bad credit loans canada

Bad Credit Loans Canada 2019

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Last updated on June 30, 2019 Views: 547 Comments: 2

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If you have ever been refused a loan or a credit card, declared bankruptcy, or failed to make payments on a debt, it’s likely that you 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 to get a job.

Bad Credit Loans Canada Guaranteed Approval 2019

You may think that having bad credit implies that you don’t have a lot of choice for your personal loan. But we have 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 4 recommended providers, but make sure to also have a look at more bad credit lenders below in this article.

 Loan AmountAPR RangeReview
LoanConnect$500-$50,0004.8% - 46.96%Read review
Ferratum Loans$2,000-$10,00018.9%<Read review
Refresh Financial$1,200-$25,000 (depending on location)9.47% - 20.07%Read review
Loan Away$1,000-$5,00019.9% and 45.9%Read review
Northstar Brokers$300-$3,000No specificationsRead review

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. The sad truth is that 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 different 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 both unsecured and secured bad credit personal loans in Canada with an alternative lender.

Bad Credit Personal Loans in Canada with No Credit Check

If you’re applying for bad credit personal loans in Canada 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 do still look at other factors to decide whether or not to approve your bad credit loans 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
  • Whether you’re employed or are self-employed, 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 in Canada

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 move your credit score back up. 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 unexpected emergency expense.

What to Look Out for with Personal Loans for Bad Credit

When you apply for bad credit loans in Canada, you’ll need to do your homework. Unfortunately, there are some unprincipled 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 truly exorbitant interest rates, so always check a lender’s maximum rates before you apply for a loan.
  • Fees. Always read all of the fine print prior to 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.

Unsecured Bad Credit Loans Canada

Unsecured loans are loans that don’t use any collateral as security for the loan. Most personal loans are unsecured loans, for example. The benefit of an unsecured loan is that you won’t be putting anything at risk if you can’t keep up with repayments.

Loan ConnectLoan Connect

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 from $500 to $50,000, and get a reply about your loan application immediately. It takes only one minute to complete a loan application through Loan Connect, 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 Loan Connect.

Click here to learn more about LoanConnect

Ferratum Loans

Ferratum loans CanadaEligibility Requirements:

– Be at least 18 years of age
– Be a Canadian citizen or permanent resident
– Be employed for at least the past three months
– Be a resident of Alberta, Ontario, British Columbia, New Brunswick, Nova Scotia, or Newfoundland.

For borrowers with weaker credit, Ferratum offers loans between $2,000 and $10,000 for up to 5 years. Ferratum’s loans are highly flexible, as borrowers can choose to make loan repayments weekly, bi-weekly, or monthly, and each loan is 100% fee-free. That means you can add extra payments or pay it all off in one lump sum with no penalties or origination fees. Interest rates start at 18.90%, loans are finalized online, and approved funds can be received within 24 hours, but take note that this lender will check your credit after you apply.

Click here to learn more about Ferratum Loans

Loan Away

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

Loan Away offers unsecured personal loans of up to $5,000 for absolutely any purpose. You can spread your repayments across 36 months, and there are no penalty fees. Loan Away provides loans to Canadians living in Alberta, Ontario, and Newfoundland, and although they don’t guarantee approval, they do accept over 90% of all loan applications. The application process takes as little as 8 minutes, and you could have the funds within 24 hours.

Click here to learn more about 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 2 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 $15,000 as an unsecured bad credit personal loan, or up to $25,000 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, and also offers educational resources to help Canadian borrowers take back control over their finances.

Click here to learn more about easyfinancial

NorthStar Brokers Inc.

Northstar Brokers

Eligibility Requirements:
– Have a valid checking account that’s been active for at least 3 months
– Be free of bankruptcy proceedings or anything that garnishes your pay
– Have been in full-time employment for at least 6 months
– Have the same address for at least the past 6 months
– Be paid through direct deposit or cheque

Northstar Brokers offers unsecured, fast-access personal loans for Canadians with bad credit. You can get your funds through as quickly as the same day and can borrow as much as $3,000 for any purpose at all. Northstar Brokers doesn’t run any credit check to approve your loan application.

Learn more about Northstar Brokers

Secured Bad Credit Loans Canada

Secured bad credit loans are personal loans that use collateral to secure your loan. These loans could be secured against your home equity, your car, jewelry, CDs, or any other valuable item. Secured loans, for the most part, have lower interest rates and are easier to qualify for with bad credit, but if you can’t keep up repayments, you risk losing your home, car, or other collateral.

Refresh Financial

Refresh Financial

Eligibility Requirements:
– Be at least 18 years of age
– Are a permanent resident or citizen of Canada
– Hold a verified bank account
– Have a certain minimum monthly income

Refresh Financial offers secured bad credit personal loans in Canada with guaranteed approval. You don’t need to worry about whether or not you’ll meet the requirements, because you pay back this loan before you begin. You’ll provide Refresh Financial with security in the form of cash up front, which is locked away in a secure account. Then, you’ll receive funds and begin to make monthly payments. Refresh Financial reports your responsible borrowing habits to the main credit agencies so that you can rebuild your credit. At the culmination of the loan period, your security amount is returned, giving you a handy lump sum.

Click here to learn more about Refresh Financial loans

Prudent Financial Loans

Prudent Financial

Eligibility Requirements:
– Be employed full time for at least the past 6 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 proposal or bankruptcy history. It has a high rate of approval and usually processes your loan on the same day. You’ll be able to borrow up to $25,000 for a car loan, up to $20,000 for personal loans that use your fully paid-off car as collateral, and up to $5,000 for personal loans with other collateral items. Same-day home equity loans allow you to borrow up to $15,000. 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 learn more about Prudent Financial

Tribecca Finance Corporation

Tribecca Finance

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, as well as home equity loans and first and second mortgages. You can use your car or other personal item 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 learn more about 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 learn more on

Article comments

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 (or responding to this comment) with your parameters, and we’ll respond ASAP! Thanks again.