Bad credit loans in Canada: Check your options

Best Personal Loans for Bad Credit

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Last updated on March 10, 2023 Comments: 6

If you have ever been refused a loan or a credit card, declared bankruptcy, or failed to make payments on a debt, you likely are one of over 1 million Canadians with bad credit. Having bad credit can affect every area of your life: It makes it difficult to get approved for a credit card, take out a loan like a mortgage or an auto loan, or sometimes even get a job.

Best Bad Credit Loans in Canada

You may think that having bad credit implies you don’t have a lot of choices for your personal loan. In truth, even with bad credit, you can apply for a loan or a secured credit card if your goal is to rebuild your credit. We’ve done our research and assure you there are plenty of lenders willing to approve bad credit personal loans in Canada. Here is our list of top loan companies for bad credit in Canada.

 Loan TypeLoan AmountAPR Range
LoanConnectBoth$500 to $50,0006.99%-46.96%
Loans CanadaBoth$500 to $50,0001.99%–46.96%
Loan AwayUnsecured$1,000 to $5,00019.90%-45.90%
Easy FinancialUnsecured$500 - $75,0009.99% - 46.96%


Apply Now

Eligibility Requirements:
– Be over the age of majority in your province
– Be a Canadian citizen or permanent resident

You can be connected with a lender for any loan amount between $500 to $50,000 and get a reply about your loan application immediately. It takes only one minute to complete a loan application through LoanConnect, and the funds could come through within 24 hours. Even borrowers with bad credit, a consumer proposal, or bankruptcies can access an unsecured cash loan for any purpose with LoanConnect.

Click here to apply for a loan or learn more by reading our complete LoanConnect review.

Loans Canada

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Eligibility Requirements:
– Be over the age of majority in your province
– Be a Canadian citizen or permanent resident

Bad credit doesn’t mean you can’t get a good personal loan. Canadians struggling with weak credit can look to Loans Canada, an indirect lender that helps connect potential borrowers to a series of the best bad credit lenders in the country for relief. Loans Canada offers bad credit loans and debt consolidation for those who would rather repackage their existing balances into a single sum—usually at a lower average interest rate. Bad credit borrowers can get approved for $500 to $50,000 and repay it in 3 to 60 months. The process of getting a quote, picking a lender, and accessing funds is quite simple and, in some cases, can occur in 24 hours.

Click here to apply for a loan or learn more by reading our complete Loans Canada review.

Loan Away

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Eligibility Requirements:
– Be at least 18 years of age
– Be a Canadian citizen or permanent resident
– Not have any active bankruptcy proceedings or consumer proposals
– Be employed for at least the past three months

Loan Away offers unsecured personal loans of $1,000 to $5,000, repayable over 6 to 36 months The funds disbursed by Loan Away can be used for any purpose or expense you like, and although they don’t guarantee approval, they do accept over 80% of all loan applications. The application process takes as little as eight minutes to complete, and you could have the funds within 24 hours.

Loan Away provides loans to all provinces and territories, with some exceptions.

Click here to apply for a loan with Loan Away



Eligibility Requirements:
– Be at least 18 years of age
– Be a Canadian citizen or permanent resident
– Own a verifiable bank account
– Be in employment for at least the past two months

easyfinancial provides both unsecured and secured personal loans to Canadians, even if you have bad credit or previous bankruptcies. You can borrow up to $20,000 as an unsecured bad credit personal loan or up to $75,000 when you use your home equity as collateral to secure the loan. easyfinancial helps you rebuild your credit rating by reporting your on-time loan payments to the main credit bureaus. It also offers educational resources to help Canadian borrowers regain control over their finances.

Click here to apply for a loan with easyfinancial

Prudent Financial

Prudent Financial Loans

Eligibility Requirements:
– Be employed full-time for at least the past six months in a business that has at least 10 employees
– To be able to show computerized pay stubs with deductions
– Earn a minimum income of $18/hour or $38,000 per year

Prudent Financial uses your car, home equity, or similar valuable item as collateral so that they can provide bad credit loans even for borrowers with consumer proposals or bankruptcy history. It has a high approval rate and usually processes your loan on the same day. If you’re self-employed or in collections, you can still be eligible for a loan as long as you have home equity or a paid-off car as collateral.

Click here to apply for a loan with Prudent Financial.

Tribecca Finance

Tribecca Finance Corporation

Eligibility Requirements:
– Be at least 18 years of age or older
– Be a citizen or permanent resident of Canada

Tribecca offers secured personal loans for borrowers with bad credit, home equity loans, and first and second mortgages. You can use your car or other personal items as collateral for a personal loan or tap into the equity in your home. If you’re applying for a personal loan, you’ll need to earn at least $20,000 per year and have been discharged from any bankruptcy proceedings. For home equity loans and mortgages, the only requirement is that you own your property. Tribecca serves Canadians with bad credit in the greater Toronto area.

Click here to apply for a loan with Tribeca Finance.

Eligibility Requirements:
– Be at least age 18 or older
– Holding Canadian citizenship or permanent residency
– Owning home equity

Getting a loan through is easy, even for Canadians with bad credit. Your credit history doesn’t matter—all that matters is that you have equity in your home. Your home equity serves as collateral for your secured bad credit loan. will fund first, second, and even third mortgages, even if you’re self-employed and have been refused by your bank.

Click here to apply for a loan with

Bad Credit Loan Providers vs. Banks

When you apply for your loan, the lender checks your credit history, which includes information like your credit score, whether you’ve declared bankruptcy in the recent past, and if you’ve defaulted on a debt. Sadly, very few Canadian banks will approve personal loans for those with bad credit.

Fortunately, the good news is that banks are no longer the only lenders in town. Today, Canadians who need bad credit loans can apply to a range of private lenders for personal loans in Canada. Unlike banks, which generally only lend money to applicants with high credit scores and perfect financial history, alternative lenders in Canada will often accept your bad credit loan application. Let’s look at some of the key differences between the way banks and alternative lenders approach personal loans:

  • Some alternative lenders offer bad credit loans in Canada with guaranteed approval, even if you have a recent bankruptcy, a delinquent account, collections, or a consumer proposal on your credit history. You won’t get that from a bank.
  • Many alternative lenders for bad credit loans in Canada can be found online. Because they don’t have to keep up expensive brick-and-mortar branches like banks do, they can afford to accept the risk of lending to borrowers with bad credit without charging exorbitant rates.
  • Many lenders that provide bad credit personal loans in Canada have no credit check because they consider numerous factors when deciding whether or not to make the loan. A bank, on the other hand, will always check your credit score.
  • Alternative lenders charge higher interest rates and fees on bad credit personal loans in Canada than banks because they’re taking on a bigger risk by approving your loan.
  • You can get unsecured and secured bad credit personal loans in Canada with an alternative lender.
loans for bad credit in canada

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Bad Credit Personal Loans with No Credit Check

If you’re applying for bad credit personal loans with no credit check, you should still be prepared to answer some questions about other areas of your financial life. Bad credit lenders that don’t check your credit score still look at other factors to decide whether or not to approve your bad credit loan request. Here are some of the things that bad credit lenders could ask you about before approving your bad credit loan:

  • Your average monthly or yearly income
  • Your employment status and the size of the business where you work
  • If you have anyone to co-sign your loan
  • Whether you are currently going through bankruptcy
  • How much debt you carry at the moment

Benefits of a Bad Credit Loan

Even Canadians with bad credit can benefit from bad credit loans in Canada. Bad credit loans can allow you to:

  • Rebuild your credit score – If you qualify for a bad credit loan and make your repayments in full and on time, you can gradually increase your credit score. After you’ve improved your credit score with a bad credit loan, you’ll be able to qualify for unsecured credit cards and get better rates on a mortgage.
  • Access better interest rates – No matter what you do, you’ll be charged higher interest rates when you have bad credit, but some alternative lenders will offer lower rates than others. Keep an eye out for “payday loans,” which often have rates of several hundred percent.
  • Borrow large amounts of money. Sometimes you need to borrow a large amount in a short space of time. Bad credit loans let you borrow up to several thousand dollars at once, so you can pay off a number of smaller loans, credit card debts, or handle an emergency expense.

What to Look Out for with Personal Loans for Bad Credit

You’ll need to do your homework when you apply for bad credit loans in Canada. Unfortunately, there are some dishonest and unreliable bad credit lenders, so look for these issues when you apply for a bad credit personal loan:

  • Interest rates – Some lenders can charge exorbitant interest rates, so always check a lender’s maximum rates before applying for a loan.
  • Fees – Always read all of the fine print before signing on a loan to check for high hidden fees.
  • Penalties – Check what the penalties are if you miss a payment, make a late payment, or want to prepay on your loan amount/pay your loan off earlier than anticipated.
  • Credit reporting – If you’re making regular repayments on a bad credit loan, it should go on record. Make sure that the lender reports to the credit agencies regularly so that your responsible borrowing serves to rebuild your credit score.

Author Bio

Sarah Pritzker
Sarah Pritzker has been writing for GreedyRates since 2017, and loves learning about the latest trends in Canadian personal finance. Topics of particular interest to Sarah include investing, debt consolidation, debt counselling, and rewards programs. When she's not researching credit cards or loan repayment strategies, Sarah is most likely hanging out with her husband and three kids.

Article comments

Amanda Mikaela says:

Yes! I definitely agree! Pretty informative post! Thanks for Sharing!

edna says:

i was accepted for a canadian tire credit card but i cant get into the store with my info so what do i do, the store here in grand falls windsor is closed

Aaron Broverman says:

Hi Edna,
I’d either wait until this pandemic ends and give your info then or call Canadian Tire’s financial divsion and give your info over the phone.

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James says:

I want to apply for a personal loan but need to talk to someone in your organization. Do you have a company number?

The GreedyRates Team says:

Hey James!

It’s great that you’re looking to do some due diligence and ask questions to your future creditor or lender—this is always a savvy thing to do! Even more so when many lenders and financial organizations obfuscate the details of their financial products, and that’s why we exist! Not as lenders or creditors ourselves, but rather as industry professionals and experts who are qualified to determine the real story behind Canada’s most popular credit cards and loans. Unfortunately, this also means that we’re unable to help you with your application, nor are we able to influence the decision of whoever is looking at your application.

What we can do, is take a list of credit cards and loans that you’re considering, combine it with your personal financial situation, and come up with a final list of products you’re most suitable for including pros and cons. You should ideally be asking us for a breakdown like this before applying, so it’s good you’re here! Please help us make the best loan suggestions we can by emailing us at [email protected] (or responding to this comment) with your parameters, and we’ll respond ASAP! Thanks again.