How to Get a $5,000 Loan With Bad Credit

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$5,000 Personal Loans

When we think of personal loans, we think of borrowing money from the bank. However, that isn’t the only way to get a personal loan. In Canada, there are plenty of different types of lenders to borrow money from, including alternative lenders and online lenders. These lenders can fund loans faster than traditional lenders from traditional financial institutions, but they can also offer personal loans if you have no credit history, a low credit score or even a fair credit score.

With these alternative and online lenders, you can complete the application process in just a few minutes. The loan approval process can happen quite quickly, and you can receive the loan funds as soon as the same business day. With Spring Financial, you can apply for not only a $5,000 loan but up to $3,5000. Plus, if you compare lenders, they offer competitive interest rates starting as low as 9.99% APR (annual percentage rates).

How it works

1. Fill out our secure online application

Say goodbye to branch visits and long queues – everything can be done from the comfort of your device.

2. Get approved

Our dedicated team will promptly review your application and provide you with an approval within a matter of hours.

3. Receive your funds!

Once approved, receive your funds swiftly through a convenient e-transfer directly to your bank account!

1. Fill out our secure online application

Say goodbye to branch visits and long queues – everything can be done from the comfort of your device.

2. Get approved

Our dedicated team will promptly review your application and provide you with an approval within a matter of hours.

3. Receive your funds!

Once approved, receive your funds swiftly through a convenient e-transfer directly to your bank account!

Get a Loan Quote

Types of $5,000 Bad Credit Personal Loans

Personal loans, also known as personal installment loans, come in many different forms. While traditional personal loans through the banks are unsecured loans or secured loans, there are also plenty of other options for bad credit borrowers. Both of these types of loans can be bad credit loans or good credit loans; however, they still work the same way. 


Unsecured personal loans are loans that have no collateral tied to them. These types of loans are also known as cash loans and can be one of the most difficult personal loans to get, especially when you get up to $5,000. That said, many lenders will still give you this type of loan. 


Secured loans are loans that are tied to an asset. If, for any reason, the borrower defaults on the loan, then the lender can seize the asset. The most common types of secured loans are auto loans and home equity loans; however, secured credit cards are also very common. 

In Canada, if you have poor credit, secured loans are one of the easiest types of loans to get. They also tend to have lower interest rates than unsecured loans. This is because the lender has an asset to fall back on. However, this also makes it riskier for the borrower. 

Debt Consolidation 

Debt consolidation loans are secured or unsecured loans that are used to pay off all of your debt. These types of loans condense all of your debts into one low monthly payment and can help you pay off your debt faster. However, debt consolidation loans can be difficult to get because they’re often large loans and your current debt is included in your debt-to-income ratio. 

No Credit Check

When you’re looking for a personal loan, you may notice companies offering no credit check loans. These loans are popular among those who have bad credit, however, they often seem too good to be true. 

While many of these companies offer loans with no credit check, they also don’t improve your credit score when you make your monthly payments. The interest rates are really high, as well, which increases the total cost of your loan. In the end, these loans end up costing you a lot more.

Guaranteed Approval

Getting approved for a bad credit personal loan can be a slightly tricky process because it’s hard for most lenders to give you money if there’s no indication that they’ll get their money back. That said, if you are looking for a guaranteed personal loan, the most likely way to do that is with a secure loan. With secured loans, lenders have an asset they can seize if repayments aren’t made.

If a company is offering a personal loan guaranteed without a lot of strings attached, that’s a big red flag. When it comes to personal loans, there are a lot of companies out there that aren’t legitimate so you have to be careful. If it seems too good to be true, chances are it is. However, one of the loans thats closest to a guaranteed approval loan is a payday loan. These loans have really high interest rates and don’t improve your credit score.

Instant Approval

When it comes to instant approval loans, that’s a little bit different. Once a lender performs a credit check, they have a pretty good indication of whether you’ll get approved for the loan or not. Oftentimes, you’ll get something known as a pre-approval. This will tell you if you’re approved for a loan or not. What it doesn’t tell you is the difference between the loan and the interest rate. This takes the guesswork out of getting a loan and helps you get your funds faster.

How To Get A $5,000 Bad Credit Loan

Today, trusted online lenders leverage e-transfer technology to make loans more accessible than ever! If you need cash in a hurry but have bad credit, here are a few tips to help you get approved without delay: 

Total time:

  • 5 Minutes

What you’ll need:

  • Proof of Employment
  • Bank Statements
  • ID
  • Mobile Phone
  • An active bank account

Find A Lender That Can Help

If you’re approaching lenders with a bad credit history, find one that specializes in working with clients such as yourself. Know what the lender’s eligibility criteria is before applying because it varies among financial institutions. Local credit unions, for example, can be more stringent about who they lend to versus a lender like Spring, that can work with customers of all backgrounds and financial situations.

Show Your Income

When it comes to fast-tracking ways to get that personal loan, here’s a key phrase to remember: know and show your income. As mentioned, applicants typically need a monthly income of $1,200 to qualify for a $5,000 loan. If you’re not sure about your income, check your bank statements and pay stubs to get an accurate figure. If you’re coming up short, don’t forget to include whatever government income you are receiving. It usually counts towards your monthly income. You can also prove you earn sufficient income by taking photos of any non-sensitive documents with your smartphone and sending them via email. Now that’s convenient!

Get A Cosigner

If you’re under that $1,200 monthly income threshold (including any government income you receive), then you may need to find a strong cosigner. A cosigner is a trusted friend or family member who agrees to share the responsibility of your loan. The cosigner should have a decent income and a good credit score.

Offer Collateral

In some instances, a lender might be willing to accept collateral to secure your loan application. Examples of collateral would be the title of your car or possibly home equity if you have it. This is not advisable and should only be considered in emergency situations. Remember you are putting a valuable asset at risk, and if something goes wrong and your ability to repay the loan is compromised, you could lose that asset.

Frequently Asked Questions

  • How long does it take to get online personal loans?
  • How does applying for a loan affect your credit?
  • Can you get a loan higher than $5,000 with bad credit?
  • Does Spring Financial do a credit check?
  • How long do you have to repay a personal loan?

Credit Scores and Bad Credit Loans

When people think about credit scores in relation to a personal loan, they think of the score they need to get a personal loan. It’s often overlooked how a personal loan can improve your credit score. That said, it’s a really important thing to consider and should factor into your personal loan decision. 

Credit Score Needed For A Loan

In order to get a $5,000 personal loan with a traditional lender, you should have a credit score of 700 or higher. With an online lender, you should still be able to get approval with a score of 600. However, you may even be able to get a personal loan with a lower score, depending on your credit report. 

In general though, there’s no minimum credit score requirement in the personal loan process. Your credit history, previous and active credit accounts as well as debt-to-income ratio are also considered and can make a difference in your approval. 

How A Personal Loan Improves Your Credit

Once you know what your monthly payments are going to be, you should ensure that you’re able to make all your on time payments before you sign anything. You might even consider automating your payment so you don’t even have to think about it. 

As you pay back your loan, your credit can go into positive territory. In fact, you can see it improved as quickly as 30 days!

Monthly installments on a personal loan of $5,000 can help you build back your credit rating. But it’s key that you make payments on time. Here’s why: 

  • Payment history proves reliability. Prompt payments on a loan show you’re responsible and not a loan risk. Lenders will look at this behaviour favourably, and you will be successful in future loan applications. Important note: payment history makes up 35% of your credit score
  • It pays to use less credit. Another 30% of your credit score comes from what is called credit utilization. This essentially means the less credit you use, the less risky you are as a borrower. If you took a $5,000 loan and used it to pay off a high-interest credit card, it would improve your credit utilization.

While personal loans can be beneficial, it’s important that you pay attention before you sign any loan agreements. This agreement will include any origination fees, total loan costs, any loan insurance costs as well as any other fees the lender includes.

Why choose Spring Financial?

Max Amount $35,000
Interest Rates From 9.99%
Fully Online Application
Approval Within Hours
Same-Day E-Transfer
Bank Loans
Max Amount $50,000
Interest Rates From 9.99%
Fully Online Application
Approval Within Hours
Same-Day E-Transfer
Credit Cards
Max Amount $10,000
Interest Rates From $19.99%
Fully Online Application
Approval Within Hours
Same-Day E-Transfer
Payday Loans
Max Amount $1,500
Interest Rates From 200-450%
Fully Online Application
Approval Within Hours
Same-Day E-Transfer
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*Information is based on averages and may vary by institution or lender. It is not intended to address specific circumstances or any individual case.

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