Bad Credit Loans in Ontario With Flexible Approval

If you have bad credit, chances are you won’t qualify for a loan from a traditional lender like a bank. But the good news is that there are plenty of alternative lenders that 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.

Jump to:

• Personal loans for bad credit
• Cash advance apps for bad credit
• Payday loans for bad credit

Compare bad credit personal loans in Ontario

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Finder Score	APR Range	Loan Amount	Loan Term	Broker Compliance	Key Features
Promoted Finder score 8.5 Great Spring Financial Installment Loan	Finder score 8.5 Great	9.99% - 34.95%	$300 - $35,000	6 - 84 months	Key features: Same-day funding, fast application	Go to site More info Compare product selection Compare	loading
Promoted Finder score 8.8 Great LoanConnect Installment Loan	Finder score 8.8 Great	8.99% - 35.00%	$500 - $2,500	3 - 6 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, pre-approval in 5 minutes	Go to site More info Compare product selection Compare	loading
Promoted Finder score 8.6 Great Loans Canada Installment 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, largest lender network	Go to site More info Compare product selection Compare	loading

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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 advances in Ontario for bad credit

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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 siteMore info 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 siteMore info 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 siteMore info 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 bad credit payday loans in Ontario

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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, ON	Key features: 24/7 approval and e-Transfer, no credit check	Go to siteMore info 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 siteMore info Compare product selection Compare	loading
Lenditt Payday Loan	$14 per $100 borrowed	$250 - $1,500	Up to 62 days	ON	Key features: Instant soft approval, instant e-Transfer funding	More info Compare product selection Compare	loading

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Personal loans vs cash advances vs payday loans for bad credit

How to increase your chances of getting a loan with bad credit

• Apply to a loan search platform. Loan search platforms like Loans Canada and LoanConnect have large lender networks, including alternative lenders that offer personal loans for people with bad credit. You can fill out a single online application and then compare multiple loan offers from lending partners. Loan search platforms are also free to use.
• Little to no NSF transactions in the last 60 to 90 days. If your bank account shows a history of NSF transactions, the lender will be concerned about your ability to make on-time payments. A clean account statement will boost your chances of getting approved.
• Have a stable income. Lenders will check your income and any debts or regular expenses you have to decide if you can afford to repay a loan. Earning a regular income from full-time employment will increase your chances of approval. You’re also less likely to qualify if you’ve just started a new job, as lenders will look for a steady employment history.
• No payday loan debt. Outstanding payday loan debt is a red flag to lenders that you will struggle to repay your new loan. Payday loans are extremely expensive, which would make it very difficult for you to afford to take on any more debt.

Can you get guaranteed approval?

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.

What are the best bad credit loans in Ontario?

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.

How to get online loans in Ontario with bad credit

1. Apply. Fill out an online application with your personal and contact information, along with details of your income and employment. You’ll need to upload proof of ID, and you’ll usually have to go through online bank verification. This allows the lender to verify your income without you having to upload copies of your bank statements.
2. Get a decision. Many lenders offer instant decisions, so it’s often possible to get approved and funded the same day.
3. Review your contract. Read over the loan contract carefully before you sign it. Check the loan amount, interest rate, and fees when repayments are due.
4. Get funded. The money will be sent to our account by e-Transfer or bank transfer.

Questions to ask yourself before signing on the dotted line

Before signing a contract with a lender, ask yourself these questions to make sure you’ve chosen the right bad credit loan:

• What is the APR? The APR shows how much the loan would cost in a year. It is the annual interest rate plus other fees to finance the loan. Looking at the APR is key because it shows you the true cost of a loan and helps you compare costs across multiple loans.
• What is the payment schedule? Find out when you’ll need to make a payment and how much of it is going towards paying the principal vs interest.
• Do I really need loan insurance? There’s a good chance your lender will offer this to you. Loan insurance is completely optional and adds to the cost of your loan. If a lender requires it, apply somewhere else because it could be a scam.

How long will it take to get my loan?

How quickly you get your loan will depend on the loan type and the lender you choose:

• Installment loans: You can get funded as soon as the same day, but try to apply in the morning to increase your chances of same-day funding.
• Cash advances: Get your advance within minutes if you’re willing to pay an extra fee. If you don’t want to pay the extra charge, you’ll need to wait up to three business days
• Payday loans: You will get your loan within minutes of submitting your loan contract.

What is the cost of a bad credit loan in Ontario?

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:

Where can I get a small personal loan in Ontario with bad credit?

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.

How to get the best bad credit personal loan in Ontario

Keep an eye out for the following features to get the best bad credit personal loan for your situation.

Interest rate

Be ready to encounter steep interest rates of up to 35%. Lenders view applicants with bad credit as having a higher risk of default.

Secured or unsecured

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.

Loan amounts

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.

Loan terms

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.

Fees

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.

Speed

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.

Reputation and customer service

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.

Rebuilds credit

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.

Why Canadians are getting a personal loan

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%).

Other ways to borrow money when you have bad credit

• Car title loans. If you own a vehicle, car title loans allow you to borrow up to 50% of the value of your car. There’s a decent chance of approval because you provide your car title as collateral, but this means you risk losing your car if you can’t repay the loan.
• Line of credit. A line of credit provides access to a credit limit that you can use whenever you need it. You only pay interest on the money you actually use, not the full credit limit, but there’s generally a low chance of approval if you have bad credit.
• Credit card cash advance. If you already have a credit card, you can use it to withdraw money at an ATM with a credit card cash advance. This is an expensive option—you’ll pay a cash advance fee and a high interest rate—but you don’t have to go through approval if you already have a credit card. Learn more in our guide to credit card cash advances vs payday loans.

Bottom line

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.

Frequently asked questions

• Are there low interest loans for bad credit in Ontario?

  Cash advance providers such as Nyble, Bree and KOHO all offer no-interest cash advances in Ontario. You can apply without a credit check, but be aware that some cash advances may not be free.

• Can you get no credit check loans in Ontario?

  Yes, but be sure to apply to a legitimate lender and expect to pay to higher interest rates. With no credit check loans, you can only borrow a small amount (less than $1,500) if you have no collateral. If you use your car as collateral, you may be approved for more.

• Can you get a bad credit loan with low income in Ontario?

  It depends. The most important thing for a lender that accepts bad credit is that you can afford your monthly loan payments. If your current monthly debt payments already take up too much of your monthly income (typically over 40% to 50%), lenders of bad credit loans may not approve you. Learn more about low income loans.

• What can I use a bad credit loan for in Ontario?

  There typically aren't any restrictions on how borrowers can use their funding from a bad credit loan. You can use the cash to pay off bills, make major purchases, pay for car repairs or other financial emergencies.

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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