Dive deeper: Best bad credit loans in Canada
Finder makes money from featured partners, but editorial opinions are our own.
Get a $5,000 loan
Compare lenders that offer $5,000 personal loans in Canada for good or bad credit.
1 - 7 of 7
If you need to get a $5,000 loan in Canada, whether you have bad credit or good credit, you have options. Bad credit borrowers will have the best chances of approval by applying with online lenders offering $5,000 loans for credit scores under 600, but will have to pay high interest rates. Borrowers with good to excellent credit (660+) can apply with banks and traditional lenders that typically offer lower rates.
Jump to…
Where can I apply for a $5,000 loan?
Here’s where you can get $5,000 personal loans for good or bad credit.
Types of $5,000 personal loans
Qualification requirements and terms vary based on the type of $5,000 personal loan you get.
$5,000 loans for bad credit in Canada
Worried you won’t qualify for a loan? There are $5,000 loans for bad credit in Canada. Some online lenders specialize in bad credit loans, focusing on income rather than credit scores. Be ready to provide proof of income, like recent pay stubs or bank statements, to show that you can handle payments for a $5,000 loan.
Get a $5,000 loan with bad credit in Canada
If you need $5,000 now with bad credit, compare lenders that work with poor credit borrowers.
| Personal loan provider | Loan features | Eligibility requirements | |
|---|---|---|---|
 |
| Min. income of $2,000, min. credit score of 550, 3+ months employed | |
 |
| Min. credit score of 300, have a steady source of income | |
 |
| Min. credit score of 300, no min. annual income |
Can I get bad credit personal loans with guaranteed approval for $5,000?
Be wary of lenders offering guaranteed approval for $5,000 bad credit personal loans in Canada. Trustworthy lenders won’t guarantee approval without reviewing your financial situation first. Consider applying to online lenders that specialize in bad credit loans.
Related: Guaranteed approval loans guide
Can I get $5,000 loans for bad credit with instant approval in Canada?
Need $5,000 now? Some online lenders offer $5,000 loans with instant approval decisions even if you have bad credit. An instant decision provides a quote, not guaranteed approval. If you proceed, your finances will be more thoroughly reviewed. If everything looks good, you’ll be approved.
Can I get a $5,000 loan with no credit check in Canada?
Credit checks are pretty standard when you get a $5,000 loan in Canada. Make sure lenders that offer $5,000 loans with no credit check are legitimate. No-credit-check lenders assume you have a bad credit history, so be prepared for steep interest rates.
Get a quote before you apply to bad credit lenders. Mogo and Fairstone offer pre-approval quotes that don’t affect your credit score but can give you an idea of the rates and terms you qualify for. Learn more about no credit check loans.
Dive deeper: No credit check loans in Canada
What you’ll need to get a $5,000 loan for bad credit
- Government-issued ID like your driver’s license or passport.
- Bank statements from the last 60-90 days. Submit statements by email, uploading documents to your lender’s website or by instant bank verification.
- Pay stubs from the last two to three months.
- Proof of address such as a utility bill, credit card statement or internet bill.
- Bank account details, including the institution number, transit number and account number for depositing your loan and automatically withdrawing repayments.
Tips for getting $5,000 loans with bad credit in Canada
It’s tough to get approved for a $5,000 loan with bad credit, but following these tips will help.
Get a secured loan
Offering collateral lowers the risk for lenders and increases your odds of getting approved for a $5,000 loan with bad credit.
Apply with a cosigner
Another good way to lower your risk if by getting a trusted friend or family member who has good credit to cosign your loan. While this can increase the chance of getting approved, your cosigner will be on the hook for the loan if you default and their credit score will be affected.
Only borrow what you need
It might be tempting to apply for more than you need in case unexpected expenses arise or to treat yourself to a little something extra. But the more you apply for, the stricter the approval requirements will be. Minimize your loan amount to maximize your chance of getting approved.
Get a free copy of your credit report
Every year, you can order a free credit report from Equifax or TransUnion. Customers of RBC, Borrowell, Credit Karma and Loans Canada get their scores for free. Inaccuracies can hurt your credit score, so notify the bureau right away if you notice errors.
Before you apply, pay down existing debt to improve your credit score and make repayments less burdensome. This may not be an option if you need $5,000 now. But if you can wait a few months, a higher score could land you better terms.
Compare your options
Because $5,000 loans for bad credit come with high interest rates, compare lenders to get the lowest personal loan interest rate and fees. Some lenders like Mogo and Fairstone offer personal loan pre-approval, which can help narrow down your options without impacting your credit.
Check the eligibility requirements
Each lender has their own eligibility requirements for $5,000 bad credit loans, including minimum income and credit score requirements. Some lenders are more flexible than others.
Ask about fees and penalties
When researching your $5,000 loan options, look into costs besides the interest rate:
- Non-sufficient funds (NSF) fee. Missed payments may incur an NSF fee from your bank and your lender. Personal loan NSF fees are typically between $25 and $50.
- Late payment fee. Some lenders charge a percentage or flat fee for late payments.
- Origination fee. Not all lenders charge this loan processing fee. It may be deducted from your loan amount or added to it.
- Early repayment penalty. Many lenders don’t charge a fee for paying off an unsecured personal loan early, and doing so will reduce the total interest you pay.
- Loan insurance. Lenders may offer optional insurance on $5,000 loans for bad credit in case you default. You’ll pay extra, but it can be helpful in financially uncertain times.
- Credit optimizer service. Lenders might also offer optional enrollment in a credit optimizer program that lets you view your credit score and get personalized recommendations for how to improve it. This will increase your monthly payment, and you can opt out at any time.
Ensure you can afford $5,000 loan repayments
$5,000 personal loans for bad credit typically have loan terms from 3 - 60 months. The shorter your loan term, the less interest you’ll pay overall but the higher your payments will be. Aim for the shortest term with payments that fit within your budget.
Avoid predatory lenders
People in bad financial situations are often targeted by predatory lenders. Avoid lenders that pressure you into signing quickly and don’t clearly explain the loan terms, especially fees and your overall cost.
Looking ahead: Will loans for bad credit become more affordable in 2024?
In response to concerns over predatory lending practices, the Canadian federal government will be lowering the criminal interest rate — the maximum allowable APR — from 47% to 35% as of January 1, 2025. Bad credit borrowers are particularly vulnerable to entering a cycle of debt by getting high interest loans they cannot afford to repay.
If the maximum rate lowers, you could save on interest. However, lenders might become more strict, making it harder to get a personal loan if you have bad credit. Time will tell if the new rate protects borrowers from exploitation or prevents them from getting much needed funds. We’ll be watching as the situation unfolds.
$5,000 loans for good credit in Canada
Do you have good or excellent credit (above 660)? You might qualify for $5,000 personal loans with low interest rates and favourable terms.
Banks and credit unions
One advantage of getting a $5,000 personal loan from a bank or credit union is peace of mind, because you’re working with an established, reputable lender. It’s also convenient to manage your various financial accounts and products through a single, online bank portal.
Traditional lenders like banks and credit unions offer low rates for strong-credit borrowers. For example, ATB’s interest rates range around 7.20% - 14.20%.
Online loan search platforms
Broaden your search for the best $5,000 personal loan with online loan search platforms like Loans Canada and LoanConnect. Loan search platforms connect your financial profile to a network of lenders, making it easy to compare rates and terms from multiple providers. It’s free to apply, and you’re under no obligation to accept any offers. But keep in mind that your information will be shared with third-party lenders.
Related: Best personal loans in Canada
Credit score requirements for $5,000 loans in Canada
In Canada, credit scores range from poor (300) to good (around 660-759) to excellent (around 760-900). The credit score you need for a $5,000 loan in Canada varies between lenders. If you need $5,000 loans with bad credit in Canada, some online lenders cater to bad-credit borrowers. Banks and credit unions typically look for applicants with good credit.
Compare $5,000 loans for bad credit
I need $5,000 now. Where can I get fast loans in Canada?
If you have good credit and need $5,000 now, try your local bank or credit union. If you’re already a customer, your loan application might be expedited. Plus, you’ll qualify for good rates and terms. You can also try online lenders, like goPeer, that specialize in loans for good credit borrowers.
If you need $5,000 now with bad credit, apply to online lenders that specialize in loans for bad credit borrowers. Some lenders, like Spring Financial, offer approval and funding within 24 hours.
Also look for lenders that offer instant bank verification, a quick digital financial assessment that replaces much of the manual effort of reviewing your application. SkyCap Financial and Spring Financial offer quick verification.
Dive deeper: Fast personal loans in Canada
How much would a $5,000 loan cost?
How much does a $5,000 loan cost? That depends on factors like the interest rate, fees and loan term. Interest rates on personal loans in Canada tend to range between 6.99% and 46.96% with terms ranging from 3 - 60 months.
How much is a monthly payment on a 5000 loan?
Here’s a breakdown of the monthly payments for a $5,000 loan over 3 years and 5 years with 6%, 10%, 15%, 18% and 25% interest. This is just for illustrative purposes.
| Interest rate | Monthly payment for 3 year loan term | Total cost after 3 years | Monthly payment for 5 year loan term | Total cost after 5 years |
|---|---|---|---|---|
| 6% | $152.11 | $5,475.95 | $96.66 | $5,799.84 |
| 10% | $161.34 | $5,808.09 | $106.24 | $6,374.11 |
| 15% | $173.33 | $6,239.76 | $118.95 | $7,136.98 |
| 18% | $180.76 | $6,507.43 | $126.97 | $7,618.03 |
| 25% | $198.80 | $7,156.77 | $146.76 | $8,805.40 |
Figure out your monthly payments using our Personal Loan Monthly Payment Calculator.
Personal loan monthly payment calculator
Calculate your monthly payments on a $5,000 loan|
Your loan
|
|---|
| Loan amount |
|
$
|
| Loan terms (in years) |
|
|
| Interest rate |
|
%
|
Fill out the form and click on “Calculate” to see your estimated monthly payment.
or
Compare personal loans
You can expect to pay back
$
per month
Based on your loan terms
| Principal | $ |
|---|---|
| Interest | $ |
| Total Cost | $ |
How to apply for a $5,000 loan online
Follow these simple steps to apply for a $5,000 loan online:
- Compare loan options. Find lenders that offer the loan type you need (secured, unsecured, personal loan, payday loan, etc.) with rates, terms, and payments you can afford.
- Fill out the application. After verifying that you meet the minimum requirements, apply online. Provide personal and financial details, valid photo ID, proof of income and proof of residency.
- Submit your application and wait for a decision. Some lenders offer conditional pre-approval without a credit check. To officially complete the application process, you’ll need to consent to a hard credit check. Wait to find out if your application has been accepted or denied.
- If approved, receive your funds. Sign your loan documents and get funds by Interac e-Transfer, wire transfer or any other method your lender offers. Funds arrive the same or next business day.
How to find the best $5,000 loan in Canada
- Annual percentage rate (APR). APR is the interest rate and fees of your $5,000 loan. It gives a clearer picture of the cost than the interest rate alone, helping you compare offers.
- Loan amounts and loan terms. Most lenders offer $5,000 loans. Make sure your top choices offer the repayment amount and time period you need.
- Repayment flexibility. Many lenders let you pay off your loan ahead of schedule without penalty, but some may charge an early repayment fee to make up for lost interest revenue.
- Grace period. Some lenders offer a “grace period” that lets you skip, for example, one payment per year without penalty. Peer-to-peer lender goPeer lets you pay 15 days after your monthly due date without any extra fee or impact on your credit score.
- Reputation of the lender. Check out customer reviews or the Finder: Personal Loans Customer Satisfaction Awards to learn more about Canadian lenders. Take note of any consistent records of If there’s a strong pattern of complaints, consider applying elsewhere.
2023 personal loan statistics
Recent data from the Finder: Consumer Sentiment Survey Q2, shows that 20% of respondents planned to take out a personal loan within the next three months.
How much Canadians planned to borrow
While the majority of respondents (24%) planned to borrow $5,000-$9,999, within the next three months, 22% planned to borrow $10,000-$14,999, while 21% planned to borrow $1,000-$4,999.
Bottom line
In Canada, many lenders offer $5,000 loans for bad credit and good credit. The total cost of a $5,000 loan depends on your financial profile, credit history and the lender you choose. Improve your credit score to increase your chance of getting approved with favourable terms.
FAQs about getting a $5,000 loan
More resources on Finder
More guides on Finder
-
Loans Like CreditNinja
Check out fees and features of these personal loan alternatives to CreditNinja in Canada.
-
Lines of credit for bad credit in Canada
How to access flexible financing with a line of credit in Canada, even if you have bad credit.
-
Best personal loans in BC
Compare personal loans in BC. Apply online and borrow up to $50,000.
-
10 best debt consolidation loans in Canada
Browse the best debt consolidation loans in Canada for bad to excellent credit.
-
Get 1 hour loans with no employment verification in Canada
Don’t have a job but need a loan? Find out how to get a loan that doesn’t require job verification.
-
Line of credit interest rates in Canada
Where to find the best interest rates for secured and unsecured lines of credit.
-
Pet care loans with fast funding
Read on and find out how to get a loan to take care of your sick pet.
-
E-Transfer loans you can get while on social assistance
Browse e-transfer loans that accept social assistance in Canada. Apply online and get fast approval.
-
6 fast and easy loans in Canada: Apply online
Here are 6 easy loans to get in Canada, but watch out for high interest rates.
-
Get a $1,500 loan
Get a $1,500 loan as either an installment or payday loan. Learn about the pros and cons of each, plus compare lenders and apply today.