Filters
- Amount
- Up to $35,000
- Rate
- 9.99% – 34.95%
- Term
- 9 – 78 Months
- Amount
- Up to $60,000†
- Rate
- 19.99% – 34.99%*
- Term
- 6 – 120 months
- Amount
- Up to $10,000
- Rate
- Varies by product
- Term
- Varies by product
Bad credit can make getting a loan from a bank in Ontario difficult. If you have a credit score below 560, you may want to consider a bad credit loan provider. These loans are specially designed with bad credit borrowers in mind. Approval is based more on your overall financial profile than your credit score.
Here’s everything you need to know about getting a loan with bad credit in Ontario.
Features You Can Expect When Applying For A Bad Credit Loan
If you’re looking for a bad credit personal loan, you can expect the following terms:
| Loan Amount | Most bad credit personal loan lenders will offer loans up to $35,000. Some may offer more, especially if you offer up collateral. |
| Loan Term | You’ll find terms between 6 and 60 months on average. |
| Interest Rate | Bad credit lenders generally charge higher interest rates than banks. You can expect APRs between 9.99% and 35%. |
| Funding Method | Your funds will be directly deposited into your bank account or delivered via e-transfer. |
What Are The Requirements For A Bad Credit Loan In Ontario?
Requirements for a bad credit loan will vary by lender; however, there are a few minimum requirements you’ll need to meet with most lenders.
- You must be a Canadian resident
- You must meet the age of majority in Ontario, which is 18 years old.
- You must meet the lender’s minimum income requirements. Some lenders may accept non-employment income, such as pension income or disability income.
- Your debt-to-income ratio must be low enough to handle another loan payment. Most lenders will hesitate to give you a loan if your current bills and debt obligations take over 45% of your income.
Is My Credit Score Bad? Follow This Simple Table As Your Guide
- Excellent (Scores 760+)
- Very Good (Scores 759 – 725)
- Good (Scores 724 – 660)
- Fair (Scored 659 – 560)
- Poor (Scores 559 – 300)
How To Check Your Credit Score Online
| Cost | Credit Score | Credit Report | ||
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | - |
How To Apply for a Loan If You Have Bad Credit
Here are some steps you can take to get a bad credit loan:Step 1. Compare Lenders And Get Pre-Approved
To get the best loan terms, compare loan offers from multiple lenders. You can do so by getting pre-approved with a particular lender or by using an online loan aggregator site like Loans Canada. You can then compare offers side-by-side and choose the one that best suits your needs.Step 2. Apply For A Loan
Depending on the lender you work with, you may apply in person or online. To accurately assess your financial situation and verify your identity, lenders usually require certain documents for review, including a government ID, pay stubs, and bank account statements. Sometimes, you won’t require any physical documents as the whole verification process can be done via instant bank verification (IBV) services like Flinx, Plaid and Yodlee. You’ll be asked to sign into your bank account through a secure portal during your application process. This allows lenders to receive a read-only bank statement and have your bank account verified instantly.Step 3. Get Funded
If you’re approved, you may receive your funds within a few minutes to 24 hours via e-transfer or electronic bank transfer.Learn more: How To Apply For A Loan
Can I Get A Bad Credit Loan Online?
Yes, you can apply for a bad credit loan online from anywhere in Ontario, whether in a big city like Toronto or Mississauga, or a small town like Bancroft or Picton. Many bad credit lenders are exclusively available online. Meaning they do not offer any in-branch visits or support.
Benefits Of Applying For A Loan Online vs. In-Person
There are many benefits to applying for a bad credit loan online rather than in person, including:
- Online bad credit loans are more convenient than applying in person, as you can apply from the comfort of your home. Moreover, many online lenders accept applications 24/7, including weekends.
- Many online lenders use instant bank verification (IBV) to verify your income and identity in minutes. With IBV, loans are approved and funded quickly, some within the same day as the application.
- Applying for a loan doesn’t have to be complicated. With online loan applications, you can apply, upload documents, e-sign contracts, and get funded via e-transfer. The entire loan process can be completed online, from the application to the funding and repayment of the loan.
Learn more: Is It Better To Apply Online Or In Person For A Loan?
Where Can I Find A Bad Credit Loan Near Me?
Ontario residents have several bad credit lenders from which to choose. Here are just a handful of lenders in the province that offer bad credit loans:
Bad Credit Loans In Toronto
| Fairstone | – 2471 St. Clair Ave. W, Toronto, ON M6N 4Z5 – 1920 Yonge St., Suite 200, Toronto, ON M4S 3E2 – 3250 Bloor St. W, East Tower, Suite 600, Toronto, ON M8X 2X9 Find a location near you with this Fairstone branch locator. |
| easyfinancial | – 601 Queen Street West, Toronto, ON M5V 2B7 – 221 Yonge St, Toronto, ON M5B 1M4 – 523 Bloor Street West, Toronto, ON M5S 1Y4 Find a location near you with this easyfinancial branch locator. |
| Money Mart | – 241 Yonge Street, Toronto, ON M5B 1N8 – 268 Parliament Street, Toronto, ON M5A 3A4 – 689 Queen Street W, Toronto, ON M6J1E6 Find a location near you with this Money Mart branch locator. |
| CashMoney | – 644 Yonge St, Toronto, ON M4Y 1Z8 – 687 Queen St W, Toronto, ON M6J 1E6 – 2659 Dundas St W, Toronto, ON M6P 1X9 Find a location near you with this CashMoney branch locator. |
How To Increase Your Odds Of Getting A Loan With Bad Credit?
- No recent NSF fees – If you have NSF transactions in the last 60 to 90 days, it may lower your chances of approval. Lenders will look at your bank statements and see any NSF transactions as a red flag, which can lead to loan rejection or higher interest rates. Consider waiting and making on-time payments until there are no NSF fees on your bank statements within 60-90 days.
- Add a cosigner – Applying with a cosigner, who has good credit and finances, can help you qualify for a loan more easily. When you apply with a cosigner, your financial and credit profile won’t matter. Your lender will assess your eligibility based on your cosigner instead. Note. If you default on your payments, your cosigner will be held responsible.
- Lower your debt-to-income ratio (DTI) – A DTI over 44% is considered high risk. Consider paying off some debts to increase your odds of approval.
- Apply for a lower amount – The higher the loan amount, the stronger your finances will need to be. Applying for a smaller loan can increase your chances of approval, as it represents less risk to the lender and typically requires less income to pay back.
- Get Preapproved – Many lenders offer borrowers the ability to get pre-approved for a loan without affecting their credit. You can also use loan comparison sites like Loans Canada to compare multiple loan offers with a single application.
| Tip: If your borrowing needs are not urgent, consider taking a few months to improve your credit score. A higher credit score will open up your options and help you secure a lower rate. You can use secured credit cards, a savings loan or special credit building programs to help boost your credit score. |
Other Loans You May Want To Consider If You Have Bad Credit
In addition to personal loans, you can get other types of loans with bad credit.
Payday Loans
Most payday lenders do not require a credit check, making them easy to qualify for, even with bad credit. With a payday loan, you can get up to $1,500 and up to your next payday (up to 62 days) to repay.
While payday loans can be costly, they have benefits, including fast approvals and same-day funding. Moreover, if you’re currently unemployed and living on disability income or government benefits such as the Canada Child Benefit (CCB), you may still qualify for a payday loan.
Learn more: Payday Loans
Cash Advances
If you need a small amount of cash quickly, you can also opt for the following:
| Credit Card Cash Advance | Get up to your cash advance limit. Interest rates generally range around 30%. | Learn More |
| Bree | Get up to $500 with Bree with zero interest. | Learn More |
| Nyble | Get $30 to $250 with Nyble without interest. | Learn More |
| Koho Cover | Get up to $250 without interest. | Learn More |
Secured Personal Loans
If you have a car, a house, or another asset with significant value, you can use it as collateral to help secure a loan. Collateral is often required for borrowers with bad credit to provide the lender with some insurance in case the borrower defaults on the loan. By backing the loan up with a valuable asset, borrowers in Ontario with bad credit may be able to secure a loan more easily and with better terms.
- Auto Title Loan – If you have a car with a clear title, you can use it to secure an auto title loan. The amount you can borrow is based on the value of your vehicle. This option is great for those with bad credit, as approval depends more on your car value than your credit score.
- Home Equity Loan – If you’re a homeowner with at least 20% equity in your home, you can use it to get a home equity loan or home equity line of credit. These loans generally come with low interest rates because your home secures them. These are extremely risky, as the lender can seize your home if you default on the loan.
Car Loans
If you’re looking to finance a car with bad credit, you can get a car loan. Car loans are easier to qualify for with bad credit than a personal loan because it is secured by the vehicle. This minimizes the lender’s risk, making it easier to get approved.
Watch Out For Bad Credit Loan Scams In Ontario
While most lenders in Ontario are legitimate, some who prey on unsuspecting and vulnerable borrowers. To avoid getting scammed by a fraudulent lender, be sure to watch out for the following red flags:
- The Offer Is Too Good To Be True – While alternative lenders often offer loans to bad credit borrowers, they still vet the applicant. If you find a lender that guarantees loan approval without any vetting, it is likely a scammer.
- The Lender Does Not Have An Online Or Physical Presence – A legitimate lender should be easily found in a quick online search. Otherwise, they should have a physical location with an active business address. If lender’s address is unavailable or tied to a residential location, and there is no website or any other online information about the lender, you’re probably dealing with a fraudulent lender.
- The Lender Asks For An Upfront Payment – No lender should ask for any form of payment before the loan is provided. Never make any upfront payments for insurance or processing fees. In Canada, it is illegal for a lender to charge fees before funding the loan.
| Did You Know? Ontario’s average non-mortgage debt per consumer reached $21,931 in Q4 2024 (Equifax). Younger and lower-income Canadians are missing payments on various credit products, including credit cards. If you’re struggling with debt, consider consolidating your debt or speaking to a credit counsellor for debt relief options. |
Can’t Get A Loan? Check Out These Financial Assistance Programs In Ontario
Being short on cash can result in all kinds of trouble, including missing a rent payment, getting behind on electricity bills, and even being unable to put food on the table. If you’re in a serious financial predicament, several assistance programs in Ontario can help:
Rent Assistance In Ontario
The Canada-Ontario Housing Benefit is available to eligible renters to help offset the cost of rent anywhere in the province. Applicants must live in Ontario and be on the Centralized Waiting List for social housing to qualify. The benefit covers the difference between 30% of the applicant’s household income and the average market rent in the area.
Income Assistance In Ontario
The Ontario Works program offers financial and employment assistance for residents who don’t earn enough to cover the cost of necessities, such as food and shelter. It also assists those with a disability who are unable to work and are subsequently in financial need.
Food Banks In Ontario
Ontario residents struggling to afford the rising cost of groceries can access emergency food products at several food banks across the province. For example, if you live in Ottawa, you can look into the Ottawa Food Bank or the Partners in Mission Food Bank if you live in Kingston.
Utility Assistance in Ontario
The Ontario Electricity Support Program (OESP) provides lower-income customers with financial assistance to help pay their utility bills and avoid having their utilities cut off. The program pays a regular monthly credit directly to eligible consumers’ electricity bills.
Additional Government Benefits Available In Ontario
Bad Credit Loans Ontario
What are bad credit loans?
Can I pay off my bad credit loan early?
How will bad credit affect my ability to get a loan?
Are payday loans my only option if I have bad credit?
How do I get a lower interest rate with bad credit?
Can I avoid a credit check when applying for a loan?
Can I get a bad credit loan with low income?
Is it possible to get guaranteed approval on a loan?
Get The Bad Credit Loan You Need
If you have subpar credit, your only option may be to apply for a bad credit loan in Ontario. Before you apply for a loan, make sure to pull your credit report to see what your score is so you can opt for the appropriate product.
®Fairstone Financial Inc. is a wholly owned subsidiary of Fairstone Bank of Canada.
*Interest rates are subject to change. Actual Annual Percentage Rate (APR) varies based on the province of residence and individual factors like credit details and loan amount. The interest rate on an unsecured personal loan is 31.99% in BC.
†On approved credit. Terms and conditions apply. Interest rates vary by province/territory and from customer to customer based on factors like credit score and borrowing history. See Fairstone’s website for details.
Fairstone Financial Inc. holds high-cost credit licenses in AB, MB (License #85047, expiring 20-02-2026) and QC; it has applied for a high-cost credit grantor license in NL. For license information by province, visit Fairstone.ca/HCCG
In Ontario, Fairstone Financial Inc. is licensed as mortgage brokerage 10821.
In Nova Scotia, Fairstone Financial Inc. is licensed as mortgage lender #2021-3000028.
easyfinancial Disclaimer:
Unsecured Personal Loans: Personal loan amounts range from $500-$20,000, with rates set between 29.99%-35.00% and determined based on the amount and term of the loan and our assessment of your personal loan profile credit. Amortization between 9-84 months. Different lending rules apply in Quebec and can be viewed at www.easyfinanciere.com . Different lending rules for high-cost credit products may apply in Manitoba, British Columbia, Newfoundland and Labrador. Brokerage #12935 (ON) X300681 (BC) #3000289 (NS). BC HCC #83689 Expiry Date - 10/31/25, MB HCC #62897 Expiry Date - 11/10 /25, AB HCC # 349265 Expiry Date - 01/31/2025, NL HCC # Expiry Date.
Secured Loans: Home equity loan amounts range from $15,000-$150,000, with rates set between 9.99% and 23.99%. Amortization between 72-240 months. The term of your loan will depend on the amount of your loan and our assessment of your credit profile. Additional fees, which vary by loan amount, apply and are subject to a 6 month loan interest penalty when paid within the first 36 months of the loan. Brokerage #12935 (ON) X300681 (BC) #3000289 (NS). BC HCC #83689 Expiry Date - 10/31/25, MB HCC #62897 Expiry Date - 11/10 /25, AB HCC # 349265 Expiry Date - 01/31/2025, NL HCC # Expiry Date.
