Bad Credit Loans in Canada: Who Lends and What It Costs

Yes, you can get a loan with bad credit in Canada. Lenders such as Spring Financial, easyfinancial and Fairstone approve credit scores a bank would turn down, and the most they can charge in interest and fees is 35% a year, the legal limit since January 1, 2025. That limit still leaves a big bill. On $3,000 repaid over three years, 35% comes to about $1,885 in interest, nearly four times what the same loan costs at 10%.

A loan with no credit check is a different, smaller product. Payday lenders, cash advance apps and some credit unions approve you on your income instead of your credit file, for amounts that top out around $1,500 to $2,500. Below: what each one costs, who lends, and the cheaper options to try first.

Can you get a loan with bad credit in Canada?

Yes. A bank looks for a good score, but a group of lenders works specifically with people whose score is low or whose file is thin. They approve more people and charge more for it, usually 29.99% to 35% a year. Scores in Canada run from 300 to 900, and Equifax (opens in a new tab) calls anything below 560 poor. TransUnion (opens in a new tab) put 10.0% of credit-active Canadians in its subprime group at the end of 2025, about one in ten.

With these lenders, your score mostly decides the rate you pay, not whether you’re approved. Spring Financial says it has a solution “no matter your credit score”, and easyfinancial lends to people with no credit history at all. What they look at instead is your income and your other payments. easyfinancial, for example, asks for at least $1,200 a month in net income, two pay stubs and 90 days of bank statements.

Why your income matters more than your score

A bank prices you mostly on your credit file. These lenders give more weight to your current income, which is why a thin file or a few missed payments don’t automatically rule you out. It also means the amount they’ll lend follows your budget. With a low income, expect a smaller loan, or a no.

How much does a bad credit loan cost?

At 35% a year, $3,000 repaid over three years costs about $1,885 in interest, and $5,000 about $3,142. The same loans at 10% cost $485 and $808. The rate matters most on big loans and long terms.

Total interest paid, by our calculations, with equal monthly payments and no fees or insurance.

At 35% over five years, you repay more than twice the $10,000 you borrowed, at about $355 a month. Fairstone’s own example lands in the same place: $10,000 at 34.99% over 60 months, $354.84 a month.

Why the term matters as much as the rate

Stretching a loan lowers the payment and raises the total. On $5,000 at 35%, three years means about $226 a month and $3,142 in interest. Five years drops the payment to about $177, and the interest climbs past $5,600. If you can afford the higher payment, the shorter term costs far less.

Which lenders give loans for bad credit?

The main lenders that advertise to people with bad credit are Spring Financial, easyfinancial and Fairstone, which lend up to $20,000 or more, and LendDirect, which offers a line of credit. Credit unions in some provinces run small loans for people with poor credit, at 18% to 19% a year, about half the legal maximum.

Rates and amounts from each lender’s own site, October 2026. For the first four, a hard credit check follows if you accept the offer. In Quebec, easyfinancial’s personal loans start at $1,000.

Spring Financial lends in every province and territory, Quebec included, and says all credit is welcome. easyfinancial and Fairstone both have branches across the country, Quebec included, and both sell optional loan insurance on top of the rate. LendDirect doesn’t lend in Quebec. The two credit union loans are local: Vancity’s is for members in British Columbia and Affinity’s for members in Saskatchewan.

If your score is 600 or better, look one step up first. goPeer lends $1,000 to $35,000 from 8.99%, and our easyfinancial alternatives page compares it with the other options.

A broker isn’t a lender

Loans Canada and LoanConnect are comparison sites. They pass your application to partner lenders and get paid by them. LoanConnect (opens in a new tab) says checking its offers doesn’t affect your score, and Loans Canada (opens in a new tab) says neither it nor its partners will ever ask for an upfront fee. The rate still comes from whichever lender takes the loan, so read that lender’s contract, not the comparison site’s ad.

What does the 35% limit leave out?

The 35% limit in section 347 of the Criminal Code (opens in a new tab) covers interest and every fee for the credit, but not insurance. Loan insurance can be added on top of the maximum rate, and on a small loan it can cost more than the interest itself.

Loans Canada’s own example shows the effect. A $500 loan repaid over 9 months at $81.15 a month comes to $730.35, and the example says that total includes its partner’s optional loan protection. Counting everything you repay, that works out to about 100% a year, by our math. easyfinancial’s fine print shows the same pattern on a $1,000 loan, which our easyfinancial page breaks down.

The insurance is optional. The Financial Consumer Agency of Canada (opens in a new tab) says you don’t have to buy it to get the loan and can cancel it at any time. Before you accept, ask the lender for the payment without it.

Two more exceptions

• Payday loans. Provinces that license payday lenders can let them charge up to $14 per $100 borrowed, about 365% a year over two weeks. Our payday loans page covers the rules in each province.
• Quebec. In Quebec, every fee you pay on top of the amount you receive counts toward the credit rate, membership and brokerage fees included, and there are no payday loans. Our page on no credit check loans in Quebec explains what that changes.

Can you get a loan with no credit check?

Yes, but only a small one. A lender that skips the credit check judges you on the deposits in your bank account instead, and that limits how much it will lend. Payday loans go up to $1,500, cash advance apps up to about $750, and Vancity’s credit union loan up to $2,500.

Cash advance apps like Bree and Nyble cost nothing on standard delivery (Bree isn’t taking new customers in Quebec), and our cash advance apps page prices the fees in detail. Larger amounts are a different story. A lender that skips the credit check still needs to see an income that can carry the payments, which is why an ad for $5,000 or $10,000 with no credit check and no refusals deserves suspicion.

How do you spot a bad credit loan scam?

Being asked to pay before you get the money is the clearest sign. The Canadian Anti-Fraud Centre (opens in a new tab) says most provinces make it illegal for a lender to charge an upfront fee, and warns against any company that guarantees a loan whatever your credit.

Scammers aim at people with bad credit because a guaranteed yes is what those borrowers want to hear. Watch for:

• “Guaranteed approval” or “no refusals”, before anyone has seen your income.
• A first payment, deposit or “insurance” requested by Interac e-Transfer, gift card or crypto.
• A lender with no company name, street address or written contract you can check.

If you’ve already paid one, our guide to getting your money back after a scam covers what to do first.

What costs less than a bad credit loan?

A credit union’s small loan, a co-signer or a secured loan usually costs less than an unsecured loan at 35%. If the loan would pay off other debts, a free session with a nonprofit credit counsellor may show a cheaper way out.

• A co-signer. easyfinancial takes 2% off the rate with a co-applicant. A co-signer with good credit can get you a much lower rate elsewhere, but they owe the full debt if you don’t pay.
• A secured loan. If you own a home, Fairstone’s secured loans run 19.99% to 25.99%, though with fees and a prepayment penalty the unsecured loan doesn’t have.
• Your own credit union. Ask about a small loan before you apply anywhere else. Your credit union already knows your deposit history, so it may say yes where a stranger wouldn’t.
• Credit counselling. If you’re borrowing to keep up with other debts, a new loan adds to the pile. A licensed insolvency trustee or a nonprofit counsellor can tell you whether a consumer proposal would cost less. In Quebec, the ACEFs offer free budget consultations.

For a bill due this week, our emergency money page sorts every option by cost, free ones first.

Why a few hundred dollars saved beats any rate

A lot of bad credit loans start with a bill nobody planned for: a car repair, a move, a month of reduced hours. The cheapest money for those is money you already have, and even $300 or $500 set aside means the next surprise doesn’t need a lender at all.

Lodavo makes building that easier to stick with. It’s free, and every $25 you’ve set aside earns a ticket in the weekly draw, with prizes up to $10,000 and at least $100 going to someone every week. Your savings stay in your own account, so you can track them week by week and watch your chances grow with your balance.

Before you sign

Get your quotes with soft checks, then add up the payments, including any insurance, and subtract what you borrow. That’s the real cost. At 35%, a $3,000 loan over three years shouldn’t cost much more than $1,900; if the number is far higher, ask what’s been added and whether you can drop it.

And if you’re reading this before you need the money, start the cushion now. Lodavo is free on the Apple App Store (opens in a new tab) and the Google Play Store (opens in a new tab).

This article is general information, not financial advice. Rates and lender terms change, so check each lender’s current offer before you apply.

Terms and conditions apply. No purchase necessary (alternate method of entry available). Skill-testing question required. Open to legal residents of Canada who are the age of majority. Odds depend on the number of eligible entries received. Full rules and odds at our contest rules.