Bad credit Loans in Ontario

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What You Need to Get A Bad Credit Loan in Ontario

On a typical application, we will require the following:

  • Government-issued picture ID (Driver’s License, Passport, Status Card etc.)
  • Current Credit Report
  • Current Banking history (last 90 days) that shows your source(s) of income

Applications do vary from individual to individual, so you may be required to provide other items such as pay stubs, utility bills, etc. Don’t worry, though; we are set up with the latest technology to ensure that you can provide these documents (if needed) to us from the comfort of your own home. Most of our applications can be done over the phone or online without ever having to go to the bank or elsewhere to collect information. We know that time is money, and money is what we want you to have!

How it works

1. Fill out our secure online application

Say goodbye to branch visits and long queues – everything can be done from the comfort of your device.

2. Get approved

Our dedicated team will promptly review your application and provide you with an approval within a matter of hours.

3. Receive your funds!

Once approved, receive your funds swiftly through a convenient e-Transfer directly to your bank account!

1. Fill out our secure online application

Say goodbye to branch visits and long queues – everything can be done from the comfort of your device.

2. Get approved

Our dedicated team will promptly review your application and provide you with an approval within a matter of hours.

3. Receive your funds!

Once approved, receive your funds swiftly through a convenient e-Transfer directly to your bank account!

Get a Loan Quote

The Cost of Borrowing in Ontario

The fastest and most common avenue to borrow is through payday loans, which offer bad credit loans and same-day funding. Although they do not require a credit check, they are not encouraged as the entire amount borrowed is generally expected to be paid with your next paycheque. This will likely leave you back in a financial bind come your next pay cycle. By law, they cannot lend you more than 50% of your net income per loan. These are the most expensive consumer loan types in Ontario, which results in the highest APR (Annual Percentage Rate) applied. As per Ontario law, the maximum cost of borrowing is $15.00 for every $100.00 you borrow.

Here is an example from the Ontario government that illustrates the cost of borrowing from a payday loan to a credit card:

If you borrow $300 for 2 weeks: Payday Loan (fee) Credit Card (at 23% interest)
1 loan will cost $45.00 $6.15
2 loans will cost $90.00 $12.29
3 loans will cost $180.00 $24.59
4 loans will cost $270.00 $36.88

Types of Bad Credit Loans in Ontario

In Ontario there are two main types of bad credit loans, there are unsecured loans and secured loans. The main difference between these and good credit loans is the interest rate.

Personal Loans (aka Installment Loans or unsecured loans), on the other hand, work differently. Every on-time payment to your personal loan will be positively reported to the credit bureau. Personal Loans have lower APRs (Annual Percentage Rates) than payday loans and offer monthly payment options to pay off the loan. This serves better as financial aid for those in need, particularly when a person is in need of an amount greater than 50% of their next paycheque. 

Secured loans, however, require some type of collateral to receive the loan. This makes them the easiest type of loan to receive with bad credit. Examples of secured loans are car loans and home equity loans. Due to the fact that an asset is involved, the lender is able to secure that asset in the event of defaulted payments. This allows the lender to be more lenient when lending and approve those who have low credit scores. 

Frequently Asked Questions

  • What is bad credit?
  • What causes bad credit?
  • Reasons to get a bad credit loan?
  • What are payday loans?

Credit Score Needed to Borrow Money in Ontario

There are no set requirements on what number a credit score needs to be. Each lender will have different criteria; however, as previously mentioned, various factors are observed when making a lending decision, and these factors also affect the loan amount the lender will offer in the loan agreement. However, many of these lenders specialize in bad credit loans and offer instant loans or guaranteed approval; you just won’t be able to get a traditional loan. 

Those with bad credit scores won’t be eligible for all types of loans. Instead of taking out a traditional loan, you may have to take out one of the best bad credit loans or no credit check loans in order to borrow money. However, with no credit check loans, your loan payments aren’t reported to the credit bureaus, which will have no impact on your credit history or improve your credit score. Ultimately, though, what you end up getting approved for is based on your financial situation, what type of loan you’re looking for, and where you’re applying for these loans. 

While getting a loan online is the most popular way to get a bad credit loan, you can also get work with credit unions instead of a traditional bank. They offer credit union loans that have a more flexible credit score requirement and can provide financial assistance for debt consolidation or any other reason you may need the loan.

Why choose Spring Financial?

spring
Max Amount $35,000
Interest Rates From 9.99%
Fully Online Application
Approval Within Hours
Same-Day E-Transfer
Bank Loans
Max Amount $50,000
Interest Rates From 9.99%
Fully Online Application
Approval Within Hours
Same-Day E-Transfer
Credit Cards
Max Amount $10,000
Interest Rates From $19.99%
Fully Online Application
Approval Within Hours
Same-Day E-Transfer
Payday Loans
Max Amount $1,500
Interest Rates From 200-450%
Fully Online Application
Approval Within Hours
Same-Day E-Transfer
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*Information is based on averages and may vary by institution or lender. It is not intended to address specific circumstances or any individual case.

About Spring Financial

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