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10 Best Installment Loans in Ontario for Bad & Good Credit
Compare lenders that offer the best mix of easy approval, fast funding and flexible eligibility requirements.
If your credit isn’t stellar and traditional lenders have turned you down, you still have options. In Ontario, some lenders offer installment loans that consider more than just your credit score. These loans can provide much-needed funds along with greater flexibility for those facing financial challenges.
Check out the top installment loans in Ontario for when you need hassle-free approval and funding.
Best installment loans in Ontario
Methodology
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 Finder evaluates a wide range of alternative lenders, this selection does not represent all available loan products in Canada. Read more about the Finder personal loan ratings and review methodology.
Key takeaways
- Installment loans in Ontario provide borrowers with predictable, fixed payments over a set term, making them a structured way to manage debt. They are typically unsecured.
- Borrowers can qualify for installment loans even with bad credit, but higher interest rates may apply. You can encounter rates up to 35%.
- These loans are often used to cover expenses like emergencies, large purchases or consolidating debt.
Features of installment loans
- Interest rates. Often between 18% - 35%, based on personal factors such as your credit score and income.
- Loan terms. 3 - 60 months.
- Loan amounts. Usually up to $10,000, but you can borrow more depending on your financial situation.
- Loan security. These loans are unsecured, so there’s no need for collateral.
Are there installment loans in Ontario with guaranteed approval?
No, installment loans with guaranteed approval do not exist in Ontario. If a lender claims to offer guaranteed approval, it could be a scam, predatory or misleading. Reputable lenders can’t promise approval without first reviewing your financial details. They will assess your income, credit history and overall financial situation before making a decision.
Can I get no credit check installment loans in Ontario?
Yes, you can get an installment loan in Ontario without a credit check. These loans come with smaller amounts (typically under $1,500) and higher interest rates and fees, making them more expensive overall. That’s because lenders take on more risk when lending to borrowers with limited or poor credit histories.
Be cautious of broker or surety fees that often come with no credit check installment loans, because those can be in the hundreds.
Are there installment loans for bad credit?
Yes, you can get an installment loan in Ontario even if you have a low credit score. In fact, many alternative lenders in Ontario specialize in installment loans for bad credit. The downside is that you’ll need to be willing to pay steep interest rates.
Why do bad credit installment loans have such high rates?
Installment loans for poor credit have high rates because lenders are taking on more risk. People with low credit scores are more likely to default on their loans. Lenders offset this risk by charging steeper rates. In Ontario (and across Canada), lenders can’t charge more than 35% APR.
Tips to get installment loans in Ontario with bad credit
- Apply to a loan search platform like Loans Canada or LoanConnect.
- Have a recurring income (employment preferred).
- Have no active payday loan debt.
- Have no NSF transactions in the last 60-90 days.
Alternatives when you have bad credit
If you don’t qualify for an installment loan because of your credit score, there are other options available to you:
- Car title loans. If you have a paid-off car, you can use it as collateral to qualify for a loan. Learn more about car title loans in Ontario.
- Cash advance apps. Get a small cash loan of up to $750 with no credit check. Learn more about cash advances in Ontario.
- Payday loans. Borrow up to $1,500, but you’ll repay it in full by your next payday.
How to get your installment loan online
Visit your chosen lender’s website to begin your application. You’ll need to share how much you want to borrow, what the funds are for and some personal details. Be prepared to upload documents that confirm your income and identity.
Getting an installment loan is quick. It usually takes around 24 to 48 hours from start to finish. Once you receive your loan, you’ll pay it back in monthly installments over several months to a few years. The terms for your loan will be set by your lender, who will tell you how much you need to pay every month, including interest.
Representative example: Marie gets an installment loan
Marie, who lives in Ottawa, needs to replace the hot water tank in her basement. She applies for several installment loans in Ontario and ends up with a $10,000 loan to cover her expenses. She gets an interest rate of 15.4% and wants to repay the loan in 24 months. This is what her financing will look like:
| Loan amount | $10,000 |
| Interest rate (APR) | 15.4% |
| Loan term | 2 years |
| Additional fees | None |
| Monthly payment | $486.77 per month |
| Total loan cost | $11,682.46 |
What do you need to qualify for an installment loan?
Installment loans in Ontario tend to have similar eligibility requirements. In general, to qualify for an installment loan, you’ll need proof of income, which can include full-time or part-time employment, disability, EI or pension payments. You’ll also need an active bank account and valid government-issued ID.
You usually need to prove that you have a decent credit score to qualify for installment loans by submitting to a credit check. There are dedicated installment loans for bad credit in Ontario too, so even if you have a poor credit score, you may still qualify.
Can installment loans be used for debt consolidation?
Installment loans in Ontario can be used for debt consolidation. This means you can take out a large amount to pay off multiple smaller debts.
Keep in mind, getting an installment loan to consolidate debt may end up costing you more. Applying to consolidate debt suggests to lenders that you may have taken on more debt than you can manage. Because of this, they may not approve you for lower interest rates. However, you can use a debt consolidation loan to extend your loan term and lower your monthly payments. It’ll cost you more in the long run, but you get more room in your monthly budget.
Must read: Best debt consolidation loans in Ontario
Benefits of installment loans
There are several reasons why getting installment loans might be the right move for Ontarians. Here are some of their key benefits:
- Help with unexpected expenses. Installment loans can help Ontarians pay for unexpected expenses like car repairs, home repairs or medical bills.
- Easy process. Apply online within minutes. Some online installment loan lenders in Ontario can give instant personal loan pre-approval. Get funding within 24 to 48 hours.
- Flexible eligibility criteria. Getting online installment loans in Ontario with bad credit is possible, primarily because lending requirements are slightly more relaxed. “No credit check” online installment loans generally don’t make hard inquiries on your credit score, but you’ll need to demonstrate how you’ll be able to repay the loan back.
- More manageable repayment structure. Unlike payday loans that you have to repay by your next payday, you can take longer to repay your installment loan. Most lenders even give you the ability to choose between making payments once or twice a month for several months to years.
Drawbacks
- Potentially high interest rates. Installment loans can have very high interest rates – as high as 35%. You’ll only qualify for a higher interest rate if your credit score is low or you have lower or inconsistent income. Watch out for long loan terms because you could end up paying more interest than the amount you borrow.
- Disreputable lenders. Be wary of which lender you choose and where you provide your personal and financial details online. Learn more about personal loan scams.
How to compare installment loans in Ontario
When comparing options for installment loans in Ontario, consider the following features so you can find the right loan for your budget and needs.
Interest rates and fees
This is the most important factor to compare. Keep an eye on the rate as well as any fees a lender may include, such as an administration fee, surety fee, brokerage fee, late payment fee and NSF fee.
Loan term
Installment loans can be as short as 3 months and as long as 60 months. Generally, the shorter the loan term, the less interest you’ll pay.
Repayment terms
Look for an installment loan lender in Ontario that offers flexible terms, including repayment assistance plans if you run into trouble and can’t honour the original terms of the loan for some reason. Check to see if there are any early repayment terms if you want the option to save on interest and repay your installment loan early.
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Payday loans vs. installment loans in Ontario
Payday loans are a different type of loan compared to installment loans. Payday loans have shorter loan terms than installment loans, because you’ll have to pay back a payday loan by your next paycheque, whereas installment loans can be paid back over months or years.
Payday loans are also much more expensive compared to installment loans. While installment loan APRs typically max out at 35%, payday loan APRs can reach over 300%.
That’s why it’s important to carefully compare your options to make sure you can afford to pay back your loan. Some examples of reputable payday loan providers that operate in Ontario are iCash, Cash Money, GoDay and Money Mart.
Dive deeper: Explore more payday loan options in Ontario
Bottom line
Installment loans in Ontario are often used to pay for one-off expenses and are usually offered by online lenders. They can be a good alternative for bad credit borrowers compared to higher interest loans like payday loans.
However, watch out for installment loan lenders in Ontario offering guaranteed approval.
Frequently asked questions
Sources
More resources on Finder
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