10 Best Debt Consolidation Loans in Canada

The best debt consolidation loans in Canada help you manage your payments better and save money. Banks and credit unions offer debt consolidation to people with good to excellent credit. They’re a strong option if your finances are in good shape. If you can’t or don’t want to qualify with a traditional lender, however, you can try an alternative lender.

This guide primarily focuses on alternative lenders that offer some of the best debt consolidation loans in Canada. They tend to provide easier approval than banks, but they may also charge higher rates.

Competitive Rates

Go to site

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• Accepts bad credit borrowers
• Quotes from multiple lenders
• Pre-approval in 5 minutes
• Funds in as little as 24 hours

Access a Large Network

Go to site

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• Accepts bad credit borrowers
• Easy online application
• Quotes from multiple lenders
• Access cash within 1-3 business days

For Low Credit in BC & AB

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• Easy online application
• Loans for fair to bad credit
• Good customer service
• Fast funding

10 best debt consolidation loans in Canada

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APR Range	Loan Amount	Loan Term
LoanConnect Debt Consolidation Loan	8.99% - 35.00%	$500 - $60,000	12 - 60 months	Go to siteView details Compare product selection Compare	loading	Why we like it LoanConnect is an online loan search platform. It maintains a large database of lenders that can finance borrowers with good or bad credit. Lenders are generated based on your unique profile. Get more than one offer. It’s possible to get multiple offers depending on the strength of your profile. From there, you can choose the best debt consolidation loan for your situation. Low starting rate. LoanConnect’s rate starts at 8.99%, which is competitive. Options for all credit. You can apply even if your credit score is low. LoanConnect is partnered with lenders who work with bad credit borrowers. Suited for: All types of borrowers who want to compare offers. Pros & cons Pros Simple online application Pre-approval in five minutes Funding in 24 to 48 hours Secured and unsecured options Cons High rates for bad credit Not a direct lender
Loans Canada Debt Consolidation Loan	8.99% - 35.00%	$300 - $50,000	4 - 60 months	Go to siteView details Compare product selection Compare	loading	Why we like it Loans Canada is an online loan search platform based in Toronto, Ontario. It’s been in business since 2012. Large lender network. Loans Canada has a large database of lenders, which is especially helpful if your financial situation is not very strong. Fast. Fill out one online application in less than 10 minutes to get matched with lenders open to financing you. Low starting rate. Loans Canada’s rate starts at 8.99% if you have good to excellent credit, which is competitive. Suited for: People of all credit scores, but especially those with poor credit. Pros & cons Pros Funding in 24 to 48 hours Get your matches within minutes BBB accredited Cons Not a direct lender High rates for bad credit
Blue Copper Capital Personal Loan	16.00% - 35.00%	$1,000 - $100,000	6 - 84 months	View details Compare product selection Compare	loading	Why we like it Blue Copper Capital is a private direct lender with online and in-person applications. Flexible amounts. Borrow $1,000 to $100,000. Holistic review. Rather than fixating on your credit score, Blue Copper Capital will look at multiple factors, such as your income, debts and spending activity. Convenient. You don’t have to leave the comfort of your home to get a debt consolidation loan. Suited for: People with fair to bad credit in BC and AB. Pros & cons Pros Good reviews about its service No prepayment fees Reports payments to credit bureaus Cons High interest rates Not available nationwide
FlexMoney Personal Loan	18.90% - 35.00%	$500 - $15,000	6 - 60 months	View details Compare product selection Compare	loading	Why we like it FlexMoney is an online-only direct lender of personal loans, which you can use to consolidate debt. Fast. You can get your loan funds as soon as the same day or the next day. Easy application. FlexMoney offers a simple application, with little to no documents required, thanks to instant bank verification. Fully online. You don’t need to leave your home to get a debt consolidation loan. Suited for: People with fair to bad credit looking for fast online funding. Pros & cons Pros Easy online process No prepayment penalties Cons High rates for bad credit
easyfinancial Personal Loan	9.99% - 35.00%	$500 - $150,000	9 - 240 months	View details Compare product selection Compare	loading	Why we like it easyfinancial is one of the biggest and most well-known alternative lenders in Canada. It offers debt consolidation loans online and in hundreds of branches across Canada. Established. easyfinancial has been in business since 2006, and its parent company, goeasy, is listed on the Toronto Stock Exchange. It also has hundreds of branches across the country. Secured and unsecured options. People with fair to bad credit can apply, and you can secure your loan to increase your chances of approval and lower your rate. Streamlined process online or in person. Apply online and get your money as soon as the same day, or walk into one of easyfinancial’s hundreds of locations. Suited for: Borrowers with bad credit looking to consolidate high-interest loans. Pros & cons Pros BBB accredited with an A+ rating Fast approval and funding Rebuilds credit score 2% rate reduction with a co-applicant Cons Could lose your home if you default on a secured loan Steep interest rates
Fairstone Personal Loans	19.99% - 34.99%	$500 - $60,000	6 - 120 months	View details Compare product selection Compare	loading	Why we like it Fairstone provides secured and unsecured personal loans that you can use for debt consolidation. It’s one of the biggest alternative lenders in Canada and is owned by Fairstone Bank of Canada, a Schedule 1 bank. Established lender. Fairstone is an established direct lender, having been around for almost 100 years. It is widely available in Canada, and you can apply online or in person. Secured and unsecured options. When you apply to Fairstone, you can choose between a secured and unsecured debt consolidation loan. Fast quote. Get a no-obligation quote within minutes when you apply. Suited for: People with fair credit, especially homeowners. Pros & cons Pros Completely online Funding in 24 to 48 hours Get a loan offer with no impact on your credit score Cons Homeowners preferred Higher rates for lower credit scores Secured loans require a visit to the branch
CIBC Personal Loan	Not Disclosed	$3,000 - $200,000	1 - 5 years	View details Compare product selection Compare	loading	Why we like it CIBC is one of Canada’s largest banks, with a strong presence across the country and decades of lending experience. It offers flexible options if you need to consolidate debt. Established lender. Get peace of mind knowing you’d be borrowing from a well-known, reputable brand. High loan amounts. Borrow up to $200,000, depending on your financial situation. Online application. Unlike other banks, you can apply online for a debt consolidation loan. Suited for: People with good to excellent credit and a debt-to-income ratio under 40%. Pros & cons Pros Competitive rates Fixed or variable rates Flexible loan terms Cons Bad credit may not qualify Not as fast as alternative lenders
LM Credit Personal Loan	From 10.99%	$500 - $15,000	9-60 months	View details Compare product selection Compare	loading	Why we like it LM Credit is a Mississauga-based lender, specializing in debt consolidation loans for bad credit. Debt consolidation experience. LM Credit has specific experience in lending to people who are struggling with loans in collections. Non-employment incomes may be accepted. You don’t necessarily have to be employed full time to qualify. LM Credit is open to incomes like government benefits and private pensions. Easy application. Apply online and get a no-obligation quote within three minutes. Suited for: People who have debts in collections that need to be paid off. Pros & cons Pros Competitive starting rate Quick process Cons High interest rates for bad credit
Fig Personal Loan	8.99% - 29.49%	$2,000 - $35,000	24 - 84 months	Go to siteView details Compare product selection Compare	loading	Why we like it Fig offers unsecured personal loans to prime borrowers, which you can use to consolidate debt. Competitive rates. Fig’s rates start at 8.99%, which is competitive against other lenders in its category. Easy digital process. Fig offers borrowers an easier online application process than many financial institutions. The process is fully digital and doesn’t require a phone call with an agent, unlike many other lenders. Fast. Get a pre-approval offer within minutes without affecting your credit score. Once you’ve submitted your loan contract, you can get your money within two business days. Suited for: Borrowers with good to excellent credit who want a bank alternative. Pros & cons Pros Rate is guaranteed for seven days No fees aside from a $45 NSF fee Flexible repayment options Cons Fair or bad credit may not qualify
Spring Financial Personal Loan	9.99% - 34.95%	$500 - $35,000	6 - 84 months	Go to siteView details Compare product selection Compare	loading	Why we like it Spring Financial is one of the more established alternative lenders in Canada. Its primary product is its unsecured personal loan, which you can use for debt consolidation. High loan amounts. Borrow as much as $35,000, which is high for an online lender of unsecured loans. Low starting rate. Rates start at 9.99%, which is competitive against others in its category. Fast and easy. Fill out an online application in less than 10 minutes, get a response right away and get your money as soon as the same day. E-Transfer funding is available. Suited for: Borrowers with low credit looking for fast online approval and funding. Pros & cons Pros Simple online application Experienced lender Flexible loan amounts No prepayment penalties Widely available Cons High rates for bad credit

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How to get the best debt consolidation loan in Canada online

1. Compare lenders. Compare several features such as interest rates, fees, loan amounts, loan terms and eligibility requirements.
2. Apply to your best picks. Fill in the online applications to get personal loan pre-approval. You’ll need to provide personal details such as your name, contact information, housing information and employment. If you want to get multiple offers via one application, apply to a loan broker.
3. Compare offers. Compare quotes and choose the best offer.
4. Submit documents. If required, submit documents to your top choice to verify your income and identity.
5. Get approved. Get an official loan offer. Review the contract carefully, making sure you’re aware of how much the debt consolidation loan may cost you overall.
6. Get funded. Your debt consolidation lender will pay out your creditors, and you’ll make repayments to the lender.

How to compare the best consolidation loans in Canada

To find the best debt consolidation loans, compare the following features:

Interest rates

Get an annual percentage rate (APR) that’s lower than what you’re currently paying for all your debts. If, for example, you’re paying 20% APR on credit card debt and are offered a debt consolidation loan with a 35% APR to pay off that debt, you’ll pay more with the debt consolidation loan. That’s why it’s important to carefully compare the best debt consolidation offers and not simply assume you’re getting a better deal on a new loan.

Fees

The best debt consolidation loans have little to no fees. Watch out for fees to process your loan, such as origination or admin fees, which may be included in the APR. Also, look out for NSF fees ($25 to $50 is common), late payment fees (fixed dollar amount or a percentage of the outstanding payment), loan insurance and prepayment penalties (uncommon for debt consolidation loans).

Loan amounts

Choose a lender that can approve the amount you need. Lenders differ in how much they can offer a borrower. If you find that you can’t get approved for the full amount you need to consolidate your debt, it may still be worth consolidating even a part of it. Remember that the goal of getting the best debt consolidation loan is to save money and pay off your debt faster. Even a smaller consolidation loan can help accomplish that.

Loan terms

When deciding on the best debt consolidation loan in Canada for your needs, you’ll need to find the balance between monthly payments and the shortest loan term you can afford. Even if a long loan term and smaller monthly payments may seem appealing, you could end up spending a lot more money in interest in the long run.

Eligibility requirements

If you have fair or bad credit, focus on lenders that specialize in loans for your credit score. Many of the best lenders listed in this guide also offer bad credit debt consolidation loans in Canada, including Loans Canada and Spring Financial. If you have good to excellent credit, focus on lenders that offer low-interest loans.

Reputation and customer service

Lenders of the best debt consolidation loans will not pressure or rush you to sign and will make sure you understand the terms of your loan.

Improves credit score

The best debt consolidation loans will increase your credit score as you make on-time payments. Prioritize lenders that report payments to the credit bureaus.

Secured vs unsecured

An unsecured debt consolidation loan is the more common way to consolidate debt, but some lenders also offer secured debt consolidation loans.

Pros and cons of a debt consolidation loan

What are the requirements of a debt consolidation loan?

Requirements vary by lender, but you typically need to meet the following criteria:

Are there guaranteed consolidation loans in Canada?

No. Steer clear of lenders offering guaranteed consolidation loans in Canada because this could be a scam. Legitimate lenders will first take a look at your finances before approving.

You can increase your chances of getting approved for a debt consolidation loan if you offer collateral or have a guarantor or cosigner, but if you’re facing legitimate financial hardship and struggling to keep up with your debts, you may want to look into debt relief options.

Plans to get a debt consolidation loan

According to data released in the Finder: Consumer Sentiment Survey Q2 and Q3 2023, fewer Canadians were focused on managing their debt, with 3% planning to take out a debt consolidation loan in the third quarter of 2023, compared to 17% in the second quarter of 2023.

Frequently asked questions

• Is consolidating debt a good idea in Canada?

  Consolidating debt can be a good idea if you get a lower interest rate than what you're currently paying. The best debt consolidation in Canada will help you save money, not just get you an easy-to-manage payment.

• Is it hard to get a debt consolidation loan in Canada?

  It depends on which lender you apply with. Some lenders have strict eligibility criteria that can make it difficult to qualify if you have a low credit score or a low/less traditional form of income. Others are more lenient and will accept bad credit in exchange for higher interest rates.

• Are there banks that do debt consolidation loans?

  Yes, debt consolidation loans are common loan products. You can get a debt consolidation loan from the big banks, such as CIBC, RBC, BMO and TD. You can also get a debt consolidation from credit unions, such as Innovation Credit Union and Kindred Credit Union.

• Which bank is the best for debt consolidation?

  CIBC is the best bank for debt consolidation, based on our methodology.

• Does consolidating debt hurt your credit?

  Yes and no. When you apply for a debt consolidation loan, your score may go down temporarily when your lender checks your credit. However, the overall effect of debt consolidation should be positive if you make on-time payments and change your spending habits.

• Can I still use my credit card after debt consolidation?

  You can definitely use your credit card after debt consolidation, but you should be careful to avoid overspending. Keep your credit card balance low to avoid taking on more debt than you can afford.

To make sure you get accurate and helpful information, this guide has been edited by Romana King as part of our fact-checking process.

Written by

Leanne Escobal

Senior Publisher

Leanne Escobal is a senior publisher at Finder with more than 13 years of experience in financial products and services, with a focus on content strategy and marketing. She has completed the Canadian Securities Course (CSC®) as well as the Personal Lending and Mortgages course through the Canadian Securities Institute. Leanne holds a Bachelor of Arts (Honours) in English literature and creative writing from Western University. See full bio

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Leanne has written 182 Finder guides across topics including:

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Co-written by

Claire Horwood

Associate editor

Claire Horwood was a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee. See full bio

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Claire has written 334 Finder guides across topics including:

• Banking
• Personal Loans
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