Home » Loans
Our Disclosure

The content on this website includes links to our partners and we may receive compensation when you sign up, at no cost to you. This may impact which products or services we write about and where and how they appear on the site. It does not affect the objectivity of our evaluations or reviews. Read our disclosure.

The Best Bad Credit Loans in Ontario Canada

Updated:

Fact Checked

Looking for a bad credit loan in Ontario? You have come to the right place.

If your credit score has fallen below 600 and you find it challenging to get a personal loan from traditional lenders, a bad credit loan may be the solution you are looking for.

Bad credit loans come in various sizes and shapes.

The online personal loan lenders on this list offer fast approval, and you can access cash within one day anywhere in Ontario, including Toronto and Ottawa.

Lenders like LoanConnect, Mogo, FatCatLoans, Loanz, and Loans Canada also provide guaranteed approval loans to people with poor credit in other provinces, including Alberta, British Columbia, Manitoba, Nova Scotia, and others.

Best Bad Credit Loans in Ontario for 2024

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.

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.

Loanz

Loanz offers unsecured loans for debt consolidation, bad credit, emergencies, and other types of personal loans.

Interest rate: 29.9% to 46.9%.

Loan term: 12-60 months.

Maximum loan amount: Up to $15,000.

Mogo

Mogo is a financial technology company that provides personal loans through its lending partners and access to mortgages, investment products, and prepaid cards.

Interest rate: 9.9% to 46.9%.

Loan term: 12-60 months.

Maximum loan amount: Up to $35,000.

Cars Fast

Cars Fast is a popular destination for getting a car loan regardless of your credit score. The platform has partnerships with top loan providers, including TD, Scotiabank, RBC, HSBC, and others.

Interest rate: Varies.

Loan term: 12-96 months.

Maximum loan amount: $75,000.

Eligibility: Earn at least $20,000/yr, reside in ON, BC, or AB; and be employed for 3 months+.

Bad Credit Personal Loans in Ontario

These alternative lenders provide fast approval personal loans to people with various types of credit, including poor or bad credit.

Loans Canada

Loans Canada is a loan comparison platform for various types of loans, including bad credit, debt consolidation, car repair, consumer proposals, and small business loans.

You can use the site to find loans ranging from $500 to $35,000 with 4-60 month terms, and loan interest rates are between 1.99% and 46.96%, depending on your credit rating. It also offers free access to your credit score.

You can easily start your application online and get funding within a few days.

The eligibility requirement for Loans Canada is that you must be a resident of Canada and the age of the majority in your province.

Apply for a Loan.

LoanConnect

LoanConnect offers Canadians an online loan search engine where you can quickly plug in how much you want to borrow and be connected with multiple suitable lenders within minutes.

You can obtain a loan ranging from $500 to $50,000 on the platform for 6 months to 60 months (5 years).

While their loan rates are as low as 1.9%, the rate you are offered depends on your credit history and other personal financial information.

The Loan Connect application process is fast, and you can have funds in your bank account within 24 hours.

For more details about this company, read our LoanConnect review.

Apply for a Loan.

FatCatLoans

FatCatLoans

FatCatLoans is a Canadian loan comparison website. They take the work out of searching for a loan as they search the market to find trustworthy instant loan lenders. Get up to $50,000 with a personal, installment, bad credit, and debt consolidation loans.

Interest rate: 6.99% to 46.96%.

Loan term: 3-60 months.

Maximum loan amount: Up to $50,000.

Eligibility: Resident of Canada and the age of the majority in your province or territory, have a regular source of income, and an active bank account.

FatCatLoans logo

On FatCatLoans’s website

  • FatCatLoans offers personal, bad credit, installment, debt consolidation, and online loans from different lenders across Canada.
  • Installment loan applications take only 7 minutes to complete online with instant approval.
  • Get loans from $1,000 to $50,000, with a 4.84% to 35.99% APR and 3 to 84-month terms.
  • Depending on the lender, you could have your loan within 1 to 3 days.
  • Bad credit loans are available for those with poor credit.
  • Applications are done entirely online with no phone calls or paperwork needed.

Loans are available in all provinces

A one-stop-shop for comparing different loans and lenders

Personal, installment, bad credit, debt consolidation, and other loans are offered

There can be high interest rates for some loans

They are not a direct lender

There are limited reviews and no phone number for customer service

FatCatLoans is a one-stop-shop to find loans for every purpose and credit score, including personal, installment, debt consolidation, and bad credit loans. They search the market to find and match the best loans for you. You can borrow up to $50,000.

Loanz Personal Loans

Loanz is a popular platform for various personal loans, including debt consolidation, bad credit, and emergency loans.

Loan amounts range from $1,000 to $15,000 for 1-year to 5-year terms, and the APR is between 29.9% and 46.9%.

Getting a Loanz bad credit loan is fast since the entire process is completed online, and you can be funded within 24 hours.

To be eligible, you must meet the following requirements:

  • Live in BC, AB, SK, MB, ON, NL, NS, NB, or PEI
  • Have a minimum income of $1,200 per month
  • Not have filed for bankruptcy
  • Be of legal age (18 or 19 years, depending on your province)

Apply for a Loan.

Mogo Loans

Mogo is a financial technology company in Canada offering personal loans, free credit scores, identity theft protection, mortgages, cryptocurrency trading, and a prepaid debit card.

A MogoLiquid loan offers up to $35,000 with rates ranging from 9.9% to 46.96% APR in BC, AB, MB, ON, NB, PE, NL & NS.

You must earn at least $13,000 annually (net income) to apply and can borrow money for a loan term of 1-5 years.

Apply for a Loan.

best bad credit loans in ontario

Bad Credit Car Loans in Ontario

If you want to purchase a car in Ontario (Toronto, Ottawa, Kitchener, etc.) or elsewhere in Canada and have bad credit, these auto finance companies can help you out.

Even better, they offer some of the best car loan rates in Canada.

Cars Fast Loans

Cars Fast works with hundreds of dealers around the country who offer bad credit car finance and auto loans.

Apply online (takes a few minutes), and they will connect you with a dealership that meets your needs. You can borrow up to $75,000 for a term ranging from 12-96 months.

Cars Fast has processed over 350,000 car loan applications to date.

Apply for a Car Loan.

ZoomCarLoans

ZoomCarLoans is a loan matching service that connects a select group of lenders and car dealerships with borrowers regardless of their credit history. It relies on employment history to determine their creditworthiness. 

Interest rate: 2.00% – 46.96%

Loan term: 2 years – 7 years.

Maximum loan amount: Up to $5,000.

Eligibility: Canadian citizens or Permanent Residents; employed for over 3 months; with a monthly income of at least $2,000.

ZoomCarLoans logo

On ZoomCarLoans’s website

  • A loan matching platform that lets you compare multiple lenders throughout Canada, helping you find the most competitive loan offers.
  • When you apply for financing at ZoomCarLoans, its lender/car dealer may perform a credit check to evaluate your eligibility, which could impact your credit score.
  • Offers same-day approval to eligible applicants.
  • Fill out a simple online application form and get a decision fast.
  • A minimum downpayment of 10% is required for most lenders.
  • They offer loans for those with bad or poor credit, so almost anyone seeking a car loan can get approved.

High loan amounts, up to $50,000

No application, administration or other fees

Uses employment history to determine a borrower’s creditworthiness

Compares major lenders and most motor dealers in Canada in seconds

No prepayment penalties

Interest rates can be as high as 46.96% APR

Your employment history determines your creditworthiness

No customer service phone number on website

ZoomCarLoans is a great choice for borrowers with bad credit who need car financing but cannot get it from conventional lenders. While ZoomCarLoans is not a lender, its nationwide dealer network in Canada provides options for borrowers with various credit histories. 

Methodology:

Savvy New Canadians ranks the top personal loan providers in Canada based on their interest rates, loan terms, loan amounts, ease of application, eligibility requirements, and the types of loans they offer. Based on our research, these are some of the best personal loan companies in Canada. Visit their website to read their updated terms and conditions before applying.

Compare Bad Credit Loans in Ontario

Loan ProvidersLoan AmountInterest RateLoan TermLearn More
LoanConnectUp to $50,0006.99% – 46.96%3-120 monthsApply
Loans Canada Up to $35,000 1.99% – 46.96% 4-60 months Apply
LoanzUp to $15,00029.9% – 46.9%1-5 years Apply
MogoUp to $35,0009.90% – 46.96%1-5 yearsApply
Cars FastUp to $75,000Varies1-8 yearsApply

What is Bad Credit?

A bad credit score is a score of 574 or less. When lenders assess your application for a loan, they look at your credit report and your 3-digit credit score.

A high credit score (very good to excellent rating) makes it easy to qualify for a personal loan at competitive rates because lenders consider you to be a low-risk borrower.

If you have not been consistent with paying your bills on time or have a consumer proposal or bankruptcy on your file, your credit score will have taken a hit, making it difficult to get approval for a loan.

Here’s how credit scores are ranked:

  • 741 – 900: Excellent
  • 713 – 740: Good
  • 660 – 712: Fair
  • 575 – 659: Below Average
  • 300 – 574: Poor/Bad

Types of Bad Credit Loans

If you have bad credit and are looking for a personal loan in Ontario, the options available include the following:

Unsecured Loans: This personal loan does not require collateral and is available to Ontario residents who meet some basic eligibility requirements, including proof of income or employment and no history of bankruptcy within the last 7 years.

Secured Loans: To qualify for a secured loan, you need to provide the lender with collateral, e.g. your car or home. This is an option if you have bad credit and lenders are unwilling to loan you money. Some secured loans for bad credit do not require a credit score check.

Bad Credit Car Loans: Some lenders specialize in offering loans to purchase a vehicle even if you have a poor credit history.

Payday Loans: A payday loan is an extremely high-interest loan for those with bad credit. These loans are super-expensive (up to 500% APR) and can make it difficult for borrowers to get out of the cycle of debt.

Payday lenders include iCash, Money Mart, Get My Pay Today, and My Next Pay.

Guaranteed Approval Bad Credit Loans

If you have bad credit and have run out of options for finding a loan, a guarantor loan may work for you.

To qualify for a guarantor loan, you must provide the lender with details of a guarantor who is willing to agree to pay off your debt if you are unable to make payments.

LendingMate

LendingMate offers no credit check personal loans to Canadians with an approval rate of 95%. The company currently operates in Ontario, British Columbia, and Quebec.

Before you can qualify for a loan on this platform, you will need to complete the online application form and provide a link to your guarantor.

The guarantor must be able to afford your repayment and be willing to take responsibility for your loan if you cannot pay it back.

How To Get a Loan With Bad Credit

When you apply for a bad credit loan, you should be ready to provide the lender with some details about your financial position.

Generally, a lender may request information relating to:

  • Proof of employment or income sources, e.g. paystub or bank statement
  • Monthly expenses and debt payments: Your debt-to-income ratio is used by lenders to assess whether you can make your minimum monthly payments. To qualify easily for a loan, your debt obligations should not exceed 40% of your gross monthly income.
  • Co-signer or guarantor: If you are going to have a co-signer or guarantor, you should have their details available.
  • Credit score: Lenders look at your credit score and report to determine your creditworthiness. You can check your credit score for free.
  • Bank information: A lender will request your bank account information so they can deposit your funds and also set up preauthorized debit repayments.

Having the information above ready before submitting your loan application will increase your chances of getting approved.

Advantages of a Bad Credit Loan

A bad credit loan gives you quick access to cash when needed, even if your credit rating is poor or bad. You can use the loan to pay off higher-interest debt (i.e. debt consolidation) and save on fees.

If you pay off your loan balance responsibly, a bad credit loan can help you to improve your credit score over time.

Disadvantages of Bad Credit Loans

A bad credit loan comes with high-interest rates, which means you pay a lot in fees to the lender. If you cannot pay down your loan balance quickly, you can get stuck in a vicious cycle of debt.

There are ‘bad’ lenders offering bad credit loans who add hidden fees to their loan offerings, and they may try to scam or defraud their clients.

Always read the fine print before you sign up for any loan service or contract. Read reviews and also check whether they are accredited by the Better Business Bureau.

Conclusion

A bad credit loan can be useful for consolidating credit card debt or meeting your emergency cash needs.

Improve your financial situation and credit score by making payments on time and avoid applying for too many loans within a short period of time.

For tips on how to raise your credit score, click here.

Related:

Top Loan Offers this month

Compare the best loans for good and bad credit in Canada

Get the best loan rates from lenders regardless of credit score.

Quick online application from the comfort of your home.

Borrow up to $50,000 for 3 months to 60 months.

Loans for any reason with rates from 2.99% to 46.96%.

Check your credit score for free online in 3 minutes or less

Get access to your Equifax credit score for free.

It takes only a few minutes online, and no credit card is required.

Access free identity monitoring and protection.

Includes your credit report updated weekly.

Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

Free financial education

Expert advice

Free resources

Detailed guides

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.