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.
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.
We also completed the Finder: Personal Loans Best-in-Class Awards 2024 and the Finder: Personal Loans Customer Satisfaction Awards 2023, which recognize the top personal loan lenders in Canada.
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 within 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.
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
500
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.
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.
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.
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.
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.
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
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.
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
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 applies
Turnaround time
Within 24 hours
Serviced provinces
Canada-wide except Manitoba, Quebec and Saskatchewan
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.
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)
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
Loan
How it works
Chances of approval with bad credit
Unsecured personal loan
Borrow money without collateral and repay in installments
Lower chances than a secured loan because the lender is taking on more risk
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.
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.
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.
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
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.
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.
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.
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.
Be ready to encounter steep interest rates of up to 47%, because 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 $40 to $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 or the next day.
Not all lenders are the same, so read customer reviews 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.
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 amount
Interest rate
Loan term
Total loan cost
Interest charged
Unsecured personal loan
$1,000
46.93%
6 months
$1,141
$141
Payday loan
$1,000
$15 for every $100
14 days
$1,150
$150
Vehicle title loan
$1,000
35%
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
You can get bad credit loans in Ontario from alternative lenders. Alternative lenders have more flexible requirements than banks and credit unions. They are more likely to approve an applicant with bad credit. You can apply directly to an online lender or use a loan search platform.
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 $2,000) if you have no collateral. If you use your car as collateral, you may be approved for more.
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.
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.
Leanne Escobal is a publisher for Finder. She has over 11 years of experience in financial 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.
Compare some of the best bad credit loans in Nova Scotia.
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