If you have bad credit, you may be thinking that personal loans are out of reach. This may be the case if you’re only applying to banks or credit unions, but if you apply to alternative lenders, getting approved is possible. Many alternative lenders offer personal loans to people with bad credit in Canada, and many of them offer easy online processes from start to finish. You don’t even need a guarantor.
The catch? Be prepared to pay more interest. Lenders charge high interest rates on bad credit loans because there’s a greater chance that borrowers won’t pay the money back. As of January 1, 2025, the maximum rate lenders are allowed to charge you is 35% APR. This is a big reduction from the previous maximum of 47% APR.
If you’re ready for financing, this guide covers some of the best bad credit loans in Canada.
$500 – $50,000
Loan Amount
8.99% – 35%
APR
4 - 60 months
Term
Loans Canada has one of the largest lender networks in the country. Fill out one application and get your loan offers for free.
Increase your chances of approval. You'll only be shown bad credit loan offers that you have a chance of getting, so this is a suitable option for someone with very bad credit.
Get funded fast. It's possible to get your loan on the same day or the next day.
Search a large lender network. Find loans that best suit your financial situation.
If you have a bad credit score or low income, there's still a chance to find a lender willing to finance you, given the size of Loans Canada's database. Having a large database of lenders increases your odds of getting approved for a loan.
| Loan Amount | $500 – $50,000 |
|---|---|
| APR Range | 8.99% – 35% |
| Loan Term | 4 - 60 months |
| Serviced Provinces/Territories | All of Canada |
| Turnaround Time | Receive funds in as little as 24 hours. |
| Min. Credit Score | 300 |
| Fees | No application, origination or brokerage fees |
| Requirements | Canadian resident, age of majority in your province of residence |
$500 – $35,000
Loan Amount
9.99% – 35%
APR
6 - 84 months
Term
Spring Financial offers fast bad credit personal loans online. If you don't qualify for an installment 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, which include interest.
Get a loan from an established lender. Spring Financial has been providing installment loans 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. You can get your money as soon as today.
Spring Financial has flexible requirements that are comparable to other lenders on the market. It has a low minimum credit score of 550 and a low minimum income of $2,000/month. Its credit builder loan, The Foundation, is easier to qualify for than its regular personal loan, but make sure it's the right product for your current situation before signing up.
| Loan Amount | $500 – $35,000 |
|---|---|
| APR Range | 9.99% – 35% |
| Loan Term | 6 - 84 months |
| Serviced Provinces/Territories | All of Canada |
| Turnaround Time | Within 24 hours |
| Min. Credit Score | 550 |
| Fees | No fees except $30 NSF fee |
| Requirements | Min. income of $2,000, min. credit score of 550, 3+ months employed |
$500 – $60,000
Loan Amount
8.99% – 35%
APR
3 - 120 months
Term
LoanConnect maintains a large database of lenders and matches you with bad credit loan offers based on your unique profile. Fill out one application to get matched with lenders.
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. Get a loan with no collateral required, or get a secured bad credit loan if you have an eligible asset.
If your credit score is not strong, don't worry. LoanConnect accepts bad credit and doesn't require a credit check for pre-approvals, though some lenders you match with may require it. Its large database of lenders also gives you more chances to get matched with an offer.
| Loan Amount | $500 – $60,000 |
|---|---|
| APR Range | 8.99% – 35% |
| Loan Term | 3 - 120 months |
| Serviced Provinces/Territories | All provinces |
| Turnaround Time | Receive funds in as little as 24 hours. |
| Min. Credit Score | 300 |
| Fees | No application, origination or brokerage fees |
| Requirements | Canadian citizen or permanent resident, age of majority in your province of residence, current debts must total less than 60% of your income |
$300 – $5,000
Loan Amount
Up to 34.36%
APR
Open
Term
Mogo is a Canadian fintech company that offers various financial products, including lines of credit for low credit scores. Its line of credit, the MogoMini, is designed for emergency funding.
Get an instant decision. Get your free quote in three minutes without affecting 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.
The MogoMini is designed to be a payday loan alternative and is only intended for small, urgent expenses. It's certainly easier to get than a traditional bank line of credit, but it also has a higher interest rate. This product may also be harder to get than a small non-bank personal loan because it's a line of credit.
| Loan Amount | $300 – $5,000 |
|---|---|
| APR Range | Up to 34.36% |
| Loan Term | Open |
| Serviced Provinces/Territories | BC, AB, SK, MB, ON, NB, NS, NF, PEI, NU, NT |
| Min. Credit Score | 600 |
| Fees | None |
| Requirements | Canadian resident, age of majority in your province of residence, annual net income of $35,000 |
$500 – $9,000
Loan Amount
Up to 35%
APR
6 - 60 months
Term
Cashco offers unsecured bad credit loans called Flex Loans. Apply for a loan online or in one of its branches.
Get some flexibility. You can choose a payment schedule, loan amount and loan term that work best for you.
Rebuild credit. Cashco reports payments to the credit bureau, which can help improve your rating.
Receive friendly service. Cashco has consistently received compliments about its helpful and friendly customer service team.
Cashco is open to non-employment income and offers long-term personal loans. Borrowers with bad credit can take up to 60 months to repay a loan of up to $9,000. This combination of long loan terms and moderate loan amounts allows Cashco to offer low payments to Canadians who can only repay a little bit each month. So if your credit score isn't great but there is some room in your monthly budget for these payments, Cashco may be able to approve you.
However, the longer the loan term, the more interest you pay. Your loan could become very expensive when you combine a long loan term with a high interest rate.
| Loan Amount | $500 – $9,000 |
|---|---|
| APR Range | Up to 35% |
| Loan Term | 6 - 60 months |
| Serviced Provinces/Territories | AB, BC, NB and SK |
| Turnaround Time | within 24 hours |
| Min. Credit Score | 300 |
| Fees | Up to 10% of your loan amount to set up your loan, NSF and late payment fees of $25. |
| Requirements | Must be the age of majority in your province, with an active bank account, proof of employment and proof of residency to apply. |
$500 – $150,000
Loan Amount
9.99% – 35%
APR
9 - 240 months
Term
easyfinancial helps Canadians access financing when their credit scores are low and banks aren't an option. You can apply online for a quick process or visit a branch near you.
Get a fast quote. Apply in minutes with no commitment, and it won't affect your credit score.
Get a secured or unsecured loan. Apply to get a loan without collateral, or boost your odds of approval by using your house as collateral—but you could lose your home if you default.
Improve your credit score. According to easyfinancial, one in three customers graduate to prime rates after making regular, on-time repayments.
easyfinancial's loans offer plenty of flexibility. It's possible to get approved when your financial situation isn't the best, but be prepared to be offered a lower amount and a higher rate. You can increase your chances of approval and even get a rate reduction if you apply with a co-applicant who's in a stronger financial position than you.
| Loan Amount | $500 – $150,000 |
|---|---|
| APR Range | 9.99% – 35% |
| Loan Term | 9 - 240 months |
| Serviced Provinces/Territories | All provinces |
| Turnaround Time | Approval within 30 minutes |
| Min. Credit Score | 300 |
| Fees | you may come across non-sufficient funds fees, late payment fees, missed payment fees or admin fees |
| Requirements | Be a Canadian citizen. Meet the minimum age requirement, which varies from province to province. Be able to demonstrate an ability to make repayments. Min. monthly income of $1,200. |
$1,000 – $5,000
Loan Amount
Undisclosed
APR
1 - 3 years
Term
Helium Loans is an online private lender specializing in loans for fair to bad credit. It has served over 62,000 clients since 2017.
Get flexible loan options. You can get a personal loan or a coffee cup loan (which is smaller than a personal loan). Helium Loans also has a line of credit, but it's for borrowers with good credit only.
Get funding fast. You can get your money in under an hour thanks to instant decisions and e-Transfer funding.
Improve your credit score. Helium Loans reports payments to the credit bureau. Making payments on time and consistently will boost your credit score.
Helium Loans appears to be stricter than other alternative lenders. To qualify for its personal loans and even its coffee cup loans, you need a credit score of at least 600, which is pretty high. Your bank account should also be in good standing, which means Helium Loans may be less lenient than other lenders if your bank account has recent NSF transactions or late payments.
| Loan Amount | $1,000 – $5,000 |
|---|---|
| APR Range | Undisclosed |
| Loan Term | 1 - 3 years |
| Serviced Provinces/Territories | All of Canada (excluding Quebec) |
| Min. Credit Score | 600 |
$500 – $15,000
Loan Amount
18.9% – 35%
APR
6 - 60 months
Term
FlexMoney is an online-only lender offering fast bad credit personal loans in Canada.
Get an instant decision. FlexMoney's automated system allows it to give you a no-obligation quote within minutes.
Get your funds fast. Funds should reach your account on the same or next day.
Rebuild your credit. FlexMoney will report payments to the credit bureau.
FlexMoney has a minimum credit score of 500 and minimum monthly income of $2,000, which is pretty flexible. You're more likely to get approved though if your monthly debt payments don't exceed a percentage of your monthly income. For traditional lenders, that's typically 40%. Alternative lenders like FlexMoney can accept a little higher than this.
| Loan Amount | $500 – $15,000 |
|---|---|
| APR Range | 18.9% – 35% |
| Loan Term | 6 - 60 months |
| Serviced Provinces/Territories | AB, BC, NL, NS, ON, PEI, SK and YT |
| Turnaround Time | Receive funds within as little as 24 hours |
| Min. Credit Score | 500 |
| Fees | No application, origination or prepayment fees |
| Requirements | - At least 20 years old - Proof of monthly income for the past 3 months - Income of at least $2,000 per month - Valid Canadian ID to confirm your identity, address and phone number - Valid email address and phone number |
$1,500 – $20,000
Loan Amount
19.99% – 35%
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.
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.
Magical Credit specializes in providing installment loans to people with bad credit. You can get approved if your income is low or if you're on government benefits. However, Magical Credit does not approve everyone. If you have loans in collections or you're in a consumer proposal or bankruptcy, Magical Credit will not approve you. And while Magical Credit will not necessarily deny you a loan for having bad credit, it will still review your credit history to make sure you can afford new loan payments.
| Loan Amount | $1,500 – $20,000 |
|---|---|
| APR Range | 19.99% – 35% |
| Loan Term | 12 - 60 months |
| Serviced Provinces/Territories | All of Canada (excluding MB, SK and QC) |
| Turnaround Time | Receive funds within as little as 24 hours |
| Min. Credit Score | 300 |
| Fees | A single administration fee of $194 |
| Requirements | Canadian citizen or resident, age of majority in province of residence, receiving employment or child tax income, no outstanding loans with other lenders |
$500 – $25,000
Loan Amount
34.56% – 34.95%
APR
6 - 84 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.
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.
Money Mart is one of the easier lenders to get approved for on this list. Bad credit is okay, and you can qualify with a low income or non-employment income. However, watch out for high interest rates.
| Loan Amount | $500 – $25,000 |
|---|---|
| APR Range | 34.56% – 34.95% |
| Loan Term | 6 - 84 months |
| Serviced Provinces/Territories | AB, BC, MB, NS, NT, ON, PEI, SK, YT |
| Turnaround Time | Less than 1 day |
| Min. Credit Score | 300 |
| Fees | None |
| Requirements | - Be at least 19 years of age - Have an active chequing account - Have a steady source of income |
$500 – $50,000
Loan Amount
Up to 35%
APR
6 - 120 months
Term
Lend for All is a loan-matching company that uses an automated process to match people with various lenders and financial institutions. It is based in Toronto, Ontario, and has an A+ BBB rating.
Save time. It works with a network of lenders that offer quick approval for customers with bad credit.
Get fast pre-approvals. Lend for All provides quick pre-approvals within minutes by doing a soft check on your credit report.
Find a loan for various purposes. Lend for All will match you with offers based on your needs.
Lend for All is a loan search platform like Loans Canada and LoanConnect. This means you'll gain access to multiple lenders with just one application. If you don't qualify with one lender, you could with another.
| Loan Amount | $500 – $50,000 |
|---|---|
| APR Range | Up to 35% |
| Loan Term | 6 - 120 months |
| Serviced Provinces/Territories | All provinces |
| Turnaround Time | Varies |
| Min. Credit Score | 300 |
| Fees | Varies by lender |
| Requirements | - Canadian citizen or resident - Age of majority - Meet eligibility criteria with partner lender |
$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 broker fee of up to $225 to be added to your payments (the exact amount is set at the broker's discretion).
Get fast approval. Apply with instant bank verification and get approved in as little as one hour.
Apply easily online. Fill out one quick form and provide your bank details to get approved. Get cash on the same day if you're approved before 2:30pm ET.
Work with an established online broker. The company is active online and has solid customer reviews on Google and Trustpilot.
Like LoansLoans, 24Cash specializes in short-term installment loans with no credit check. Since it requires no credit check, you can get approved with bad credit. 24Cash also limits its loan amounts to $500 to $850, which are easier to get approved for than larger loan amounts.
| Loan Amount | $500 – $850 |
|---|---|
| APR Range | Starting at 22% |
| Loan Term | 90 - 120 days |
| Serviced Provinces/Territories | All of Canada (excluding MB, QC, SK) |
| Turnaround Time | Within 24 hours |
| Min. Credit Score | 300 |
| Fees | broker fee of up to $225 |
| Requirements | Be at least 18 years old, Canadian citizen, 3+ months employed, $1,200 monthly income, Canadian bank account with direct deposits for 3+ months, low short term debt ratio, no active or plans for bankruptcy |
$1,000 – $50,000
Loan Amount
14.9% – 35%
APR
24 - 120 months
Term
AAR Financial offers personal loans with large loan amounts and long loan terms. The company serves customers in AB, BC, MB, ON and SK.
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.
AAR Financial's claim of a 99% approval rate means people have a pretty good chance of qualifying. However, this doesn't guarantee that AAR Financial will approve your application no matter what. You'll need to present your two most recent pay stubs and the last 90 days of your bank statements. AAR Financial will use these to determine whether you have the income to repay its loan, and there is room in your monthly budget for new loan payments.
| Loan Amount | $1,000 – $50,000 |
|---|---|
| APR Range | 14.9% – 35% |
| Loan Term | 24 - 120 months |
| Serviced Provinces/Territories | AB, BC, MB, ON and SK |
| Turnaround Time | Within 24 hours |
| Min. Credit Score | 550 |
| Fees | Fees may include insurance fees, administration fees and NSF/late payment fees. |
| Requirements | Must be the age of majority in your province, have an active bank account and provide proof of employment as well as three pieces of ID. |
$500 – $850
Loan Amount
Starting at 22%
APR
90 - 120 days
Term
Credito is a broker that helps people with bad credit find a short-term installment loan. You won't need to go through a credit check to get approved, but expect to be charged interest plus a $225 broker fee (the exact amount is at the broker's discretion).
Qualify. Since Credito doesn't do credit checks and offers smaller loans, it may be easier to get a loan from them versus other alternative lenders.
Avoid payday loans. Credito's bad credit loans are an alternative to payday loans, allowing you multiple repayments and longer terms.
Get funded fast. You can get your money within 24 business hours.
It's easier to get than others on this list because Credito only approves lower amounts and doesn't do credit checks. You can only borrow $500 to $850, which are easier amounts to get approved for than loans in the thousands.
| Loan Amount | $500 – $850 |
|---|---|
| APR Range | Starting at 22% |
| Loan Term | 90 - 120 days |
| Serviced Provinces/Territories | ON, PE, BC, AB, NB, NS, NL, NU, NT, YU |
| Turnaround Time | within 24 hours |
| Min. Credit Score | 300 |
| Fees | $225 brokerage fee (amount set at broker's discretion) |
| Requirements | Be at least 18 years old, Canadian citizen, have a Canadian bank account (3+ months old), have a steady job (3+ months), $1,200 monthly income |
Up to $1,000
Loan Amount
Up to 23%
APR
3 to 6 months
Term
Thunderloan matches you with a lender for short-term loans. It's not a direct lender. You may be charged a broker fee for its service, which can be in the hundreds.
Get quick e-Transfers. Get your loan as soon as the same day—e-Transfers are faster than direct deposits.
It's available 24/7. Thunderloan says its service operates 24/7 Monday to Friday, which is not common for installment loans.
No credit check needed. You won't have to worry about a credit check since Thunderloan skips this and focuses on your bank account activity and income instead.
Thunderloan doesn't require credit checks and has a low minimum income of $1,200 per month. Apply elsewhere if your income comes from self-employment, social assistance, student loan, pensions, child tax credit, disability benefits and insurance income because Thunderloan doesn't accept them.
| Loan Amount | Up to $1,000 |
|---|---|
| APR Range | Up to 23% |
| Loan Term | 3 to 6 months |
| Serviced Provinces/Territories | AB, BC, MB, NB, NL, NS, ON, PEI and SK |
| Min. Credit Score | 550 |
$500 – $1,000
Loan Amount
Starting at 23%
APR
90 to 150 days
Term
Captain Cash is a broker, not a direct lender, specializing in short-term loans. When you apply, it'll match you with a lender. Watch out for broker or surety fees.
No credit check required. Captain Cash doesn't require a credit check, which can help if your credit score isn't stellar.
Have an easy online process. Apply online and connect your bank account through a secure portal so that Captain Cash can quickly review and approve your application.
Avoid payday loans. Take advantage of longer repayment periods than you'd get with a payday loan.
Captain Cash doesn't do any credit checks, and it only offers loans up to $1,000. Smaller loans are easier to get approved for than larger loans. It also has a low minimum income of $1,200, but it doesn't accept several income types, such as social assistance, student loans, pensions, child tax credit, disability income and insurance income.
| Loan Amount | $500 – $1,000 |
|---|---|
| APR Range | Starting at 23% |
| Loan Term | 90 to 150 days |
| Serviced Provinces/Territories | AB, BC, ON and PEI |
| Turnaround Time | under 24 hours |
| Min. Credit Score | 300 |
| Requirements | -ID showing you are 18 years or older -Submit a utility or cell phone bill to prove that you’re living at a stable address in Canada -Provide direct deposit information -Provide your bank statements -Provide a letter from your employer stating your employment status |
$300 – $50,000
Loan Amount
6.99% – 35.99%
APR
3 - 84 months
Term
Fat Cat Loans is an online loan search platform partnered with Canadian lenders that specialize in loans for bad credit.
Get quick matches. Rather than applying to multiple direct lenders and possibly getting denied, apply once with Fat Cat Loans and get matched with the right lenders.
Get same-day funding. Fat Cat Loans is partnered with lenders that prioritize easy approvals and funding. If you apply before 3pm, you can get your money on the same day.
Complete an easy application. Apply online within minutes, and skip the document uploads. You can find out your lender matches with no paperwork required.
Like other loan search platforms, Fat Cat Loans is partnered with a network of lenders. Applying with Fat Cat Loans gives you access to lenders that are open to approving you.
| Loan Amount | $300 – $50,000 |
|---|---|
| APR Range | 6.99% – 35.99% |
| Loan Term | 3 - 84 months |
| Serviced Provinces/Territories | All of Canada |
| Turnaround Time | Within 24 hours |
| Min. Credit Score | 300 |
| Fees | No application, origination or brokerage fees |
| Requirements | Min. income $1,000/month, min. credit score 300 |
| Costs | 0% + monthly fee from $2 |
|---|---|
| Loan Amount | $20 – $250 |
| Loan Term | Flexible |
| Credit Check | No |
| Turnaround Time | Immediately |
| Requirements | KOHO account—access higher loan amounts over time by using KOHO for everyday spending, repaying your monthly fees and using its other services |
| Serviced Provinces | All provinces and territories |
| Apple App Store Rating | 4.8 |
| Google Play Rating | 4.3 |
Have you considered cash advance apps?
They're easier to get than personal loans
| Loan provider | Interest rate | Loan amount | Loan term |
|---|---|---|---|
| LoanConnect | 8.99% - 35.00% | $500–$60,000 | 3 - 120 months |
| Spring Financial | 9.99% - 35% | $500–$35,000 | 6 - 84 months |
| Loans Canada | 8.99% - 35.00% | $500–$50,000 | 4 - 60 months |
| Helium Loans | Undisclosed | $1,000–$5,000 | 1 - 3 years |
| Mogo | 34.37% | $300–$5,000 | Open |
| Thunderloan | 23% + fee | $500–$1,000 | 3 to 6 months |
| Captain Cash | 23% + fee | $500–$1,000 | 90 to 150 days |
| FlexMoney | 18.90% - 35.00% | $500–$15,000 | 6 - 60 months |
| Magical Credit | 19.99% - 35.00% | $1,500–$20,000 | 12 - 60 months |
| easyfinancial | 9.99% - 35.00% | $500–$150,000 | 9 - 240 months |
| Fat Cat Loans | 6.99% - 35.99% | $300–$50,000 | 3 - 84 months |
| Money Mart | 34.56% - 34.95% | $500–$25,000 | 6 - 84 months |
| Lend for All | Up to 35.00% | $500–$50,000 | 6 - 120 months |
| 24Cash | 22.00% + broker fee | $500–$850 | 90 - 120 days |
| AAR Financial | 14.90% - 35.00% | $1,000–$50,000 | 24 - 120 months |
| Cashco | 35.00% | $500–$9,000 | 6 - 60 months |
| Credito | 22% + broker fee | $500–$850 | 90 - 120 days |
Finder experts collected 11 points of data for more than 50 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. While we aimed to review a wide range of lenders, the loans listed do not reflect the entire market. Read more about the Finder personal loan ratings and review methodology.
To get the best loan, choose a lender with the right combination of loan amount, loan term and interest rate that suits your financial situation. Your bad credit loan should give you manageable repayments that will allow you to pay off the loan successfully. Lenders vary widely in what they can offer, so compare your options before signing on the dotted line.
If you can’t find a bad credit personal loan for your needs, there are other online options to consider.
| Loan | How it works | How it compares to bad credit personal loans | |
|---|---|---|---|
| Payday loan | Borrow up to $1,500 and repay by your next day | Faster, easier to qualify, much more expensive | Learn more |
| Pay advance app | Borrow up to $500 and repay by your next payday | Smaller loan amounts, often no credit check required, pay a fee for express service | Learn more |
| Line of credit | Borrow up to a limit, pay the interest and repay the balance any time | Can be harder to qualify for, open loan term requires discipline in repayments and spending | Learn more |
| Cash-secured credit card | Works like a standard credit card, but you’ll pay a cash deposit for collateral | Lower rates, cash collateral required | Learn more |
Before you proceed with any application, check the lender’s eligibility criteria to save time and effort. Here are the basic eligibility requirements you may come across for personal loans:
Not all bad credit lenders are the same. Consider the following as you compare the best bad credit loans in Canada.
On January 1, 2025, the maximum personal loan rate allowed in Canada dropped from 47% APR to 35% APR. This is particularly relevant if you have bad credit because applicants with the riskiest profiles are charged the highest rates. Lowering the maximum rate allowed means you could save on interest. However, according to experts in non-prime lending, this drop will also cause lenders to be more selective with their approvals, which means less people with bad credit will be able to get a personal loan.
Once the maximum rate is lowered, the following years will help the government and participants of the lending market evaluate 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. We’ll be keeping an eye on this.
The cost of your bad credit personal loan will depend on the loan amount, loan term and interest rate. To illustrate, let’s assume you get a $5,000 loan over 3 years. Here’s how the overall cost breaks down with a 35% APR.
| Feature | Details |
|---|---|
| APR | 35% |
| Loan amount | $5,000 |
| Loan term | 3 years |
| Monthly payment | $226.18 |
| Total cost | $8,142.49 ($3,142.49 interest) |
Yes. If you have poor credit and no guarantor, you can still get a loan. Many alternative lenders specialize in secured or unsecured bad credit loans in Canada with no guarantor needed, and it’s possible to get them as soon as the same day. But be prepared to pay more in interest and to get approved for lower loan amounts.
The lenders included in our list (above) do not require a guarantor to be approved for a bad credit loan.
We asked Trust Science, a Canadian company specializing in AI tech that helps lenders assess an application, to share their insights into what would help someone with bad credit get approved for a loan. Here’s what they had to say:
"As a general rule, demonstrating consistent income to your account from stable employment sources is a benefit, as are regular outflows that can be identified as regular bill payments. Similarly, debts that you may have taken on that are not reported to the bureau may arise in your historical banking data: showing that you consistently repaid these debts can work in your favour. Having savings available, or having more cash inflows than outflows is always a good sign."
Data from the Finder: Consumer Sentiment Survey Q2 2023 showed that 20% of respondents planned to take out a personal loan in the next three months.
The vast majority of respondents planned to borrow less than $15,000, with only 11% of respondents looking to borrow between $15,000 and $20,000 and 8% planning to borrow more than $20,000, in the next three months.
If you have bad credit, you can still apply and get approved for the best bad credit loans in Canada. But watch out for steep interest rates, and only apply to lenders you trust. If you’d like to learn more about how personal loans work, read our guide to personal loans.
Find out which licensed lenders can e-transfer payday loans in Canada, including those that offer 24/7 funding.
Compare cash loans with fast approval and funding, and find out who are the legit and not-so-legit lenders.
Compare a variety of no credit check loans in Canada.
Here are 6 easy loans to get in Canada, but watch out for high interest rates.
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Compare personal loans, payday loans and cash advance apps in PEI to get fast funding, even with poor credit.
Compare interest rates and eligibility requirements of bad credit loans in Winnipeg.
Find out where you can apply for bad credit loans in Saskatchewan, and learn how to increase your chances of getting approved.
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Find out where you can apply online and get approved for bad credit loans in BC.
From personal loans and cash advances to payday loans, compare bad credit loans in Ontario.
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.
