Personal Loans for Bad Credit

Ready to apply? Enter your email and get up to $35,000 today.

Approval Within Hours | Same-Day E-Transfers

Receive promotions and updates from Spring Financial. It’s free and you can opt-out at any time. By clicking "Continue" you agree to the terms and conditions and privacy policy.

Google Reviews 4.7 Star Rating
Canadian Lenders Association - Consumer Lender of 2023
Trustpilot 4.5/5.0 12,000+ Reviews

Personal Loans For Bad Credit

If you need to get a loan with bad credit, the smartest option is to get a personal installment loan from a trusted online lender. Even if you have bad credit, a personal installment loan from a direct lender is much easier to attain than traditional loans, such as bank loans and credit union loans, and offers far lower interest. These types of bad credit loans for those with poor credit scores provide access to borrow money in the future as well, as long as you make your monthly payments on time.

A personal loan is also an extremely effective tool for building credit while still getting financial assistance. With a term of up to 60 months, that’s plenty of time to pay back the loan with a structured repayment plan and build a positive payment history with the credit bureaus. You can also pay many personal loans back early with no prepayment penalty. This can save you a lot of money in interest charges without having a negative impact on your credit score. 

Even though personal loans are available to those with bad credit, you still need to be aware of what your credit score is. While it doesn’t have to be a good credit score of 700, lenders still like you to have a credit score of at least 600 or close to it. With credit scores in Canada ranging from 300 to 900, your credit standing reflects your financial responsibility to fulfill your financial obligations, which is important to a lender.

Where To Get An Online Loan for Bad Credit

While there are plenty of online lenders out there that offer personal loans for those with both good and bad credit scores, so does Spring Financial. Spring offers loans ranging from $500 to $35,000 with interest rates ranging from 9.99% to 46.96%. You can get approved as quickly as the same day and can even receive the funds through e-transfer.

Type of Bad Credit Personal Loans

In Canada, there are two main types of personal loans available to those with bad credit scores. These two types of loans are secured personal loans and unsecured personal loans. Which type of loan you choose depends on what you need the funds for as well as how much you’re looking for. 

Secured Loans

Secured loans are a popular type of personal loan for those with bad credit. Secured loans require collateral. The most common types are auto loans, home equity loans and secured credit cards. In these types of loans, if the borrower defaults on the loan, then the lender will keep the collateral to offset their loss. 

In the case of a bad credit loan, you might be tempted to offer collateral to get approved more easily (and for a higher loan amount). However, you should weigh up the risk involved. If something goes wrong and your ability to repay the loan is compromised, you could lose a valuable asset. 

On the other hand, though, secured bad credit loans are a great way to build your credit score if you have a hard time getting financing. Whether you use a large asset as collateral, such as a car loan, or just get a secured credit card, these are great tools to help you improve your financial health and financial future, as long as you don’t default on the loan. 

Unsecured Loans

Unsecured loans are slightly more difficult to get with low credit scores than secured loans since they’re still considered to be traditional personal loans, and there’s no collateral that the lender can collect. When a lender approves you for an unsecured loan, they’re essentially confident that you’ll be able to pay the loan back. However, the lender will still have to offset its cost, which it does by charging increased interest rates for those with bad credit. 

With bad credit unsecured loans, it can be difficult to get approved through your financial institution which includes banks and credit unions. This is why many who are in the market for a bad credit unsecured loan choose to go with a private lender or an online lender. These lenders have more flexible criteria than the banks and are able to give personal loans that help you build up your credit score.

How To Get A Loan With Bad Credit

Today, trusted online lenders leverage technology to make loans safer and more accessible to bad credit customers than they ever were before. If you need cash in a hurry but have low credit, here are a few tips to help you get approved today. All you need is a few minutes to apply, a smartphone or computer, a government-issued ID and proof of income. 

The loan application process and approval process are much simpler than you may think. Plus, there are plently of online lenders specializing in in online loans as well as bad credit loans. With the new way of completed your loan applicaiotn online, you can even sign your loan agreement from wherever you are. 

Find a lender that can help

If you’re approaching lenders with a poor credit history, find one that specializes in helping Canadians with low credit (or no credit). Know what the lender’s eligibility criteria are before applying because it varies among financial institutions. Credit unions, for example, can be more stringent about who they lend to versus a lender like Spring Financial, which can work with customers facing all backgrounds and financial situations.

2. Show your income

Since some lenders are willing to look at other factors besides your credit score, be ready to show your income. You may be asked to submit bank statements and/or pay stubs. If you’re coming up short, don’t forget to include whatever government income you’re receiving. It usually counts towards your monthly income. You can prove your income by taking photos of any non-sensitive documents with your smartphone and sending them via email.

3. Add a cosigner

Adding a cosigner to your application is optional, but if you don’t meet the lender’s monthly income threshold (including any government income you receive), you may need to consider it. 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

4. Start Monitoring Your Credit

Once you get approved for a bad credit personal loan, it’s going to help you raise your credit score as long as you make your loan payments in full and on time. There’s a convenient app that lets you check and monitor your credit score online. Visit Borrowell to download your credit report for free.

Frequently Asked Questions

  • Do you need employment income to get a personal loan?
  • What is the income requirement for a personal loan?
  • How do you receive the funds from an online personal loan?
  • How much can you get with a personal loan?
  • Can you get payday loans with bad credit?
  • Can you get a bad credit loan with a traditional bank?

Guaranteed Approval Loans For Poor Credit

If you have a poor credit score, you might think you can get guaranteed loan approval by choosing a lender that offers no credit check loans. And it is possible to get a loan without a credit check. However, there are a few warning signs to keep in mind if you’re looking for instant loans. Remember, this type of loan always comes at a high cost to the borrower, and it’s almost never worth it. 

Their fees or interest rates may be extremely high, or they may request a valuable asset to secure the loan that might put you at a lot of risk. For example, you might be asked to offer your vehicle (market value: $10,000) as collateral for a $1,500 cash loan. You don’t need to resort to these high-risk and high-cost lenders. Going with installment loans, whether they’re secured or unsecured, have more competitive interest rates and have a positive impact on your credit rating as well as your overall credit report. 

As long as you meet sufficient income requirements, a personal loan from a trusted online lender is available to you, even if you have bad credit.

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
Apply Now
*Information is based on averages and may vary by institution or lender. It is not intended to address specific circumstances or any individual case.

About Spring Financial

Apply From Your Device and Say Goodbye to Financial Stress

Experience the most convenient and hassle-free loan application, specifically designed for Canadians, by Canadians. Apply, get approved, and receive the funds via e-Transfer, all from the comfort of your device. Say goodbye to long queues and tedious paperwork! Our process is intentionally designed to be simple, fast, and straightforward.