What can you do if you have bad credit and you need a $10,000 loan in Canada due to a pressing financial need?
The truth is, even though you have bad credit, you can find online lenders that offer guaranteed approval loans for poor credit in Canada.
Find out who these lenders are, what they offer to borrowers with bad credit, and how to obtain this kind of loan.
Key Takeaways
- Even if you have poor credit, you can get up to a $10,000 loan through guaranteed approval loans for poor credit in Canada.
- The top lenders of $10k loans in Canada are Loans Canada, Fairstone Financial, LoanConnect, Mogo, LendDirect, Symple Loans, Loanz, Spring Financial and GoPeer.
- Before applying for a $10,000 loan in Canada, find out the length of the loan, interest rate, fees, and customer reviews.
Can You Get a $10,000 Loan With Bad Credit?
If you need a 10k loan in Canada and you have bad credit, your best bet is with an online lender. These lenders typically approve borrowers with poor credit and release funds quickly, but they often charge higher interest rates.
Loans Canada
Loans Canada is a loan comparison platform for all kinds of personal loans, car loans, debt consolidation loans, and bad credit loans. It has partnerships with some of Canada’s largest lenders and offers free access to your Equifax credit score.
Interest rate: 2.99% to 46.96%.
Loan term: 4-60 months.
Maximum loan amount: Up to $50,000.
Fairstone
Fairstone has been operating in Canada for over 100 years and is a trusted lender with branches nationwide. It offers personal loans to those with a fair to good credit score, which can be used for any purpose.
Interest rate: 19.99% to 39.99%.
Loan term: 6-120 months.
Maximum loan amount: Up to $50,000.
LoanConnect
LoanConnect is a search engine for finding personal loans online from various lenders. You can use it to find a loan that works for your situation regardless of your credit score.
Interest rate: 6.99% to 46.9%.
Loan term: 3-120 months.
Maximum loan amount: Up to $50,000.
Can You Get a $10,000 Loan With No Credit Check?
Some lenders offer a $10,000 loan with no credit check and will not check your credit history. They determine your eligibility using information relating to your job, income, and bank account. These loans come with high-interest rates and fees and sometimes require collateral, such as your car.
To be eligible for a $10,000 loan, you must be able to provide the following:
- A Canadian address
- A steady income and proof of such income
- Valid contact information
- An active bank account
- A good credit score (depending on the lender)
- Proof of identity, such as a driver’s license, passport or other government-issued identification
Best Unsecured Personal Loans for Bad Credit With an Instant Decision in Canada
There are many sources where you can get a personal loan in Canada, but if you have bad credit, your options do not often include banks and credit unions. Banks are stringent and typically require good credit, while credit unions need you to be a member first.
This is why online lenders are often your best option, especially if you have bad credit. They have more flexible lending requirements, and the loans are easier to obtain. Interest rates, however, will be significantly higher than those offered by traditional lenders.
Below are the top ten lenders that provide unsecured personal loans for bad credit with an instant decision in Canada.
1. Loans Canada
Loans Canada, a loan search platform and comparison website, offers unsecured personal loans for borrowers with bad credit. Loans range from $500-$35,000. Terms are 4-60 months or longer, and APRs are from 2.99%-46.96%, depending on your credit profile.
Loans Canada offers high loan amounts, accepts bad credit, and provides quick approval and funding. Among its cons are high-interest rates. At TrustAnalytica, Loans Canada has a rating of 4.3 out of 5, indicating that customers are generally satisfied with the services that Loans Canada offers.
Read this Loans Canada review for more information.
2. Fairstone
Fairstone offers unsecured loans to Canadian borrowers with proof of regular employment, steady income, and an active bank account. Loan amounts are from $500-$25,000, and terms from 6-60 months. Interest rates are from 26.99%-39.99%.
With a Fairstone Financial unsecured loan, you get a free online loan quote, no application fees, same-day funding, affordable payments, and no prepayment penalties. Trustpilot ratings for the lender show a generally satisfactory rating of 3.2 out of 5, with many centred on the lender’s superior customer service.
Learn more about Fairstone here.
3. LoanConnect
LoanConnect is a search engine and loan broker that connects borrowers with lenders looking for unsecured loans. Unsecured personal loan amounts range from $500-$50,000, with
Loan repayment terms from 3-120 months. APRs range from 6.99%-46.96%.
Whether you have excellent or poor credit, the loan broker helps you find a lender, get instant approval and access the funds in as little as 12 hours. LoanConnect services are rated 4.8 out of 5 at ratings site TrustSpot.com, signifying customers are generally content with their services.
4. Mogo
Canadian fintech company Mogo offers MogoLiquid and MogoMini online loans. MogoLiquid, available through LoanConnect, offers loan amounts of $500-$35,000. Terms are 6-60 months, and interest rates range from 9.90%-46.96%. MogoMini loans range from $1,000-$3,500, with a 47.42% assumed interest rate, or AIR.
At the Better Business Bureaus website, complainants raised product/service issues and billing/collection problems that the lender worked to resolve. At TrustPilot, Mogo scored 1.7 out of 5, with many complaints being about customers not understanding that what they have are lines of credit and not term loans.
5. LendDirect
LendDirect is an online lender that offers qualified borrowers a line of credit. It provides fast access to funds of up to $15,000 in as little as 15 minutes via e-transfer. Annual interest rates range from 19.99%-46.93%. Application only requires a valid ID, an active bank account, and proof of recurring income.
Personal lines of credit from LendDirect work like a credit card that allows you to take cash advances as often as you like. LendDirect has an excellent rating at Trustpilot, scoring 4.6 stars out of 5, with over 2,000 customer reviews.
6. Symple Loans
Symple Loans is an alternative lender that offers loans directly to customers. Personal loans range from $5,000-$50,000 with terms from 1-7 years. APRs are from 6.99%-32.00%, depending on factors like your credit profile and financial position.
Applying for a loan at Symple Loans is very quick. Get your loan quote in under 2 minutes, finish your application in less than 7 minutes, and get loan offer details in 60 seconds. Fund release is within the next business day. They do not charge prepayment penalties, but fees range from 0%-5% based on your credit profile.
7. Loanz
Loanz is an online lender offering personal loans to borrowers with bad credit. It features fast application, instant approval, and fund release in as little as 15 minutes. Loan amounts range from $1,000-$15,000. Loan terms are from 12-60 months. APR can be 29.9%-46.9%. No collateral is required.
The lender has a high rating in Trustpilot, with a score of 4.1 out of 5, indicating high customer satisfaction. Many positive comments were about refinancing, ease of use, and customers finding a loan that helped them get out of debt.
Discover more about Loanz.
8. Spring Financial
Spring Financial is an online consumer lending company that offers personal loans to borrowers with bad credit. The personal loan amounts range from $500-$35,000, terms from 6-60 months, and interest rates of 9.99%-46.99%.
The lending company has excellent Trustpilot ratings, with more than 12,500 reviews and a rating of 4.8 stars out of 5. Several comments cited the professionalism and helpfulness of Spring Financial staff that assisted clients in fixing and building their credit.
9. goPeer
GoPeer is a peer-to-peer lending company that connects creditworthy borrowers with investors. It offers unsecured personal loans with amounts ranging from $1,000-$35,000, terms of 3-5 years, and APRs between 8.99%-34.99%, depending on credit profile, financial position, and loan servicing ability.
Applying for a loan at GoPeer requires a credit score of 600 or above, an annual income of $15,000, and a Canadian bank account. You can apply online for a fast and easy process, get a response to your loan application within 24 hours and get your funds via direct deposit.
Here’s our review of goPeer.
How to Apply for a $10,000 Loan in Canada
If you have bad credit, here are the steps on how to apply for a $10,000 loan in Canada:
- Choose an online lender.
- Fill out the online application form and provide details like full name, date of birth, contact information, Social Insurance Number (SIN) and employment information.
- Depending on what the lender requires, upload the necessary documents for the lender to evaluate to determine your loan repayment capability.
- Wait for the lender to deposit the funds to your account within 24 hours if the lender approves your application.
Factors to Consider Before Applying for a 10k Loan in Canada
Consider the following factors before applying for a $10,000 loan.
- Length of the loan. When you take out a personal loan in Canada, it is common to begin paying for it in monthly installments within 30 days. Many lenders have repayment terms of between 6 months and 7 years. The length of the loan you choose will impact both your monthly payment and your interest rate.
- Interest rate. Many factors affect your interest rate, including your loan amount, loan term, and credit score. Interest rates can be as low as 2.99% and go up to 46.99%. Usually, you will get a low interest rate if you have a good or excellent credit score.
- Fees. Personal loan lenders usually charge no fees except interest, but some will charge origination fees. An origination fee is a one-time upfront charge your lender takes from your loan to pay for the costs of administration and processing of your loan. The fee may be 1%-5% of your loan or a flat-rate fee. It is best to go with a lender that does not charge an origination fee.
- Customer reviews. Customer review sites are excellent sources of customer feedback. The more information a review has, the better. Look for longer and more detailed reviews for better insight into the experience of customers leaving reviews.
FAQs
If you meet the eligibility requirements of a lender, you will not find it difficult to get approval for a $10,000 loan. Depending on where you apply for a loan, it is possible to get a quick decision and funds released in one to two business days.
A score of 600 is classified as a fair or below-average credit score. This is what some lenders, such as GoPeer, require their borrowers to have in order to become eligible for a loan. Such a credit score often equates to higher interest rates.
The monthly payment on a $10,000 loan will be determined by the interest rate of the loan and the repayment period. If the interest rate is 6% and the repayment period is 24 months, the monthly payment would be $443.
Banks typically approve a $100,000 loan if you have an excellent credit score, ideally 760 and above. Before applying for a loan, check your credit score to determine what loan terms are available for you.
