Bad Credit Loans Canada


If you are looking for loans when you have a bad credit rating, a poor credit score can be a significant obstacle in the way of achieving your goals.

Not only will a low credit score make it more difficult to get approved for a personal or car loan from a traditional lender like a bank, but a spotty credit history also means that any loans you receive will carry higher interest rates. A good credit score makes borrowing money much cheaper.

However, if you have poor credit and need a loan, don’t worry – there is a solution!

At Lend For All, we’re committed to helping people with bad credit secure the loans they need to accomplish their short—and long-term financial goals. We want to be your partner. Our Bad Credit Loans will get you the money you need quickly and easily and give you the chance to rebuild your credit by repaying your loans consistently and responsibly until they are paid off.

Having bad credit doesn’t have to be a permanent problem. Let us help you get approved for a bad credit loan today!

bad credit loans

The Advantages of Bad Credit Loans

Traditional lending institutions like banks will often reject loan applications from anyone with a low credit score. Extending a bad credit loan is too risky for the big banks. However, this isn’t the end of the story. Bad credit loans have many advantages for clients who want to receive a loan. They are:

Versatility and Flexibility

Unlike other loan products, bad credit loans don’t require the borrower to explain what the money is for. This means that you can use the loan for anything you want! Whether you’re paying off a surprise medical bill, taking a much-needed vacation, helping your kids pay for school or using the money to fix the brakes on your car, what you use your bad credit loan for is your business! Lend For All’s bad credit loans give you the freedom to put the money to good use however you see fit.

No Credit History

One of the difficulties of using traditional lenders is that they insist on probing your financial history. Not only does this extend the process, but in some cases, the process of checking your credit score (when a “hard” credit check is performed) can actually affect and change your score! With Lend For All loans,
bad credit is not an issue. Our lenders adjust their interest rates and lending amounts to make up for any potential risk they face.

Easy Access

If you have bad credit and want to get a loan from a bank in Canada, they will often ask you to come in and speak with a loan specialist in person. This isn’t always convenient. We know that your schedule is already packed with demands from work, family and your social life, so Lend For All makes getting a bad credit loan as easy as possible. To successfully apply, all you need is proof you’re over 18 and an internet connection – that’s it!

Speedy Approvals

No matter what level of financial assistance you’re looking for, speedy approval isn’t necessarily a top priority for traditional lenders. All too often, a bank’s main concern is scrutiny, undertaking a due diligence process that gives the bank your credit history and credit score. With Lend For All’s Artificial Intelligence-assisted platform at your fingertips, approvals for loans with bad credit can be achieved in just a few minutes!

Help Improve Your Credit Score

While many people who apply for bad credit loans are in a difficult financial situation, paying back our loans in a responsible and timely manner can actually help improve your score! Improving your score will help you in many ways. The most significant benefit is being able to access loans with better rates in the future and having an easier time accessing funding from traditional
lenders. By being diligent with repayment, borrowers can gain real advantages by repaying their loans responsibly and on time.

What is a “Bad” Credit Score?

In Canada, a credit score is usually determined by one of two large financial institutions: TransUnion or Equifax. Both of these credit reporting agencies study borrowers and give them a three-digit score based on several factors.

A low credit score is usually somewhere between 580 and 649. A bad credit score is anywhere between 500 and 619..

Those with higher credit scores have an easier time getting a loan from lenders like banks and receive better interest rates. Those with lower scores are determined as “too risky” and are often rejected for personal loans by traditional lenders.

How are Credit Scores Determined?

Both TransUnion and Equifax use several variables to determine your credit score. The most important variables are:

  • Payment History: Missing and late payments on your credit card, mortgage, or any other loan or credit will seriously lower your score.
  • Debt Levels: The amount you owe (for any debt, like for student loans and credit card bills) and the length of time you’ve owed the money will affect your score. Using more than 40% of your available credit will also have a negative effect. So let’s say you have a credit card with a limit of $5,000, and a balance of more than $2,000 (which is 40% of 5,000) will start to hurt your credit score. The negative impact is only a little at first, but much more so as you get close or past 65% of your credit limit.
  • Credit History: Demonstrating several years of responsible repayments will greatly improve your score.
  • New Inquiries: Your score can be lowered every time lenders perform a “hard” credit check. Applying for many loans within a short period of time is a red flag, indicating multiple loan rejections and/or poor money management. However, keep in mind that simply checking your credit score will not lower your score.

To ensure that your credit score is as high as possible, make every effort to limit your loan applications to those that can realistically be paid back responsibly within your budget. This will help you avoid late fees and the negative ramifications for your credit score.

How Does Lend For All Evaluate My Loan Request?

When you send in your application for a loan with Lend For All, each of our reputable lending partners will want to know the same thing and will ask the same fundamental question: What is the credit risk for this particular borrower?

To do that, they’ll check on several factors and ask about the length of your current employment and income levels. As mentioned above, borrowers
with scores below 620 can struggle to find viable financing solutions with affordable rates like those offered by traditional lenders.


1. Payment History:

Using Lend for All’s A.I.-enhanced platform, our lenders can be instantly informed about whether credit payments have been made on time, were late, or were missed altogether.

2. Accounts Owed:

This represents the total amount of money you owe. A credit score demonstrates the ratio of money owed to the amount of credit you have free.

3. Credit History Length:

A credit score is calculated based on the length of time your oldest and newest accounts have been open, in addition to the overall average.

4. New Credit:

This pertains to recently opened accounts. Having too many accounts opened within a short time frame lowers your score and increases your risk.

5. Credit Mix:

A strong assortment of accounts leads to high credit scores, such as retail accounts, mortgages, credit cards, and installment loans.

What Does Lend For All Do With This Information?

Using this information, our financial experts will not only connect you with a lending company that is right for you, but our lenders will also design and recommend realistic repayment schedules that suit your particular paycheck and lifestyle.

While our short-term goal is to lend you money and help you accomplish your financial goals, our ultimate goal is to help you rebuild your credit so that you can borrow money more easily in the future. A better financial
record will also help you receive lower rates when you borrow money.

What is the Maximum Loan I Can Get with Bad Credit?

Every lending company is different, so it is impossible to say what the maximum amount will be for you before your financial situation is properly assessed. Luckily, thanks to our A.I.-enhanced platform, our lending partners quickly get the information they need to ascertain your creditworthiness.

In a very short time, they’ll be able to determine what level of debt you can realistically repay in a timely manner and set the loan at that amount. The
loans that Lend For All’s partners make available will usually be related to your income; you can expect to see anywhere from $500 to $5,000 or more for bad credit loans in Canada.

Negatives Associated with Bad Credit Loans?

Loans without collateral (otherwise known as unsecured loans) are necessarily going to have higher interest rates (sometimes called “subprime” rates) than the rates you might see offered by traditional banks.

The reason for this is that any borrower with bad credit runs a higher mathematical probability of not paying the loan back. Consequently, the lender will see this as a risk and want some form of assurance, or hedge, against the principal amount in the case that the debt is not paid back.

There are also some bad apples in the personal loans business. These players are called predatory lenders because they intentionally seek out vulnerable (and unsuspecting) borrowers and manipulate the terms of the deal to make as much money as possible regardless of the impact on the borrower’s financial situation.

Predatory lenders will charge hidden fees to increase associated costs and otherwise will not treat you with the best intentions. They know that a desperate individual is less likely to worry about the future ramifications of getting a loan and be more focused on getting the money right away, come what may. Avoid these untrustworthy businesses like the plague.

Related to the threat of predatory lenders is the ever-present risk of finding yourself in an unsustainable debt cycle. When using lending companies that charge very high interest rates, you run the risk of not being able to pay the full amount back (with interest) on time. This results in the unpaid debt being rolled over into a new loan, and guess what? This loan also has very high rates and fees.

Ultimately, vulnerable borrowers can find themselves stuck in a debt cycle, paying back their original loan many times over, which is equivalent to having interest rates as high as three digits, like in the hundreds of percent!

Because of these risks, you should only get a bad credit loan from a lending company you can trust, which has taken the time to design a repayment schedule (and loan size) that makes sense for your financial situation and your financial well-being. After all, if someone lends you more money than you can ever possibly pay back, are they really doing you a favor? The answer is a clear “no.”

What qualifies as “bad credit”?

The term “bad credit” usually refers to a combination of your credit score and credit ratings—each contributing to an overall picture of your financial history, which, in this case, is not great. It’s basically a term that describes your overall creditworthiness to a lender as less than ideal, entailing a fair amount of risk on their end.

Credit score vs. credit rating: what’s the difference?

Your credit score is a significant factor when it comes to borrowing money. It’s a number between 300 and 900 that shows how trustworthy you are as a borrower based on your overall credit history. A host of factors go into determining that number, including payment history (if you pay on time or miss payments), accounts in collections, cancelled accounts and debt settlements.

Think of your credit score as your overall credit “report card.” A credit score below 650 is generally considered “bad.” The further below that number you go, the worse your chances of getting approved for loans become, and the higher your interest rates will be.

Credit rating is a system for evaluating the status of each of your accounts from a financial perspective. It’s a letter and number combo assigned to each of your credit accounts, indicating how well you manage and pay off each specific debt. So, each of your active credit accounts will have a credit rating which takes the form of a letter and a number.

The letters are “I,” “O,” and “R,” and the numbers range from 0 to 9.

  • I means your loan is “installment” based (i.e. you’re paying some fixed amount over a specified period of time).
  • O means you have “open” credit (like a line of credit or student loan).
  • means you have revolving credit (an amount of money you owe that changes over time, like a credit card balance).

Beside each of these letters, you’ll find a number from 0 to 9. With the exception of 0, the lower the number, the better the rating.

  • 0 means there is no credit history associated with the account, usually because you haven’t used it.
  • 1 is the best rating you can have—it means you pay within 30 days of the payment due date and have no past-due payments.
  • 9 is the worst rating you can have, and usually means your account is in a lot of debt and has been placed in collections or bankruptcy.

Different types of bad credit loans

Personal loans are the most common type of bad credit loan. These loans can be used to pay for anything you like without restrictions.

Secured vs. unsecured personal loans for borrowers with bad credit

Secured Personal Loan – In this type of loan, you put up an asset as collateral, such as a house or car. The benefit of this type of loan is that you’ll likely get a lower interest rate. The downside is that if you can’t pay, you could lose the asset you put up as collateral.

Unsecured Personal Loan – An unsecured personal loan is a loan that doesn’t involve collateral. It’s just an installment loan that you repay over a certain period of time.

Unsecured personal loans have some drawbacks, including higher interest rates reflecting the increased risk the lender is taking on. You could also be charged hefty penalty fees if you miss payments.

What should I expect from an unsecured bad credit personal loan?

  • APR: 2.99 to 46.96%
  • Loan Amount: up to $50,000
  • Loan Term: 3 months to 120 months
  • Fees: Usually no application fees, potentially high penalty fees


Bad credit car loans

This type of loan is similar to a bad credit personal loan, but it’s restricted in its use to car-based payments, such as repairs.

Like all bad credit loans, the interest rate will be high. These loans usually carry higher interest rates because lenders see them as riskier. Also, if you default on a car loan, the dealership could seize your vehicle

Despite the higher costs, these loans can be a chance to get a car when you need one and also an opportunity to improve your credit score—if you make payments on time. Just be sure to shop around and read the terms
carefully so you understand all the fees and rates involved

Bad credit payday loans

Payday loans are offered to Canadians with poor credit who only need a relatively small amount of cash quickly – often $1,500 or less. These are unsecured loans which are appealing to many because they are easy to get. In most cases, they involve instant approvals, making them attractive in an emergency financial situation. People use these to pay everything from rent to unforeseen bills of all kinds.

As with all bad credit loans, payday loans have very high interest rates. Lenders make a profit from payday loans’ small amounts by charging as much as 500% APR (annual percentage rate). Sure it’s a small total amount to repay, but if you don’t do so in the required time period (which is also relatively small), you’ll be facing huge fees and interest charges.

The biggest benefit to payday loans is that anyone can get approved, and quickly. Speed and convenience make these types of loans very attractive for many Canadians.


How do I get approved for a bad credit loan in Canada?

Follow these three simple steps, and you’ll be on your way to getting approved for a bad credit loan in Canada.

Step 1 – Review your finances

Look at your income level, and get a copy of your credit report and see what’s happening from a lender’s perspective. Lenders will look at your credit score and credit ratings, your income level, your debt level, and your employment history to determine your overall creditworthiness..

By analyzing your own finances, you can address any issues before applying for a loan. Here’s what you could do to improve your situation:

  • Increase your income – Getting a side hustle or extra part-time job can increase your chances of being approved.
  • Reduce your debt – Consider your debt-to-income ratio. If you can’t increase your income, try to get rid of as many debts as possible.
  • Find a co-signer – This can help you secure a loan quickly. Remember that if you default on your payments, your co-signer will be held responsible for paying them.

Step 2 – Shop around and get quotes

Do your homework and research the different lenders’ offers. Get a few loan quotes to determine the best ones for your situation..

Step 3 – Review your options

Once you’ve narrowed down your options, review them carefully before picking the one that suits your borrowing needs. Note that some lenders may require additional documents to complete the application.

What documents do I need to submit for a bad credit loan?

  • Personal identification. This may include a valid government-issued photo ID.
  • Employment information. This may include a letter of employment or a pay stub.
  • Financial information. You may be asked to provide a pay stub, bank statements or a tax return to verify your income and debt-to-income ratio.
  • Additional documents. Depending on the loan, you might need some additional documents. For example, if you’re applying for a car loan, you may be asked to provide your driver’s license, proof of car purchase, car title and registration papers (only for a trade-in).

Apply Today!

When you work with Lend For All, we make sure that your bank account has the money you need to get the job done.  We also ensure you have the money accessible to you when you need it most. It doesn’t matter what you need the money for. It could be for a wedding gift, to fix a broken window, to pay for a kitchen renovation, to help you meet payroll in your business during a slow month – it doesn’t matter!

If you have poor credit and maxed-out credit cards, we can get you back on the right track by providing loans and interest rates that work for you. We are an alternative financing solution, and along with our Artificial Intelligence-enhanced platform, our optimized process will help you qualify no matter your credit score.

Learn more about Bad Credit Loans in Canada by calling us toll-free at 1-800-532-4505. Or, if you prefer, simply start the process off right away by filling out our easy-to-use form! Before you know it, you could have the money you need in your bank account, and you can focus on what’s important: living your life!


Bad Credit Loans By Location

Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland & Labrodor, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Quebec, Saskatchewan, Yukon


Lend For All     1 King St W Suite 4800 -24 Toronto, ON M5H 1A1   |  +1 800-532-4505

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