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Unsecured personal loans

Whether you have good or bad credit, find out where you can get unsecured loans in Canada.

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Looking for unsecured personal loans?Compare lenders
Name Product Interest Rate Loan Amount Loan Term Requirements Credit Score Link
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 9.90%-46.96%
$500 - $50,000
3 - 120 months
Currents debts must total less than 60% of income
Min. credit score: 300
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An online broker who helps inform clients towards better finances. Get pre-approved by different lenders for unsecured or secured loans in 5 minutes with any credit score.
ConsumerCapital Personal Loan
19.99% - 32.99%
$1,500 - $12,500
24 - 60 months
Min. income of $1,900 /month, 6+ months employed
Min. credit score: 540
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An online lender that provides fast unsecured personal loans. Complete an application in less than 10 minutes and get a decision within 24 hours.
Spring Financial Personal Loan
17.99% - 46.96%
$500 - $15,000
9 - 48 months
No min. income or employment requirements
Min. credit score: 400
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An online lender offering unsecured personal loans and credit builder loans. Those filing for bankruptcy or a consumer proposal can also apply. If you're not eligible for an unsecured loan, you may be offered a loan to help rebuild your credit.
goPeer Personal Loan
8.00% - 31.00%
$1,000 - $25,000
36 - 60 months
Min. income of $15,000 /year
Min. credit score: 600
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Canada's first regulated consumer peer-to-peer lending platform offering unsecured loans. Connects creditworthy Canadians looking for a loan with Canadians looking to invest. Apply online in minutes and get a response to your application within 24 hours. Your identity will always remain confidential.
FlexMoney Personal Loan
18.90% - 46.93%
$500 - $15,000
6 - 60 months
Min. income of $2,000 /month, 3+ months employed
Min. credit score: 500
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An online lender offering flexible unsecured loans. Apply in less than 10 minutes and if approved, receive financing in as little as 24 hours. Pay off your loan at any time.
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$300 - $50,000
3 - 60 months
No min. income or employment requirements
Min. credit score: 300
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An online broker with the largest lender network in Canada. Get matched for free with lenders offering both unsecured and secured loans through one quick application regardless of your financial situation.
SkyCap Financial Personal Loan
12.99% - 39.99%
$500 - $10,000
9 - 36 months
Min. income of $1,200 /month, stable employment
Min. credit score: 550
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An online lender offering unsecured personal loans to borrowers with a wide range of credit scores. Apply in less than 5 minutes and if approved, receive financing in as little as 24 hours.
Mogo Personal Loan
5.90% - 46.96%
$200 - $35,000
6 - 60 months
Min. income of $13,000 /year
Min. credit score: 540


Mogo offers a 100-day money-back guarantee. If you're not happy with your loan, pay back the principal and get your 100 days of paid interest and fees back.
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An online lender who aims for a hassle-free process through same-day unsecured loan approval and funding. Get a loan fast and track your credit score for free.
Fairstone Personal Loan (Unsecured)
26.99% - 39.99%
$500 - $20,000
6 - 60 months
Able to make monthly repayments on your loan
Min. credit score: 560
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An online lender with a team dedicated to professional service. Get a quote for an unsecured loan without impacting your credit score. Receive funds within as little as 24 hours. No prepayment fees.
Loan Away Personal Loan
19.90% - 45.90%
$1,000 - $5,000
6 - 36 months
No min. income or employment requirements
Min. credit score: 300
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A lender that approves unsecured loans in as little as 20 minutes. Get affordable monthly repayments with any credit score.
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Unsecured loans in Canada let you borrow a lump sum of cash without having to put up collateral to secure your loan. The upside of unsecured loans is that you won’t have to risk losing an asset such as your home or vehicle if you default on your payments. The downside is that you’ll typically need a good to excellent credit score to qualify, especially if you want competitive interest rates.

What are unsecured personal loans?

Unsecured personal loans are loans that let you borrow money based on your credit score. Unlike secured loans, they don’t require you to put up any kind of collateral. This means you won’t lose any of your assets if you can’t make your repayments, though your credit score will be negatively affected if you default on payments.

Common features of unsecured personal loans

  • Interest rates. Interest rates tend to range from 6% to 47%, depending on the state of your credit and other factors. These can be fixed or variable based on if you want consistent or fluctuating monthly payments. Banks and credit unions are the main providers of variable-rate personal loans. Online lenders provide fixed-rate personal loans.
  • Loan term. Loan terms usually range between six months and seven years, though you may be able to qualify for a longer repayment period based on the size of your loan.
  • Loan amount. Unsecured loan amounts vary based on several factors. They can be for as little as $500 or as much as $50,000, depending on your credit score and which lender you decide to go with.
  • Minimum credit score. You’ll typically be required to have a minimum credit score of 600 or more to qualify for most unsecured loans. That said, you may be able to get unsecured personal loan with bad credit if you’re willing to accept higher interest rates.

How do unsecured personal loans work?

Unsecured personal loans work just like any other installment loan. Your lender will ask you to fill out an application for your loan and check your credit score. Once you get approved to borrow money, you’ll get a lump sum of cash deposited into your bank account to spend however you want.

You’ll need to start making repayments as soon as you get your money, even if you don’t spend it straight away. Your repayments will include any interest and fees that accumulate on your loan – so you should make sure to budget for these costs when figuring out the amount you can borrow.

Why is the interest rate higher on an unsecured loan?

Interest rates on unsecured loans are usually higher than for secured loans since your lender needs to take on more risk. Charging higher interest rates provides them with a financial cushion since they won’t be able to reclaim your assets to repay your loan if you default. You’ll typically pay the highest rates for unsecured personal loans for bad credit with instant decision in Canada.

Types of unsecured personal loans

There are a few different types of unsecured loans that you can take advantage of:

  • Term loan. Term loans are the most common type of unsecured loans. These loans let you borrow a lump sum of money upfront to spend on whatever you want. You then make regular, scheduled payments to pay your debt off (plus fees and interest).
  • Line of credit. A line of credit is a flexible form of financing that gives you access to funding in an emergency. You get a “wallet” of funds that you can dip into, but you only pay interest on the amount you take out. Lines of credit can also be secured.
  • Debt consolidation loan. This type of loan can be used to consolidate your debts so that you only have to make one payment. For example, you might take out an unsecured loan to pay off your credit cards and car loan. You’ll then make a single payment on the new loan, usually at a lower interest rate.

Unsecured personal loans for bad credit with instant decision in Canada

If you’re looking for unsecured personal loans for bad credit with instant decision, online lenders in Canada who offer pre-approval are a solid option. During the pre-approval stage, online lenders use technology to quickly scan your finances and decide whether they are likely to approve you. Pre-approval is fast, and sometimes you can find out a lender’s decision within minutes.

Getting pre-approved does not mean you’re guaranteed the loan; it means that from what it sees on the surface so far, a lender is likely to approve you. If you choose to proceed, you’ll need to provide supporting documents, and the lender will do a more in-depth review of your finances. If everything checks out, it will give you final approval.

Unsecured personal loans for bad credit with instant decision on pre-approvals

Personal loan providerKey featuresEligibility requirements
Picture not describedLoanConnect is an online broker with a large lender network. Fill out its online application in less than 10 minutes. See your lender matches for free immediately after submitting your application.You must be of the age of majority in your province of residence and a Canadian resident. You must also show that you make enough money each month to repay your loan on time.Go to site
Mogo BitcoinMogo is a direct online lender. Get a personal loan pre-approval in 3 minutes without impacting your credit score. You can choose not to proceed. Pay off the loan any time without penalty.Age of majority in your province, minimum net annual income of $13,000, minimum 540 credit score, not currently in bankruptcy.Go to siteRead review

Another option is to go with online lenders who skip the pre-approval and go straight to examining your finances in detail to give approval. Though their decisions are not instant, you can get an answer within 24 hours. With an approved loan, your interest rate is pretty much guaranteed, since the lender has already done its full review of your finances.

Unsecured personal loans for bad credit with fast approval

Personal loan providerKey featuresEligibility requirements
Picture not describedAn online lender offering flexible unsecured loans. Apply in less than 10 minutes and if approved, receive financing in as little as 24 hours. Pay off your loan at any time.- At least 20 years old
- Proof of monthly income for the past three 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

– Minimum credit score of 500

Go to site
Spring Financial LogoAn online lender offering unsecured personal loans and credit builder loans. Those filing for bankruptcy or a consumer proposal can also apply. If you're not eligible for an unsecured loan, you may be offered a loan to help rebuild your credit.- Age of majority in your province or territory of residence
- Min. credit score of 400
- Some form of income

– Minimum credit score of 400

Go to siteRead review
Picture not describedAn online lender offering unsecured personal loans to borrowers with a wide range of credit scores. Apply in less than 5 minutes and if approved, receive financing in as little as 24 hours.Min. monthly income of $1,200+, stable employment

Minimum credit score of 550

Go to siteRead review

Unsecured loans in Canada for good to excellent credit

You’ll usually get interest rates between 6% and 21% on your loan if you have good to excellent credit – though the exact rates you get will vary by lender. While applying for an unsecured loan with good to excellent credit can net you lower interest rates, you could drive your rates down even further by applying for a secured loan. This will let you secure your payments against an asset so that your lender feels comfortable enough to lower your rates since your repayments will be reinforced by your credit score and a form of collateral.

How are unsecured loans different from secured loans?

The main difference between secured and unsecured loans comes down to how you apply for them and what happens if you default on your payments.

  • Unsecured personal loans. These loans rely heavily on your credit score to determine your eligibility for financing. If you default on your payments, your credit score will be negatively affected. They typically come with higher interest rates and it’s more difficult to apply with bad credit. These loans are for borrowers with good to excellent credit, or those who don’t own any assets.
  • Secured personal loans. Secured loans require you to use an item of value to secure the money you want to borrow. Your lender can repossess this item to cover its losses if you default on your payments. These loans tend to come with lower interest rates and they’re easier to qualify for if you have bad credit. They are best for people who own assets or have credit scores under 650.

Representative example: Taking out an unsecured loan

Vincent wants to take out an unsecured loan to renovate his new apartment. He needs around $5,000 to purchase supplies and pay an electrician to update some wiring. He starts by taking a look at his credit score – which sits at 720. This puts him in a good position to apply for a loan. He compares three different lenders to find the best deal.

Lender A

Lender B

Lender C

Amount borrowed

$5,000

$5,000

$5,000

Interest rate

3.1%

5.8%

4.8%

Loan term

5 years

3 years

2 years

Origination fee

5%

3.5%

No fee

Total upfront fees

$250

$175

$0

Total interest over 5 years

$403.95

$459.65

$253.83

Total repayment amount

$5,403.95

$5,459.65

$5,253.83

Monthly payment

$90.07

$151.66

$218.91

Customer rating

4 stars

3.5 stars

2.5 stars

After comparing a number of variables, Vincent decides to go with Lender A. With this option, he’ll have to pay his loan back over a longer period of time than he would with Lender B or C. That said, his payments will be more affordable in the long run and he’ll get a better customer experience than he might by choosing one of the other two lenders.

Pros and cons of unsecured loans

Pros

  • Simple application. It doesn’t take much to apply for an unsecured personal loan. All you need to do is submit to a credit check and input some personal details to get started.
  • No assets required. You won’t have to secure your loan with collateral or risk losing an asset if you default on your payments.
  • Flexible loan amounts. You may be able to qualify for more money with an unsecured loan since the amount you borrow won’t depend on the value of your assets.
  • Easy to qualify with good credit. You should be able to qualify fairly easily if you have a good to excellent credit score.
  • Use it for whatever you want. You can use the money you borrow to pay for just about anything you want and there’s no requirement to share this information with your lender.

Cons

  • Higher interest rates. You’ll typically have to pay higher interest rates than you would with a secured loan since your lender won’t be able to repossess any of your assets to cover their losses if you default on your payments.
  • Difficult to qualify with bad credit. You may have a harder time qualifying for an unsecured loan if you have bad credit.
  • Damage to credit score if you default. Your credit score will go down by a significant margin if you don’t make your payments on time.

How to compare unsecured loans in Canada

  • Loan amounts. Many lenders cap their unsecured loans at $35,000 to $50,000. That said, some lenders may allow you to borrow more depending on your credit score, income and debt-to-asset ratio.
  • Interest rates. Compare providers to make sure you lock in competitive interest rates. You may also want to check the annual percentage rate (APR)of your unsecured loan to get a better idea of how much it will cost.
  • Loan terms. Most loan terms range from one to seven years. Shorter terms come with larger payments while longer terms give you smaller payments (but you’ll pay more in interest over time).
  • Fees. Fees for unsecured loans can include application and origination fees as well as any ongoing annual or monthly fees. Double-check the fee schedule for your loan before you sign up to make sure you don’t end up paying more than necessary. Learn more about personal loan fees.
  • Repayment flexibility. Some lenders will charge you a penalty to pay your loan off early while others will let you make extra payments whenever you want. It’s always best to choose a lender that will let you prepay your loan for free wherever possible.
  • Eligibility criteria. Many lenders will have specific criteria such as a minimum income or credit score that you need to meet to qualify. Make sure you’re eligible for the loan you’re interested in before you take the time to apply.

Mistakes to avoid

  • Lying about what you need the funds for. Always be upfront with your lender about why you’re applying for the loan, whether it’s to pay for a vacation, cover business expenses or consolidate your debts.
  • Getting into too much debt. If you’re taking out an unsecured loan to consolidate existing debts, you should be wary of getting yourself into financial trouble by increasing your debt. Make sure you’ll be paying less in interest on your new loan than you’re currently paying on your cumulative debts.
  • Check that the lender providing your loan is licensed. Always make sure you’re getting a loan from a licensed lender. You can check the information at the very bottom of the website to see the lender’s details.
  • Fees and charges. Where possible, do your best to avoid excessive fees and charges. One way to do this is to make sure you do your research, ask questions and compare lenders to find the best deal.

How to apply for an unsecured loan

You can easily apply for an unsecured personal loan by following these steps:

Application process

  1. Fill out the application. Apply for the loan of your choice online or by visiting a lender in person. Most online applications take less than 10 minutes to fill out if you have all of the necessary information on hand.
  2. Input personal details. Provide personal and financial information such as your full name, date of birth, address, phone number, email and bank account details.
  3. Submit to a credit check. Authorize your lender to do a credit check so that they can determine your eligibility for an unsecured loan.
  4. Prove your income. Confirm proof of employment or income by providing pay stubs or bank account statements from the last 90 days.

Loan eligibility requirements

To qualify for an unsecured personal loan, you may need to meet the following eligibility requirements:

  • You must be at least 18 years old or the age of majority in your province or territory.
  • You’ll need to be a Canadian citizen or a permanent resident with a valid Canadian address and two valid pieces of identification.
  • You must be able to prove that you can pay off your loan by showing pay stubs, bank account statements and other relevant financial documents.
  • You’ll usually need to have a bank account to apply for a loan online.

What to consider before applying

Before applying for unsecured personal loans, it’s important to assess not only if you’re eligible but if it makes financial sense for you to apply for an unsecured loan.

  • Will you qualify for a loan? Avoid applying for loans that you know you can’t qualify for. Look at the eligibility criteria for the loan you’re interested in before you apply and make sure it’s a good fit.
  • Are you getting the best interest rates? It’s easy to apply and take the first loan you qualify for. Make sure you compare lenders to find the best deal so that you don’t get stuck paying more than you need to.
  • Can you afford to take on more debt? You might benefit from making a budget to see how much income you have to spare each month. This number should sit below the amount you’ll be required to put down for your monthly payments.
  • Do you have money put away for an emergency? You’ll usually want to make sure that you have an emergency fund set aside before you apply for a loan. This will help you avoid getting stuck in a cycle of debt that you can’t get out of.

Bottom line

Taking out unsecured loans can help you get access to the money you want to borrow without having to put up an asset as collateral. That said, you’ll usually need to have a decent credit score to apply and your credit could take a big hit if you default on your payments.

Frequently asked questions

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