If you need extra money quickly or want to improve your credit score, you can choose from three types of $2,000 loans in Canada: secured, unsecured, and bad credit. Luckily, numerous lenders nationwide can provide you with this loan amount in as fast as one business day.
This article covers securing a $2,000 loan from various top lenders in Canada. Learn how to apply for these loans and determine whether or not you’re eligible to borrow with your current credit score.
Key Takeaways
- Some of the best lending platforms for a $2,000 loan include AimFinance, Loans Canada, Mogo and Fairstone.
- A good credit score will make qualifying for a $2,000 loan easier, but it’s not always necessary.
- The three types of $2,000 loans in Canada are secured, unsecured, and bad credit loans.
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.
AimFinance
AimFinance offers personal and installment loans in Ontario and British Columbia. If eligible, you can borrow up to $5,000 and have it deposited in your account within 48 hours. You will need to show proof of income of at least $1,200 monthly and have a fair credit score.
Interest rate: 46.96%.
Loan term: 9-24 months.
Maximum loan amount: Up to $5,000.
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.
Who Qualifies for a $2,000 Loan in Canada?
Individuals with a good credit score of at least 660 will have an easier time qualifying for a $2,000 loan. However, it’s not always necessary to have good credit standing to secure this loan amount.
Many lenders still approve loans for people with bad credit scores, provided that the applicant meets their application requirements.
In general, you’ll need to provide your lender proof of the following information to secure a $2,000 loan in Canada:
- Regular income
- Permanent address
- Bank account
Once you provide these pieces of information, most lenders will run a credit check on you. Through this process, they can determine whether you can still manage another loan based on your credit score, current debt and income.
Best Lenders for a $2,000 Loan
Loans Canada
As a loan comparison platform, Loans Canada presents loan offers and rates from various lenders in one place. So, regardless of your credit score and preferred installment term, this website can help you choose the most suitable financing option for your needs.
Depending on your credit history and the lender you finalize a contract with, your loan’s APR may range from 2.99% to 46.96%.
AimFinance
If you live in Ontario, AimFinance is one of the lenders you can borrow $2,000 from. Upon completing its application process and credit check, this lender allows you to select an installment loan term ranging from 9 to 24 months, as well as your preferred repayment frequency.
The annual interest rate offered by AimFinance is 46.00%. If you want to borrow a larger loan, the maximum amount you can get is $5,000.
You can learn more from this review.
LoanConnect
LoanConnect is a loan search engine designed to gather the best loan offers for your needs in under a minute.
To use LoanConnect, simply visit its website then input the following information:
- Your loan amount
- Purpose of borrowing money
- Personal information
After providing these data, you’ll be asked to read the site’s Terms and Conditions. Then, if you agree with them, you can go ahead and allow LoanConnect to send you the list of suitable loan offers via email.
Loanz
Get your $2,000 loan approved on the same day by applying through Loanz, a reliable online lender best known for its quick approvals. Just fill up the application form, get connected with a suitable lender, and receive your funds in as fast as 15 minutes.
The loan term’s length and interest rate will depend on the lender you are matched with. However, you’ll typically receive a 29.9% to 46.9% APR and be able to choose from 12 to 60 months of term length.
Related: Loanz review.
Mogo
Get pre-approved for a $2,000 guaranteed loan without affecting your credit score through MogoMoney. Pre-approval can be as fast as 3 minutes, and you can pay your loan in full at any time with no penalties.
Interest rates vary from 9.9% to 46.96%. The more loans you borrow and successfully repay, the higher the loan amounts you may qualify for in the future.
Fairstone
For over 100 years, Fairstone has provided 3 million+ secured, unsecured, and emergency loans to Canadians who need to borrow $500 to $50,000 quickly.Â
This platform’s loans’ annual percentage rates range from 26.99% to 39.99%, with loan terms spanning from 6 to 120 months.
Apart from the principal amount and the incurred interest, Fairstone may charge various fees with each loan, including appraisal and notary fees. These fees are noted in your contract. Here’s further information about Fairstone.
SkyCap Financial
SkyCap Financial is a decade-long personal loan provider that offers short-term loans of $500 to $10,000. Depending on your current income, stability, and credibility, your loans can have an APR ranging from 12.99% to 39.99%.
The loan term can vary from 9 to 60 months. Even if you have no or poor credit, you will still have the chance to secure a $2,000 loan and gain free access to SkyCap University, where you can understand finances better.
Easy Financial
Among its various financial products, Easy Financial offers up to $100,000 in loans to Canadians.
With smaller loan amounts like $2,000, you can receive your borrowed funds on the same day, provided that you adhere to all the requirements on time. Annual interest rates typically start at 29.99%, and loan terms can range from 9 to 84 months.
To apply, call Easy Financial or head to its website. Alternatively, you can also visit one of this lender’s 400 locations in Canada.
LendDirect
LendDirect is another reliable lender that can provide you with a $2,000 loan without too much hassle. Simply complete its application form, which requires you to provide proof of income and some personal details.
Once your application is approved, you can receive your funds via Interac e-transfer or direct deposit within 2 hours. You can expect interest rates to be between 19.99% and 46.93%.
Can You Get a $2,000 Loan With Bad Credit?
Yes, you can still secure a $2,000 loan with bad credit. Loan comparison platforms, like Loans Canada and LoanConnect, do not have a minimum credit score requirement and work with companies offering guaranteed loans. So, as long as you meet the eligibility criteria, you’ll find a lender who will let you borrow $2,000.
Just keep in mind that if you have a bad credit score, you’ll most likely need to pay higher interest rates. In some cases, you may only be eligible for secured types of loans, wherein you’ll be required to provide collateral before you can borrow money.
What Credit Score Do I Need With a $2,000 Loan?
You don’t need to meet a specific credit score to secure a $2,000 loan. As mentioned earlier, many lenders are still willing to lend this amount to those with poor credit scores. It may just take a little more time to find a suitable lender if you’re in this situation.
To prevent potential rejection due to a low credit score, you may consider applying to lenders that offer a $2,000 loan with no credit check. These loans do not require you to provide your credit score, but be aware that they typically come with higher interest rates and shorter repayment terms.
Types of $2,000 Loans in Canada
Secured Loan
For a secured loan, the borrower must put up an asset as collateral before getting approved. If the borrower fails to repay the loan, the lender will have the legal right to seize the collateralized asset as compensation.
Since secured loans are backed by collateral, they pose lower risks to lenders, making them easier to qualify for if you don’t have a good credit score.
Unsecured Loan
Unsecured loans do not require borrowers to put up any collateral. Instead, your credit score becomes the primary factor considered by lenders when evaluating your eligibility for the loan.
These loans are riskier for lenders, so they often come with higher interest rates and have stricter approval criteria.
Bad Credit Loan
Bad credit loans are tailored for individuals with poor credit scores. Instead of your creditworthiness, these loans typically look at your income and current debt as the primary basis of your approval.
For lenders, bad credit loans are typically riskier than both unsecured and secured loans. Hence, this type of loan often carries a higher interest rate than the other two loan options.
How to Apply for a $2,000 Loan
The specific application process for securing a $2,000 loan depends on your chosen lender.
However, most of the time, the process starts with filling out and submitting the lender’s loan application, which often requires you to upload your:
- Proof of income
- Bank statements
- Government-issued IDs
If approved, the lender will send a contract outlining your loan’s terms and conditions. Review this document thoroughly, and if everything looks acceptable, sign the contract and wait for your funds to arrive.
Pros and Cons of a $2,000 Loan
Pros
- You’ll have immediate access to extra funds.
- You can usually secure a loan of this amount regardless of your credit score.
- Most lenders have an easy application process that you can complete entirely online.
Cons
- A $2,000 loan will increase your existing debt.
- You may be subject to higher interest rates depending on your credit score, income, or current debt.
FAQs
The monthly payment for a $2,000 loan depends on your loan’s term length and interest rate. Fortunately, most lenders provide a loan calculator on their website, making it easy for you to estimate your monthly payments even before applying for the loan.
One of the easiest loans to get in Canada are secured loans. Since they’re backed by collateral and incur lower risks for lenders, they’re generally easier to qualify for when compared to unsecured loans.Â
It’s not hard to get a personal loan. As long as you meet the lender’s eligibility requirements and complete its application process properly, you can access the funds you need. Remember that if you don’t immediately get approved, you can always consider other lenders or loan types you may be more suitable for. However, note that too many applications for credit within a short timeframe can negatively affect your credit score.
You don’t need a specific credit score for a $2,000 loan. While a good credit standing will make it easier for you to qualify for a loan, there are still plenty of available loans for those with bad credit scores in Canada.Â
