This post has been updated on Mar. 10th, 2019 to reflect new developments in the Canadian credit markets for people with less then perfect credit.
I receive many request daily from people who want to borrow small amounts of money short or medium term, people who usually have nobody else to turn to because they have bad credit. It breaks my heart reading these requests, but I’m not in the business of lending money and unfortunately I can’t help them out. The way I’m trying to help out is by educating people to avoid debt whenever possible, or at least to use forms of credit that won’t cripple them financially down the road. I understand that when you have a poor credit and the rent is overdue, or you have an emergency, sometimes you have to bite the bullet and borrow from a private lender that demand high interest on their loans, but such bad credit loans should be dealt with swiftly to avoid going into a never ending debt spiral.
I see signs of restricting personal credit in Canada everywhere lately. Even secured credit card providers like Peoples Trust has discontinued their popular secured card this summer. The big five Canadian banks have tightened credit issuing and mortgage underwriting. Getting a personal loan if you have a bad credit is no longer an easy task in Canada. You can still get a small bad credit personal loan from alternative lenders, but they come with much higher interest attached, and should be used only as last resort.
Although many Canadians would hate to admit it the real estate boom of the last 15 years is now over. This is not a real estate post, but the fallout of the declining real estate has direct implications on the ability of the average Canadian to access personal credit. The first victims of declining real estate values are of course people who rely on home equity lines of credit and refinancing to pay their bills and expensive to service credit card debt. The rising interest rate environment that we find ourselves in isn’t helping this either.
Finance companies, credit unions, online lending services, and some banks offer secured and unsecured loans to Canadians with bad and no credit. They usually offer short-term loans and a convenient and fast application process.
Getting a Bad Credit Personal Loan in Canada with No Credit Check
Online lending services and payday lenders offer loans for people with bad credit with no credit check. Some finance companies don’t run a credit check but require regular and stable income and look at the customer’s individual circumstances. Another option is to apply for a home equity or secured auto loan whereby your home equity or vehicle serves as collateral. Other loan providers include peer to peer lending services and payday lenders. Peer to peer services feature loans offered by individual lenders who may be more sympathetic and willing to offer loans to individuals with fair or poor credit.
Is There Such a Thing as Guaranteed Approval for Bad Credit Personal Loans
While many lenders advertise guaranteed approval, they usually require proof of income. In many cases, customers must have an active checking account. Guaranteed approval usually means that lenders accept applications from clients with a history of consumer proposals, bankruptcies, credit counseling, seriously delinquent accounts, and past collections. Thus loan providers have more lenient lending and credit requirements compared to banks. Guaranteed approval often means that loan providers accept applications from individuals with different credit profiles, and your credit score is not the most important factor.
How to Get Unsecured Personal Loans with Bad Credit
Comparison shopping is the best way to check rates, lending criteria, types of loans available, acceptable types of collateral, repayment schedules, and other details. Lending services usually request employment information such as length of employment, position held, gross income, monthly income, and employer. If applying together with a co-applicant, they must provide employment and personal information about the co-applicant, including net or gross income, age, and marital status. When applying for a bad credit personal loan in Canada, applicants also provide information such as mortgage payments and mortgage holders, number of dependents, current address, age, and social insurance number. Lenders want to make sure that customers will be able to pay down the loan within the agreed time frame. As a rule, loan providers are unwilling to deal with risky clients with no credit or financial record. This is the reason why they ask for proof of employment and financial stability to ensure prompt repayment. Customers with poor credit and excessive debt, for example, are at risk of default.
Top 5 Bad Credit Personal Loans Lenders in Canada
EasyFinancial, Capital Direct, Prudent Financial, Canada Lend, and Tribecca Finance are the top 5 lenders that offer secured and unsecured loans to individuals with poor credit.
EasyFinancial, for example, offers home equity and personal loans to customers who need cash to pay unexpected or medical expenses, pay a consumer proposal, or consolidate existing loan balances. The company also offers consumer loans to help borrowers repair or establish credit. Customers are offered home equity loans with long amortization periods of up to 40 years. EasyFinancial offers debt consolidation and personal loans to help clients reestablish credit. Clients are offered a bad credit personal loan of $500 to $10,000. The company advertises flexible and convenient payment options.
Capital Direct is another lending service that provides home equity loans and lines of credit to pay one-time, recurring, or unexpected expenses. Borrowers are offered lines of credit with variable repayment schedules and rates and debt consolidation options.
If you are looking for a bad credit loan in Canada, Prudent Financial is a good place to find small loans of up to $5,000. Approval depends on factors such as assets, debt, income level, and employment. The good news is that payments are reported to Experian, Equifax, and other credit bureaus.
Canada Lend is yet another lending service that offers second and bad credit mortgages, debt consolidation services, home equity lines of credit, refinancing options, and other financial solutions.
Secured Bad Credit Loans
Issuers provide secured loans to customers with bad and good credit. Loans are offered to borrowers with defaults, mortgage arrears, foreclosure, and missing loan payments provided that collateral is used to secure the loan. Collateral in the form of caravan, motorcycle, vehicle, real estate, or another valuable asset is required to secure the loan. Lending services advertise flexible repayment terms and schedules, easy application, and pre-approval options. The repayment term varies based on the borrower’s financial circumstances. The main benefit is that clients are offered larger amounts and lower rates compared to unsecured loans. At the same time, many lenders require that applicants are homeowners to qualify. The maximum loan to value ratio varies by issuer. When applying for a bad credit personal loan in Canada, clients fill in contact information, marital status, mortgage balance, collateral worth, amount requested, and other information. Some financial companies also ask about pay interval and employment (self-employed, student, housewife, employed, etc.)
Unsecured Bad Credit Loans
Some issuers offer unsecured credit in the form of short term loans with higher-than-average rates. There are loan providers that offer acceptable solutions but it is more difficult to get approved. One idea is to apply together with a co-signer. This can be a friend, relative, parent, coworker, or another person with good or stellar credit. Co-signers are 100 percent responsible for timely loan repayment and are taking a huge risk. It is also possible to get approved for a loan with less than perfect credit provided that you have stable income. Writing a loan application letter also helps. Include details such as repayment term and schedule and loan purpose and explain your financial situation. When applying for a loan, customers are asked to bring documents such as their financial and loan statements and income tax forms. Lenders are also interested in the applicant’s housing history, employment status, credit card debt, and outstanding loan balances. Customers also choose a loan term that can vary from 3 months to 10 years. They specify loan amount and purpose, for example, vehicle or furniture purchase, debt consolidation, home improvements, and others. Some lenders also offer loans for back to school expenses, funeral expenses, small rent arrears, holidays and travel, Christmas and wedding expenses, and unexpected expenses. With some lenders, you need to provide housing information, i.e. tenant of employer, housing association, living with parents, furnished or unfurnished tenancy, or homeowner.
There’s no such thing as guaranteed approval when you have bad credit. If you don’t have an income verification, it’s very hard to find a lender willing to loan you any money.
I doubt that very much. I have the worst credit imaginable and I still got a master card, and loans. Believe me it’s ALOT easier than you think.
Hi Mike,
Would you mind sharing where you got loans from? I’m having a tough time finding anywhere.
Hello Mike
Who did you get those loans through? I bet you I have worse credit lol
Thanks
can u tell me how
Hi Mike where’d you apply from?I have been searching and it’s so tough to search for a loan
Where did you go for your loan ?
Hi Mike,
I also have very poor credit. I read your comment and saw you were able to receive a master card and loans. I am looking for a loan and I can’t seem to find a lender. If you don’t mind me asking, where were you able to get approved? I’d like to look into it and see if I could also get approved.
Thanks
Hi there. Can you please share where I can get an online line of credit or loan with bad credit. In urgent need.
I am on permanent disability with workers compensation board i have no credit if you can help me with a personal loan for 3500 that would be great! If I have to give you any money ahead of time before i get the loan then just forget it!!!
Hi Wendy,
I’m sorry to hear about your troubles. Unfortunately I don’t offer loans. My blog is more of an education tool for people who need financing and loans. Have you tried contacting any of the above-mentioned personal loan lenders?
Sam
Hello Wendy,
If you are still in the same position and receive this reply and are in Canada… Try applying for a Canadian Tire MasterCard, no annual fee and I started off with $500 and was increased to $1300 within a few months…like 3 months. Or a Capital One MasterCard but just know that that there is a $59 Annual Fee.
Hope it helps you!! Dena-Lynn 🙂
Is it normal or even legal for bad credit lenders on line to request
a security deposit of the first four months repayments up front before
they will transfer your loan money? This seems to be the practice with
most of them.
It is illegal in canada for a loan lender to ask for any money upfront. If they do stop contact with them and don’t send money, it’s a scam.
It is not ok any one saying they need money up front before they transfer money is a scam. It is illegal to ask Canadians for fees of any kind of loan.
Hi Mike where’d you apply from?I have been searching and it’s so tough to search for a loan
I need to buy a pick up truck for work.
I applied for a loan and the company told me the minimum I could get was $10000.00but I got to pay them $1000.00. Do you have to give the company before you gets the loan?
This happened to me. I was an idiot and transferred the $1000 to them. I didn’t receive anything.
Hi Cathy, You don’t have to give any money to a lender to get a loan. Period.
Samantha, Iapplied for a loan in Toronto Canada from a private lender company, and was told different rules for them, they can ask for any amount of money up front.
Is that true?
hello Samantha. have you heard of Richmond financial or, Centurian financial service this one i think is based in the U.S. I applied to both got approve for secure loans but they gave me those options that i can choose from .1. i can have a co-signer 2. Place my car as collateral 3.buy insurance from their company worth $1400 or 4. i have to give to them at least for months payment before i receive the money
I just made the biggest mistake of my life, I applied for a loan through a company in New York New York, I have bad credit and because of that they wanted a co signer, or 3 months in advance, I did the 3 months, said money would be in bank with in 2 hours, scam big time, no money, thing is I used my rent , no fault of my own, lesson learned.
Hey corri was the company called bay ridge financial? I had sent them 3 months payment then they wanted me to pay the loan insurance so i did but then they wanted me to pay the first year of taxes like wtf i said no and we will see if i get money back
I have just recieved news that I was approved for 25000 but because I have been through bankruptcy last year they asked for either a cosigner, a lien on a vehicle, or for me to pay the first 2 months up front. They are bayridge financial group from Brooklyn NY.. I’m in Canada and honestly I’m hesitant but I desperately need this money.. does anyone think it’s a scam? The have a website that looks legit..
I had a lender tell me this one time and it is completely bogus, you don’t not pay anything upfront for a loan.
I think both lenders are located in the U.S.
I have been applying for a loan for about 3 weeks now, and I can’t find anyone to help me out with this. I am so stressed out from this I can’t sleep and I don’t even eat. I wish someone would help me out, I only need 600.00 dollars and I don’t need it but for about 2 days, and then I can particularly it back.
Hi Glenda, I would suggest that you contact LEGITIMATE payday loan lender. Although be very careful, read the fine print and pay back on time. Here is a list of lenders
Hi I am looking for a loan of $7,000.00 in order to pay off all my outstanding debt and only have one payment. I owe about $500,00 in order to have my discharge. I
I am applying for this loan in order to reconcile my debts and only have one payment to make. Part of the funds will be used to pay the balance of my discharge so that I can receive my liberation finally, I have been paying this for almost 6 years, due to an error that they said I had a surplus on income and had to pay for an additional 3 years, I am retired from the government and my net income is $3,199.99, I hope that we can come up with some kind of an arrangement
I will be waiting to here from you.
Thank you for taking the time to review my file.
Hi Linda, I would suggest that you contact a debt consolidation company.
Hello
I read what you said about a loan . I’ve been trying to get a small loan of $600 just to get caught up in my payment. I’m willing to pay them back in a week . I know I to have a disability .So do you know where I can get the loan . I don’t know why we have too suffer because we can’t get help.
Thanks
Any ideas where to get a sole proprietorship business account with bad credit. Have been denied by a few credit unions and banks in Toronto.
Hi Ronit, Have you tried any of the above listed lenders?
I was looking for lender who can lend me some money I was working 7 days a week and I need to make my payments in one payment only and need the money to move out from other city to start a better life..and can pay the loan ahead of time
Would like to know if cold cash canada is a legitimate company approved for 7000 $ loan but they want 1050 $
In secrurity funds what do I do ?
Check with the better business bureau of Canada and put there name in the search
Hi Carol,
Be extremely careful with companies who require security deposit. You don’t have to give any money to a lender to get a loan.
Hi ,
is debt consolidation similar to bankruptcy? I’m confused coz if its similar to bankruptcy it may affect my status of sponsoring somebody back home.thank you
Debt consolidation is not similar to bankruptcy. With debt consolidation you are consolidating all your debt into one monthly payment. While with bankruptcy you just have to start over building your credit from scratch.
thank you for your reply
I own 2 houses one totally free a clear one about 3/4 paid. I have been out of work for a while and have no money. I was just offered a good job but will have to move and I need money for the move right away. Who should I borrow from? Or what should I do?
Have considered selling one of your properties?
HI there i need to brow some for a motorhome I have over 1\2 but need about 15000 more for a 2001 monaco diplamat price is 35000 caqn u help me thanks Larry
Hi, im looking for a debt consolidation loan of $50000, i have some relly high interest loans out and will take me forever to pay them of with the interest so high, i have good credit but the banks are still turning me down i work fulltime and my gross earnings for a year is $82000 and thats not bad money but i need to get out of these high intertest loans, are there anyone out there that can loan me this money cause i know i will have no problem at all payingit back, but i certainly needs a break from these high interest loans and get them paid off with a debt consolidation loan .. anyone who can help me please contact me through my email or have any information where i can get this loan Thank-you
Hi Ambrose , I would suggest that you contact this debt consolidation company.
could someone please let me know what I can do. I am currently 25000 in debt and I am looking for a loan that I can use to pay of cc and loans with high interest rates. I don’t own a home nor do I have any type of collateral. need help asap thank you
Hi Rob,
Your best bet will be to apply for debt consolidation.
Sam
Hi,
I am looking for a loan to pay for my Master’s degree. The bank declined, and I only got a small portion student loan through OSAP. I work full time and make decent money. I need $ 25,000. What are my options?
Thank you!
I am in desperate need of a loan if about $5,000.00 I have a $1600.00 hydro bill to pay and I am also behind 2 car payments about to be 3. I was in a car accident and I am awaiting back surgery. I have secure employment but have not worked since my car accident. I do receive income replacement benefits from my insurance company every 2 weeks. My credit is a mess from being behind in payments and have been turned down a few times. Its hard to do online applications because my situation is unique. Can anyone help me I dont want my hydro cutoff. What can I do??
I’m on disability can I apply my hydro is going to be cut off.looking for a small loan to pay bills 2000$.
I need to borrow 2000 to get out of debit with my phone bill and extra bills that came up
hi my name is claudia i need money for two mnnths aboout 5000.00 can make monthly payments need it urgent for to fix my car but cant get a loan anywhere i tried
I am a bit confused on the whole transfer fee, upfront fee for lending money. I know it is illegal for Canadian lenders to ask for upfront fees, but if you are working with an American company for a loan, is it still illegal to ask for a fee up front?
I have been doing some research since this past Christmas when I lost $1150.00 to a scammer, but I can’t seem to find information as far as American lenders requiring a “transfer fee” for a loan.
Thanks
Hi Tiffany, Try to get a loan from Canadian lender.
Sam
My wife was just denied a CC from MBNA, as she was trying to consolidate her LOC and CC balances, to close of the CC. Said her debt to income ratio is to high since she is off on maternity leave. I am the only person employed right now and we just bought a house last year, with little equity. How can we get a consolidation loan together to do the same thing? I just reestablished my credit with a low balance CC and auto loan? Paying $800+ in interest every month. Which would be the perfect solution as to a loan?
Hi Joe,
Have you talked to Consolidated Credit regarding consolidating your debt? You can click on the link “Apply for Debt Consolidation” at the top of this page, which will take you to their site.
Thanks,
Samantha
Where in Ontario, Canada>>>
Can I get a loan with a reasonable interest rate?
My credit is not good
I will be free of my bankruptcy in 2017
Can you help me with a personal loan of $5,000.00
Thanks
Hi Theresa,
Do you need to consolidate existing loans with high interest, or you are just looking for a new unsecured loan?
Thanks,
Samantha
I am seeking a loan for 2700.00. I am a retired senior My come is $2023.23. i live in a geared to income apartment. please advise if i would be considered. thank you kindly.
Ann Fleming
Hi Ann,
Are you looking for secured or unsecured loan?
Thanks,
Samantha
i know i am late…. but either secured or unsecured which ever is beneficial
PLEASE CONSIDER MY REQUEST. I AM DESPERATE .
THANK YOU VERY MUCH
My name is Serge, and been going through a very rough time. I make a good salary however been struck with bad, bad luck and have consolidated debt with Credit Counselling. I would require about a $3500 loan to help me through this. I am about to become a contractor which will bring me a substancial pay increase, but the loan is required for now. I am a military veteran with PTSD and have made some bad choice but seeked help with Credit Counselling, but my recent string of bad luck has nothing to do with bad decisions, simply bad luck with my car, etc…. I need help please
Hi Serge,
You can try debt consolidation with Consolidated Credit Counseling Services of Canada. Just click the link on the top right corner of our web site.
Hello
I was wondering can you consolidate 2 loans from to separate companies, without the co-applicant.
I am the main applicant the money is taken from my acct each month. i am currently single and not on good terms with the co-applicant.
Can I consolidate without the co-applicant.
I am looking for a $5000 loan with bad credit and am currentley on CPP disability. My bills are maxed and cannot affored to do anything.Can i draw urgent funds from pension?
hello I’m curious to know of any suggestions on where a person with bad credit who is on aish could get a installment loan for a minimum of 1000-3000
hi im just wondering what options I may have. im currently in a consumer proposal until October 1016 and am in need of a 6000$ loan t pay a fine so I don’t lose my licence.. at this point if I lose my licence I also lose my job.. any help you could offer would be great
thanks
Hi my name is Rick I am looking for a loan of at least 5000 I’ve tried everywhere possible I had to take out a bunch of smaller loans and that is now killing me I’ve fallen way behind on everything including rent. Do you know anyone who can help me. My credit is not that good and I can’t find a cosigner.
Hi my name is Anita. I am also in a consumer proposal until 2017 but due to unexpected expenses, that I was unable to save up for before they happened, require $8,000. Is there any options available to me?
Hi, I’m looking for an unsecured $3000.00 loan to help my child out.
I am currently in bankruptcy and in need of small short term loan. I would like to borrow $600-1000 and be able to pay off within only a few months. are there any options for me?
HI,
I am looking for a small $5000.00 loan to get out of this pay day and installment loan cycle, my credit is not good, but i have to get out of this cycle.
Thanks
Hi, I am a single mother of 2 on income assistance. My fiance up and walked out on me and my kids 2 months ago. I am in dire need of a loan to play catch up on my bills like car insurance ect. I also have bad credit due to identify theft. Do you have any suggests on where to apply for a small loan?
Can I get a $5000 personal loan if my credit score is 690?
Hi Samantha,
Thank you for your timely update on the credit markets. You are absolutely correct, saying that it’s harder than ever to get a loan if you don’t have a pristine credit score. I’ve been in the lending business for over 15 years, and I see lots of credit applications denied lately, and it will probably get worse as the housing market erodes even further…
Keep up the good work!
John
Why would Peoples Trust stop issuing their credit card? Wasn’t that card a secured credit card? There is no risk for them whatsoever as they have the full deposit as collateral against the borrowed funds, or am I missing something?
How does this work
Like to vet a lone to get a skidoo
Hi Samantha. I am applying for a personal loan from a private lender to do a home renovation. Will this be reflected in my credit score/credit bureau or this is a private arrangement and won’t be reflected anywhere as long as I pay my debts according to the arrangement?
Thanks!
Javier, does this private lender report to credit bureaus? Did the lender pull your credit report prior the private loan arrangement?
I’m looking for a $5,000 loan to purchase used vehicle, but the problem is that my credit is in the low 600’s and I’m not sure that I’ll qualify for a conventional loan. Any ideas on who should apply with? I’m trying to avoid sending too many loan applications, because I’m afraid this will lower my credit score even more.
Jordan,
Most of the time lenders would offer a conventional loan with credit score above 650. It looks like you are not there yet, however there are many car dealers that will finance a car even if you have a bad credit. The APR on such loan will be much higher than conventional loan of course, but there’s not much you can do if you need the loan ASAP.
My husband and I landed in hot water after he lost his job. We decided to go with a consumer proposal as we did not want to declare bankruptcy. The problem is we paid back what we could afford on time every month and even finished it 15 months ahead of time and it still shows up as an R9 on our credit file. Why would people pay back instead of declaring Bankruptcy if you are still going to be considered delinquent? We have over 130,000 in a RIF which is locked in but the bank will not let us use it as collateral for a student line of credit loan for our daughter. We also own our car and a motorcycle outright, Very confused.
I have bad credit, claimed bankruptcy 20yrs. Can’t get a personal loan $5000. I seen Prudent Financial and it looks legitimate but I was told only for Ontario residents. I live in Montreal Québec. Where can I find legitimate company here with alot of reference?
Worried about being scammed.
Please help. Thanks.
I was really close to filing for a personal bankruptcy in the mid 90ties, but somehow I managed to avoid it. As I’m reading the comments here, I’m really glad I did!
Hi there does anyone know where I could get a loan with bad credit and self employed. Im having a hard time finding one.
Thanks
Josie
If I had lots of debt that has become unmanageable I would try to get a debt consolidation loan instead of just trying to borrow more at high interest just to be able to pay the previously accrued interest. This way you can get a single payment at lower interest rate and you can start digging yourself out of the debt hole.
I have to pay my bills and my car and myself also. So I need 35000 dollars for that. Because I think it’s enough money for everything. Can you please help me with money. It’s really a greatfull and thankful. I can’t get any loan and I can’t borrow money from no one. And more than that I have very worse credit score.