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As you search for the right personal loan, you may be wondering if any lending institutions, banks, credit unions or otherwise, offer guaranteed approval loans for poor credit in Canada.

You see, the term “guaranteed approval” is thrown around a lot but it is misleading. A guaranteed approval loan is not an automatic yes.

While many companies advertise such a benefit, make sure you do your research before signing on the dotted line. There’s more to guaranteed approval than meets the eye. This is especially true if you have a low credit score or poor credit.

However, before you search for guaranteed approval loans for poor credit in Canada, you have to first understand what lenders mean by “guaranteed approval”.

What Does “Guaranteed Approval” Actually Mean?

When a lender offers guaranteed approval, your initial thought might be: “when I apply, the lender will approve me 100%, for whatever reason”. No-muss, no-fuss, just a guarantee that you’ll receive your loan in due time, right? Not quite.

As we said, it’s very important to take this idea with a grain of salt. Legitimate alternative lenders like Mogo or Easy Financial will never guarantee approval with some sort of underwriting. Unfortunately, there’s no way to receive 100% guaranteed approval, especially guaranteed approval loans for poor credit in Canada. All you can do is take the proper steps to qualify. 

Can You Get Guaranteed Approval Loans For Poor Credit In Canada?

Poor credit negatively affects your access to credit and can it difficult for you to finance any major expense. Furthermore, already high-interest rates seem higher when you have poor credit.

You know your options are limited and wonder if you can get guaranteed approval loans with poor credit In Canada at all.

See How Much You Qualify For


A legitimate lender does not guarantee approvals. However, that doesn’t mean you can’t get approved for a loan with poor credit in Canada. 

Lenders will generally approve you so long as you have a stable income and debt-to-income ratio that can afford an additional loan payment. The

Where Can You Get A “Guaranteed Approval” Loan?

As mentioned, there is no legitimate lender that can guarantee you a loan without some underwriting process. However, these are some lenders you may qualify with despite bad credit.

Loans Canada
Loans Canada
Up to $50,000
Prime to 46.96%
3-60 months
$1,000 - $10,000
19.69% - 46.9%
Spring Financial
Spring Financial
Up to $35,000
9.99% - 46.96%
6 - 60 Months
$1,000 - $25,000
7.5% - 31.5%
36 - 60 months
$5,000 - $35,000
Starting at 9.99%
6 - 60 Months
$500 - $1000+
28% to 32%
3 Months
Consumer Capital Canada
Consumer Capital Canada
$500 - $12,500
19.99% to 34.99%
No minimum term
$500 - $100,000
9.99% - 46.96%
Mogo Finance
Mogo Finance
Up to $3,500
9.9% - 47.72%
Fairstone Financial
Fairstone Financial
Up to $50,000
19.99% - 39.99%
6 - 120
Unfortunately we couldn't find you a provider with the given filters

How To Improve Your Chances Of Qualifying For A Bad Credit Loan 

As mentioned above, there’s no way to guarantee approval for a loan, but there are many ways to increase your chances of qualifying for one. Essentially, you need to make yourself as creditworthy as possible and thankfully, there are several ways of doing this.

You Can Increase Your Eligibility By Improving Your Credit Health

Again, this takes a lot of work but it is worth it. One of the main factors that your lender might examine is the health of your credit, namely your credit scores and credit report. The two main credit report providers in Canada are TransUnion and Equifax.

They do this to get an idea of how likely you’ll repay your loan payments on time and in full. While some legitimate lenders don’t check your credit, improving these elements is still a good way of gaining fast approval, as well as securing a lower interest rate

How To Improve Your Credit

Increase Your Odds Of Approvals With A Guarantor Loan

Even if guaranteed approval is not really possible when you have bad credit or poor finances, applying for a guarantor loan can drastically increase your chances of securing a loan quickly. 

A guarantor loan involves finding someone with good credit and financial strength to co-sign your loan application, thereby agreeing to take on the responsibility of your loan payments in the event that you can no longer afford them.

Adding a cosigner greatly reduces the risk the lenders take, which generally translates to higher approvals and lower interest rates for the borrower. Moreover, guarantor loans can be beneficial when you’re looking for near-instant loan approval, as your own credit and finances will not be an issue. Instead, your guarantor’s financial aptitude becomes the deciding factor.

Note: Before adding a cosigner to your loan, make sure your cosigner is aware of the consequences of you defaulting. A lack of understanding can lead to severe damage to both of your financial and credit profiles. click here.

Having Less Debt Can Increase Your Loan Eligibility 

Not only can bad debt ruin your finances, but it can also get your personal loan application rejected.

While some lenders don’t require credit checks, the majority of them will evaluate your overall finances including your debt levels, particularly your debt-to-income ratio.

Your current level of debt signals potential lenders of your likelihood of repaying and new loan.

If you use a high percentage of your income to pay down your current debts, lenders will likely reject you as it’s unlikely you’ll be able to afford another loan. For obvious reasons, no legitimate lender will grant approval if you already owe money all over town or have a record of defaulted loan payments.

Waiting For A Guaranteed Loan Approval But You Need Access To Fast Cash: What To Do

The time it takes to gain approval and receive your personal loan depends on your own financial profile as well as your lender’s borrowing procedures. For instance, banks, credit unions, and other prime lenders have policies that prevent them from lending to those who don’t have great finances.

In fact, it can take at least a week let you know whether you’ve been approved. Of course, this depends on the type of loan you applied for.

However, that is changing now that so many lenders, both prime and private, have shifted the application process online.

In some cases, you can get approved for a credit card or a personal loan in a matter of hours.

So, if you apply with a prime lender, the best possible thing you can do (if you have bad credit and low financial health), is to be patient and take the time to heal the blemishes in your financial profile.

Choose The Right Type Of Lender

If you don’t have a lot of time to wait, or to waste applying to a lot of financial institutions, there are faster ways to get money quickly. If that’s the case, it might be better to apply with a private or alternative lender. While having a co-signer or other such elements will speed things along and increase your approval chances, choosing the right lender is definitely an essential part of getting fast access to personal loans.

Try Bad Credit Lenders

Many alternative lenders do what banks cannot do, provide loans to borrowers with bad credit. There are many advantages to applying for a loan with a bad credit lender. 

Versatile Requirements: Unlike banks that put a great emphasis on credit scores, bad credit lenders assess your bad credit loan eligibility on a number of different factors. Income, employment stability, and debt-to-income ratio are some other factors they will base your approval on.  

Easy Application: Traditional banks require a lot of unnecessary paperwork that can make the loan application process a nightmare. But bad credit lenders are designed in a way to get you cash when you need it. Applications are often very simple and can take 5 to 20 minutes to complete. 

High Approval Rates: A bad credit lender’s whole business relies on providing loans to borrowers with less than perfect credit. As such, their approval rates are much higher than traditional banks. 

Build Credit: When you have bad credit, it can be hard to rebuild your credit because the banks are not willing to provide you with any credit products. Bad credit lenders give you the opportunity to rebuild by giving you access to different credit products. 

What To Do If A Lender Guarantees Your Approval For A Bad Credit Loan?

Remember, no legal lending organization will offer you a 100% approval guarantee. If they do, they may be trying to scam you. Don’t give them any information, walk away and report them to the authorities. Most police departments in Canada have a department dedicated specifically to cases of fraud, identity theft, and other financial crimes. If you’ve already given away your personal or financial information, contact the right companies to have said information modified.

Cancel your credit cards and request new banking data. If you can prove your SIN has been used fraudulently, you can even contact the closest Service Canada office to have your number changed and protected. If you think your credit report may have been compromised as well, contact both of Canada’s credit reporting agencies (Equifax and TransUnion) and have them place a fraud alert on your profile. You can even purchase their credit monitoring service, which will keep you updated and alert you of any suspicious activity in your account.

Are Guaranteed Approval Loans For Poor Credit In Canada A Scam?

This is where credit users need to be cautious. No loan can truly be 100% guaranteed.

Some “lenders” may offer this, but beware. They may be scam artists who prey upon those desperate for loans. Scam artists are getting more creative all the time. They can be extremely convincing, so it’s important to do research when comparing lenders in Canada.

How To Spot A Loan Scam 

Offering guaranteed approval is one way that scammers will try and take advantage of you. Here are a few signs that the lender you’re dealing with is a scammer:

  • Upfront Loan Insurance Fee –  One way that scammers try to manipulate you is by bringing up the idea that they’re risking something by taking you on as a client. This is true, in a sense, because there is always a chance that a consumer can’t afford their payments. However,  when they demand an advanced payment (i.e. loan insurance fee) in exchange for the “risk” they’re taking, that is a scam. In Canada, it is illegal for a lender to ask for any upfront fees for a loan.  
  • They Try To Pressure You Into Applying Immediately – All legitimate loan sources need to abide by the laws that govern the lending industry in Canada. One of these strict regulations is that no legal lender is allowed to use forceful or threatening language, or pressure you to surrender your personal or banking information. There is no rule that says you must apply for a loan that you don’t feel comfortable about.
  • Their Funding Methods Are Suspicious – Most lenders will offer a few different ways that you can receive your money, e-Transfer and direct deposit are the most common. If a lender asks for your online banking information so they can deposit money into your account or wants to give you your loan via gift cards, it’s a scam.

Why Do Consumers Want Guaranteed Approval Loans For Poor Credit In Canada?

When it comes to loan products, credit consumers may be looking for guaranteed approval for a few different reasons, including but not limited to:

  • They Have Poor Credit – Low credit scores can make it extremely hard to get approved for a loan. While you can sometimes qualify with a bad credit lender, their interest rate are generally very high, which may lead to debt problems down the line. So lender’s that say they offer “guaranteed approval” is often tempting for those with poor credit. 
  • They Don’t Want Their Credit Checked – Consumers who have poor credit histories may want to avoid hard credit inquiries as it can further negatively impact their credit. As such, they may look for lenders who offer “guaranteed loan approvals” as they often also claim they don’t require credit checks. 

How To Check If Your Lender Is Legitimate?

There are plenty of online personal loan comparison sites. How do you know if they are legitimate?
First, check the site’s online ratings, including Google Ratings and Better Business Bureau (BBB) ratings. Next, do a quick online search to see if there are any complaints registered against them. If they are operating without a license, that is a significant problem. There are plenty of online platforms, including Loans Canada, where you can find personal loan offers. Your best option is to do your homework and to ask people who you trust about finances.

Bottom Line On Guaranteed Approval Loans For Poor Credit In Canada

Guaranteed approval loans can be tempting, but they’re far from legitimate. But, that’s not to say you can’t find loans for poor credit. As mentioned, there are many lenders in Canada who cater to those with poor credit. These lenders focus on your overall financial health. So if you can prove you can afford the loan, you’ll likely qualify.

Guaranteed Approval Loans For Poor Credit In Canada FAQs

Will bad credit affect my loan approval?

In certain ways. Mostly this depends on your lender. For example, banks and other prime lenders have tighter lending regulations, so your bad credit may prevent you from getting approved there. However, if you apply with a private, alternative, or bad credit-specific lender, your chances will be higher.

Can I get guaranteed approval with no credit check?

As we said, there is no such thing as guaranteed approval. However, there are legitimate lenders out there who do provide personal loans without checking your credit as part of their application process. You can also apply for a guarantor loan, wherein the credit of your co-signer/guarantor will be checked in your place. 

I need a loan right away. Can I get instant approval?

Remember, there’s a big difference between the promise of personal loan guarantee and instant loan approval. Anyone who vows 100% approval, no matter what, is probably a scam artist. However, if you apply with the right lender, same-day approval is surely possible. Afterward, you won’t have to wait more than 1-2 business days to receive your funds.

How much money can I get approved for with poor credit? 

In general, most lenders provide personal loans between $500 to at most $35,000 to borrowers with poor credit. However, the amount of money you can get when you have poor credit depends on who you apply with and how well you meet their requirements. 

How can I get a guaranteed loan approval with poor credit?

Your approval is based on how well you meet the approval criteria set by the lender you apply with. No legitimate lender will guarantee you a loan without assessing your capability of paying back the loan. You can only increase your chances of being approved by improving aspects of your credit and financial profile. 
Bryan Daly avatar on Loans Canada
Bryan Daly

Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and travelling the world in search of the coolest sights our planet has to offer.

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