7 Best Personal Loans with Bad Credit Reviews in 2024 | Find the Right Lender for Your Needs and Budget

January 22, 2024 | Editorial Team

Canadians are severely in debt. As a country, we owe $2.33 trillion in debt. This consists of $802.1 billion in consumer credit, such as from using a credit card and $1.53 trillion in mortgage debt. All of this debt, in turn, leaves many Canadians with a bad credit score.

The average Canadian credit score is only 650 (out of a possible 900), which is considered fair. So, if you have a bad credit score, what options do you have? Let’s find out!

What You Need to Know About Bad Credit Personal Loans

Many Canadians don’t realize, but our credit score affects our lives, at least financially. Our credit score can range from 300 to 900, and the higher the number, the better your score. Your credit score is typically based on your payment history if you have a credit card or bills. It is also based on how much debt you have and how long you have been using credit.

If your credit score is below 600, you may have trouble taking out personal loans in a traditional way, such as from a mortgage broker or the bank. So, you may have to pursue getting a bad credit loan instead. Here’s everything you need to know about bad credit loans in Canada.

Loan Providers vs. Banks

Although many people turn to their bank when they need a loan, the bank is not your only option. Banks typically require you have a good credit score of at least above 600. If you don’t, the bank may think you’re a liability and refuse to loan anything to you.

In this case, the best option for you is a loan provider. Loan providers are more likely to approve you, even if you have bad credit. This is because they tend to charge higher interest rates than a bank. Thus, if you pay them back, they will earn more money. They justify the higher interest rates because they are taking a risk by lending to you.

Loan providers typically work online, so they don’t waste money on payments to upkeep a branch. This often makes applying for a bad credit loan super easy. Also, they are available all over Canada, as our earlier guides to personal loans in Ontario, Toronto, and Edmonton, among others, suggest. It is also much safer than people think. Many Canadians may be hesitant to apply for a loan with a lender rather than a bank. However, they are often just as safe. Just ensure you are working with a reputable company before giving out your personal information.

Personal Loans – No Credit Check

If you have a bad credit score and are worried about lenders checking it, don’t be. Many lenders won’t check because they will approve you either way if you have the income necessary. They will also be happy to simply charge you higher interest rates to ignore your bad credit score.

They will, however, look at things such as your employment history, your income, and how much debt you have. This is to ensure that regardless of your bad credit, you can still make payments to your loan.

Benefits of a Bad Credit Loan

Although bad credit loans typically have higher interest rates, there are plenty of benefits to applying for one. The main one is that it may be your only option. If you have applied for a loan and have been rejected by a bank, a bad credit lender will likely approve your application.

If you can find a lender with decent interest rates and reasonable monthly payments, you can easily rebuild your credit score. You can use your loan to pay off your credit card or bills on time. As you pay off the loan, your credit score will go up. This will help you get a better loan in the future or help you get approved for bigger things such as a mortgage.

What to Consider When Applying For a Personal Loan With Bad Credit

As there are so many bad credit lenders in Canada, both online and off, choosing one can be confusing. INCOME.ca will help you find the best loans available to Canadians. Here are some of the things you should look for before applying for your bad credit loans.

The first thing you should look at is the interest rate the lender is offering. Lenders can often charge whatever rates they want (within legal limits), so they will vary a lot depending on the company.

Typically they can be as low as 19.99% but can go up to as much as 49.96%. If you take a loan with a rate you can’t afford to pay, you will just put yourself further in debt.

The next thing you should look at is the fees or penalties the bad credit lender charges. If you miss a few of your payments or are late, for example, what penalty will you face? Asking about all of this beforehand will ensure you are not surprised by any hidden fees or penalties.

If you are looking to get a bad credit loan to hopefully build up your credit score, you need to ensure the lenders offer credit reporting. This is when the lender makes reports to the credit agencies that you owe. They should state that you are making repayments, which will, in turn, bring up your credit score.

With all of this in mind, here are some of the best personal loan providers for bad credit in Canada.

Best Personal Loan Providers For Bad Credit Reviews

Loans Canada

Starting off our list of the best personal loans for bad credit in Canada is not actually a lender. Loans Canada is a lending platform. Loans Canada matches Canadians with poor credit scores to online lenders that will be able to give them a personal loan.

WIth Loans Canada, all you need to do is submit one personal loan application, and they will find the perfect lender for you. As they work with a variety of online lenders, you are likely to get approved for the loan, with bad credit or not.

Loans Canada offers a maximum unsecured personal loan of $50,000. The application process is super easy and should take five minutes or less! You just need your:

  • personal contact information.
  • employment information.
  • Canadian citizenship.
  • SIN.
  • financial information.

Personal loans are typically approved and sent to your bank account within 48 hours with Loans Canada. So, if you’re looking for a quick and easy way to get bad credit loans, Loans Canada is one of the best options!

Marble Financial Fast Track Loans

Next on our list is Marble Financial. Marble Financial’s goal is to help Canadians with bad credit scores rebuild their credit. They offer two main types of loans: a fast track loan and a score-up loan. For this guide, we will be focusing on the fast track personal loan.

The fast-track loan is meant to help consumers pay off their user proposals quickly. This will, in turn, help raise your credit score. Marble Financial makes paying off their loan easy as they have affordable monthly payments as well as a reasonable interest rate. It ranges from 19.99% to 24.99%, which is much lower than many other bad credit loans.

The maximum unsecured fast-track loan that Marble Financial offers is $15,000. So, this is a great option for Canadians with poor credit and a small debt that are looking to raise their credit score quickly.


Not a lender, per se, LoanConnect is a loan for bad credit search engine. To use their bad credit loans search engine, you need to tell them 3 things. The type of loan you’re looking for, how much you want, and your personal and financial information.

LoanConnect will then search through their database of lenders and offer you a list of loans for bad credit that match your needs. You can then choose a lender yourself and complete your application directly with them. Using this search engine saves you the time of having to contact a variety of lenders yourself.

LoanConnect is thus a good option for bad credit personal loans in Canada as they work with a variety of lenders and loan types. They can help you find bad credit personal loan lenders that offer loans up to $50,000. The loan term is also negotiable. So, whether you want a loan for 6 months or 60 months, LoanConnect can help you find the perfect lender.

Ferratum Loans

Ferratum Loans is actually an international company as they operate in over 25 countries, including Canada. They focus on short-term bad credit personal loans. This means that their personal loans only range from $2,000 to $10,000.

If you’re looking for a longer-term, such as 60 months, solution, Ferratum Loans may not be the company for you. Similarly, Ferratum Loans requires Canadians to have a fair or good credit score of 600 to 900. Ferratum Loans is thus not a great option for those with poor credit history.

But, if you need a loan quickly, this is a good option. Ferratum Loans will typically approve (or reject) an application within minutes, so you won’t need to wait long for a decision. If you have a decent credit score and need a personal loan quickly, Ferratum Loans can be a good option.

Loan Away

Loan Away is another short-term lender as the highest personal loan they offer is $5,000. They have quite a high approval rate, so it is a good option for those with poor credit history.

To apply for a bad credit personal loan on Loan Away, you don’t need much. The application only requires you to send them two pieces of government ID and a recent bank statement or proof of income. You also need to be over the age of majority in either Alberta, Ontario, or British Columbia. These are the only three provinces that Loan Away works in.

If you are in one of these provinces and looking for a short term personal loan (6 to 36 months), LoanAway is one of the best options. It helps that the application process is smooth and easy!

Easy Financial

Easy Financial, which has been around since 2006, has a wide range of personal loans in Canada. You can get a loan from anywhere between $1,000 to $45,000. Your loan term can vary as well, whether you want a loan for 9 months, 60 months, or even 120 months.

Easy Financial also offers an interest rate that starts at 19.99%. That being said, depending on your credit score and income, the interest rate could go up to 46.96%. With such a wide range of loan types, however, Easy Financial has something that can fit everyone’s needs.

The great thing about Easy Financial is it’s one of the only lenders we discussed with physical branches in every province. So, if you prefer to talk to someone face to face about personal loans in Canada, Easy Financial is a great option.

Northstar Brokers

Ending off our list is a lesser-known lender as they only service the Quebec area, Northstar Brokers. They offer cash advances, debt consolidation, and various loan types. But, we will focus on the personal bad credit loans they offer.

Northstar Brokers offers short term bad credit loans to help you out in a pinch. Their personal loans range from $300 to $3000. Their application process consists of three steps. Your personal information, employment information and bad credit loan amount and length.

Northstar Brokers’ selling point is speed. Their brokers will either accept or reject your application within 90 minutes. Then, the loan will be sent to your bank account in 24 hours.

If you are in Quebec and need a short- term, bad credit loan quickly, Northstar Brokers might be the one for you!

The Bottom Line

The unfortunate reality here is that our credit score rules our financial life. If it’s too low, you will likely be rejected by banks for major loans such as your mortgage or car loans. Fortunately, there are other options.

Loan providers, especially ones based solely online, are becoming increasingly more popular. As Canadians are severely in debt, and their credit scores are suffering, loan providers are more necessary than ever.

Many loan providers are willing to overlook bad credit scores and still give you a loan. In turn, however, they will charge you higher interest rates and often have penalties or fees for things such as missed or late payments.

Getting a bad credit loan is still beneficial, especially in the long run. Using it to pay off your debt, either short term or long term, will help raise your credit rating. This, in turn, will help you get a better loan in the future, potentially even from the bank, if your credit rating is high enough!

When applying for loans from a loan provider, make sure you have all the information. What rate of interest will they charge you? What monthly payment do they expect? Do they have extortionate fees and penalties?

Also, ensure that the company is reputable, so you don’t end up owing even more money in the end. The goal is to become debt-free! Hopefully, this guide helps you take a step in the right direction.