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Loans for bad credit
A low credit score doesn't have to end the conversation. Lenders in our network look at your income and your recent banking, and they lend $300 to $3,000 to people that banks turn away.
Reviewed November 5, 2026 by the Loans514 team.
In short
You can apply with bad credit, a short credit history or past missed payments. Lenders decide mostly from your income and banking history, which they see through Instant Banking Verification. A typical loan is $300 to $3,000, repaid over 90 to 120 days at 22% to 32% APR. Approval isn't guaranteed, and an on-time loan can help your credit while a missed payment can hurt it.
How lenders decide without leaning on your score
A credit score sums up your past. A lender making a small, short loan cares more about whether the payments fit your income today. So instead of asking for documents, lenders in our network ask you to complete Instant Banking Verification. It shares a read-only view of your recent deposits and bills, so they can see a steady paycheque and choose an amount you can repay.
That's also why a lender may offer you less than you asked for. A smaller loan you can repay comfortably is better for you, and for your credit, than a larger one you can't.
Does an installment loan help your credit?
It can. Installment loans are usually reported to the credit bureaus, Equifax and TransUnion, like any other credit agreement. Payments made on time add to your history, and missed payments are reported too. Ask the lender how it reports before you sign.
A small loan won't transform your score on its own. Paying every bill on time, keeping card balances low and checking your credit report for errors matter more. The Financial Consumer Agency of Canada explains how to improve your credit score.
Avoid NSF fees and late charges
A bounced payment usually costs a fee from your bank and another from whoever you were paying. Left unpaid, the account can go to collections and onto your credit report. A small installment loan can cover the gap. Make sure the payment dates match your paydays, so the loan's own payments don't bounce.
Who can apply
- 18 or older and a Canadian citizen
- A full-time job, or steady self-employed income
- A bank account you can sign in to online
- Not in a bankruptcy or consumer proposal
Self-employed? You can apply as long as your income shows up regularly in your bank account.
What it costs
- Annual rate (APR)
- 22% to 32%Set by the lender, based on the risk of the application
- Example
- $300 over 98 days7 payments of about $44.99, every two weeks. $14.93 cost of borrowing
Membership fees may apply and are always shown in the contract. Full rates and fees
Watch out for these
- Upfront fees. A legitimate lender never asks you to pay before you get the loan. If someone asks for an "insurance" or "processing" payment first, stop.
- Guaranteed approval. No responsible lender can promise approval before seeing your application.
- Rates above 35%. Since January 1, 2025, the Criminal Code caps most consumer loans at 35% APR including fees. Payday loans are the only common exception.
- Several loans at once. Taking a new loan to pay an old one is how a loan cycle starts. If that's where you are, see ways out of a loan cycle.
Bad credit? You can still apply.
About five minutes, no documents to upload.