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Unsecured personal loans for bad credit with an instant decision

Browse unsecured personal loans in Canada with instant pre-approval and fast approval for low credit scores.

If you’re in a rush to take out an unsecured personal loan with bad credit, you may be looking for lenders that provide an instant decision on your application. A legitimate lender in Canada will not give instant approval without first evaluating your financial situation. However, it is possible to get pre-approval within minutes and fast approval on the same day.

Compare unsecured personal loans for bad credit with an instant decision

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Name Product Interest Rate Loan Amount Loan Term Requirements Link
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$300 - $50,000
3 - 60 months
Requirements: min. credit score 300
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A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders.
Spring Financial Personal Loan
17.99% - 46.96%
$500 - $15,000
9 - 48 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
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If you're not eligible for an unsecured loan, you may be offered a credit builder loan to help improve your credit score.
SkyCap Financial Personal Loan
12.99% - 39.99%
$500 - $10,000
9 - 36 months
Requirements: min. income $1,200/month, stable employment, min. credit score 550
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Apply in less than 5 minutes for an unsecured loan and if approved, receive financing in as little as 24 hours.
LoanConnect Personal Loan
Secured from 1.90%, Unsecured 5.75%-46.96%
$500 - $50,000
3 - 120 months
Requirements: min. credit score 300
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Fill out one application with this broker and get pre-approved by different lenders in 5 minutes.
FlexMoney Personal Loan
18.90% - 46.93%
$500 - $15,000
6 - 60 months
Requirements: min. income $2,000/month, 3+ months employed, min. credit score 500
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Apply in less than 10 minutes for an unsecured loan and if approved, receive financing in as little as 24 hours. Pay off your loan any time without penalty.
OFFER
Mogo Personal Loan
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Requirements: min. income $13,000/year, min. credit score 500
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Get a free quote without affecting your credit score and get an unsecured loan the same day. 100-day money-back guarantee: If you're not happy with your loan, pay back the principal and get the 100 days of paid interest and fees back.
Fairstone Unsecured Personal Loan
26.99% - 39.99%
$500 - $25,000
6 - 60 months
Requirements: min. income $1,000/month, min. credit score 525
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Get a free quote without impacting your credit score. Receive funds for an unsecured loan within as little as 24 hours. No prepayment fees.
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What is instant personal loan pre-approval?

When you submit an application, online lenders use technology to quickly scan your details and let you know within minutes whether you are pre-approved or denied. Pre-approval simply means the lender wants to proceed with your application and can even provide you with a quote. However, the loan is not yet guaranteed because the lender will still need to examine your finances.

Next step: Approval

If you also want to proceed, you may be required to provide supporting documents to verify the information on your application, such as bank statements or pay stubs. The lender will then review your finances in more detail. If everything checks out, the lender will give an official loan offer. The fastest online lenders can give approval on an unsecured personal loan on the same business day and within 24 hours at most.

Is there such a thing as instant approval?

Instant approval is more common among payday lenders. Payday loans are small, extremely expensive loans of up to $1,500 that you repay by your next payday. They have more lenient requirements and faster turnaround times than personal loans, but you pay for the ease and convenience with annual percentage rates (APRs) in the triple digits.

Features of an unsecured personal loan

Unsecured personal loans are the most common personal loans on offer by online lenders. Their key features include:

  • No collateral required. While secured personal loans require an asset, such as home equity or a car, with unsecured personal loans you won’t have your assets on the line in case you default on your loan.
  • Higher interest rates. These loans typically come with higher interest rates compared to secured loans, especially for borrowers with bad credit.
  • Bad credit is okay. You can qualify for an unsecured personal loan even with bad credit if you have proof of a stable income. Lenders that provide bad credit personal loans often shift the focus from your credit score to your ability to afford monthly loan repayments.

How to get an unsecured personal loan with instant decision in Canada

Applying for a personal loan online is quick and easy, and some lenders offer an instant decision to speed up the process even further. Here’s how to set yourself up for success with these loans:

  • Seek out lenders that provide instant pre-approval. These lenders usually do a soft credit check to let you know whether you’re pre-approved or denied. Not all lenders offer an instant decision on personal loan applications. If speed is your priority, ensure the lender of your choice can do this for you.
  • Don’t skip steps on the application. Some applications give you the option to skip steps. If you’re looking to get the fastest decision, provide all your personal and financial information from the start. Give details about your employer, gross monthly income and monthly debts. Many online applications also ask you to connect your banking details through an encrypted portal to speed up the underwriting process.
  • Review your application before you submit. Errors on your application can result in a delay or rejection. To avoid this, make sure your information is correct before submitting.
  • Prepare your documents in advance. In some cases, a lender may mark your application as pending because it needs more documents to evaluate your information. Plan ahead and have your personal loan documents on hand to avoid any unnecessary delays.

Eligibility requirements for unsecured personal loans

There isn’t a universal set of eligibility criteria you’ll need to meet to get a personal loan. While the requirements will vary depending on the lender, the basic eligibility includes the following:

  • Be a Canadian resident of the age of majority in your province or territory. To take out a loan, you should be at least 18 or 19 years old, with government-issued ID and proof of residency.
  • Meet minimum income requirements. If you have bad credit, lenders will look at your gross monthly salary to qualify you for a loan instead. You’ll need proof of income via bank statements, pay stubs or a benefits letter.
  • Be employed for at least 3+ months. While some lenders allow you to apply for an unsecured loan with just government benefits or other social assistance, the vast majority prefer that you are employed for at least 3 to 6 months.
  • Meet minimum credit score thresholds. Bad credit lenders don’t factor your credit score into the equation heavily, but more often than not, lenders will ask for your social insurance number and run a credit check before proceeding with a loan offer.
  • State the loan purpose and loan amount. Plan ahead and make sure you know how much you need to borrow and how you plan on using these funds.

    Watch out for personal loans with guaranteed approval

    Steer away from any lenders promising a guaranteed approval personal loan. No trustworthy and reliable lenders can guarantee a personal loan, especially if you have bad credit in Canada. Legitimate lenders evaluate a borrower’s financial situation before approving.

    Unsecured personal loan vs payday loan

    There’s a reason why payday loans come with such notoriety – they’re some of the most expensive loans on offer. If you’re on the fence about which type of loan to apply for, here are the key disparities that differentiate them:

    • Payday loans are faster. Payday lenders can fund your loan application faster than lenders offering up unsecured personal loans, even with an instant decision. That’s because unsecured personal loans have stricter eligibility requirements.
    • Payday loans have shorter terms. Payday loans get their name because you’re typically required to pay back your loan by your next payday up to 62 days. Unsecured personal loans often have terms anywhere between 6 months and 5 years.
    • Payday loans are more expensive with incredibly high fees. Payday loans come with much higher APRs than unsecured personal loans. For comparison’s sake, the APR charged on personal loans is as high as 47% for bad credit borrowers while payday loans command APRs between a whopping 390% and 780%.
    • Payday loans have smaller loan amounts. You can usually borrow $100 up to a maximum of $1,500 for a payday loan, depending on where you live in the country. On the flipside, unsecured personal loans range from as low as $500 to as much as $25,000 or more in some cases.

    Bottom line

    If you’re seeking an unsecured personal loan with bad credit, you may be in a hurry to learn if you can get approved or not. The good news is there are plenty of online lenders that offer bad credit loans with an instant decision. As long as you meet the eligibility requirements and fill out the application correctly, you should get a decision immediately.

    Always tread carefully if you find a lender promising guaranteed approval, though. This is a completely different offer that you should be skeptical of. Lenders must look into each borrower’s circumstances, evaluate their credit history, and validate their income and identity before approving a loan.

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