Several lenders in Canada can help you access a line of credit if you have bad credit. Rather than fixating on your credit score, they’ll assess your income, debts and spending activity. However, you may need to pay high interest rates and fees.
Keep reading to compare loan options for bad credit and learn about how to get quick approval.
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There’s no single best choice because it depends on your personal factors and needs. For example, if you’d like to make the approval process as easy as possible, check out KOHO, which doesn’t have job or income requirements and doesn’t require credit checks. If you’d like to explore multiple options, check out LoanConnect, a loan search platform. It can match you with suitable lenders with just one application. If you’d like to lower your cost as much as possible, consider Nyble. It doesn’t charge any interest or mandatory fees.
Learn more about lines of credit for bad credit below.
Online loan search platform LoanConnect can help you find a line of credit through its network of lenders. It has been around since 2016, and its office is based in London, Ontario.
Is this line of credit easy to get?
By applying to LoanConnect, you get access to its database of 30+ lenders. You can apply online within minutes and get matched with suitable lenders, whether they offer lines of credit or other types of loans.
Eligibility requirements: Canadian citizen or permanent resident, age of majority in your province of residence, current debts must total less than 60% of your income
Serviced provinces: All provinces
Accepts bad credit: Yes
Instant approval: No, but instant pre-approval is available
Credit check required: LoanConnect doesn’t do credit checks, but the lender you’re matched with may.
Guaranteed approval: No
Convenient online service
Receive funds within as little as 24 hours.
Easy comparison process
Not a direct lender
Watch out for high rates for bad credit
You can only compare loan offers from lenders in LoanConnect’s network
Loans Canada is a loan search platform with the largest network of lenders in Canada. It has been in business since 2012 and is based in Toronto, Ontario. Loans Canada is worth considering if you want to thoroughly search for options that best suit your situation.
Is this line of credit easy to get?
Loans Canada is not a direct lender but a platform that allows you to fill out one application and get matched with appropriate lenders.
This means you could be matched with lenders who offer lines of credit and/or those who offer other loan types, but you can be reasonably sure that your matches are open to giving you a loan based on your finances.
Nyble launched in 2022 in the Canadian loans marketplace, and its product is a bit different from a traditional line of credit. With a Nyble credit line, you’re approved to borrow up $250. However, you won’t be able to borrow more until you pay off what you previously borrowed.
You can repay your loan on your next payday or roll it over to the following months.
Is this line of credit easy to get?
Nyble is one of the easiest lines of credit to get approved for because it offers much smaller loan amounts than most other lenders. It also doesn’t do any credit checks and is flexible in the types of income it accepts. You can get instant approval and instant funding 24/7.
Loan amount: $30 – $250
Loan term: 31 days, extendable
APR: 0%
Eligibility requirements: You must be 18 years or older and have a minimum monthly income of $1,000.
Serviced provinces: All provinces and territories
Accepts bad credit: Yes
Instant approval: Yes
Credit check required: No
Guaranteed approval: No
Bad credit is okay (no credit check)
No need to be employed—many types of income are acceptable
Fast approval with no application fee
Will be costly if you keep rolling over your loan
Small loan amounts
Paid membership required for fast transfers and other premium perks
KOHO offers a cash advance of up to $250. It’s not exactly a line of credit, but it’s very similar to one. You’re approved to borrow up to a limit, and you can repay the amount you borrow any time with no late penalties.
Is this cash advance easy to get?
KOHO Cover is one of the easiest cash advances to get, as it doesn’t require a credit check or proof of income. It advertises guaranteed approval for its cash advances. Generally, it’s best to steer clear of lenders that say this, but in KOHO’s case, it’s a legitimate, well-known lender that’s currently pursuing a Schedule 1 bank licence.
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Eligibility requirements: KOHO account—access higher loan amounts over time by using KOHO for everyday spending, repaying your monthly fees and using its other services
MogoMini is a line of credit offered by Vancouver-based fintech Mogo. You can apply online and get pre-approved in less than five minutes.
Is this line of credit easy to get?
This line of credit is easier to get than many other lines of credit in Canada because this product is intended to be a payday loan alternative for emergency funding. Mogo is open to financing borrowers with a credit score of at least 600. You can also apply if your income is more than $35,000/year.
While this line of credit may be easy to get, with such a high interest rate, it’s best to apply only if absolutely necessary, and ensure that you pay off the amount borrowed as quickly as possible.
Fora is a relatively new lender in Canada that launched in 2022. It offers an unsecured line of credit to suit borrowers who may not qualify with banks and credit unions.
You can apply online without needing to email or upload documents, but Fora requires view-only access to your bank statements before it can give approval.
When you need to access money from your line of credit, Fora can deposit it into your bank account as soon as the same business day.
Is this line of credit easy to get?
It’s easier to get than a line of credit from a financial institution. Fora can consider your income as long as it’s regularly paid into your bank account. This means you can qualify even if your income does not come from employment. This lender is also more lenient with credit scores.
To increase your chance of approval, you’ll need to show Fora that you are receiving enough income and that you have room in your finances for new line of credit payments.
Eligibility requirements: Steady source of income, be a Canadian citizen or permanent resident, be a resident of and legal age of majority in one of Fora’s serviced provinces and have an active personal bank account
Serviced provinces: AB, BC, NB, NS, ON and SK
Accepts bad credit: Yes
Instant approval: No
Credit check required: Yes
Guaranteed approval: No
Fast access to funds
No additional fees
Easy application process
High interest rate
You won’t be able to get this line of credit if you live outside of AB, BC, NB, NS, ON and SK
Cash Money is more known for providing payday loans, but it also offers lines of credit. One of the biggest alternative lenders, it has been operating for decades and is headquartered in Toronto, Ontario.
You can apply for a loan and verify your income online, while in-store and phone applications are also accepted.
Is this line of credit easy to get?
This line of credit is easier to get than lines of credit from banks and sometimes even other alternative lenders. Cash Money is open to non-employment incomes and lower credit scores. Its line of credit interest rate is high, though, at 34.99%. It’s important to be financially disciplined and pay off your balance as soon as possible if you get this line of credit.
Loan amount: $500 – $10,000
Loan term: Open
APR: 34.99%
Eligibility requirements: Steady source of income, active bank account, min. 600 credit score
Serviced provinces: AB, BC, MB, NB, NL, NS, ON and SK
Bree is a cash advance app that offers short-term advances to help cover expenses between paycheques. While it isn’t a traditional line of credit, it provides similar flexibility because you can borrow small amounts and repay them within 90 days. If you need an extension within that time period, you can contact Bree to get one at no extra cost. And since Bree was designed as a low-cost alternative to payday loans, it doesn’t charge interest on its advances.
Is this line of credit easy to get?
Bree is easier to qualify for than traditional lines of credit, as the platform doesn’t perform a credit check when reviewing applications. Instead, it looks at factors like your banking activity and regular income deposits, including government benefits, to determine eligibility.
A line of credit allows you to borrow money up to a set limit and repay only the amount you use plus interest.
Individuals with bad credit may face challenges obtaining a line of credit from traditional lenders due to stricter eligibility requirements.
Private lenders offer options for borrowers with poor credit, but these often come with significantly higher interest rates and fees.
To avoid further financial strain, it’s important to compare lenders, understand repayment terms and ensure a loan aligns with your financial capacity.
How do I get a line of credit with bad credit?
To get approved for a line of credit with bad credit, you can apply to alternative lenders. Many lenders operating online work with bad credit borrowers. You can apply through a lender directly or use an online loan search platform like Loans Canada or LoanConnect, which can match you with a lender that suits your needs.
Rather than focusing on your credit score, bad credit lenders will consider other factors when assessing your credit application, such as your income, existing debts and spending activity.
Can I get a guaranteed line of credit with bad credit?
Not really. Be wary of any lender that promises “guaranteed” approval. This is a common red flag that could indicate a personal loan scam, so the safest thing to do is steer clear. The one exception we’ve found is KOHO. KOHO is advertising guaranteed approval at the moment, and it’s a legit lender.
Can I get a line of credit without a credit check?
You can get a line of credit without a credit check from Nyble. You can repay any time and build your credit, but you can only borrow up to $250. KOHO and Bree also offer flexible repayments, but unlike Nyble, they don’t build your credit.
Can I get easy approval for a line of credit from a bank?
It’s not easy to get a line of credit from a bank unless you have a strong financial profile. To increase your chance of getting approved for a bank line of credit, you’ll need to meet the following:
Have sufficient income (steady full-time employment preferred)
Monthly debt payments are less than 40% of your monthly income
Credit score over 700
Securing your line of credit with your home or investments will also help your application.
Which banks or credit unions are the easiest to get a line of credit from?
Overall, banks and credit unions have strict eligibility requirements, so your financial situation would need to be in a strong place. But here are lenders you can consider:
Lender
Why it’s great
Innovation Federal Credit Union
Apply online in less than 10 minutes
Approval in one business day
High maximum rate (14.99%), which suggests they’re open to less-than-perfect credit
FirstOntario Credit Union
Apply online
Low minimum annual income: $15,000
Accepts cosigners
Vancity Credit Union
Offers the Personaline, which is a small line of credit, under $5,000, for people who don’t qualify for their standard line of credit
Minimum limit is as low as $500
Tangerine
Apply online in minutes
Manage your loan online
Access competitive rates
Should I get a line of credit if I have a low credit score?
A line of credit is a good idea only if you are financially disciplined. A line of credit is a flexible loan that allows you to access funds as you need them up to a limit. You can use a portion of your credit limit or the full amount — it’s up to you — and you can use the money for any purpose.
You’re only charged interest on the amount you borrow, not on the full credit limit. There are minimum payments you must make every month, but the main benefit of a line of credit is that you can pay off the amount you borrow whenever it’s best for you.
This is why a line of credit requires financial discipline. There’s a risk of borrowing more than you need, and interest is calculated daily on the unpaid balance.
If you have bad credit, consider the steep interest rate, which can have a big impact on the total cost of borrowing. Also, if you miss payments, you could damage your credit score further (although you can make interest-only payments, which makes it more affordable).
"It’s important to use a line of credit responsibly, especially if you have bad credit. Before using your line of credit, ask yourself what the purpose is. If it’s to buy something you can’t afford, it’s best not to use it."
If you’re applying for a bad credit line of credit, keep an eye out for these features:
High interest rates. Interest rates on lines of credit for bad credit can be as high as 35%. With this in mind, it’s a good idea to make more than the minimum monthly payment to minimize the interest that accrues.
Fixed rates. Line of credit interest rates for bad credit are usually fixed, which means your rate will stay the same.
Lower credit amounts. Online lenders tend to offer smaller credit limits than banks. If your credit score is less-than-perfect, you can expect to qualify for a lower amount than someone with excellent credit.
Improve your credit. Making on-time payments on your line of credit can help rebuild your credit score.
Secured vs unsecured lines of credit
Secured lines of credit. This type of line of credit is backed by collateral (usually your house), allowing you to access a higher credit limit and better interest rate. However, this product is not easy to get if you have bad credit because it’s offered by traditional lenders, not alternative lenders. For reference, the average secured line of credit rate is 4.07%.
Unsecured lines of credit. With no collateral to secure the loan, unsecured lines of credit have higher interest rates. This is easier to get than a secured line of credit if you have bad credit because you can get one from an alternative lender. The average unsecured line of credit rate is 7.94%, but if you have bad credit, you’ll be charged much more than this.
Tips to get easy approval
Even if your credit score is poor, there are several simple things you can do to increase your chance of getting approved by a legitimate lender:
Check your credit report. Find out what your credit score is to get a better idea of which lenders may be willing to work with you. You can also check whether there are any inaccuracies in your credit report that need to be fixed.
Pay down your debt. Your debt-to-income (DTI) ratio is a key factor lenders will consider when you apply for credit. By taking the time to pay down your existing debts, you’ll ensure that a smaller portion of your income goes towards paying back what you owe. Lenders typically want to see a DTI below 40%, but lenders of lines of credit for bad credit are open to higher DTIs.
Apply for a smaller amount. Lenders are more likely to approve you for smaller amounts than larger amounts.
Get a cosigner. Finding someone with strong credit who is willing to cosign your loan will also boost your chance of getting approved. However, that person will have to step in and cover the repayments if you fall behind.
How to apply
It’s easy to apply for an online personal line of credit for bad credit. Here’s what you need to do:
Compare your options. Compare lenders to find out about their eligibility requirements, line of credit amounts and interest rates. You can do your own research or go through a loan search platform to find a loan that’s right for you.
Submit your application. Fill out an online application form with your name, contact details, and income and employment information.
Provide supporting documentation. You may need to provide proof of ID, such as your driver’s licence or passport, and bank account information to prove your income.
Get funded. It’ll typically take between one and three business days to get approved and funded. You can then withdraw from your available credit as needed to fund any expenses.
Yes. While you may not be able to qualify with a bank or credit union, some online lenders offer lines of credit for bad credit in Canada. However, high interest rates typically apply.
It depends on the lender, but generally, your credit score needs to be over 570, sometimes even 600.
Unless it's a non-traditional line of credit like Nyble, you can't get instant approval for a line of credit.
HELOCs are typically given to people with good to excellent credit. You'll need to apply for an unsecured line of credit if you have bad credit.
It depends on your situation. A line of credit can be a convenient way to cover unexpected expenses, but it requires discipline with spending and making payments. Also, if you have bad credit, be aware that high interest rates will apply when you access credit.
If you're in Ontario, you can get a line of credit from alternative lenders like Mogo, KOHO, Nyble and Loans Canada.
It'll be difficult to get a student line of credit with bad credit. This is because a student may not have sufficient income, and, combined with a low credit score, there is a high risk that banks will not get their money back if they lend to a student. You can boost your odds of approval by including a cosigner.
Lines of credit for bad credit typically have limits of up to $10,000.
It can be very hard to get a line of credit with a low credit score. Lines of credit give you convenient access to money, and because of this, lenders will want to make sure you're the type of person who pays back your loans on time.
Tim Falk is a freelance writer for Finder. Over the course of his 20-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
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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.
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Need to borrow $5,000 fast? Compare loan options, even if you have bad credit.
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