Compare Loans for Bad Credit in Canada

Bad Credit Loans: Credit score 620 or less

Do you have bad credit and want to apply for a personal loan? The good news is that Canadian lenders are available, even if your credit score is not the strongest. It’s important to note that bad credit loans typically come with higher interest rates, due to the higher risk that the lender is taking.

With FatCatLoans you can get a free quote with no obligation for a bad credit loan. Our specialist Canadian lenders can provide an instant approval decision, and you can choose loan options with or without a guarantor.

  • Specialised for Bad Credit
  • No Obligation
  • Instant Approval Options
  • Over 10,000+ Loans Funded
  • More Reasons to Get a Quote:

    • Simple online application process
    • All credit scores accepted
    • Flexible and easy repayment terms
    • No guarantor needed
    • Support & resources to help you stay on track with your loan

    What is a Bad Credit Loan?

    This is a type of borrowing option that is designed for someone who has a low personal credit score or a bad repayment history. The interest rates on these types of loans are usually higher than those offered by mainstream Canadian credit options.These loans are usually unsecured. An unsecured loan is based on your credit score and not secured against your car or home in Canada. Therefore, pricing will reflect the risk that the lender takes.

    How Can I Get a Loan With Bad Credit?

    If you have a poor credit score, it’s ideal to apply for loans that are geared towards you. This can help you avoid getting rejected, and give you the best chances for approval. We recommend getting a quote that’s specific to your credit history before submitting a loan application.

    Do I Have Bad Credit?

    Credit scores in Canada range from 300 to 900, with anything below 620 generally considered “poor”. You can check your credit report for free using services like TransUnion, Credit Karma, or Equifax. It’s important to be aware of your credit score before applying for any type of loan, as lenders will typically conduct a hard inquiry, and this could have an impact on your score.

    Frequently Asked Questions

    What are the best loans for people with bad credit?

    Although many options are available for those with poor credit, they almost always have a higher APR than other options. Lenders consider this a more significant risk. There are still several options for those who have a bad repayment history, like guarantor loans.

    A guarantor loan is another popular type of option for those with a bad repayment history. You will name someone, in Canada, to act as your guarantor and use their good track record score instead of your bad score. They will be responsible for any missed payments during the repayment term. The guarantor must be a Canadian homeowner to qualify. These funds are still secured and will not affect the guarantor's property. There are also non-homeowner or tenant guarantor loans where the guarantor does not have to be a homeowner to qualify.

    Short-term loans are available if you need funds with a short repayment period. However, these typically have high interest rates. You should ensure that these funds are borrowed only as needed, and ideally for short periods of time.

    Is it possible to borrow money with a bad record?

    A bad track record may make it more difficult to qualify for a normal loan, however, we have expert lenders on our panel who specialise in providing other options specifically for those who struggle to borrow money elsewhere. It’s still possible to get a loan with bad credit.

    Check if you qualify by submitting your application on our website. Your submission will allow you to compare multiple options for free.

    Are there other borrowing options if you have bad credit?

    You might consider improving your bad credit score over a period if you don't have an urgent need for money. You will be able to access better financial products such as low-interest credit cards, personal loans at favourable rates, and mortgages in the future. A credit card is one way to improve your score. If you can pay the card every month, you will gradually improve and can begin to explore applying for different forms of borrowing.

    What kind of interest rate can I expect?

    Interest rates can vary significantly depending on the lender and your overall financial situation. Specialist Canadian lenders may charge up to 60% interest rates, which is the maximum allowed by law. On the other hand, short-term borrowing options can have APRs as high as 600%.

    Can I get a loan if my credit score is less than 600?

    Yes, you can still borrow money if your score is less than 600. Your options, however, will most likely be limited to high-cost Canadian lenders. Rather than relying on a high-cost loan, it may be worthwhile improving your score to find a borrowing option with more affordable rates and terms.

    Which type of loan does not require a credit check?

    Some lenders offer loans with no credit check for those with bad credit, or who want to avoid a hard inquiry. By using our site, you can compare these types of bad credit loans with no obligation to see if you qualify. Getting a quote will not affect or check your credit score.