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15 best loans for bad credit in Ontario

Find out where you can apply, how much you can borrow and how much it'll cost for bad credit loans in Ontario.

If you have a less-than-perfect credit score, you can apply to alternative lenders offering loans for bad credit. These loan providers focus less on your credit score and more on your overall financial situation, including monthly income, existing debts and your ability to repay a new loan.

Here’s a look at some of the best bad credit loans in Ontario. No single loan is the best for everyone, so compare providers to find the top choice for your personal situation.

Best bad credit loans in Ontario

Loan providerInterest rateLoan amountLoan termKey features
LoanConnect8.99% - 46.96%$500–$50,0003 - 120 monthsLoan search platform for all credit
Loans Canada6.99% - 46.96%$300–$50,0003 - 60 monthsLoan search platform with largest lender network

Spring Financial

10.8% - 46.99%$500–$35,0006 - 60 monthsFast funding
easyfinancial9.99% - 46.96%$500–$100,0009 - 120 monthsEasy approvals
Mogo9.90% - 46.96%$500–$35,0006 - 60 monthsEasy approvals
Get Loan Approved9.95% - 29.00%$1,000 – $50,00012 - 72 monthsEasy approvals, paid off car as collateral
AimFinance46.00%$1,000 – $5,0009 - 24 monthsEasy approvals
FlexMoney18.90% - 46.90%$500–$15,0006 - 60 monthsQuick funding
Magical Credit19.99% - 46.80%$1,500–$20,00012 - 60 monthsFlexible requirements
Money Mart29.90% - 46.90%$500–$15,0006 - 60 monthsInstant approvals
Prudent Financial6.99% - 56.5%$5,000 – $100,0001 – 5 yearsCar as collateral
Alpine Credits6.99% - 56.5%$5,000 – $100,0001 – 5 yearsHouse as collateral
24Cash22.00% + broker fee$500–$85090 - 120 daysQuick no credit check loan
AAR Financial14.90% - 46.70%$1,000–$50,00024 - 120 monthsEasy approvals
Loans Loans28.00% - 32.00% + broker fee$500–$1,0003 monthsFast no credit check loan

How we found the best bad credit loans in Ontario

To find the best bad credit loans in Ontario, Finder experts collected more than 70 points of data for more than 60 lenders operating in Canada. Finder used this data to create a proprietary weighting formula that scores each lender based on rates, fees, terms, loan amounts, application process, funding speed, customer support, and reputation, among other features. The providers shown on the best list are those who scored highest based on this data-driven methodology. They are providers that are available and not available through Finder, with partners listed first. These loans are not representative of the entire market. Read more about the Finder personal loan ratings and review methodology.

464+

hours invested

112

lenders vetted

4,608

data points analyzed

1. LoanConnect

LoanConnect Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $50,000
Loan amount
8.99% – 46.96%
APR
3 - 120 months
Term
LoanConnect maintains a large database of lenders and matches you with several offers based on your unique profile. Full Review

Why it's one of the best

  • Save time. Your application will be cast wide and you'll get your results right after you apply.
  • Easily compare offers. Compare offers from multiple lenders and log in regularly to see if new offers are available.
  • Choose between secured and unsecured loans. Find a secured bad credit loan if you have an eligible asset or get a loan with no collateral.
  • Pre-approval in five minutes
  • Many bad credit loan options
  • BBB-accredited with an A+ rating
  • Fast funding
  • Not a direct lender
  • High rates for bad credit
  • Miss out on offers from lenders not partnered with LoanConnect
Loan amount $500 – $50,000
APR 8.99% – 46.96%
Term 3 - 120 months
Min. credit score 300
Fees No application, origination or brokerage fees
Turnaround time Receive funds in as little as 24 hours.
Serviced provinces All provinces

Most Recommended

LoanConnect made it to the Top 15 Most Recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

2. Loans Canada

Loans Canada Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$300 – $50,000
Loan amount
6.99% – 46.96%
APR
3 - 60 months
Term
Loans Canada is an online broker partnered with over 60 lenders. Fill out one application and get your matches for free. Full Review

Why it's one of the best

  • Search a large lender network. Loans Canada works with over 60 verified lenders.
  • Get approved. Only see lenders that match your profile.
  • Work with an established company. Loans Canada has been in business since 2012. It has BBB accreditation with an A+ rating.
  • Easy online application
  • Quick deposits
  • High loan amounts
  • No collateral required to secure your bad credit loan
  • High rates for bad credit
  • No online quotes provided
  • Limited to its network
Loan amount $300 – $50,000
APR 6.99% – 46.96%
Term 3 - 60 months
Min. credit score 300
Fees No application, origination or brokerage fees
Turnaround time Receive funds in as little as 24 hours.
Serviced provinces All of Canada

Finalist — Best Personal Loan Search Platform category

Loans Canada earned the Finalist award in the Best Personal Loan Search Platform category in the Finder: Personal Loans Customer Satisfaction Awards 2023. Loans Canada scored 75.15% in the overall customer satisfaction score and secured a spot in Canada's Top 15 Best-Rated personal loan providers in 2023.

3. Spring Financial

Spring Financial Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $35,000
Loan amount
10.8% – 46.99%
APR
6 - 60 months
Term
Spring Financial offers fast approval and funding. If you don't qualify for a bad credit personal loan, however, it'll offer you its credit builder loan The Foundation. With this loan, you won't access the loan funds until after you've made all your payments on time. Full Review

Why it's one of the best

  • Get a loan from an established lender. Spring Financial has been providing bad credit loans in Canada since 2015 and has over 200 employees with headquarters in Vancouver, BC.
  • Improve your credit score. Spring Financial reports payments to the credit bureaus so you can increase your credit score.
  • Get quick funding. If you provide the required documents on time, you can get your bad credit loan the same day you apply.
  • 100% online
  • Fast funding via e-Transfer
  • No prepayment penalties
  • High rates for bad credit
  • C- BBB rating, received complaints about the credit builder loan
Loan amount $500 – $35,000
APR 10.8% – 46.99%
Term 6 - 60 months
Min. credit score 550
Fees No fees except $30 NSF fee
Turnaround time Within 24 hours
Serviced provinces All of Canada

Most Recommended + Best-Rated

Spring Financial made it to both the Top 15 Most Recommended and the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

4. easyfinancial

easyfinancial Personal Loan
Finder Award
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $100,000
Loan amount
9.99% – 46.96%
APR
9 - 120 months
Term
easyfinancial helps Canadians access financing when banks aren't an option. It offers bad credit loans across Canada online and in hundreds of locations. Full Review

Why it's one of the best

  • Get a quick quote. Apply in minutes with no commitment and it won't affect your credit score.
  • Work with a well-known lender. easyfinancial is one of the biggest lenders of bad credit personal loans in Canada.
  • Improve your credit score. According to easyfinancial, one in three customers graduate to prime rates after making regular, on-time repayments.
  • Secured and unsecured bad credit loans
  • High approval rate
  • BBB-accredited with an A+ rating
  • Steep rates for bad credit
  • Many negative customer reviews
Loan amount $500 – $100,000
APR 9.99% – 46.96%
Term 9 - 120 months
Min. credit score 300
Fees you may come across non-sufficient funds fees, late payment fees, missed payment fees or admin fees
Turnaround time Approval within 30 minutes
Serviced provinces all provinces

Winner: Best-in-Class

easyfinancial was awarded the Winner award in the Best Personal Loan Alternative Lender category in the Finder: Personal Loans Best-in-Class Awards 2024.

5. Mogo

Mogo Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
Go to site
$500 – $35,000
Loan amount
9.9% – 46.96%
APR
6 - 60 months
Term
Mogo is a Canadian fintech company that offers various financial products, including personal loans and lines of credit for bad credit. Full Review

Why it's one of the best

  • Get an instant decision. Get your free quote in three minutes without lowering your credit score.
  • Apply easily online. Set up an account within minutes and get approval and funding within one to two days.
  • Work with an established company. Mogo was founded in 2003 and is traded on the Toronto Stock Exchange.
  • Convenient mobile app
  • No prepayment penalties
  • Bank-level security
  • High rates for bad credit
  • Some negative Mogo reviews online
  • Loans are powered by Lendful and easyfinancial
Loan amount $500 – $35,000
APR 9.9% – 46.96%
Term 6 - 60 months
Min. credit score 600
Fees Non-sufficient funds fee of $20 to $50
Turnaround time Within 24 hours
Serviced provinces BC, AB, SK, MB, ON, NB, NS, PE, NL, YT, NT, NU

Best-Rated

Mogo made it to the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

6. Get Loan Approved

getloanapproved.com Vehicle Title Loan
Finder Score:
★★★★★
$1,000 – $50,000
Loan amount
9.95% – 29%
APR
12 - 72 months
Term
Get Loan Approved offers personal loans with your car as collateral, also known as a car title loan. You can continue to use your car as you pay off your loan. To qualify, your car must be less than 10 years old, in good condition and fully paid off. Full Review

Why it's one of the best

  • Lenient. Get Loan Approved specializes in personal loans for people with damaged credit. It doesn't do any credit checks, and you don't need to be employed.
  • Apply easily. Apply online and then either drive to a Get Loan Approved agent near you or have an agent come to you for a car appraisal. The whole process can be completed within 24 to 48 hours.
  • Increase your chances of approval. Since you'll be reducing the risk for the lender with collateral, you'll have a higher chance of getting approved.
  • No credit check
  • No employment requirement
  • 24/7 customer service
  • Potentially high rates
  • Vehicle must be fully paid off
Loan amount $1,000 – $50,000
APR 9.95% – 29%
Term 12 - 72 months
Turnaround time In as little as one hour
Serviced provinces AB, BC, MB, NB, NL, NS, ON, PEI, SK

7. AimFinance

AimFinance Personal Loan
Finder Score:
★★★★★
$1,000 – $5,000
Loan amount
Starting at 46%
APR
9 - 24 months
Term
AimFinance is an alternative lender of personal loans for bad credit. It is based and registered in Quebec but offers loans to Ontario residents only.

Why it's one of the best

  • Get approved fast. AimFinance has automated systems that allow it to give instant approvals 24/7.
  • Avoid payday loans. AimFinance offers longer loan terms than payday loans so you can break up payments into smaller, more manageable amounts.
  • Repay your loan any time. Pay off your loan any time without penalty to save on interest.
  • Easy online application
  • Minimal to no documents required
  • Fast approval and funding
  • High interest rate
  • Employment income only
  • No manual verification option available
Loan amount $1,000 – $5,000
APR Starting at 46%
Term 9 - 24 months
Min. credit score 580
Turnaround time 24-48 hours
Serviced provinces Ontario and British Columbia

8. FlexMoney

FlexMoney Personal Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$500 – $15,000
Loan amount
18.9% – 46.9%
APR
6 - 60 months
Term
FlexMoney is an online-only lender offering fast bad credit personal loans in Canada. Full Review

Why it's one of the best

  • Get an instant decision. FlexMoney's automated system enables it to give you a no-obligation quote within minutes.
  • Get your funds fast. Funds should reach your account on the same day or the next day.
  • Rebuild your credit. FlexMoney will report regular, on-time payments to the credit bureau.
  • Make payments weekly, bi-weekly, semi-monthly or monthly
  • Easily make extra payments via e-transfer
  • High interest rates
  • Minimum income required ($2,000 per month)
  • Only employment & pension income accepted
Loan amount $500 – $15,000
APR 18.9% – 46.9%
Term 6 - 60 months
Min. credit score 500
Fees No application, origination or prepayment fees
Turnaround time Receive funds within as little as 24 hours
Serviced provinces Alberta, British Columbia, Newfoundland, Nova Scotia, Ontario, PEI, Saskatchewan and Yukon

Most Recommended + Best-Rated

FlexMoney made it to both the Top 15 Most Recommended and the Top 15 Best-Rated personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

9. Magical Credit

Magical Credit Installment Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$1,500 – $20,000
Loan amount
19.99% – 46.8%
APR
12 - 60 months
Term
Magical Credit specializes in online personal loans for people with bad credit and/or low income. It's been in business since 2014 with offices in Concord and North York, Ontario. Full Review

Why it's one of the best

  • Get a fast loan. Apply online and validate your information with instant bank verification to get a fast loan decision (with funds sent within 24 hours).
  • Rebuild your credit. Magical Credit reports on-time payments to the credit bureaus to increase your credit score.
  • Use non-employment income to qualify. Magical Credit accepts many types of income, such as most government benefits, private pensions and maternity benefits.
  • Receive funds within as little as 24 hours
  • Accepts child tax credit, EI, CPP, OAS, private pensions and more
  • Refer-a-friend program
  • High interest rates
  • May charge an administration fee
  • You must show income history for six months (if you receive employment income)
Loan amount $1,500 – $20,000
APR 19.99% – 46.8%
Term 12 - 60 months
Min. credit score 300
Fees A single administration fee of $194
Turnaround time Receive funds within as little as 24 hours
Serviced provinces Canada-wide (excluding Manitoba, Saskatchewan and Quebec)

Most Recommended

Magical Credit made it to the Top 15 Most Recommended personal loan providers in the Finder: Personal Loans Customer Satisfaction Awards 2023.

10. Money Mart

Money Mart Installment Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$500 – $15,000
Loan amount
29.9% – 46.9%
APR
6 - 60 months
Term
Money Mart offers installment loans and payday loans to people with bad credit. It's been in business for over 40 years and is one of the largest alternative lenders in Canada. Full Review

Why it's one of the best

  • Get your loan fast. Same-day funding is available, depending on the transfer method.
  • Apply online or in-store. Get your loan online or at one of Money Mart's 500+ store locations.
  • Get some leniency. Money Mart is less strict with its requirements than banks, credit unions and some alternative lenders. You can qualify with a chequing account and a regular source of income.
  • Established lender
  • Convenient mobile app
  • Accepts non-employment income such as government benefits and private pension
  • High interest rates
  • In-store and online availability varies across provinces
Loan amount $500 – $15,000
APR 29.9% – 46.9%
Term 6 - 60 months
Min. credit score 300
Fees None
Turnaround time Less than 1 day
Serviced provinces AB, BC, MB, NB, NS, NT, ON, PEI, SK, YT

11. Prudent Financial

Prudent Financial Personal Loan
Finder Award
Finder Score:
★★★★★
Customer Survey:
★★★★★
$5,000 – $100,000
Loan amount
6.99% – 56.5%
APR
1 – 5 years
Term
Prudent Financial offers loans for bad credit when you put up collateral such as your home or vehicle. It operates exclusively in the Greater Toronto Area. Full Review

Why it's one of the best

  • Get an answer fast. Get approved in as little as 30 minutes when you provide proof of 50% equity in your asset and meet eligibility requirements.
  • Defer payment. If you have an emergency and can't make the next payment, call the company two to three business days before the due date to defer to up two weeks with no penalty.
  • Rebuild credit. Prudent reports all your loan payments to the credit bureau so when you pay on time, you get a better rating.
  • A+ BBB rating
  • Easy application
  • Your car or house as collateral
  • Only advertises interest rates and not APRs
  • Potentially high APRs
  • Only available in the Toronto area
  • Several negative customer reviews
Loan amount $5,000 – $100,000
APR 6.99% – 56.5%
Term 1 – 5 years
Fees Unknown
Turnaround time as little as 30 minutes
Serviced provinces Ontario

Winner — Alternative Personal Loan Lender category

Prudent Financial won the Best Personal Loan Alternative Lender category in the Finder: Personal Loan Customer Satisfaction Awards 2023. This Ontario-based lender scored 87.89% in the overall customer satisfaction score and secured a spot in Canada's Top 15 Most Recommended and the Top 15 Best-Rated personal loan providers in 2023.

12. Alpine Credits

Alpine Credits Home Equity Loan
Finder Score:
★★★★★
Customer Survey:
★★★★★
$10,000 – $500,000
Loan amount
10% – 22.99%
APR
Up to 60 months
Term
Alpine Credits offers personal loans using your home equity as collateral. Before applying for this loan, make sure you can afford the payments because if you default, your lender has the right to repossess your house. Also watch out for fees, such as title search fees and appraisal fees. Full Review

Why it's one of the best

  • Work with an established lender. Alpine Credits has been around for over 50 years and is BBB-accredited with an A+ rating.
  • Increase your chances of approval. Offering your house as collateral reduces the risk for the lender and boosts your chances of getting a loan.
  • Get approved fast. You should hear back in less than 24 hours.
  • Easy online application
  • Flexible loan amounts
  • High interest rate for bad credit
  • Potential to lose your house
Loan amount $10,000 – $500,000
APR 10% – 22.99%
Term Up to 60 months
Min. credit score 300
Fees 5.00% - 8.00% of the APR covers closing & admin fees
Turnaround time 24 hours
Serviced provinces AB, BC, ON, QC

13. 24Cash

24Cash Installment Loan
Finder Score:
★★★★★
$500 – $850
Loan amount
Starting at 22%
APR
90 - 120 days
Term
24Cash connects applicants to a short term installment loan with no credit check. It is an alternative to payday loans. Expect a $225 broker fee to be added to your payments (the exact amount is set at the broker's discretion). Full Review

Why it's one of the best

  • Get approval in one hour. Apply with instant bank verification and get approved quickly.
  • Apply easily online. Fill out one quick form and provide your bank details to get approved. Get cash on the same day if approved before 2:30 PM EST.
  • Established online broker. The company is active online and has solid customer reviews on Google and Trustpilot.
  • No credit check
  • Lower APRs than payday loans
  • No paperwork required via instant bank verification
  • Manual review available
  • Three months to repay
  • Government assistance not accepted as a form of income
  • Very expensive
  • Small maximum amount
  • May not improve your credit score
Loan amount $500 – $850
APR Starting at 22%
Term 90 - 120 days
Fees broker fee of up to $225
Turnaround time Within 24 hours
Serviced provinces Canada-wide except Manitoba, Quebec and Saskatchewan

14. AAR Financial

AAR Financial Personal Loan
Finder Score:
★★★★★
$1,000 – $50,000
Loan amount
14.9% – 46.7%
APR
24 - 120 months
Term
AAR Financial offers personal loans with large loan amounts and long loan terms. The company serves customers in Manitoba, Saskatchewan, Alberta, Ontario and British Columbia. Full Review

Why it's one of the best

  • Increase your odds of approval. AAR Financial claims to approve 99% of applications.
  • Get a secured or unsecured bad credit loan. Use your home to secure your loan and get a more competitive rate, or get an unsecured personal loan.
  • Work with an established lender. AAR Financial has been in business for over 15 years with headquarters in Winnipeg, Manitoba.
  • Flexible loan amounts
  • No prepayment penalties for unsecured loans
  • High rates
  • Fees not clearly disclosed online
Loan amount $1,000 – $50,000
APR 14.9% – 46.7%
Term 24 - 120 months
Fees Fees may include insurance fees, administration fees and NSF/late payment fees.
Turnaround time Within 24 hours
Serviced provinces MB, SK, AB, ON and BC

15. LoansLoans.ca

LoansLoans.ca Installment Loan
Finder Score:
★★★★★
Go to site
$500 – $1,000
Loan amount
28% – 32%
APR
3 months
Term
LoansLoans.ca is a broker that helps people with bad credit find a short-term loan. It doesn't do any credit checks and accepts many types of income as long as it's over $1,200. You may be required to pay a broker fee. Full Review

Why it's one of the best

  • Avoid payday loans. LoansLoans.ca's installment loans have longer loan terms than payday loans, which means you can break up your repayments.
  • Qualify. LoansLoans is open to many types of income as long as they're recurring. And since it doesn't do credit checks, you can qualify with bad credit.
  • Work with an established broker. NCR Financial Services, the company that owns and operates LoansLoans.ca, has been around for over 15 years.
  • No credit check
  • Apply online in minutes
  • Funding on the same day or next day
  • High rates and fees
  • Not very transparent about broker fees
Loan amount $500 – $1,000
APR 28% – 32%
Term 3 months
Min. credit score 300
Fees Late payment fee (2.66% per month), $45 NSF fee, broker fee
Turnaround time Receive funds in less than 24 hours
Serviced provinces All of Canada (except Manitoba)

Alternatives to bad credit personal loans in Ontario

If you’re having trouble getting approved for a personal loan because of your current financial situation, you can consider cash advances as an alternative. These loans are easier to get because they have smaller loan amounts and don’t involve credit checks.

Nyble

Nyble Credit Line

$30 – $150
Loan amount
Starting at 0%
APR
30 days, extendable
Term
Apply online for an interest-free line of credit of up to $150 to cover small expenses and build your credit. Get funds in 1-3 business days with a free account. For $11.99 per month, get access to premium services, including funding in 1-30 minutes, a free Equifax credit report and identity theft protection.
  • Easy application process
  • No credit checks
  • No interest
  • Can improve your credit score
  • Roll over your loan
  • $11.99 per month for fast transfers, full credit report and other premium perks
  • Small loan amounts only
Loan amount $30 – $150
APR Starting at 0%
Term 30 days, extendable
Fees No interest or fees to access credit line, optional $11.99/month membership to get premium services such as instant funding
Origination fee $11.99
Turnaround time 1-30 minutes with a paid membership or 1-3 business days with a free membership.

Bree

Bree Early Pay

$20 – $350
Loan amount
Starting at 0%
APR
Next pay cycle (61 days max.)
Term
Bree lets you borrow a small amount of up to $350 to help you cover expenses until your next payday. You won't have to pay any interest or mandatory fees, but a small fee applies if you want funding within 30 minutes.
  • Easy application process
  • No credit checks
  • 0% interest and no late fees
  • Loan amount may not be enough for your needs
  • Monthly fee for Bree's budgeting tool
  • Fee for fast transfers
  • May not improve your credit, unlike Nyble
Loan amount $20 – $350
APR Starting at 0%
Term Next pay cycle (61 days max.)
Fees No interest or fees to access cash advance, fee for express funding (varies based on advance)
Turnaround time Within 8 hours for the express option (fee charged based on advance amount) and up to 3 business days for standard delivery
Blue spyglass

Looking ahead: Bad credit personal loan rates in Ontario in 2024

Currently, lenders can charge up to the equivalent of 47% APR in Ontario and the rest of Canada. This is relevant if you have bad credit because the lower your credit score, the higher your interest rate. In 2024, however, the federal government plans to lower the maximum rate allowed to 35% APR. 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.

Once the government lowers the rate, we’ll see whether 47% APR was the appropriate rate charged because of the actual credit risk of the borrower or whether it was the rate charged because it was the maximum that was allowed.

The 4 main types of online bad credit loans in Ontario

LoanHow it worksChances of approval with bad credit
Unsecured personal loanBorrow money without collateral and repay in installmentsLower chances than a secured loan because the lender is taking on more riskLearn more
Secured personal loanBorrow money using an asset as collateral, such as your car, and repay in installmentsHigher chances than an unsecured loan because the lender has an asset it can repossess if you defaultLearn more
Payday loanBorrow up to $1,500 and repay by your next dayHigher chances than personal loansLearn more
Line of creditBorrow up to a limit, pay the interest and repay the balance any timeLower chances than payday loans and personal loansLearn more

Features of unsecured personal loans for bad credit in Ontario

Typical features of unsecured bad credit loans in Ontario include the following:

  • Loan amounts. $500–$10,000.
  • Loan terms. 3 - 60 months.
  • Interest rates. 18%–47% APR.
  • How fast you can get it. Apply online within minutes for this bad credit loan and get the money within 24 to 48 hours.

Eligibility requirements of bad credit personal loans in Ontario

While requirements for bad credit personal loans will vary from lender to lender, in most cases you will need to meet the following:

  • Have a valid bank account.
  • Have proof of regular income to keep up with monthly payments.
  • Meet the minimum credit score.
Hand holding cash

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%).

Features of secured personal loans for bad credit

Securing your loan with collateral increases your chances of approval and lowers your interest rate. However, you could lose your assets if you default on payments.

Vehicle title loans (your car as collateral)

Vehicle title loans are loans secured to the title of your vehicle. These loans often don’t involve a credit check. Your car must be paid off, but you can still drive your car while you’re repaying the loan.

  • Loan amounts. Up to 25% to 50% of the value of the car.
  • Loan terms. 3 – 60 months.
  • Interest rates. 9%–49% APR.
  • How fast you can get it. Get a bad credit auto title loan within 24 to 48 hours.

Home equity loans (your home as collateral)

If you own your home and have built up some equity in it, you can use that equity as a guarantee on your next loan.

  • Loan amounts. Borrow based on your home equity, which is your house’s value minus your mortgage balance.
  • Loan terms. Up to 240 months.
  • Interest rates. 10%–29%.
  • How fast you can get it: In as little as two business days.

Features of payday loans for bad credit in Ontario

The main features of payday loans in Ontario include:

  • Loan amounts. In Ontario, you can borrow up to $1,500 per payday loan or up to 50% of your take-home pay, whichever is lower.
  • Loan terms. Repay by your next payday, up to 62 days.
  • Interest rates. $15 for every $100 borrowed, which often works out to between 390% and 780% APR.
  • How fast you can get it. The fastest payday loans take one hour or less to complete online, from application to e-transfer funding. Learn more about e-transfer payday loans.

Before you apply for a payday loan

  • Check your budget. Make sure you can repay the loan on time, and you’ll have enough money left for other expenses.
  • Make sure the lender is legitimate. Check that the lender is licensed to operate in Ontario and follows Ontario payday loan regulations.

Features of lines of credit for bad credit in Ontario

  • Loan amounts. Up to $10,000.
  • Loan terms. Loan terms are open, so you can pay off your balance any time. However, try to repay it fast because line of credit rates for bad credit are high.
  • Interest rates. Up to 47.42%.
  • How fast you can get it. You can get a line of credit for bad credit within 24 to 48 hours.

Can you get guaranteed approval on bad credit loans in Ontario?

No. Legitimate bad credit lenders in Ontario do not guarantee approval. First, they need to review your finances. 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.

How to apply for fast online loans for bad credit

  1. Compare lenders. Focus on Ontario lenders that accept poor credit or use a loan search platform to help you find a provider. Decide on which features are most important to you, including speed, loan amounts, loan terms and interest rates.
  2. Apply. Get pre-approved for a personal loan by filling out a quick online form. Getting pre-approved for a bad credit personal loan gives you an estimated interest rate, loan amount and terms attached to the loan. Always compare offers.
  3. Get verified. Proceed with your top lender. You’ll need to complete the application by going through instant bank verification or by providing documentation like government-issued ID, recent pay stubs and bank statements.
  4. Review the contract and sign. Read over your loan agreement, taking factors such as your loan amount, interest rate and fees into account.

How to get the best bad credit personal loan in Ontario

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

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 different types of 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 in order for you to get your loan, apply somewhere else because it could be a scam.

What is the cost of a loan for bad credit 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 $1,000 loan:

Loan amountInterest rateLoan termTotal loan costInterest charged
Unsecured personal loan$1,00046.93%6 months$1,141$141
Payday loan$1,000$15 for every $10014 days$1,150$150
Vehicle title loan$1,00035%12 months$1,200$200
Notes: Total cost and interest rounded to the nearest dollar value.

Tips for taking out bad credit loans in Ontario

While these tips won’t guarantee you’ll be approved for a loan for bad credit, they can help increase your chances:

  • No payday loan debt. Having active short-term loan debt will decrease your chances of getting approved.
  • No recent NSF fees in your bank account. NSF transactions in the last 60 to 90 days will lower your chances of approval, so try to wait and make on-time payments first if you have these.
  • Get a secured loan. This will increase your chances of approval, but only sign a loan document if you can manage the repayments.
  • Prepare your references. Some lenders ask for one or two references, like a friend, family member or employer, to approve you for a loan.

Survey methodology

The results of the Finder: Consumer Sentiment Survey Q3 (CSTQ3) were collected through an online Pollfish survey conducted between August 10 to 21, 2023. In the survey, 1,013 Canadians from across the country were asked about their current debt obligations, among other questions regarding money goals and financial confidence. The estimated margin of error for the survey is +/- 3%, 90% of the time.

The results of the Finder: Consumer Sentiment Survey Q2 (CSTQ2) were collected through an online Pollfish survey conducted between April 27 and April 29, 2023. In the survey, 1,011 Canadians from across the country were asked about their past use and current plans to use Payday loans and other forms of short-term credit. The estimated margin of error for the survey is +/- 3%, 19 out of 20 times.

Frequently asked questions

Written by

Leanne Escobal

Leanne Escobal is a publisher for Finder. She has spent over 11 years working on 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 profile

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