Personal loans for bad credit are typically meant for borrowers who have a credit score of 599 or less. While you may find yourself paying higher interest than other borrowers, if you have the ability to repay, there are lenders that can work with you.
Here are some loan providers that you can apply to with a credit score below 650. Note that the maximum loan amount is based on the lender’s maximum amount and will vary based on your province of residence. Check the websites of any lenders you’re interested in to confirm they operate in your province.
Depending on the lender, you may be able to complete an application online, over the phone or in-person at a physical branch. The time it takes for a lender to finalize your loan and get you funds will vary significantly. Some may be able to finish everything the same day you apply, while others may take a week or two. Check with the lender to get an idea of how long the entire process takes before applying.
While it varies by lender, you’ll typically be asked to provide the following:
While you might not be able to borrow from a large bank when you have bad credit, you still have several options to choose from.
Interest rates on a bad-credit personal loan will vary by lender, though you could see rates as high as 55% APR, or over 400% APR if you opt for a payday loan. APRs are higher when you have poor credit since you pose more of a risk to the lender.
While a low credit score won’t necessarily prevent you from finding a loan, your score will impact how much you can borrow and the interest rate you receive. Lenders view lower credit scores as a sign that a borrower is more likely to miss a payment or default on their loan.
Lenders that extend loans to borrowers with bad credit tend to look at your income, current debts and ability to repay instead of your credit score.
These tips won’t guarantee you’ll be approved for a loan, but they can help increase your chances when you have bad credit.
The easiest way to know your credit score is to check your credit report. You can access your credit report from either of the two main credit bureaus (TransUnion and Equifax) or from reputable online sites like Credit Verify or Credit Karma. You can also read our guide to credit scores to learn more about the ways you can tell if your credit is below average.
Applying for a bad credit personal loan? Here are a few things to avoid:
Bad credit isn’t the end of the line when it comes to taking out a personal loan. Credit unions, local banks and online lenders all offer options, though how much you’re able to borrow might be limited and you’ll likely face higher interest rates and fees, since you pose more of a risk to the lender.
Learn more about how it all works with our guide to personal loans.
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