How To Get Guaranteed Approval For A Personal Loan

How To Get Guaranteed Approval For A Personal Loan

Written by Bryan Daly
Fact-checked by Caitlin Wood
Last Updated August 25, 2022

As you search for the right personal loan, you may be wondering if any lending institutions, banks or otherwise, offer guaranteed approval? While many of these companies may advertise such a benefit, make sure you do your research before signing on the dotted line as there’s more to guaranteed approval than meets the eye.

What Does “Guaranteed Approval” Mean?

When a lender offers guaranteed approval, your initial thought might be: “when you apply, the lender will approve you, 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 will never guarantee approval or advertise guaranteed approval. Unfortunately, there’s no way to receive 100% guaranteed approval. All you can do is take the proper steps to qualify. 

Can You Get Guaranteed Approval Loans For Poor Credit In Canada

Poor credit can hinder your ability to access credit and make it difficult for you to finance any major expense. With limited options, you may be wondering if you can get guaranteed approval loans for poor credit in Canada. While legitimate lenders do not guarantee approvals, that doesn’t mean you can’t get approved for a loan with poor credit in Canada. 

There are many bad credit lenders who offer loans to those who have poor credit, but they often come with high-interest rates. That said, these 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.

Where Can You Get A “Guaranteed Approval” Loan?


Loans Canada

Up to $50,000
2.00% to 46.96%
3-60 months


$1,000 - $15,000
29.9% - 46.9% APR
12 - 60 months

Symple Loans

$5,000 - $50,000
6.99% - 22.99%
Up to 84 Months

Spring Financial

Up to $15,000
14.99% to 46.96%
6 - 12 Months


$1,000 - $25,000
7.5% - 31.5%
36 - 60 months

Cash Money

$1,500 – $10,000
Varies by province
Varies by product (up to 60 months)


$5,000 - $35,000
Starting at 9.99%
6 - 60 Months

Loan Away

Up to $5,000
19.9% to 45.9%
6 - 36 Months


$500 - $1000+
28 to 32%
3 Months

Consumer Capital Canada

$500 - $12,500
19.99% to 34.99%
No minimum term

Mogo Finance

$300 – $35,000
9.9% - 47.72%
3 - 60 Months

Fairstone Financial

Up to $50,000
19.99% - 39.99%
6 - 120 Months

How To Guarantee 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, including but not limited to:

Increase Your Eligibility By Improving Your Credit Health

Again, this can take a lot of work, but it will be worth it in the long run. One of the main factors that your lender might examine is the health of your credit, namely your credit scores and credit report. 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

  • Making timely, full payments for all your outstanding credit products
  • Reducing your debt-to-income ratio to 30-40% maximum
  • Reducing your credit utilization to 30-35% of your available credit
  • Reviewing your credit report at least once per year and disputing any errors you find that could be damaging your credit scores

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.

Less Debt Can Increase Your 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. If a high percentage of your income is used 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.

What To Do When You Need Access To Fast Cash

The time it takes to gain approval and receive your personal loan depends on your own financial fortitude, 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. Additionally, it often takes well over a week for them to let you know whether you’ve been approved, depending on the type of loan you applied for. Even a simple credit card through a typical banking institution can take weeks to get approved for and acquire by mail. 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

Then again, what if you don’t have that kind of time? What if you need to cover a pressing expense, such as your rent, tuition, or utility bills? 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 consider a number of different factors to determine an applicant’s eligibility. 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 A Scam?

This is where credit users need to be cautious. In reality, 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.
Lookout These Are The Biggest Scams In Canadian History

Loans Canada Lookout


Why Do Consumers Want Guaranteed Approval?

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. 

Guaranteed Loan Approval 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. 

Need Fast Loan Approval? Choose Loans Canada!

If you’ve been looking for speedy personal loan approval without success, don’t worry, because you’ve found Loans Canada! We guarantee good service and a rapid connection with the right lending sources for your financial needs. Contact us today!

Rating of 5/5 based on 7 votes.

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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