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Get a Bad Credit Loan in Toronto

Live in Toronto and need a loan? Not sure if you will qualify based on your credit score? Use Borrowell to check your Equifax credit score for free and quickly find loans you qualify for based on your credit profile. Get approved from trusted Canadian lenders, even if you have bad credit.

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Bad Credit Loans

How to Find Loans in Toronto with Bad Credit

Personal Loans Toronto

Trying to find a loan with bad credit in Toronto can be frustrating. But it doesn’t have to be. Borrowell can help you find lenders that will work with you, even if you have bad credit. Over 170,000 Torontonians have used Borrowell to get their free credit score, and many of them find and compare bad credit loans that match their credit profile. Use Borrowell to find loans, see your chances of approval, apply for loans online, and avoid rejection from lenders.

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Bad Credit Loans Toronto

What You Should Know

A bad credit score in Toronto 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. 

Bad credit scores can be affected by several factors, including your:

  • Payment history - missed or late credit card or loan payments will negatively affect your credit score.

  • Debt amount – carrying large amounts of monthly debt will negatively impact your credit score. For example, using up more than 30% of your available credit limit on a credit card will increase your credit utilization ratio and over time, will affect your score. 

  • Credit history – individuals with a longer history of responsible payments on their credit account will have higher credit scores, than those with short credit histories, especially with late or missed payments. Responsible use of credit over time is a key factor in calculating your credit. 

  • Credit diversity – having several different types of credit accounts (mortgage, car loan, credit card, etc.) actually helps credit scores. Individuals with limited types of credit (e.g., only a credit card) may find it negatively impacts their score. 

  • Credit inquiries – credit scores can be negatively impacted every time a credit card company or lender examines your credit to verify your creditworthiness (typically, for a loan or new line of credit). Multiple credit checks, especially in a short period of time, will affect your credit score.

Yes! If you live in Toronto and have poor 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.

Most bad credit loans are for individuals with a credit score of 575 or below. In Canada, credit scores start at 300 and go as high as 900. A credit score below 575 is considered low by most financial institutions in Toronto. In addition to your credit score, your ability to qualify for a bad credit loan in Toronto will also depend on your overall financial profile, including your debt-to-income ratio.

Using Borrowell, you can see what loan options are available based on your personal credit score; our platform shows you the type of loans you have a high chance of qualifying for.

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

  • 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. 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! 

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.

Most lenders in Toronto 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.

Here's How Borrowell Helps You Find Bad Credit Loans

What is a Credit Score?

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Your credit score is one of the main criteria for qualifying for a loan. With Borrowell, you can check your credit score for free before applying for a loan. This way, you’ll know exactly what score you need to qualify with, and it will help you determine what loans you are likely to qualify for.

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Protect your credit score before applying

Lenders perform hard inquiries on your credit report when you apply for their loans. Hard inquiries can negatively impact your score. Borrowell lets you compare loan offers and see your likelihood of approval before even applying for a loan. This will help you avoid rejection and any unnecessary hard credit pulls.

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Borrowell automatically matches your credit profile with the best loan products available based on your credit score. Select your offer and complete the online application.

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Once your personal loan is approved by a Borrowell loan partner, you can usually access your funds in just a few days.

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Yes, it's really free. Borrowell provides you with your Equifax credit score, free of charge. Based on your credit score, we provide you recommendations on the best loans, credit cards, and financial products that you are likely to qualify for. Knowing your credit score speeds up the loan application process and helps you get your money as quickly as possible.

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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. These limitations vary based on the lender as well as your individual financial profile.

In Toronto, 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 Toronto 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 Toronto, 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.

Yes! A bad credit loan in Toronto 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. 

It is very much possible to repair your poor credit score with some patience and diligence, especially if your score is below 575.

Some of the best ways to work towards repairing your bad credit score include:

  • Paying your bills and debts on time – make sure to keep up with all bill and loan payments, especially credit cards. Working to take care of larger debts such as mortgages, car loans, and other assets, is important as well. 

  • Limiting your credit products - While building a credit history is important, it is a good idea to limit applications for new credit products when trying to repair your credit score. Remember – every time your credit report is pulled for a “hard” inquiry (car loans, mortgage, etc.), your credit score will be negatively impacted. 

  • Applying for a secured credit card – Sometimes, individuals with bad credit scores cannot qualify for regular unsecured credit cards. Secured credit cards, which are recommended for those with bad credit scores, require a security deposit for assurance. As a borrower, the longer you can go without missing a payment on secured credit such as this, the more your credit score will improve. 

  • Sticking to a budget – perhaps the most important factor when working towards repairing a bad credit score is learning how to make and follow a budget plan. This includes cutting down expenses where possible and emphasizing debt payments while saving for the future. This may not sound very fun, but your credit score will thank you for it!

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. Once you’ve found the right loan, you can begin the online application process through the Borrowell platform.

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