Bad Credit Loans Toronto

If you have less than perfect credit, you may be having a difficult time getting financing in Toronto. The truth is that most financial institutions, including banks, don’t get very excited about lending money to people with bad credit. But you are not alone. Lots of people with bad credit are able to get a fast loan in Toronto, at a reasonable interest rate. We`ve compiled a list of the most trusted and reputable lenders in Toronto – you can browse them in the chart below.

Many of them are able to offer you financing even if your credit is less than poor. In fact, you could even rebuild your credit history if you use one of their products and make timely payments. Don`t let bad credit hold you back. Click one of the lenders below to learn about their terms, conditions, loan qualifications and how to apply online. It`s fast and easy. Bad credit loans in Toronto are easier to get than you think. You can also apply right here at Smarter Loans and we’ll connect you to the right lender.


Toronto Statistics

  • Average HI is $82,900.
  • As per the most recent available information, an average consumer debt in Toronto is at $36,400. In that Toronto just sank below Ontario’s average.
  • Toronto’s primary employment areas are manufacturing, educational services, accommodation and food services.
  • Employment rate: 60%.
  • Based on the most recent stats, on the average, a salary in Toronto is at the level of $54,000 per month.
This data was researched in 2019 and uses various information resources, including Canada’s National Statistics Agency, etc., where the information can be as of an older date. The facts above may change as new information becomes available. We do our best to keep the information up to date.

Our online financial platform gives you access to reliable Bad Credit Loan lenders in Toronto for all your financing needs.

Browse through our catalogue of Bad Credit Loan companies to get access to the most current Bad Credit Loan rates in Toronto

Bad Credit Loans are generally utilized for the following purposes (including but not limited to)

  • gaining medium to relatively large sums of cash almost immediately
  • obtaining a loan with minimal documentation
  • obtaining a loan with poor credit
  • paying off higher interest loans like credit cards
  • consolidating and paying off debts with higher weighted average interest rates


Frequently Asked Questions About Bad Credit Loans in Toronto

What’s a bad credit loan and why would I need one?

A bad credit loan is a type of personal loan for people with bad credit. Any credit score of less than 600 is considered bad, and if this is you, you will probably struggle to access financing through a traditional lender. This is because lenders like banks and credit unions have a minimum required credit score of 600 – they simply won’t lend to those with a score of less than this. So if you’re a resident of Toronto, short on cash, and have a low credit score, then a bad credit loan is probably your most viable financing option.

How is my credit score calculated?

Credit scores are a big part of your financial profile, and they are calculated using complex formulae based on a few key factors:

  • Your past loan repayment history
  • Your available credit given your income and current debt levels
  • The length of your credit history

Your score is intended to reflect your likely ability to repay loans as agreed, and a low credit score can happen for a number of reasons: failing to make debt payments on time, a past bankruptcy or consumer proposal, high levels of debt, and so on. There are many ways to find out your current score, including accessing the information via a credit bureau (such as Equifax or TransUnion), speaking to your bank or credit union, or via an online tool.

What can I use a bad credit loan for in Toronto?

A bad credit loan can be used for many purposes, such as:

  • Debt consolidation
  • Short term cash flow
  • Covering unexpected bills and emergencies
  • Paying for monthly bills
  • Funding a needed purchase
  • Helping to repair your credit

There are no restrictions on what you can use this type of personal loan for.

How do I apply for a bad credit loan in Toronto?

Applying for a bad credit loan is very simple; first you must gather together your documents. This includes:

  • ID
  • Proof of address
  • Bank account details
  • Proof of income
  • Other financial statements (if required by the lender)

You then need to complete your chosen lender’s application form, attach your supporting documentation, and submit for approval. Many lenders have online application forms, making the process fast and convenient.

Where can I get a bad credit loan in Toronto?

As Canada’s biggest city, Toronto is home to the country’s largest loans market – and this includes a number of bad credit lenders. There are different types of bad credit lenders: dedicated bad credit financial service providers; payday loan companies; auto loan companies; online lenders; and no credit check lenders. The type of provider that’s best for you will depend on how much you want to borrow, for what purpose, for how long, and how much you can afford to pay in interest and fees. It’s also important to consider how quickly you need the money – some providers offer same day approvals, while others may take a few days to process your application.

Are there online options for bad credit financing in Toronto?

Yes, there are plenty of online lenders (and brick-and-mortar lenders with online platforms) available for Torontonians to choose from. These lenders offer the convenience of applying for a loan from home, and often have fast turnaround times. It’s also helpful that you can usually look into their terms and conditions in some detail on their websites.

What’s the best interest rate I can get on a bad credit loan in Toronto?

Interest rates are the single most important factor to consider when calculating the cost of a loan, and unfortunately bad credit loans tend to have higher interest rates than other types of personal loan. The average interest rate on a bad credit loan in Toronto is 20%; this can fall to as low as 5% in some situations, or rise to over 40% in others. Sadly, the best interest rates are reserved for those in the most secure financial positions.

How can I qualify for a better interest rate on a bad credit loan in Toronto?

It is vital to take whatever steps you can to qualify for as low an interest rate as possible, as this is the primary factor in your loan’s cost to you. Consider if you’re able to get a co-signer for your loan, if you can provide collateral to secure the loan, if you can gather together a downpayment, or if you can get by with a smaller loan. All of these steps will help to lower your interest rate.

Can I get a bad credit loan in Toronto if I’m unemployed?

Employment is often a requirement for loan approval, and bad credit loans are no exception to this rule. Most bad credit lenders will ask to see proof of income before they’ll approve you. However, there are some circumstances where you can sidestep this requirement. For example, if you have Employment Insurance and are receiving money each month from this, then you might still be able to qualify for a loan. If you have high savings or can provide collateral, again this might improve your chances. Just bear in mind that borrowers without income are likely to be charged higher interest rates or have to accept more restrictive loan terms to secure approval.

What’s a no credit check loan, and can I get one in Toronto?

A no credit check loan is exactly what it sounds like: a loan that does not require a credit check. This is a great option for anyone with a low credit score, as it avoids rejection based on your past financial profile. The average score in Toronto is 679, but there are plenty of locals with scores less than this; there are also many people who need a loan very quickly and can’t wait for a credit check to be performed. You will pay for the privilege of skipping the credit check process though, as no credit check loans charge higher interest rates to offset their increased risk.

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