Best Personal Loans for Bad Credit in Canada (July 2026)
With a low credit score, the realistic goal is a licensed instalment lender that reports to the credit bureaus — so the loan rebuilds your score while it solves the immediate need — at a rate under the 35% federal cap, never a payday loan. easyfinancial (no credit history needed) and Spring Financial (all credit profiles, fully online) are the strongest fits among the lenders we track.
Our picks
easyfinancial
Built precisely for borrowers banks decline: no credit history needed, same-day e-Transfer funding, payments reported to the bureaus, and 350+ physical branches if you want to sit down with a person. The trade-off is price — unsecured rates start at 29.99%.
Compare offerSpring Financial
All credit profiles considered with a fully online process, reporting to both Equifax and TransUnion, and an open loan you can repay early without penalty when your finances improve — which is the whole point of a rebuild.
Compare offerWhen this is a bad idea
If the quote you receive is near the 35% cap and the need isn't urgent, spending three to six months improving your score (paying down card balances below 25% utilization, no new applications) will likely save you more than the loan costs. Never borrow at near-cap rates for non-essential spending — high-APR credit is a tool for genuine needs and credit rebuilding, not for wants.
What counts as bad credit in Canada?
Canadian scores run 300–900; lenders typically treat scores under roughly 660 as subprime, and under 600 most banks decline. Below that line, the licensed non-prime lenders on this page are the regulated alternative — capped at 35% APR federally and reporting your payments so the score can recover. The unregulated alternative, payday lending, costs roughly ten times more and builds nothing.
Offers shown are filtered for Canada; check your province's page for what's valid where you live.
Frequently asked questions
Can I get a loan with a 500 credit score in Canada?
Yes — several licensed instalment lenders approve scores in that range or with no credit history at all, at rates capped at 35% APR. Expect the upper part of each lender's published range.
Will a bad-credit loan improve my score?
It can — if the lender reports to Equifax/TransUnion (both picks on this page do) and every payment lands on time. Late payments have the opposite effect.