Best Bad Credit Personal Loans in Canada

An unsecured loan means you don’t need any collateral as security for the loan, such as a house or car.

The Best Unsecured Bad Credit Loans in Canada

These are usually the preferred type of loan since you don’t put any of your belongings at risk if you cannot keep up with your monthly repayment schedule.


Loans Canada

Eligibility Requirements: 

  • Must be a permanent resident or citizen of Canada
  • Must be over the age of majority in your province

Loan Canada is an indirect lender that connects potential borrowers to the best bad credit lenders in the country. They also offer debt consolidation to those wishing to combine their debts into one sum and one monthly payment with a lower interest rate. Through Loan Canada, you can get approved for loans between $500 and $300,000 with a repayment term of up to 60 months at a 3% rate. You may have access to your money in as little as 24-48 hours in most cases.

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Eligibility Requirements: 

  • Must be a permanent resident or citizen of Canada
  • Must be over the age of majority in your province

At LoanConnect, you can get a loan of any amount between $500 and $50,000 with a one-minute loan application through their website. You will get a response immediately and could have your funds within 24 hours. Even if you have a consumer proposal, previous bankruptcy, or other reason for poor credit, your unsecured loan is this fast and this easy.

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Ferratum Loans

Eligibility Requirements: 

  • Must be at least 20 years old
  • Must live in Newfoundland, nova Scotia, New Brunswick, British Columbia, Ontario, or Alberta
  • Must be either a citizen or permanent resident of Canada
  • Must be fully employed for at least the previous three months 

Ferratum allows borrowers to choose any amount between $500 and $15,000 with a repayment plan lasting up to 60 months. Ferratum is one of the best loan providers since they are completely fee free and they allow flexible payment schedules of weekly, bi-weekly, or monthly payments. Ferratum interest rates start at 18.90% and loans are approved online in as little as 24 hours. To get a loan from Ferratum, you must be 20 years old and employed full time making $2500 per month for at least 3 months as well as hold a credit score of 600 or better.

Marble Financial Fast Track Loans

Eligibility Requirements: 

  • Must be over the age of majority in your province
  • Must be in a consumer proposal
  • Must be a permanent resident or citizen of Canada

Marble Financial offers fast track loans to those in consumer proposals who want to rebuild their credit and repay their creditors faster. Borrowers can receive up to $15,000 and can expect interest rates between 19.99% and 24.99%. marble Financial pays your creditors, then you pay back the loan directly to them. They report all of your payments to credit reporting agencies so by the end of your 36-month loan term, your credit score is much higher.

Loan Away

Eligibility Requirements: 

  • Must be 18 years old
  • Must be a permanent resident or citizen of Canada
  • Must be employed for the past three months
  • Must not be in any bankruptcy proceedings or consumer proposals 

Loan Away offers unsecured loans in amounts up to $5000 to residents of Ontario, Alberta, and Newfoundland. Your repayment term can be as long as 36 months and will neve include penalty fees. Loan Away does not guarantee loan approval, but they approve over 90% of applications in as few as 8 minutes, with funds being received in as little as 24 hours in many cases.

Easy Financial

Eligibility Requirements 

  • Must be 18 years old
  • Must be a permanent resident or citizen of Canada
  • Must own a verifiable bank account
  • Must be employed for at least 2 months prior to your application date 

Easy Financial offers both unsecured and secured loans to Canadians with bad credit or prior bankruptcies. Borrowers can select an amount up to $15,000 on an unsecured loan and up to $25,000 on a secured loan using your home equity as collateral. They report all of your on-time payments to all the main credit bureaus and offer a variety of educational resources to help you gain better control over your finances.

Northstar Brokers

Eligibility Requirements: 

  • Must have a checking account that has been active for a minimum of 3 months
  • Must not be involved in bankruptcy proceedings or any other programs that garnish your wages
  • Must be fully employed for a period of 6 months or more
  • Must have lived at the same address for a period of 6 months or more
  • Must be paid via cheque or direct deposit

Northstar offers quick access to bad credit personal loans up to $3000 for any purpose. They approve and supply funds in as little as 24 hours and do not run any credit checks prior to approving your loan application – they may instead ask questions regarding your financial situation.

Best Secured Bad Credit Personal Loans

Secured loans are loans that use collateral to secure the loan, thereby lowering the lender’s risk by a significant amount. Collateral could be anything from your personal vehicle to your home equity or even expensive jewelry. This type of bad credit personal loan offers better interest rates and are much easier to qualify for, but you risk losing your collateral if you don’t keep up with your payments.

Prudent Financial

Eligibility Requirements: 

  • Must earn at least $38,000 per year or earn $18/hour
  • Must be employed for the last 6 months in a business that employs at least 10 people
  • Must be able to present a computerized pay stub with appropriate deductions

Prudent Financial offers bad credit secured loans to borrowers with a past or present consumer proposal or bankruptcy. Loans from this lender have a high rate of approval and can be processed in as little as 24 hours in most cases. Borrowers can receive an amount up to $25,000 for a car loan, up to $20,000 for personal loans that use a fully paid-off personal vehicle as collateral, up to $15,000 using home equity collateral, or up to $5000 for personal loans using other collateral. If you are self-employed or currently involved in collections, you can still get a loan using your home equity or fully paid-off vehicle as your loan collateral.

Tribecca Finance

Eligibility Requirements 

  • Must be at least 18 years old
  • Must be a permanent resident or citizen of Canada
  • Must earn at least $20,000 per year

With Tribecca Finance, you can use any type equity for your personal loan. They provide loans to those with bad credit, first and second mortgages, and home equity loans. You cannot be involved in any bankruptcy proceedings at the time of your loan application if applying for a personal loan. Tribecca serves Canadians in the greater Toronto area only.

Canada Lend

Eligibility Requirements: 

  • Must be at least 18 years old
  • Must be a permanent resident or citizen of Canada
  • Must have home equity

Canada lend only approves loans using home equity – your vehicle and other valuables are not acceptable forms of collateral with this lender. If you’re self employed or have been refused by your bank, is a great option for your secured bad credit personal loan or a first, second, or third mortgage on your home. Your credit history does not come into account with this lender, only your home equity. Their interest rates begin at under 2% while second mortgage rates start at 5.99%.

Best Personal Loans providers for Individuals with Bad Credit or a Low Credit Score

More than 1 million Canadians suffer from bad credit due to declaring bankruptcy, failing to make debt payments, or defaulting on a loan. Bad credit can make it much harder – or impossible – to buy a car, qualify for a mortgage, or sometimes even get a job.

Bad Credit Loans in Canada with Guaranteed Approval

Poor credit can affect every area of your life and may even cause relationship issues or self-esteem issues when you associate your credit score with your ability to live your life the way you want. However, you do have options no matter how low your credit score may be, so you should always have hope when applying for bad credit-specific loans.

The following loan companies are great providers of loans for people with bad credit:

  • LoanConnect
  • Loans Canada
  • Ferratum Loans
  • Marble Financial Fast Track Loans
  • Loan Away
  • Northstar Brokers

Some of these companies even offer loans of up to $50,000 or $300,000 and have rates as low as 3%, though you may also be looking at up to 46.96%.

Bad Credit Loan Providers vs. Banks

When applying for a loan, a lender will check your credit history to determine if you qualify for a loan. Unfortunately, most banks will reject loaners with bad credit scores, but they aren’t the only option. Private lenders are much more likely to accept bad credit applications. Here are a few staggering differences between banks and private loan providers:

  • Many alternative lenders will have guaranteed approvals even if you have a consumer proposal, recent bankruptcy, collections, or a delinquent account on your credit history
  • Alternative lenders are often entirely online establishments and can accept high-risk applicants without charging exorbitant interest rates on loans
  • Several alternative lenders won’t even check your credit score when providing loans since they look at other factors to make their decision (things like employment status, income, etc.)
  • You can choose a secured or unsecured personal loan with bad credit from alternative lenders
  • You will pay a higher interest rate than banks charge since bad credit loans are higher risk

Bad Credit Personal Loans Without a Credit Check

Even if your lender doesn’t check your credit score, you’ll still be required to answer some questions about your financial situation since they rely on these factors to determine if they should approve your loan application.

They will request information regarding:

  • Your monthly or yearly income
  • Your employment status and the size of your place of work
  • A co-signer for your loan
  • Current bankruptcy proceedings
  • Current debt amount

Benefits of a Bad Credit Personal Loan

Bad credit loans help out Canadians with poor credit in a number of ways:

  1. Rebuild your Credit Score. Having credit is the only way to build up your credit score, so by making regular, on-time payments on your bad credit loan, you will slowly improve your credit score, be able to qualify for unsecured credit cards, and have access to better mortgage rates
  2. Access Better Interest Rates. An unavoidable truth of bad credit is that you’ll pay higher interest rates on any loans and credit cards you have in your name. however, some alternative lenders offer lower interest rates than others, enabling you to pay it back more efficiently with more manageable monthly payments.
  3. Borrow Large Sums of Money. Bad credit loans often allow you to take out a loan for several hundred thousand dollars so you can pay off other smaller loans or handle an emergency expense.

Things to Watch for with Personal Bad Credit Loans

There are a few things to consider when applying for and receiving a bad credit personal loan to ensure you avoid a bad lender:

  • Interest Rates. Some lenders choose to charge truly outrageous interest rates, so make sure you know the maximum interest rate possible up front.
  • Hidden fees are a common occurrence in the finance world, so be sure to check your documents for any hidden fees prior to signing.
  • Credit Reporting. Paying your loan on time and in full won’t do you any good if your lender doesn’t report your behaviour to credit lenders regularly, so make sure you choose a lender that does so in order to rebuild your credit score.


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