayment penalties and origination fees (loan processing charges). Legitimate lenders won’t ask you to pay any fees before getting a loan, so avoid lenders that ask you to pay an upfront fee.
• Turnaround time. The time it takes to get your loan approved and for it to arrive in your bank account will differ among lenders. Online lenders can fund loans on the same day or the next day, while traditional lenders can take between one and three weeks. If your need for a $10,000 loan is urgent, consider emergency loans.
• Eligibility requirements. Which lenders operate in your province or territory? Loan providers often list their criteria online, such as minimum income and credit score.
• Loan insurance. Lenders might offer insurance to cover your repayments in the event of a death, job loss or illness. This is legal, but the lender should never require or pressure you into getting it. Loan insurance adds to the cost of your loan and, by law, should be optional.
• No pressure. Avoid lenders that pressure you into signing a contract. Even if a lender doesn’t pressure you, never rush into a loan agreement without first understanding the terms of your loan, including the APR, the repayment schedule and how much interest and fees you will pay overall.

What credit score do I need for a $10,000 personal loan?

To get approved for a $10,000 loan, you typically need a good credit score above 660 or a fair credit score that’s close to 660. If you have bad credit below 560, it might be possible to get a $10,000 loan from an alternative lender. If you don’t qualify to borrow the full amount, the lender might approve you for less.

What can I use a $10,000 loan for?

Lenders don’t usually restrict how you can use your loan. Flexibility is one of the reasons why personal loans are such a popular financing option. A $10,000 personal loan can be used for:

Should I get a $10,000 debt consolidation loan?

If you have good to excellent credit and high-interest debts like credit cards, a debt consolidation loan could simplify your monthly payments, reduce your interest and help you get out of debt faster.

If you have bad credit, you won’t get approved for a competitive rate. A debt consolidation loan is worthwhile if it reduces the cost of your debt or makes your monthly payments more manageable.

1 in 5 Canadians planned to get a loan in Q2 2023

Data from the Finder: Consumer Sentiment Survey Q2 2023, shows that 20% of respondents planned to take out a personal loan between April and June of 2023. Turns out the majority of Canadians looking for financing planned to borrow less than $15,000.

Frequently asked questions

• How can I get a $10,000 loan fast?

  The fastest way to get a $10,000 loan is to apply through online lenders like Spring Financial, Loans Canada and easyfinancial.

• Can I get a $10,000 loan without documents?

  It's possible to get a $10,000 loan with little to no documents if you apply to a lender that does instant bank verification. This doesn't mean you don't need to present any proof of income—it simply means you don't need to mail, fax, email or upload any documents. Instead, you'll log in to an encrypted portal to give the lender view-only access to your bank statements.

• How do I guarantee approval on a $10,000 loan?

  You can't guarantee approval on a $10,000 loan, but you can boost your chances by:

  • Having stable full-time employment income
  • Having a credit score above 660
  • Keeping monthly debt payments under 40% of your monthly income

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

Written by

Leanne Escobal

Publisher

Leanne Escobal is a publisher for Finder. She has spent over 12 years working with financial products and services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University. See full bio

Co-written by

Carmen Chai

Writer

Carmen Chai is a freelance writer at Finder, specializing in financial products. She is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. She has reported on personal finance, mortgages, and banking products for nearly a decade. See full bio