At Loans Canada, we know that getting loans for bad credit is easier than you think. So, that’s why we make it simple for everyone to apply to multiple reliable lenders at once.
All of your favourite lenders for bad credit loans in once place; right here.
3,000,000 Applications And Success Stories
So, all it takes is one application and the right bad credit loan offer comes straight to you. In fact, we’ve handled over 3,000,000 applications from people looking for the right loan to get their finances in order.
Sure, we often we think that a high credit score is the be-all-end-all of loan approval. While having a high credit score is great, it’s not always manageable for all Canadians.
The good news is, your credit score doesn’t need to read 800 for you to get approved for the unsecured personal loan you need.
Cash Money has been helping Canadians access easy and quick loans for more than 30 years. They offer payday loans, personal loans, and line of credit loans from $1,500 to $10,000. User will enjoy their simple online application, personalized options, and same-day funding. Whether you need to cover an emergency expense or simply need to make it to your next payday, Cash Money can a variety of options to meet your needs.
Cashco Financial is a Canadian financial services company that offers short- and long-term loan options. Payday loans for up to $1,500 are available with no credit checks and instant approvals. Flex loans are available for up to $7,000 with loan terms of up to 60 months and flexible repayment options. Cashco is known for providing same-day funding, ensuring you have access to the money you need quickly.
Available in seven provinces, iCash is an online source of fast, small loans that can be used for any emergency. Approved applications are processed within the same day and no documentation is required before the transfer of your funds. You can borrow up to $1,500 with iCash. Every time you pay the loan back following the agreed-upon deadline, you become a more reputable borrower. The increased trust allows you to borrow more each time. iCash uses a Trust Rating System, an algorithmic function that determines your merit as a borrower.
If you’re short on cash, Bree offers cash advances of up to $500 with zero interest. Bree is an online financial platform that provides interest-free cash advances to help consumers avoid overdrafts and NSF fees. Their mission is to be a dependable and accessible financial source that consumers can trust when they need financial support. Moreover, you can access the money you need with Bree without having to worry about credit checks, interest charges or late fees.
Nyble helps users quickly access a line of credit of up to $250 without credit score requirements. This is a good option for anyone who wants to avoid overdrafts or needs a small amount of cash quickly. Approval is instant and funding takes up to 3 days. But if you upgrade to a paid membership for $11.99 a month, you can receive your money within 30 minutes. Nyble reports your payment history to the credit bureau monthly and approves you for large amounts as you build trust with the platform. You can also track your credit score, earn reward points for improving your score, and access other features such as credit monitoring and digital identity theft protection.
The MogoMini line of credit offers Canadian consumers a great personal loan alternative. Borrowers can access up to $5,000, spend what they need when they need it, make the automatic minimum payments, and finally control their own principal payments. This Mogo product is flexible and users can test drive their line of credit for 100 days to see if it’s the right fit. Access their easy online application via your MogoMoney dashboard and get pre-approved in 3 minutes with no impact on your credit.
Spring Financial is an online consumer lending company that offers innovative financial and credit-building solutions designed to give Canadians the opportunity to build credit, save money and borrow responsibly.With many Canadians struggling with high-interest debt and limited financing options, Spring Financial strives to provide Canadians with affordable and accessible financial products that can help them achieve greater financial freedom. Among their growing suite of smart money solutions, Spring Financial offers $1,500 cash advances, personal loans up to $35,000, and a credit-building program that helps you build credit and save money.
SkyCap Financial has been helping Canadian consumers take control of their financial futures since 2013. Their main goal is to provide alternative financing to all Canadians, regardless of their financial past or credit history. They provide fast and easy short-term loans ranging from $500 to $100,000 and approve applicants in as little as 24 hours. Consumers can take advantage of SkyCap Financial’s quick application and a team of experienced individuals who strive to make your experience as smooth as possible. SkyCap Financial bases all their lending decisions on three main factors, current income, credibility, and stability, so they can approve more Canadians, especially those who have been rejected in the past based on credit issues.
Magical Credit is an online lender that offers two types of loan products; Magical Cash Loans and Magical Installment Loans. Borrowers can access up to $1,500 with the Magical Cash Loan and up to $20,000 with the Magical Installment Loan. Magical Credit specializes in bad credit loans, so qualifying with them may be easier compared to traditional banks. Moreover, they accept various government subsidies as income for their Magical Cash Loan, providing greater accessibility to those in need.
Money Mart is a Canadian financial services provider that specializes in offering short-term financial products, including payday loans, cheque cashing, wire transfers, and installment loans. They're available both in person and online, providing borrowers with different options to apply for loans and access their borrowed funds. Their Payday Boost products are available for up to $1,500, and installment loans are available for up to $25,000. They're known for their easy-to-use services and same-day cash options, making Money Mart a great option for those who have little time to wait for much-needed funding.
AimFinance is a financial service that provides small personal loans up to $1,000 to borrowers in Ontario and BC. The online application process is quick and easy, and funding is provided in as little as 24 hours. Loan terms range from 9 to 24 months, with interest rates ranging from 29% to 35%. AimFinance focuses on helping bad credit borrowers access credit without the need to undergo a credit check. So, if you have bad credit, you’re still eligible to apply.
LoanMeNow offers Canadian consumers quick access to the cash they need. They offer loans up to $1,000 with no credit check required. Funds are deposited directly into your bank account within as little as 24 hours. A short-term loan from LoansMeNow can help you cover the cost of an unexpected expense or tide you over until your next paycheque. Whatever your financial needs are, LoanMeNow’s quick approval time means you’ll be able to get back on track as soon as possible.
As you know, in Canada, as soon as you’re approved for your first credit product, your lender notifies one (or both) of Canada’s credit reporting agencies. Those two bureaus are Equifax and TransUnion. After that, the bureau compiles all your credit-related information into a credit report.
Where Do I See If I Have Bad Credit?
Your credit report and your credit score show you how your payment histories and debt compare against a set of criteria.
Bad credit is a credit score is between 300 and 559
Fair credit scores are usually between 560 and 659
Good credit is a score between 660 and 724
Very good credit is a score between 725 and 759
Excellent credit scores are from 760 to 900 (900 is very hard to get).
If you don’t know your credit score, you can get if for free. You can also check your credit report at the same time. Click the button below to learn more
A personal bad credit loan is perfect for Canadians looking to get their finances back on track. You don’t stop needing money when you have bad credit, and that is why bad credit loans are necessary and legal in Canada.
Types Of Bad Credit Loans in Canada
Whether you want to purchase an expensive item like a TV, finance a car or cover some unexpected expense, you can get a bad credit loan to cover it.
Secured vs. Unsecured Personal Loans For Bad Credit
Secured Personal Loan – A secured personal loan requires you to put up an asset as collateral. Due to the additional security, this asset provides the lender, your chances of approval increase and you’ll likely receive a better rate. However, on the downside, if you default on your payments, your lender can seize your asset to recoup any payments lost.
Unsecured Personal Loan – An unsecured personal loan is just a basic installment loan that you repay over a certain period of time.
Drawbacks Of An Unsecured Bad Credit Personal Loan
Like any credit product, you need to manage a bad credit loan properly. Every time you miss a payment, your lender will likely charge you a penalty fee and a higher interest rate.
Loans for bad credit already come with higher interest rates than normal ones. If you don’t pay it on time, your debt gets bigger. Furthermore, if you default for too long, after a certain point, your lender can sell your debt to a collection agency. This, in turn, leads to a court case and wage garnishment, if your debt is large enough to justify legal action.
What To Expect From An Unsecured Bad Credit Personal Loan
APR
2.99 to 35%
Loan Amount
0 – 50k
Loan Term
3 months to 120 months
Fees
No applications fees
Bad Credit Car Loans
Another in-demand credit product with bad credit borrowers is the bad credit car loan, which many subprime lenders also offer. These kinds of loans have become increasingly popular because of the wide range of automotive problems they can help fix. So, when applying for a car loan, bad credit borrowers will need to outline exactly what they intend to use it for. That could be anything from necessary repairs for their existing vehicle to acquiring the car’s title, to paying for the car itself from a private seller or a dealership.
Drawbacks To A Bad Credit Car Loan
Just like personal loans, problems arise when it comes to the interest rates and payments, which the borrower may end up struggling to deal with. Because the borrower has bad credit, once again their interest rate can end up being very high. These costs can land the borrower in even worse debt than they were before. Then, not only will they be in considerable debt, they may end up paying much more for their car than it’s actually worth. The debts that come with most car loans are also secured. If the borrower defaults for too long, the lender or dealership could seize the car as collateral.
Bad Credit: Payday Loans
Next, payday loans are the third most common type of unsecured bad credit loan. They’re aimed toward Canadians with poor credit, who need a relatively small amount of cash quickly, often $1,500 or less. These unsecured loans sound appealing because they are easy to acquire. In fact, they usually have instant approvals, making them attractive to those with an emergency financial situation on their hands. If a borrower needs a few hundred dollars to pay their rent, they can walk in off the street, get approved and walk out with the cash in a matter of hours.
Drawbacks To Payday Loans
That brings us to the most unfortunate drawback of all payday loans, the interest rate. Since payday loans are generally for small amounts, the way lenders make a profit is by charging extremely high-interest rates, sometimes as much as 500% APR (annual percentage rate). So, if you were to borrow that same few hundred dollars for rent, but didn’t manage to pay it back by the due date, you could be charged a huge amount in interest. As a result, you could end up paying hundreds of dollars more for what should have been a relatively small, one-time loan.
The Benefits Of Bad Credit Loans
Getting a loan for bad credit online is easy. Here is all you need to do.
Easy online application. You can apply on your computer or smartphone from the comfort of your own home whenever it’s most convenient for you.
Manageable installment payments. You’ll be able to create a budget around your loan payments and know exactly when they are due.
Quick approval time. Because we’re based completely online, there are fewer steps and little to no paperwork which means you’ll get your money sooner.
High approval rate. Fewer restrictions and requirements mean that more Canadians get approved.
We work with an extensive referral network which means we can offer more Canadian more products and help them find exactly what they’re looking for, good credit, bad credit, any credit.
3 Simple Steps To Get A Bad Credit Loan
How To Get Approved For A Bad Credit Loan In Canada?
Step 1 – Review Your Finances
Before applying for a loan, you should get a copy of your credit report so you know where you stand with the lender. Lenders will look at your credit, your income level, debt level and your employment history to determine your credit worthiness. By analyzing your finances, you’ll be better prepared when applying for a loan. Moreover, it can help you choose a lender whose minimum requirements you meet.
Step 2 – Compare Lenders And Get A Quote
When choosing a lender, it’s a good idea to get a few loan quotes so that you can choose an offer with the best terms and conditions for you. To help you save time with your research you can use a loan comparison platform like Loans Canada. You simply have to fill out a single application to receive multiple quotes from different lenders.
Step 3 – Review Your Options And Get Funded
Once you know your options, you can accept the offer that works best with your financial situation. Do keep in mind that some lenders may require additional documents to complete the application. After you’re approved, you’ll receive your funds.
Documents Required For Applying For A Bad Credit Loan In Canada
When applying for a loan with any lender, there are certain documents you’ll need to provide, including:
Personal Information – This may include a valid government-issued photo ID.
Employment Information – Your lender may require you to provide proof of employment, this may include a letter of employment or a paystub.
Financial Details – Your lender may also require you to provide a pay stub, bank statements or a tax return to verify your income and debt-to-income ratio.
Other Documents – If you’re applying for a car loan, you may also need to provide additional documents such as your driver’s license, proof of car purchase, car title and registration papers (only for a car trade-in).
How To Improve Your Chances Of Getting A Bad Credit Loan?
There are a number of ways to increase your chances for an approved bad credit loan. Here are 3 ways to increase your chances of getting a bad credit loan quickly in Canada:
Increase your income – Besides your credit, alternative lenders will look at your income to determine your eligibility. As such, getting a side hustle or extra part-time job can increase your approval chances.
Reducing your debt – Another important aspect your lender will look at is your debt to income ratio. If you can’t increase your income, look to eliminate as many debts as you can prior to applying.
Get a co-signer – The addition of a cosigner can help you secure a loan quickly. However, if you default on your payments your co-signer is responsible for the payments.
In the end, which bad credit product you use for your bad credit situation is dependent on you and your particular financial position. When you are ready, Loans Canada can help. In the mean time, here is the list of the best bad credit loans in Canada right now.
Do instant bad credit personal loans exist in Canada?
Some of the more frequently seen products among bad-credit borrowers are bad credit personal loans. These unsecured bad credit personal loans can be used to cover almost any expense, such as home repairs/renovations, household supplies/groceries, etc. There are plenty of subprime lenders like easyfinancial who offer these instant unsecured bad credit personal loans. Bad credit personal loans function in more or less the same fashion as regular personal loans, in that they are installment-based
How does applying for a loan through Loans Canada help me?
At Loans Canada, we are committed to matching our clients with lenders they have a high chance of being approved with. Our system pairs you with lenders who accept applicants based on your financial situation and needs.
Can I get an instant bad credit unsecured personal loan in Canada?
One application with Loans Canada can get you quickly paired with a number of different lenders with whom you can get an unsecured personal loan. Whether you have bad credit or a low income, we can find you lenders that approve applicants based on your financial situation.
Can I get a loan with a credit score below 600?
Yes, you can still get a loan with a credit score below 600. However, your options will likely be limited to high-cost lenders like payday lenders. Instead of relying on a high-cost loan, it may be worth building your credit in order to find a loan with more affordable rates and terms.
What interest rate can I expect to get with bad credit?
Interest can vary heavily depending on the lender and your overall financial health. But generally, bad credit personal loan lenders will have rates that go as high as 35% (APR). However, they cannot charge more than that as it is legally not allowed.
What is a credit score?
Your three-digit credit score is another significant factor for lenders when they’re determining your creditworthiness. In Canada, credit scores range from 300-900. According to TransUnion, a score of 650 or higher is what you need to get the best chances of approval for credit products, as well as the lowest interest rates. It is harder to qualify for a loan when your score is below 650. Plus, your loan interest rate is higher.
What is a credit report?
Overall, it comes down to how you handle your credit card payments, your mortgage, and even how long you’ve had credit products. For instance, you have bad credit when your credit report is littered with missed payments, cancelled accounts, accounts in collections, debt settlements and other remarks.
What is a credit rating?
A credit rating is your debt management score card. This is your debt handling statistic. Each active credit account you have also comes with a “credit rating”, identified by corresponding letter and number. The letters are usually I, O, R and M. The numbers are between 0 and 9. Your credit rating has a letter matched with a number; for example R1 means that you paid you made your payment within the required 30 days or have not paid more than 1 late payment. You can read about the codes in our article about what your credit score range really means. When you make your bill payments on time and in full, you’ll have a high rating. However, if you’ve been making late or short payments, or even worse, missing them entirely, your rating will drop.
Get expert tips and guidance from a community of renown personal finance experts right here at Loans Canada. We're here to help you stay informed so you can make the best financial decisions.
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