If you have bad credit, there’s a chance of not qualifying for a loan from a traditional lender like a bank. But the good news is that plenty of alternative lenders offer bad credit loans in Ontario. These lenders focus less on your credit score and more on your overall financial situation to determine your ability to repay a loan.
Keep reading to find out where you can apply.
| Lender | Cost | Loan amount | Loan term | |
|---|---|---|---|---|
Cash Advance |
0% + monthly fee from $2 | $20 – $250 | Flexible | |
Exclusive
+ Get a $75 digital Visa Card when you open and fund a KOHO account online through Finder. Become a Finder Member in seconds for free to claim your reward. Offer ends May 2, 2026. T&Cs apply. |
||||
Personal Loan |
9.99% - 34.95% | $500 - $35,000 | 6 - 84 months | Go to site |
Personal Loan |
8.99% - 35.00% | $500 – $60,000 | 3 - 120 months | Go to site |
Personal Loan |
9.99% - 35.00% | $500 – $35,000 | 6 - 60 months | Go to site |
Credit Line |
0% | $30 – $250 | 31 days, extendable | Go to site |
|
Early Pay |
0% | $20 - $750 | Next pay cycle (90 days max) | Go to site |
| Licensed payday lender | Interest rate | Loan amount | Loan term | |
|---|---|---|---|---|
Payday Loan |
$14 per $100 borrowed | $100 - $1,500 | Up to 62 days | Go to site |
It depends on your personal situation, but check out these brands:
Personal loans, cash advances and payday loans have some key differences that can affect your financial situation. We break down their features in the table below.
| Personal loans in Ontario | Cash advances in Ontario | Payday loans in Ontario | |
|---|---|---|---|
| Annual percentage rates | 18% - 35% | 0% | Typically over 300% |
| Loan amounts | $500 – $10,000 | $20 – $750 | $100 – $1,500 |
| Loan terms | 3 - 60 months | Next pay cycle or flexible | 62 days |
| Collateral required | It depends, but usually not required | No | No |
| Eligibility requirements | Harder to meet than payday loans and cash advances | Easier to meet than personal loans and about the same as payday loans | Easier to meet than personal loans and about the same as cash advances |
| Instant | Instant decision is available | Instant approval and funding available | Instant approval and funding available |
| Available 24/7 | No | Yes | Yes |
| Credit check required | Varies by lender, but usually yes | No | Varies by lender |
| Application | Usually online | Online | Online or in person |
No. Legitimate bad credit lenders in Ontario do not promise guaranteed approval. Before approving your loan, they need to review your finances to make sure you can afford to repay what you borrow. This is often done by reviewing your pay stubs, bank statements and credit report. Steer clear of lenders that guarantee approval, because it could be a scam.
If you’re experiencing legitimate financial hardship and having trouble getting approved for a bad credit loan, you may want to look into debt relief options.
Currently, lenders can charge up to the equivalent of 35% APR in Ontario and the rest of Canada. This is relevant if you have bad credit because the lowest credit scores tend to get the highest rates. The maximum allowable rate was lowered on January 1, 2025. Lowering the rate means borrowers will pay less interest, but according to experts in non-prime lending, this drop will also cause lenders to be stricter when reviewing applications, which means fewer people with bad credit will be approved for a personal loan.
There’s no single loan that is the “best” for everyone. The best bad credit loan for you will depend on how much you need to borrow and your personal financial situation. But based on our methodology, some of the best bad credit personal loans include LoanConnect, Loans Canada, easyfinancial, Fat Cat Loans and Spring Financial.
If you need a smaller loan of $500 or less, you can get funding through a cash advance app without needing to go through a credit check. They’re a good choice if you’re looking for low interest loans for bad credit, as no interest charges apply. Just be aware that these apps will usually only approve you for small loan amounts when you first sign up. Then, once you successfully repay what you borrow over time, you may be able to increase your limit. You may also be charged a subscription fee.
Payday loans are extremely expensive and should only ever be a last resort. On a $500 payday loan with a 14-day loan term, you’ll need to repay $570—that’s a huge APR of 365%. Payday loans are worth a look if you need money ASAP, but only once you’ve exhausted all other options.
Before signing a contract with a lender, ask yourself these questions to make sure you’ve chosen the right bad credit loan:
How quickly you get your loan will depend on the loan type and the lender you choose:
The total cost of a bad credit loan you take out in Ontario will vary depending on the loan type, loan amount, loan term, interest rate and any other fees. To illustrate, here is what a borrower could pay after being approved for a $500 loan:
| Loan amount | Interest rate | Loan term | Total loan cost | Interest charged | |
|---|---|---|---|---|---|
| Payday loan | $500 | $14 for every $100 borrowed | 14 days | $570 | $70 |
| Personal loan | $500 | 35% | 6 months | $552.26 | $52.26 |
| Cash advance | $500 | $2.99 monthly subscription fee | 30 days | $502.99 | $2.99 |
If you’re searching for small personal loans for people with bad credit, alternative lenders are your best bet. Examples of lenders that operate in Ontario include Spring Financial, 24Cash and Credito.
Alternative lenders will focus on your income, employment situation and existing debt to decide whether you can afford to pay back your loan. But if you’re borrowing less than $1,000, some lenders might charge a broker fee that can increase the cost of your loan. Check the terms of your loan contract so you know exactly how much it will cost before you sign.
The best approach is generally to apply through a loan search platform. These platforms work with networks of lenders that offer loans for people with bad credit, and they make it easy to compare personal loan offers and shop around for the best deal.
Keep an eye out for the following features to get the best bad credit personal loan for your situation.
Be ready to encounter steep interest rates of up to 35%. Lenders view applicants with bad credit as having a higher risk of default.
In Ontario, you can get approved for a personal loan with or without collateral. An unsecured personal loan requires no collateral but has higher rates than a secured loan.
How much you’ll be offered will depend on your personal financial situation. Lenders typically offer up to $10,000 to people with bad credit.
Longer loan terms mean lower monthly payments, but you’ll pay more interest overall. Aim to get the shortest loan term with monthly payments that you can still manage.
Watch out for NSF fees, late payment fees and origination/admin fees (fee to process your loan). NSF fees are common and are usually around $50.
If speed is important to you, some lenders offer approval and funding on the same day. Many of these lenders specialize in online bad credit loans. You’ll find out whether you’re pre-approved within minutes of applying, and you can get your money on the same day.
Related: Emergency loans in Canada
Read customer reviews of lenders and check for any pattern of complaints. Avoid lenders that pressure you to sign or are not clear about how much they’re charging you for the loan.
Not all lenders report on-time payments to the credit bureaus. If improving your credit score is important to you, check whether the lender offers this benefit.
According to data released in the latest Finder: Consumer Sentiment Survey, the three primary reasons for getting a personal or installment loan are (1) to pay for bills and everyday expenses (33.87%), (2) to pay off credit cards (30.65%) and (3) to improve their home (24.19%).
You’re not just limited to payday loans if you’re searching for bad credit loans in Ontario. Alternative personal loan lenders and cash advance apps offer a more affordable alternative, but you’ll need to compare a range of options and make sure you’re aware of the total cost of a loan before you apply.
If you’re in Ontario, you’ve got lots of options. We searched for a wide range of loans to consider and organized them in the tables below.
We currently don't have that product, but here are others to consider:
How we picked theseTo 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.
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.
While Ontario offers a wide variety of payday loan options that cater to individuals with poor credit, these should generally be avoided due to their high costs. We have included them here for comparative purposes.
Compare personal loans, payday loans and cash advance apps in PEI to get fast funding, even with poor credit.
Find out where you can apply for bad credit loans in Saskatchewan, and learn how to increase your chances of getting approved.
Compare realistic bad credit loan options available in Newfoundland.
Get fast approval from one of these lenders offering bad credit loans in Calgary, Alberta.
Apply online in less than 10 minutes and get rapid approval from one of these lenders offering bad credit loans in Toronto.
Find out where you can apply online and get approved for bad credit loans in BC.
Compare the best bad credit loans in Canada. Apply online and get your loan within 24 to 48 hours.
Compare no IBV payday loans and installment loans in Canada.
Find out more about bad credit loans offered in Manitoba and compare lenders to find the right deal to meet your needs.
