Guaranteed approval loans for poor credit: Where to apply?

If you’ve got bad credit, it can be extremely difficult to find a loan from a traditional lender such as a bank. The good news is that there are many alternative lenders that offer loans to borrowers like you. But while some lenders may try to tempt you with the promise of a guaranteed approval loan, be aware that this is too good to be true.

Are there guaranteed approval loans for poor credit in Canada?

No. There is no such thing as a guaranteed approval loan in Canada. Before offering you a loan, a responsible lender will assess your income and determine whether you’re able to repay the loan.

In fact, if a lender promises guaranteed approval, that’s a red flag that could indicate a scam. So if you see a lender advertising guaranteed loan approval, be cautious.

But there are loans that are almost guaranteed approval because of their lenient eligibility requirements. Check out the lists below for a rundown of the available options. However, be prepared for high interest rates.

Compare loans for poor credit with lenient requirements

These personal loan providers have lenient eligibility requirements and accept poor credit borrowers.

Compare cash advance loans with almost guaranteed approval

Another option for guaranteed approval loans is a cash advance. You pay no interest on these cash loans, but you may pay a monthly subscription fee.

Compare payday loans with easy criteria

Payday loans typically have very lenient eligibility criteria, so you can still apply with poor credit.

Where can you get high-risk loans with guaranteed approval in Canada?

Loans you can get online that are higher risk because of their easy criteria and steep interest rates include:

• Payday loans
• Car title loans
• Installment loans
• Early pay advances
• Secured credit cards

Most of these are very expensive loans, so be sure to consider your alternatives first. Learn more about each loan below.

Option 1: Payday loan

• How it works: Payday loans offer fast access to small loans with short repayment terms. You can apply online or in-store, and many lenders offer same-day loan approval and funding. You’ll then usually repay the whole amount in full by your next payday.
• How much you can borrow: Up to $1,500.
• How much it costs: $14 to $17 for every $100 borrowed, depending on your province.
• Why it’s almost guaranteed: Bad credit borrowers are accepted. Instead of focusing on your credit score, payday lenders will focus on your income and whether you can afford to repay a loan. Many payday lenders accept various types of non-employment income, such as CCB, social assistance and CPP.
• Risks: Payday loans are expensive to repay and come with very short loan terms, which can make it easy to get trapped in a cycle of debt. You’ll also need to watch out for illegitimate lenders and payday loan scams.

Are there guaranteed payday loans?

No. Payday loans are one of the easiest loans to get which make them almost guaranteed, but lenders still need to review your finances before approving. Some use software to automate the process and give instant approval 24/7.

How to guarantee approval on a payday loan with poor credit

To increase your chances, you’ll need the following:

• Have a recurring income, employment preferred
• Show there’s room in your income to take on more debt
• Limit the number of NSF transactions in your bank account

Dive deeper: Best payday loans in Canada

Option 2: Vehicle title loans

• How it works: A car title loan is a personal loan with your car as collateral. Your car must be paid off, not leased and not older by a certain number of years (usually 10).
• How much you can borrow: Up to 50% of your vehicle’s value.
• How much it costs: APRs typically range between 9% and 49%.
• Why it’s almost guaranteed: By offering your car title as security, you decrease the lender’s level of risk. This increases your chances of approval and can also help you access a better rate.
• Risks: Make sure you read up about all the fees that apply to a vehicle title loan, such as vehicle evaluation and title search fees. If you default on the loan, the lender could repossess and sell your vehicle to cover its losses.

Are there guaranteed car title loans?

There are some car title loan lenders that guarantee approval on their loans as long as your car meets their requirements. Usually the lender will ask you to drive to one of their agents near you for an appraisal, or one of their agents will come to you. Approval is based on your car, so it’s possible to get approved even if you have a poor credit score and low income.

How to guarantee approval on a car title loan with poor credit

To increase your chances, you’ll need the following:

• Have an income
• Own a car that’s fully paid off, in good condition, not leased and not older than 10 years

Dive deeper: Car title loans in Canada

Option 3: Installment loans for poor credit

• How it works: Many online lenders offer personal or installment loans with more lenient eligibility criteria than traditional lenders such as banks. Bad credit won’t stop you from getting a loan.
• How much you can borrow: Up to $10,000 (maximum loan amount varies depending on the lender and your personal financial situation).
• How much it costs: Interest rates of up to 47%. However, if you get a short-term installment loan (less than six months), you may pay an extra fee.
• Why it’s almost guaranteed: Many alternative lenders have lenient eligibility requirements and specialize in loans for borrowers with bad credit.
• Risks: Installment loans for bad credit borrowers come with high interest rates. You’ll also need to be wary of long loan terms that could result in you paying more than the loan amount in interest charges. Finally, do your due diligence to make sure you only ever deal with legitimate lenders.

Are there guaranteed installment loans?

Loan providers that offer nearly guaranteed installment loans are those that offer installment loans with loan terms shorter than six months.

These short-term loans have lower loan amounts, usually up to $1,000. They are payday loan alternatives and are easier to get approved for than installment loans with longer loan terms and higher loan amounts. However, watch out for an extra fee that lenders bake into your loan payments – they may call this a “surety fee,” “administration fee” or “brokerage fee.” This fee can be up to $300, and it’s the cost that comes with easy short-term loans with no credit check.

How to guarantee approval on a short-term installment loan with poor credit

To increase your chances, you’ll need the following:

• Have a regular income, employment preferred
• Have less than 2 NSF transactions in your bank account in the last 90 days
• Have no payday loan debt

Related: Short-term loans in Canada

Option 4: Early pay advances

• How it works: Borrow a small amount to pay for unexpected bills or avoid overdrafts. Repay by your next payday or roll over to the following months depending on the lender.
• How much you can borrow: Up to $350.
• How much it costs: No interest, but you may be a monthly subscription fee.
• Why it’s almost guaranteed: Lenders of early pay advance apps won’t do credit checks, and you can get approved with non-employment income, including social assistance, Canada child benefit, disability benefits and more.
• Risks: If you keep rolling over your loan and holding off on paying it off, it may end up costing more than a payday loan.

Are there guaranteed early pay advances?

This is a fairly new product in Canada, so there are only a few providers available, such as Nyble and Bree. These lenders have easy requirements and can approve bad credit as long as you have a recurring income and, in many cases, pay a subscription fee.

How to guarantee approval on a cash advance

To increase your chances, you’ll need the following:

• Have a regular income
• Show there’s room in your income for more debt

Dive deeper: Cash advance apps in Canada

Option 5: Secured credit cards

• How it works: Secured credit cards are designed to help you improve your credit score. You’re typically required to put down a security deposit for your card, which not only serves as collateral for the card but also becomes your credit limit. By paying for purchases with the card and then making on-time payments towards your card balance, you can improve your credit score.
• How much you can borrow: From $75.
• How much it costs: Aside from the upfront deposit, expect APRs of around 18–20%. Some cards also have an annual fee.
• Why it’s almost guaranteed: Your credit score doesn’t affect your ability to qualify for a secured credit card. The lender can collect your security deposit if you fail to make on-time payments.
• Risks: You risk losing your deposit if you can’t pay off your card. Be aware that annual fees and foreign transaction fees may also apply.

Are there guaranteed approval secured credit cards?

There are legitimate providers of this type of card that advertise guaranteed approval, such as Capital One and Neo Financial. You can get approved as long as you pay a security deposit and present a source of income. If you use your card but don’t make on-time payments, your provider can take your deposit.

How to guarantee approval on your loan

To increase your chances, you’ll need the following:

• List all your incomes
• Show there’s room in your income for more debt
• Pay a deposit (up to $200)

Dive deeper: Secured credit cards in Canada

Are there no credit check personal loans with guaranteed approval?

No. No credit check personal loans with guaranteed approval do not exist. As mentioned above, a lender needs to assess your ability to repay a loan before it can approve your application. Promising guaranteed approval is a tell-tale sign of a loan scam, so avoid any lenders that do this.

However, no credit check loans are available. To qualify, you will typically need the following:

• A steady income
• A debt-to-income (DTI) ratio of less than 40-60%

No credit check loans come with higher interest rates than traditional personal loans, so make sure you can afford to repay what you borrow. It’s also important to be aware that sketchy lenders sometimes use the “no credit check” to entice unsuspecting borrowers, so research any lender thoroughly before applying for a loan.

How to make sure you apply to a legitimate lender

Remember the following tips to help you find a reputable lender:

• Check the lender’s bona fides. Make sure the lender is registered and properly licensed. For example, payday lenders require a payday loans licence in the provinces in which they operate. You can also check whether the lender has a legitimate physical address and is accredited with organizations like the Better Business Bureau.
• Know the regulations where you live. Avoid lenders that don’t abide by lending regulations in your province or that seem sketchy in any way. For example, if they promise guaranteed approval, if they ask you to pay a fee upfront or if they’re not transparent about the total cost of a loan, walk away.
• Read reviews. Check out reviews from previous customers on independent sites like Trustpilot. Would they recommend borrowing from the lender?

Other ways to increase your chances of guaranteed approval on a loan

Apply through a loan broker

• How it works: Personal loan brokers work with a network of lenders to offer access to a variety of personal loans. After assessing your borrowing requirements, a broker can help you find a loan that matches your needs.
• How much you can borrow: Up to $50,000 (depending on the lender’s eligibility requirements).
• How much it costs: Many loan brokers don’t charge fees, but some do. Loan rates and fees vary depending on the lender you choose.
• Why it’s almost guaranteed: The broker can use its database to match you with a lender with eligibility criteria that match your financial situation.
• Risks: Choosing a loan broker that only works with a small network of lenders can limit your range of options. Also, make sure you check whether the broker gets paid a different commission from different lenders and whether that affects the loans they recommend.

Get a loan from a pawn shop

• How it works: With a pawn shop loan, you can borrow money when you offer a valuable item as collateral. For example, you may secure your loan with jewellery, up-to-date electronics or a musical instrument. You’ll then typically have between 30 days and a few months to repay what you borrow.
• How much you can borrow: Typically 20–60% of the resale value of your collateral.
• How much it costs: Rates typically fall in the 5–30% range.
• Why it’s almost guaranteed: Offering an asset as security decreases the lender’s risk. If you can’t repay the loan, the lender can sell the item to cover its losses.
• Risks: Watch out for high interest rates and any additional fees that may apply. If you fail to repay your loan, the pawn shop can sell the item you offered as collateral.

Get a credit builder loan

• How it works: A credit builder loan is designed to help you improve your credit score while also setting aside money. Essentially, you must repay the loan amount in full before the funds are actually deposited into your bank account. The lender will report your on-time payments to the credit bureaus to help you improve your credit history.
• How much you can borrow: Typically $1,250–$10,000.
• How much it costs: Interest rates typically range from 9.5% to 20%.
• Why it’s almost guaranteed: Credit builder loans are designed for borrowers with bad credit (or no credit history) who are trying to improve their credit score. As a result, these loans have lenient eligibility requirements.
• Risks: Credit builder loans are not suitable if you need access to money straight away. High interest rates can also apply, and you’ll need to check the fine print to find out about loan fees.

Alternatives to high-risk loans that do not involve taking on more debt

It’s worth considering all your alternatives before taking out a new expensive loan. Options include the following:

• Credit counselling. A credit counsellor can assess your financial situation and help tailor a plan to get you out of debt. Visit 211.ca to find a counsellor in your area.
• Debt management program. When you sign up to a debt management program, a credit counselling agency negotiates with your creditors on your behalf. The aim is to convince them to combine your debts into a single monthly payment with a reduced interest rate. This will negatively affect your credit score.
• Consumer proposal. A consumer proposal is a legal agreement between you and your creditors. It involves you offering to pay back a percentage of what you owe, negotiating a longer period to pay back your debt, or both of the above. However, it’ll hurt your credit score and stay on your credit file for three years after you finish your repayments.

Related: Debt relief companies in Canada

Bottom line

Guaranteed approval loans for poor credit sound too good to be true, and they usually are. Steer clear of any lender that promises guaranteed loan approval, and consider the almost guaranteed approval alternatives listed above. Make sure to compare a range of loan options, and make sure you can afford to repay what you borrow before you apply.

Frequently asked questions

• Can you get instant loans with guaranteed approval?

  No. While some payday lenders offer loan approval and funding within minutes, there's no such thing as guaranteed approval. A responsible lender will always determine your ability to repay a loan before approving your application, so avoid any lender that promises guaranteed loan approval. Learn more about instant loans.

• Are there guaranteed payday loans 24/7?

  While there are online and storefront lenders that offer 24/7 payday loans, a legitimate lender will not offer guaranteed approval. Instead, lenders will examine factors such as your employment and income to work out whether you can afford a payday loan.

• What can I do to guarantee my chances on getting a loan?

  You can increase the likelihood that you'll be approved for a loan by providing documentation that shows you have the ability to repay the amount you want to borrow. Being in steady long-term employment, earning a regular income and having no NSF transactions on your account will help.

• What are the loans with guaranteed approval?

  Loans with the easiest requirements for near-guaranteed approval include payday loans, car title loans and secured credit cards.

• Are there loans where everyone is approved?

  No. Every legitimate loan has a set of requirements an applicant needs to meet. Avoid lenders that say everyone is approved because this could be a scam.