Bad Credit Loans Canada

Do You Have Bad Credit And Are Looking For a Loan?

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We Are Your One-Stop Solution For Bad Credit Loans

LoanConnect is your one-stop solution for online loans. By partnering with various lenders across Canada, we are sure to provide you with a loan for whatever aspect of life you need it for. We help Canadians find the right loan by presenting them with various options. By filling out a quick loan application, you can get a multitude of loan options at your fingertips in seconds.

If you have bad credit, no problem. A number of our partners are ready and willing to loan out to Canadians with bad credit. Don’t let your credit score stop you from getting the loan you need, apply today and be surprised by the results.

Online loans have a variety of applications, and you can use the money for just about anything! Get your own personalized loan options in just four easy steps.


Our loan application is fast & secure. If you work or own a home, you're approved.


Once you've answered a few short questions, you'll receive pre-approval(s) in 60 seconds.

Choose Your Loan

You will be presented with a list of the top loan offers, pick a loan that best suits your needs.

Get Your Cash

Finalize all the details with your chosen lender to receive your funds as soon as the same day.

Applying For a Loan With LoanConnect Will Not Impact Your Credit Score.


Learn More About Loans For Bad Credit

Many Canadians face the hardship of having bad credit and are under the assumption that getting approved for a loan is virtually impossible. However, we are here to debunk that credit myth. Though having bad credit will consequently cause you to pay higher interest rates, there are still a variety of loan options available to you.

LoanConnect is partnered with a multitude of lenders across Canada who will work with Canadians with bad credit. If you are looking for a loan and think you have bad credit, we recommend completing our application in order to see the types of options and rates available to you. Applying will not affect your credit, and you may be surprised at the results. If you would like to learn more about taking out loans with bad credit, we have you covered there too. Continue reading to learn more about the types of interest rates you will pay, how to pay your debts down faster, and more.

Who Loans to Canadians With Bad Credit?

What is Considered "Bad Credit"?

What Interest Rates Will I Pay With Bad Credit?

Why do People With Bad Credit Pay Higher Interest Rates?

Should I Take Out a Loan When I Have Bad Credit?

Managing Your Debt When You Have Bad Credit

What to Do When You Are Denied a Loan

What Other Options Are There?

Loans to Canadians With Bad Credit

The misconception that Canadians cannot receive a loan when they have bad credit tends to come from the fact that many lenders, typically banks and credit unions, have denied them loans in the past. So, who does loan out to individuals with bad credit? Typically, private lenders. The types of loans offered to you by private lenders will vary, and you will still normally be required to have a credit score higher than 550.

What is Considered "Bad Credit"?

"Bad Credit" is probably one of the most overused and misunderstood terms in the consumer finance industry. When defining bad credit, it is important to recall the old saying "One person's junk, is another person's treasure." Bad credit to one lender is sometimes good credit to another. Most lenders will determine who has "bad credit" based on your credit score and the amount of risk they are willing to take by lending to you. For many lenders, a credit score below 660 represents a high risk, and therefore bad credit. Many private lenders consider bad credit to be in the range of 550 to 660, with better interest rates reserved for those on the higher end of that range. But ultimately, if your credit score is below 550, you will more than likely not receive a loan. We would recommend researching ways to repair your bad credit, or consider a credit rebuilding program. If you'd like to know more about credit buckets in Canada, you can read more here

What Interest Rates Will I Pay on a Loan When I Have Bad Credit?

As you probably already know, the lower your credit, the higher your interest rate will be. But what is typical for people with bad credit? The answer really depends on the type of loan you are seeking. For example, payday loans inherently have higher levels of interest than personal loans for general use. If you have bad credit and are seeking out a personal loan, you can expect to pay an interest rate of anywhere between 30 to 60%.

Why Do People With Bad Credit Pay Higher Interest Rates?

Though it may seem counterintuitive to charge Canadians with bad credit higher levels of interest, it is important to understand the concept of risk and reward. People with bad or poor credit represent a higher degree of risk of defaulting on their loan. In order to protect themselves from losses, lenders charge higher levels of interest to counteract that risk. This allows them to recoup any losses they expect to incur when loaning out to individuals with bad credit.

Should I Take Out a Loan When I Have Bad Credit?

Here are some things you always want to ask yourself before taking out any form of loan:

  • Do you have the ability to meet the monthly payments without too much stress on your budget?
  • Will taking out this loan put you in any form of financial jeopardy now or in the future?
  • How badly do you need the loan? Is the money for a critical need, or something you want that can wait until you've saved up for it?
  • Can you get by with a smaller loan? The smaller the loan, the less total interest you will pay. Read more about short term loans for bad credit
  • Can you wait to take out the loan until you have worked to improve your credit score and be eligible for lower interest rates?

Ask yourself the above questions in order to understand your specific situation, and whether or not taking out a loan with bad credit is a good idea.

Managing Your Debt When You Have Bad Credit

If you do not properly manage your debt after taking out a high interest loan, you can quickly get caught in a financial trap that seems inescapable. So, how should you go about managing your debt? This can be a tricky question, and again, depends on your own unique situation. However, here are a few things to consider to stay out of trouble:

  • Ensure you have enough income and ample cash flow to pay down your debt
  • Pay down the debt as quickly as possible
  • Keep track of your expenses to help manage your spending habits
  • Create your own payment schedule and financial goals

What to do if You Are Denied a Loan

You've applied for a loan and have been denied, or offered a loan with interest rates that are not manageable; what do you do? Unfortunately, this happens quite often, and there is really only one option available to you. You have to rebuild your credit. Rebuilding your credit requires a commitment to solid financial management, paying off any outstanding debts, and clearing out any debts you may have defaulted on. There are certain ways to accelerate the rebuilding of your credit score, such as taking out a savings loan, using a secured credit card, and making sure your utility bills are always paid well before the due date. 

We recommend reviewing these key blog pieces to better understand your options and best ways to rebuild your credit today. 

  1. 5 Reasons to Use a Credit Rebuilding Program
  2. Short Term Loans to Repair Your Bad Credit
  3. Use These Tips to Repair Your Bad Credit

What Other Options Are There?

Consolidating your debt through a debt management program is a viable option to consider if you simply cannot manage your current debts. Commonly, individuals with bad credit have a variety of outstanding debts, and their credit score has suffered due to a history of late or nonexistent payments. Consolidating your debt through debt management merges your debt payments into a single payment, often at a reduced interest rate. This keeps your financial affairs much simpler, stops creditors from calling constantly, and is the first step in controlling your finances. A Debt Management Program will impact your credit score in the short-term but puts you in a better position to manage your debt for the long-term. For some people, it is the only way they can return to being eligible for bank credit, whether for a car loan, mortgage, or line of credit. Completing a debt management program takes hard work, but it can be done!




*LoanConnect is not a lender. LoanConnect will never pay money to a customer directly. LoanConnect does not distribute loan agreements. All loan agreements and disbursal of funds is handled by the lender you choose to work with through our platform. 
*Borrow between $500-$50,000 with APR ranges from 8.99% to 46.96%, and loan repayment terms from 3-120 months. As an example, the total cost of borrowing a $2000 unsecured personal loan at 29.96% for 24 months is $2685.12, or $111.88 monthly. Additional administration fees may apply and vary by lender. Annual Percentage Rate (APR), loan term and monthly payments shown are estimated based on information you provide and that which is made available from our lender network. Terms are subject to final credit review and approval, and interest rates are subject to change at any time and may vary by province. Fees may apply and vary by province/territory, and may include insurance, administration, home valuations and other applicable fees. Be sure to review the lender’s Terms and Conditions and all available loan documents carefully before proceeding.
**Auto loan APR starting as low as 4.99% with loan repayment terms between 72 and 84 months.