How To Get A Loan With Bad Credit In Canada 

Obtaining a loan with bad credit in Canada is now easier and safer than it has ever been. If you need a loan with bad credit in Canada, we list the top 10 best direct lenders for bad credit in Canada you can turn to when you need money and you have bad credit.

Key Takeaway

  • You will learn about the top loan lenders in Canada for customers with poor or bad credit
  • How to get a loan with bad credit in Canada
  • The requirements to get a loan with bad credit in Canada. Let’s get started.
loan with bad credit in Canada

What are Loans With Bad Credit? 

Bad credit loans are personal loans provided by lenders who work with borrowers who have poor credit. These can be secured (backed by collateral) or unsecured loans. The interest rates and terms of these loans differ depending on the lender.

Various banks, credit unions, and online lenders make loans to people with poor credit, but the criteria for who is considered a “creditworthy lender” varies by institution. Some of these lenders have more stringent requirements than others, so it’s critical to shop around for the best deal.

Requirements to get Bad Credits in Loan in Canada 

The basic minimum requirements to get a loan with bad credit in Canada are:

  • Must be 19 years of age on the date of application.
  • Must be a Canadian citizen.
  • Must have been receiving/getting the same source or mix of incomes for the past three months.
  • Must have a valid mobile number and address.
  • Must have a minimum combined net monthly income of at least $800. This is the cumulative sum required from all wages, tips, federal child tax benefits, federal and provincial social assistance programs, pensions, and so on.
  • Must have a Canadian bank account that has been open for at least three months, with access to online banking.

How to get a Loan with Bad Credit in Canada

Trusted online lenders use technology to make loans safer and more accessible to customers with bad credit than ever before. Here are a few pointers to help you get approved right away.

  • Find a lender that can help.

When approaching loan lender with a poor credit history, look for one that assists Canadians with poor credit (or no credit). Before applying, find out what the lender’s eligibility criteria are, as they vary between financial institutions.

Credit unions, for example, maybe more selective in who they lend to than a lender like Spring Financial, which can work with customers.

  • Show your income

Because some lenders will consider factors other than your credit score, be prepared to show your income. You may be asked to submit bank statements and/or pay stubs. If you are coming up short, don’t forget to include any government income you receive.

It is usually deducted from your monthly earnings. You can prove your income by taking photos of any non-sensitive documents with your Smartphone and emailing them.

  • Add a cosigner

Including a cosigner on your application is optional, but if your monthly income falls below the lender’s monthly income threshold (including any government income), you may need to consider it.

A cosigner is a trustworthy family member or friend who agrees to share the loan’s responsibility. The cosigner should have a good credit score and a reasonable income.

  • Start monitoring your credit.

If you are approved for a bad credit personal loan, it will help you improve your credit score as long as you make your payments on time and in full.

Top Direct Lenders For Bad Personal Loans In Canada

Here are our top direct lenders in Canada that offer loans to bad/poor credit: 

#1. Loans Canada

Loans Canada provides up to $35,000 to potential borrowers and has a diverse pool of lenders to choose from. With an APR as low as 2.99%, it is one of the best for Canadians looking for a bad credit loan online.


  • Has Low-interest rates
  • Excellent search platform
  • Quick and easy access to cash
  • APR:99%-49.96%
  • TERM: 4-60 months
  • Minimum loan amount: $500
  • Maximum loan amount:$35,000
  • Minimum credit score:None

#2. Skycap Financial

SkyCap Financial provides short-term loans up to $10,000 to Canadians as an alternative financing option. SkyCap Financial, based in Kingston, Ontario, was founded in 2013 with the goal of providing a better lending experience through a quick and easy loan application process.


  •   Rates: 12.99% – 39.99%
  • Loan amount: $500 – $10,000
  • Loan term: 9 – 60 months
  • Excellent customer service
  • Get approved in 24 hours

#3. Spring Financial

Spring Financial is a money lender that has been providing bad-credit loan online solutions to Canadians since 2014.


  • There is No collateral required
  • Credit-building loans
  • No prepayment penalty
  • APR:99%-46.96%
  • TERM: 9-60 months
  • Minimum loan amount:$500
  • Maximum loan amount:$15,000
  • minimum credit score: None

#4. Loanz

Loanz is an online lender that offers personal loans to people with fair to poor credit. It has a quick and easy application process, so you can get your funds the same day you apply.


  • Rates: 29.90% – 46.90%
  • Loan amount: $1,000 – $15,000
  • Loan term: 12 – 60 months
  • Get instant approval
  • Get your money in 15 minutes

#5. Loan Away

Loan Away is a Canadian online lender that has been in business since 2015. Small to medium-sized credit loans are its business niche.


  • Fast and easy approval
  • Has High approval rates
  • Available for requests 24/7
  • Apr:9%-45.9%
  • Term: 6-36 months
  • Minimum loan amount:$1,000
  • Maximum loan amount:$5,000
  • minimum credit score: 300

#6. FlexMoney

flex money is dedicated to providing one of Canada’s fastest instalment loan services. We provide you with an instant decision within minutes of submitting your loan application.


  • Rates: 18.90% – 46.93%
  • Loan amount: $500 – $15,000
  • Loan term: 6 – 60 months
  • Get an instant loan decision
  • Get your money the same day as the application

#7. LoanConnect

LoanConnect is a Toronto-based company that was established in 2016. Its service is available to all Canadians who are looking for loans for bad credit to help them get out of debt.


  • High loan amounts
  • Fast approval
  • There are No credit score requirements
  • APR: 6.99%-46.96%TERM: 6-60 months
  • Minimum loan amount: $500
  • Maximum loan amount:$50,000
  • Minimum credit score: None


Mogo is a Canadian online lender that was established in 2003. It allows customers to try out its services before committing to a loan.


  • User-friendly platform
  • 100-day test drive
  • Monitors your credit ratings
  • APR:9.9%-45.9%
  • TERM:2 weeks – 5 years

Read Also:

10 Best Direct Loan Lenders For Poor Credit With Guaranteed Approvals

How To Get A Loan When You Are On Benefits

How To Calculate Payment On A Loan – An Easy Guide


You can still apply for and be approved for bad credit personal loans even if your credit is poor. But beware of high loan rates, and only submit your applications to trustworthy lenders.


What is the easiest loan to get with bad credit?

With bad/poor credit, secured, co-signed, and joint loans are the easiest to obtain. A secured loan necessitates collateral, such as a car or a savings account, which the lender may seize if you fail to repay.

What is the minimum credit score for a loan

610 to 640, Borrowers typically need a credit score of 610 to 640 to even qualify for a personal loan. 

How big of a loan can you get with bad credit?

You may still be eligible for up to $10,000 even with bad credit, even though the network for consumers with good credit offers bigger loan amounts. Not all borrowers will be approved for the greatest loan amounts.

You can learn more from the video below:

About Author

loan with bad credit in Canada
Precious Ejimofor
My name is Precious Ejiofor, I am a professional self motivated, dependable writer and editor, with over 4 year of experience in writing for variety of business and platforms. I am able and capable to write on any kind of topic.
Specifically, I focus on producing persuasive and compelling contents that is thoughtful, prominent, and engaging.

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