Best Personal Loans for Bad Credit

Loans Canada has been in business since 2012. It owes its success to flexible loan amounts and a wide choice of lenders.

The thing that lands this company on our list is a starting APR rate of 2.99%. Those tempting figures are provided via a robust platform that does the searching for you and connects you to the perfect lender.

Your application will be reviewed and preapproved in a matter of minutes. There are no requirements in terms of credit score or income.

Once you choose a lender appropriate to your needs, the loan will get approved in 48 hours in most cases, and you’ll get the money in one business day.

Loans Canada charges no service fees, although some additional costs might accompany the loan, depending on the lender you opt for. For example, you could be charged up to $45 per missed payment.

LoanConnect is a BBB-accredited business with an A+ rating.

The first thing that sets LoanConnect apart from the competition is its wide range of borrowing amounts. It tops our list in this regard, as you can borrow up to $50,000. Some competitors might see this as too much of a risk, but LoanConnect’s lending policies inspire confidence in its borrowers.

Also, you can use the loan for anything you need, be it home renovation, a vacation, medical expenses, or debt consolidation.

One of the benefits here is the quick and easy access to cash. You just need to be the age of majority in your province and give proof you are a Canadian citizen or a permanent resident. LoanConnect’s service will get you preapproved quickly, and you can expect the funds to be in your account in the next 24 hours.

The rates start at 8.99%, which isn’t the lowest on this list. On the plus side, the service is free, with no maintenance or origination fees attached. However, be advised that, although LoanConnect’s service is free, some of the lenders it connects you to might charge an origination fee.

What sets this provider apart is its excellent and user-friendly platform, competitive rates, and vast borrowing amount range.

Mogo lets you “test drive” its loans. You can withdraw from a deal after 100 days and pay back the principal, and Mogo will return all the fees or interest you have already paid. We haven’t found a similar deal with any competitors, so this is the company’s strongest selling point.

Rates range from 9.9% to 47.42%, meaning that with a better credit score, you will have access to better deals.

You’ll need at least $13,000 in annual income to open an account. Also, you’ll need to have a steady income for at least 30 days; not all income types are accepted.

The only downside to Mogo’s offer, compared to some other providers in Canada, is the required minimum credit score of 500. 

Overall, Mogo is a reliable, user-friendly platform that goes out of its way to provide good service to its customers. Its unique features set it apart from the competition, and if you're looking for a well-rounded service, this just might be it.

This service will review your application in a matter of minutes, and promises same-day funding, paid directly to your account. The loans are open, which means you can pay them back anytime in the 9-to-60-month timeframe without additional fees.

The possible borrowing amounts go up to $15,000, and the APR is higher than you would have to pay with many banks, starting at 17.99%.

On the downside, Spring Financial may contact your employer before granting you a loan. We know this can raise some concerns, but the service claims it does not reveal any sensitive information during the process.

The company offers a credit-building loan called the Foundation. It will improve your rating and make you eligible for loans with lower APR, but requires that you make regular payments, with interest fees, for 12 months before receiving the funds back as savings.

You might get offered to pay for loan insurance, which will secure the lender in case you are unable to provide the payments, but this is entirely optional, and probably not your first concern when on a budget.

In the end, Spring Financial offers slightly better rates than some other providers. The size of the loans and the open-ended, fee-free loan terms are its main selling points.

On the other hand, we noticed several features that could prove to be more in the company's interest than the client's, like the loan insurance and employment checks. Whether these are concessions you’re willing to make is up to you.

The Loan Away platform is easy to use, efficient, and boasts a high approval rate: Over 80% of requested loans get approved. And you don’t have to wait long either, as its agents review the applications in real-time, seven days a week.

You can get approved within minutes and have the funds transferred to your account within 24 hours. The available loan terms are average but sufficient for most borrowers, as the company’s loans only go up to $5,000.

With smaller loan amounts, the company can afford to give loans to clients with a high-risk credit profile. There is no minimum credit rating to qualify; you just need to be of majority age, so an ID and proof of employment are all that’s required. What’s more, you can get a loan with a bankruptcy on your record, as long as it is no longer active.

With a limited loan amount range and starting interest higher than average at 19.9%, Loan Away is not going to be right for everybody. It will work best for those who need smaller amounts for quick funding with short repayment terms.