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Bad Credit Loans Montreal

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Written by Lisa Rennie

Best Bad Credit Loans Montreal 2020

Lender directory

Compare the best lenders in this region

Provider Loan Amount Rate Term (Months) Rating
LendCare
- - Up to 60
-
ECN Capital
- - -
-
SimplyBorrowed
$500 - $5,000 - 12 - 24
$500 - $5,000
Pebble Cash
$350 - $1,000 - 2 - 12 weeks
$350 - $1,000
Prêt Express 911
$250 - $1,250 22% APR -
$250 - $1,250
Refresh Financial
$1,600 - $25,000 9.47% - 20.07% APR 36 - 60
$1,600 - $25,000
GoPeer
$1,000 - $25,000 7.5% - 31.5% APR 36 - 60
$1,000 - $25,000
North’n Loans
$100 - $1,500 - -
$100 - $1,500
MDG
Up to $3,200 - -
Up to $3,200
Loan or Credit
$100 - $25,000 +4.9% -
$100 - $25,000
Flexiti Financial
- Up to 35% -
-
FinanceIT
$500 - $100,000  6.99% - 14.99% 12 - 240
$500 - $100,000
Diamond Financial Services
- - -
-
Climb
1800- 2900  15.99% 23 - 36
1800- 2900
Fresh Start Finance
Up to $15,000 29.99% - 46.96% 9 - 60
Up to $15,000
Payday King
$100 - $1,000 546% APR 14 days
$100 - $1,000
Private Loan Shop
$500 - $50,000 15 - 30% -
$500 - $50,000
Money Provider
$500 - $1,000 28% - 32% -
$500 - $1,000
Lendful
$5,000 - $35,000 9.9%+ APR 36 - 60
$5,000 - $35,000
Health Smart Financial Services
$300 - $25,000 7.95%+ 36 - 60
$300 - $25,000
Fina Capitale
Up to $30,000 28% - 32% 1 - 3
Up to $30,000
DMO Credit
$300 - $1,000 38% APR 3 - 4
$300 - $1,000
Capital Cash
$100 - $1,000 546% APR 14 days
$100 - $1,000
Cash Depot
$300 - $1,500 32% APR 3 - 5
$300 - $1,500
Credit 700
$500 - $1,000 28% - 32%  4 - 5
$500 - $1,000
Credit2Go
$250 - $1,000 29% APR 3 - 4
$250 - $1,000
Ledn
$500 - $1,000,000 12% 12
$500 - $1,000,000
Fairstone
Up to $35,000 26.99% – 39.99% 6 - 60
Up to $35,000
Lending Mate
$2,000 – $10,000 34.9% – 43% 12 - 60
$2,000 – $10,000
Lamina
Up to $1000 30% 3 - 5
Up to $1000
Loans SOS
Up to $5,000 60% 6 - 60
Up to $5,000
514 Loans
Up to $3,000 22% - 35% 3 - 4
Up to $3,000
Loan Me Now
$500-$1000 28%-32% 3
$500-$1000
Urgent Loans
$300 - $1500 27% - 35% 3 - 4
$300 - $1500
Provider Loan Amount Rate Term (Months) Rating
BarterPay
- 0.9% - 12% 6 months - 5 years
-
Clearbanc
$10,000 - $10,000,000 6% - 12.5% -
$10,000 - $10,000,000
GE Capital
- - -
-
We Can Financial
- - -
-
Wajax Equipment
- - -
-
Key Equipment Financing
- - -
-
Corl
$10,000 - $1,000,000 - -
$10,000 - $1,000,000
Yellowhead Equipment Finance Ltd
- - -
-
Specialty Truck Financing
- - -
-
Travelers Financial
- - -
-
Peel Financial
- - -
-
Pioneer Financial Services
$5,000 - $1,000,000 - -
$5,000 - $1,000,000
Polaris Leasing
- - -
-
Patron West
- - -
-
Payability
up to $250,000 - -
up to $250,000
Planet Financial
- - -
-
Rise
Up to $10,000 - -
Up to $10,000
Merchant Growth
$5,000 - $500,000 - 6 - 18 months
$5,000 - $500,000
Onesta
- - -
-
Lift Capital
- - 12 - 120
-
Leaseline
- - 24 to 60
-
Lease Direct
- - -
-
John Deere
- - -
-
Hitachi Capital Canada
- - -
-
Export Development Canada
- - -
-
Essex Lease Financial Corporation
- - -
-
Equilease
- - -
-
Alliance Financing Group LTD
$5,000 - $150,000 15% + 6 - 24
$5,000 - $150,000
CLE Capital
- - -
-
Canada Equipment Loan
- - -
-
SharpShooter Funding
$5,000 - $150,000 5.49% - 22.79% 12 - 60
$5,000 - $150,000
Meridian Credit Union
Up to $35,000 - -
Up to $35,000
Laurentian Bank of Canada
Up to $250,000 - Up to 10 years
Up to $250,000
HSBC Bank Canada
- - -
-
National Bank
Up to $1,000,000 - -
Up to $1,000,000
Desjardins
Up to $100,000 - -
Up to $100,000
Canadian Imperial Bank of Commerce (CIBC)
$10,000+ - Up to 15 years
$10,000+
Scotiabank
Up to $1,000,000 -   Up to 15 years
Up to $1,000,000
Bank of Montreal (BMO)
Up to $500,000 - Up to 10 years
Up to $500,000
Royal Bank of Canada (RBC)
$5,000 - $10,000 - Up to 7 years
$5,000 - $10,000
Money in Motion
$10,000 - $1,000,000 4% - 14% 12 - 84
$10,000 - $1,000,000
Lease Link
Up to $75,000 - Up to 18
Up to $75,000
FundThrough
$500-$50,000 0.5% weekly 12 week cycles
$500-$50,000
Econolease Financial Services Inc.
$1,000 - $1,000,000 6% - 20% -
$1,000 - $1,000,000
Easylease Corp
Up to $5,000,000 4.5% 24 - 72
Up to $5,000,000
Capify
$5,000 - $200,000 - -
$5,000 - $200,000
Canadian Equipment Finance
$50,000 - $12,000,000 - 24 - 96
$50,000 - $12,000,000
Capital Key
$5,000 - $1,000,000+ - 1 - 60
$5,000 - $1,000,000+
Cashbloom
$5,000 - $1,000,000 - 3 - 24
$5,000 - $1,000,000
BFS Captial
$5,000 - $5,000,000 - 4 - 18
$5,000 - $5,000,000
Baron Finance
$10,000+ 18% - 22% -
$10,000+
B2B Bank
$10,000 - $300,000 4.70% - 5.45% -
$10,000 - $300,000
AOne Financial Solutions
Up to $5,000,000 5% - 10% 12 - 60
Up to $5,000,000
Lendified
$5,000 - $150,000 - 3 - 24
$5,000 - $150,000
IOU Financial
$5,000 – $100,000 15% + 12 – 18
$5,000 – $100,000
Lending Loop
$5,000 – $500,000 Starting at 5.9% 3 – 60
$5,000 – $500,000
Thinking Capital
Up to $300,000 - -
Up to $300,000
Provider Loan Amount Rate Term (Months) Rating
WeFinanceCars
- + 4.9% -
-
Walker Financial Services
- - -
-
National Powersports Financing
- - -
-
LMG Finance
- - -
-
Loans2Go
- - -
-
iA Auto Finance
- +8.99% -
-
Gamache Group
- - -
-
Royal Bank of Canada (RBC)
$5,000 - $10,000 - up to 84
$5,000 - $10,000
Laurentian Bank of Canada
Up to $250,000 - 12 - 60
Up to $250,000
National Bank
Up to $1,000,000 - up to 96
Up to $1,000,000
Desjardins
Up to $100,000 - 6 - 96
Up to $100,000
Canadian Imperial Bank of Commerce (CIBC)
$10,000+ - 12 - 96
$10,000+
Scotiabank
Up to $1,000,000 - up to 96
Up to $1,000,000
Daimler Truck Financial
- - up to 72
-
DealerPlan Financial
- - -
-
Canada Auto Finance
$5000 - $45,000 4.90 % - 29.95% APR 36 - 72 
$5000 - $45,000
Credit River Capital Inc
- - -
-
Capital Trust Financial
- - -
-
Canadian Truck Loan
- - -
-
Canada Car Loans
- - -
-
Car Loans Canada
$7500 - $59,995 3.95% + 12 - 96
$7500 - $59,995
Car Creditex
- Up to 49.9% -
-
Auto Capital Canada
- - -
-
Carfinco
- - Up to 84
-
Canada Drives
$500 - $35,000 $29.99% – 46.96% 9 - 60
$500 - $35,000
Approve Canada
- - -
-
2nd Chance Automotive
- 4.2%+ -
-
Carloans411
$5,000 – $40,000 - 12 – 72
$5,000 – $40,000
AutoArriba
- - Maximum 84
-
Provider Loan Amount Rate Term (Months) Rating
BHM Financial
Up to $25,000 - 12 - 60
Up to $25,000
Provider Loan Amount Rate Term (Months) Rating
Mortgage Alliance
- 2.74% - 6.30% 12 - 120
-
Paradigm
- - -
-
Verico
- - -
-
True North Mortgage
- 2.64% - 4.45% 12 - 120
-
Tangerine
$50,000+ 2.74% - 3.49% 12- 120
$50,000+
Turnedaway
- - -
-
REICO
- - -
-
Mortgage Architects
- 2.74% - 3.70% 6 - 120
-
IntelliMortgage
- - -
-
Invis
- 2.69% - 3.95% 6 - 120 
-
Equitable Bank
$25,000 - $800,000 4.59% - 5.64% 6 - 60
$25,000 - $800,000
Dominion Lending Center
- - -
-
First National
- 2.84% - 7.30% -
-
CMLS Financials
$100,000 - $750,000 - 12 - 120
$100,000 - $750,000
CHIP Reverse Mortgage
min 25,000 4.99% - 5.59% 6 - 60
min 25,000
CanWise
- 2.23% - 4.45% -
-
Centum
- 2.89% - 3.79% -
-
Broker Financial Group Inc.
- 2.41% - 3.84% -
-
Provider Services Rating
BDO
Credit Counselling, Bankruptcy, Consumer Proposal
Credit Counselling, Bankruptcy, Consumer...
MNP
Personal Bankruptcy, Consumer Proposal
Personal Bankruptcy, Consumer Proposal...
Raymond Chabot
Bankruptcy, Consumer Proposal
Bankruptcy, Consumer Proposal...
Full Circle Debt Solutions Inc
Credit Counselling, Debt Management Program
Credit Counselling, Debt Management Prog...
Consolidated Credit
Credit Counselling, Debt Management Program
Credit Counselling, Debt Management Prog...
4Pillars
Debt Restructuring, After Care - Credit Rebuilding Program, Corporate Debt Restructuring
Debt Restructuring, After Care - Credit ...

When was the last time you checked your credit score? Are you up-to-date on where it stands right now?

Knowing about your credit score is important because it gives you some insight into how strong your credit profile is and how likely you’d be to secure various loans with ideal interest rates and terms. The higher your credit score, the better able you’ll be to secure quality credit products. But the lower your score, the more trouble you’ll have landing a loan.

That said, there are bad credit loans in Montreal that may be available to those who may otherwise be struggling to get approved for a conventional loan.

What is Bad Credit?

Obviously, bad credit simply means that you have a low credit score. So, what is considered a low credit score?

In Canada, credit scores range from 300 to 900 points. For the majority of lenders, anywhere between 620 and 680 is considered the average credit score, and anything below this range would make it more difficult to get approved for loan products.

Having a low credit score can affect different aspects of your daily life. Not only would bad credit make it more difficult to get approved for a mortgage or personal loan, it can also make it harder to secure a cell phone contract, get a job, land an apartment, and get promoted. No matter what your particular financial priorities may be, having bad credit is never a good thing.

How Does Bad Credit Affect Daily Life?
Take a look at this infographic to learn how bad credit can affect your daily life.

What Affects Your Credit Score?

A number of important factors impact your credit score, including the following:

  • History of payments – Missed payments will have a negative impact on your score, while regular timely payments will help to improve it.
  • Credit utilization – It’s advised to spend no more than 30% of your credit card limit in order to keep your credit score healthy.
  • Credit length – Older credit accounts are considered a good thing for credit scores.
  • New inquiries – Applying for too many loans will place “hard inquiries” on your credit report, which can have a negative impact on your score.
  • Diversity – Having a diverse portfolio of credit accounts is a good thing for your credit.

Can You Get Approved For a Loan With Bad Credit?

Ideally, a high credit score is needed to secure a conventional loan with a low-interest rate. Bad credit can definitely get in the way of being approved for a traditional loan with a conventional lender.

That said, it’s still possible for bad credit borrowers to get approved for a loan whenever they have a pressing expense that needs to be covered but their current finances aren’t enough to make the payments. Bad credit loans in Montreal give borrowers with a low credit score the opportunity to get their hands on the much-needed funds required to pay for some of life’s big expenses.

So, what types of loans are available to those with bad credit?

No Credit Check Loans

Some lenders work exclusively with borrowers who have bad credit, and may not even check credit scores. For those with bad credit, this may be a great option to get approved for a loan despite their low credit score. In this case, the lender would place more weight on other factors associated with loan approval, including assets, income, and current financial behavior.

If these factors are healthy, they may be enough to override your bad credit score. It should be noted, however, that these types of loans typically come with much higher interest rates than conventional loans.

For more information about no credit check loans in Canada, read this.

Secured Loans

Many loans are considered unsecured, which means there is no collateral backing the loan. In these cases, lenders are placing themselves at greater risk because they have nothing of value to recoup should the borrower default on their loan. With secured loans, on the other hand, collateral is used to back up the loan.

That means if the borrower defaults on the loan payments, the lender can repossess the valuable asset that collateralized the loan in order to recoup their losses. Secured loans are usually easier to get approved for and don’t necessarily require the same type of credit score that unsecured loans would.

Interested in asset-based leasing and financing? Check this out.

Secured Credit Cards

As credit cards are usually the first credit product that borrowers get, it seems appropriate to start there. Available at any banking institution, secured credit cards are made for everyone, but advertised more toward those with poor credit, who don’t qualify for regular unsecured cards. They’re called “secured” because cardholders need to provide a security deposit to obtain them, the amount of which usually equals the amount of available credit they wish to have. The card itself is then secured against their deposit. So, if they don’t pay their balance for any reason after a certain amount of time passes, their deposit will be forfeit to regain the lender’s loss. Secured cards are a good credit-building tool. If the cardholder doesn’t initially qualify for an unsecured card, they can use their secured one to raises their credit score and rating until they do. Once they do qualify, they can pay their remaining balance, cancel the secured card and their deposit will be returned.

Click here to learn how fast a secured credit card works.

Guarantor Loans

Even if you have bad credit, you may still be able to find unsecured loans, meaning you won’t have to offer any security (collateral) to be approved, as you would with a secured credit card. However, unsecured bad credit loans generally come with high interest rates, which could only put you in unmanageable debt. So, if you’d like to avoid such high rates or your credit is so bad that you don’t qualify anywhere, you could also opt for a guarantor loan. To apply, you’ll need to find a borrower with stronger credit and finances to co-sign your application. If approved, you may receive a loan with a more reasonable interest rate without your credit being a factor (instead, your guarantor’s credit will be examined). Even though your credit is no longer an issue, you will still be primarily responsible for your loan payments. Every timely, full payment you make should then improve your credit until you no longer need a guarantor.

While they can be a great option for Montreal borrowers with bad credit, it’s important to be aware of the potential drawbacks to these loans. If you don’t manage to make your payments on time and in full, not only will your own credit be damaged further, but the responsibility of the loan will fall to your guarantor instead. That means if they also default, their credit will suffer, they’ll land themselves in debt, and both your financial profiles could be ruined.

Not sure if a guarantor loan is right for you? Take a look at this

Bad Credit Car Loans

Loans for the purposes of buying and repairing cars are another common area where borrowers often struggle if they have bad credit. However, there are lenders and dealerships all over Montreal that won’t give too much hassle to those with lower credit. The difference here is that, once again, borrowers with bad credit will often have to deal with higher interest rates than those with good credit. While it is always possible to work out an affordable payment schedule with a lender or dealership, the regular payments and rates are always a risky endeavour for anyone who isn’t financially stable enough to afford them, so be aware of this before you apply.

To find out how to get a bad credit car loan, click here.

Bad Credit Mortgages

One of the most in-demand credit products, not just for those with bad credit, but borrowers in general is, of course, the mortgage. With the introduction of the OSFI mortgage stress-test and the decline of affordable housing in Canada, it’s becoming difficult for potential homeowners of any credit status to afford a typical mortgage. However, this is especially true for those with bad credit. Since mortgages can be extremely expensive, many prime lenders, such as banks, are making their lending process far more strict. In fact, on average, the minimum credit score required for approval from a prime lender will be 600 for mortgages under $1-million. This, in turn, has caused an increase in business for subprime lenders, such as trust companies and private businesses. Since these institutions specialize in clients with poor credit, if your credit score is below 600, you can try applying with a subprime lender for your mortgage needs.

Look here to learn how to buy a house in Canada with bad credit.

Be Wary of Loan Scams

As helpful as bad credit loans Montreal may be, it’s extremely important to be watchful for any bad credit lenders who may out there to scam unsuspecting borrowers. To spot a predatory lender, look out for the following red flags:

  • Asking for upfront fees or payments
  • Requiring insurance
  • Guaranteeing loan approval

Increasing Your Credit Score to Boost Odds of Loan Approval

While there are bad credit loans available, in Montreal, that consumers with a low credit score may be able to take advantage of, it’s much better to take measures to improve your credit score so that you can secure a conventional loan at a lower interest rate and better terms.

To improve your credit score, consider doing the following:

  • Pay all bills on time
  • Keep your credit card balances under 30% of your credit limit
  • Pay down your credit card balances
  • Leave old debt on your report

Want to continue reading about bad credit loans in Montreal? Take a look at this.

Bad Credit Isn’t the End of the World

In conclusion, whether you live in Montreal or anywhere else in the world, it’s clear that having good credit will open up all sorts of financial avenues for you. With a healthy credit rating, score, and history, you’ll be a shoo-in for any credit products you need, as well as the best interest rates to go with them.

That being said, if you currently have bad credit, you aren’t completely out of luck. Yes, you may have a harder time getting approved and getting a low-interest rate, but that certainly doesn’t mean that your applications will be denied every time you apply. As we said, every lender is different in the way that they operate. While many prime lenders, banks included, have stricter policies for their lending procedures, there are plenty of other organizations all over Montreal who will help you get the credit products you need, including Loans Canada.

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