Loans for Bad Credit

You may still be able to borrow money with bad credit in Canada. Your options can include secured loans, personal loans with more flexible requirements and small cash advances.

Approval is never guaranteed. The interest rate and fees may also be higher when your credit score is low.

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KOHO Cash Advance

KOHO Cover is not a traditional payday loan. It is a cash advance designed for Canadians who need a smaller amount of money to cover short term expenses.

With KOHO Cash Advance, you can:

• Get up to $250 as an instant cash advance (amount depends on eligibility)

• Pay no interest on the advance

• Avoid a credit check

• Repay automatically once you add money or get paid

You subscribe to the Cover bundle for a low monthly fee, and in return you get the advance feature plus extras like a credit report, financial coaching, and priority support.

Can You Get a Loan With Bad Credit?

Yes. A low credit score does not automatically prevent you from borrowing money.

Some lenders consider more than your credit score. They may look at your income and existing debts. They may also look at your ability to make the required payments.

Your credit profile can still affect the amount you qualify for and the cost of borrowing.

What Types of Loans Are Available With Bad Credit?

There are several types of borrowing that may be available.

Secured Loans

A secured loan requires you to provide an asset as collateral.

This reduces some of the lender's risk. It may make approval easier in some situations.

The downside is that the asset can be at risk if you cannot repay the loan.

Personal Loans

Some personal loans have more flexible credit requirements.

These loans may still require a credit check. A lower credit score can also result in a higher interest rate.

Compare the total repayment cost before accepting an offer.

Cash Advances

A cash advance can be an option if you only need a smaller amount for a short-term expense.

Can You Get a Bad Credit Loan With No Credit Check?

Some borrowing products do not require a traditional credit check.

That does not mean approval is guaranteed. The provider may use other information to determine eligibility.

What Should You Check Before Taking a Bad Credit Loan?

Do not focus only on whether you can get approved.

Check:

• The interest rate

• Borrowing fees

• Monthly fees

• The repayment schedule

• The total amount you will repay

• Late payment consequences

• Whether a credit check is required

A loan that is easy to qualify for can still be expensive.

Can a Bad Credit Loan Help Your Credit Score?

It depends on the product.

A loan can help establish payment history if the lender reports your payments to the credit bureaus. Paying on time can support your credit history. Missing payments can hurt it.

Do not take out a loan only to try to raise your score unless you understand the costs.