Get a Bad Credit Loan in Ontario

A bad credit score in Ontario is any score below 575. In comparison, a good credit score is considered to be 660 and above. According to Borrowell data, the average credit score of Ontario residents is 658. Individuals in larger cities, like Toronto, tend to have higher credit scores on average.

A bad credit score limits your ability to qualify for credit cards, loans, mortgages, and other financial products at low interest rates. 

If you live in Ontario and have bad credit, there are still several loan options you can choose from. With Borrowell, you can quickly find lenders that you qualify for with your credit score. Sign up for Borrowell to see what loan options are available for you based on your credit score.

A bad credit loan in Ontario works just like any other loan – if managed properly, it can help you improve your credit score over time. Your repayment history makes up 35% of your credit score, so making consistent payments on time towards your loan is essential to improving your score. Just be sure to confirm that your loan provider reports your loan to a credit monitoring bureau. 

A bad credit loan can also be used to consolidate your other debts and make repayment easier. Managing debt can significantly improve a borrower’s credit profile and contribute to long term financial health.

If you’re looking to find a loan to improve your credit score, Borrowell can help. By signing up for free, you can get matched with trusted Canadian lenders who specialize in helping borrowers with bad credit. You can compare lenders and loan offers before even applying for one, so you won’t hurt your credit score by making unnecessary credit inquiries. Sign up today and find a loan with bad credit.

There are basic qualifications that you must meet when applying for a bad credit loan: 

• You must be at least 18 years old

• You must have government-issued ID and proof of residency

• You must have an active bank account. 

Some lenders may have additional eligibility requirements, including proof of income and certain credit score requirements. 

You can take the first step to becoming debt free by signing up for Borrowell to see what loan options are available based on your credit score; Borrowell shows you loans that you have a high chance of qualifying for. Once you’ve found the right loan, you can begin the online application process through the Borrowell platform.

Additional steps of the application process, regardless of the lender, may include providing requested supporting documents (if needed) and completing their application form. The lender will also conduct a credit check to verify your score.

Following these steps, lenders will review your application, and if your application is approved, you’re on your way to receiving a bad credit loan!

Timelines vary, but the application process to get a bad credit loan in Ontario usually takes 1 to 2 business days. However, if there are issues verifying the details you provided on your application, such as bank information, it could take additional time. Usually, your loan amount will be deposited directly into your bank account.

Lenders in Ontario typically offer an online application procedure, which makes the whole process quick and easy. You can use Borrowell to find a loan from over 50 trusted lenders. Once you’ve found the right lender, you can start your online application through the Borrowell portal.

When you apply for a loan, the lender will likely perform a hard credit check on your credit report. This can lower your credit score temporarily. You should also avoid applying for loans without knowing your chances of being approved. Comparing options before applying can help you avoid hard inquiries from lenders and reduce impacts to your credit score.  

With Borrowell, you can check your credit score for free without hurting it. You can also compare loan options and see your likelihood of being approved based on your credit score. 

Using Borrowell to find bad credit loans can help you avoid hard inquiries from lenders and reduce impacts to your credit score. Sign up today to find the best bad credit loans available to you.

Paying back your bad credit loan on time will actually help to improve your credit over time. On the other hand, late payments can have a long term negative impact on your credit score.

Most lenders in Ontario will allow you to submit an online application for a bad credit loan. There are several online-only lenders, and there are also traditional brick-and-mortar lenders with online loan processes.

While some lenders may have additional eligibility requirements, such as proof of income, the process will typically involve submitting an application and providing supporting documents (as needed). Lenders will also conduct a credit check to verify your score.

Borrowell works with over 50+ financial partners in Canada to find loans that match your profile - showing your likelihood of approval in minutes. Find the right lender for you and start your online application by using Borrowell.

One of the benefits of bad credit loans is that they can be used for almost anything. These types of loans are good for consolidating debt to make payments more manageable, but there are a wide range of potential uses, including:

• Funding a large purchase

• Paying outstanding bills

• Covering unexpected expenses

• Making home or car repairs

• Covering life emergencies

• Improving a low credit score by making timely and consistent payments

Depending on the specific agreement you’ve made with your lender, there may be limitations to how you can use your bad credit loan.

Yes, it is possible for you to get approval for a bad credit loan in Ontario even if you have a bankruptcy on your credit report. 

A common concern for people with personal bankruptcy in their credit history is whether they will be eligible for a loan in the future. Typically, there will be a mandated waiting period that individuals who have filed for bankruptcy must adhere to in order to receive an approval for a loan. However, following this period, lenders can be very willing to lend money to people who have declared bankruptcy, as the circumstances are more favourable for the lender (e.g., higher interest rates, lower debt responsibilities).

Bad credit loan terms in Ontario can range from 6 months to 5 years. Typically, shorter term loans mean higher installment payments but lower interest rates. On the other hand, getting a long term bad credit loan will mean lower payments but higher interest. 

Most lenders in Ontario let borrowers choose from a variety of repayment schedules, for example weekly, biweekly, or monthly.

Typically, bad credit loans in Ontario can vary from $500 to $35,000. The size of bad credit loans in Ontario vary based on individual financial circumstances, as well as the parameters set by the lender. The specific terms will be dependent on each individual’s financial profile, including their credit history. Those with higher incomes and fewer debts, for example, will be able to borrow more than those with lower income and additional debt obligations.

In Ontario, typical interest rates for a bad credit loan range from 5% to 40%. Bad credit loans are approved based on a variety of factors, and as such, interest rates may drastically vary depending on the lender and their qualification criteria. Interest rates on bad credit loans in Ontario cannot go higher than 60% by Canadian law. Interest rates are determined by a range of factors, including the loan term, the loan amount, and the borrower’s financial profile.

You can find the best rates available to you by using Borrowell. When you sign up and check your credit score, you can instantly see what rates you qualify for with your credit score. Sign up today to quickly compare rates.

You can find both unsecured or secured bad credit loans in Ontario, so it’s important to understand how they’re different. 

Secured loans are guaranteed by collateral that provides insurance on the loan. With a secured loan, you will need to offer collateral to the lender (like a car), which they can obtain from you if you default on your loan payments. Secured loans usually have lower interest rates because you are offering collateral as insurance on the loan.

Unsecured loans do not require collateral, which means the lender is taking on a greater amount of risk by lending you money. Unsecured loans tend to have higher interest rates because of this.