- Accepts bad credit borrowers
- Quotes from multiple lenders
- Pre-approval in 5 minutes
- Funds in as little as 24 hours
Consolidating your debt can help make your finances more manageable and improve your credit score over time. In this guide we break down the different options you can use for debt consolidation in BC, including top consolidation loans and debt relief services.
Is it a good idea to consolidate debt?
It depends on your financial situation. A debt consolidation loan can simplify your finances and provide you with a more affordable monthly repayment, but it may cost you more overall depending on the rate and loan term you’re offered.
However, it’s a legitimate option if you’re currently overwhelmed by your debts and would like better control over your monthly budget.
- Accepts bad credit borrowers
- Easy online application
- Quotes from multiple lenders
- Access cash within 1-3 business days
- Accepts bad credit borrowers
- Same day funding
- 100% online
- No prepayment fees
Best debt consolidation loans in BC
How we found the best debt consolidation loans in BC
To find the best debt consolidation providers in BC, Finder experts collected more than 70 points of data for more than 60 lenders operating in Canada. Finder used this data to create a proprietary weighting formula that scores each lender based on rates, fees, terms, loan amounts, application process, funding speed, customer support, and reputation, among other features. The providers shown on the best list are those who scored highest based on this data-driven methodology. They are providers that are available and not available through Finder, with partners listed first. These loans are not representative of the entire market.Read more about the Finder personal loan ratings and review methodology.
464+
hours invested
112
lenders vetted
4,608
data points analyzed
1. Loans Canada
Loans Canada is a BBB-accredited loan search platform that works with the largest network of lenders in Canada.
- How it can help you consolidate debt: Loans Canada can match you with lenders offering good or bad credit debt consolidation loans in BC. Apply in less than five minutes for a loan of up to $50,000.
- Cost: 9.90% - 46.96%. Most lenders don’t charge fees.
- Loan terms: 4 - 60 months.
- What to watch out for: It’s not a direct lender, and you’ll pay high rates for bad credit. There’s also an issue with scammers posing as Loans Canada.
- Eligibility requirements: Steady source of income
2. LoanConnect
LoanConnect is a BBB-accredited loan search platform that matches you with lenders based on your unique profile.
- How it can help you consolidate debt: LoanConnect matches you with several lenders offering good and bad credit debt consolidation loans in BC. Fill out a quick application for a loan of up to $60,000.
- Cost: 8.99% - 46.96%. Most lenders don’t charge fees.
- Loan terms: 12 - 60 months.
- What to watch out for: It’s not a direct lender, and you’ll pay high rates for bad credit (up to 46.96%).
- Eligibility requirements: Currents debts must total less than 60% of income
3. Spring Financial
Spring Financial is an online direct lender offering fast debt consolidation loans for bad to good credit.
- How it can help you consolidate debt: Apply for an unsecured debt consolidation to get a better rate to save on interest or longer loan term to lower your monthly payments.
- Cost: Rates are 9.99% - 46.99%.
- Loan terms: 6 - 60 months.
- What to watch out for: High rates for low credit scores.
- Eligibility requirements: Min. income of $2,000, min. credit score of 550.
4. easyfinancial
easyfinancial is one of the largest alternative lenders in Canada. It offers debt consolidation loans to people who may not qualify for traditional loans.
- How it can help you consolidate debt: Get a secured or unsecured personal loan to consolidate debt. If you apply with a co-borrower, you can access a 2% rate reduction.
- Cost: Rates are 9.99% - 46.96%. You’ll be charged fees if you miss a payment.
- Loan terms: 9 - 240 months.
- What to watch out for: High rates for low credit scores.
- Eligibility requirements: Min. income of $1,200
5. SkyCap Financial
SkyCap Financial is a direct lender that approves borrowers with low credit scores. When approving your application, it doesn’t rely solely on credit score but looks at additional factors such as your employment and income to make a loan decision.
- How it can help you consolidate debt: SkyCap offers unsecured debt consolidation loans for people who can’t qualify with the bank. Apply for a loan of up to $10,000 in under five minutes and get a quick decision and direct payment to your bank account (usually in under 24 hours).
- Cost: Interest rates range from 12.99% to 39.99% depending on your credit score. This lender doesn’t charge origination or prepayment fees.
- Loan terms: 12 - 60 months.
- What to watch out for: It offers high rates for bad credit, and there’s no guarantee it’ll report all your on-time payments to the credit bureaus.
- Eligibility requirements: Min. monthly income of $1,666.67, full time employment/pension, min. credit score of 575
6. Mogo
Mogo is a direct lender that offers flexible loans for good and bad credit across Canada. You can return the debt consolidation loan within 100 days if you change your mind, but this perk may not be available to you if you have bad credit.
- How it can help you consolidate debt: Mogo provides unsecured debt consolidation loans to customers in BC. It also offers a 100-day money-back guarantee, so you can return your loan and get your interest back if you’re not satisfied.
- Cost: Rates start at 9.9% for Mogo personal loans. The only fees you’ll pay are NSF/late payment fees of $20 to $50 if you miss a payment.
- Loan terms: 6 - 60 months.
- What to watch out for: There are high rates for bad credit. There are some negative Mogo reviews online, and the 100-day money-back guarantee does not apply to one of the loans (MogoLiquid).
- Eligibility requirements: Min. income of $35,000 /year, min. credit score of 600
7. goPeer
goPeer is a regulated P2P lending platform that lets you borrow anonymously from Canadians.
- How it can help you consolidate debt: Get an unsecured debt consolidation loan at a favourable rate. goPeer aims to provide low interest loans by lowering its operating costs and passing on those savings to borrowers.
- Cost: Rates are 8.99% - 34.99%. You’ll be charged fees if you miss a payment.
- Loan terms: 36 or 60 months.
- What to watch out for: Origination fee is baked into the APR.
- Eligibility requirements: Recommended income of $35,000/year, min. credit score of 600.
8. Fairstone
Fairstone has been serving Canadians since 1926. It specializes in loans for fair to good credit.
- How it can help you consolidate debt: Get a debt consolidation loan without collateral or use your home to secure your loan and get a more favourable rate. Get a quote within minutes with no impact to your credit score.
- Cost: Rates are 19.99% - 39.99%. You’ll be charged fees if you miss a payment.
- Loan terms: 6 - 120 months.
- What to watch out for: High rates for low credit scores.
- Eligibility requirements: Depending on circumstances
9. Vancity
Vancity is one of the largest credit unions in Canada and serves BC residents. It offers debt consolidation loans to people with good credit.
- How it can help you consolidate debt: Vancity offers competitive rates and you can save on interest if you’re offered a better rate and loan term for your debt consolidation loan. Choose between a fixed and variable rate.
- Cost: From Vancity Prime 4.20% + increment.
- Loan terms: 6 - 120 months.
- What to watch out for: You’ll pay an admin fee, and people with bad credit may not qualify.
- Eligibility requirements: Good credit, recurring eligible income
10. Magical Credit
Launched in 2014, Magical Credit is a private lender that specializes in personal loans for people with poor credit or low income, which you can use to consolidate debt.
- How it can help you consolidate debt: Magical Credit is open to accepting lower credit scores and non-employment income, such as pension or disability benefits.
- Cost: 19.99% - 46.80%.
- Loan terms: 12 - 60 months.
- What to watch out for: High interest rates
- Eligibility requirements: Min. income of $1,200/month
11. AAR Financial
AAR Financial is a private lender offering secured and unsecured debt consolidation loans. Its selling point is its high approval rate.
- How it can help you consolidate debt: You can apply if your credit score is not the best, and you can increase your chances of approval with collateral.
- Cost: 14.90% - 46.70%.
- Loan terms: 24 - 120 months.
- What to watch out for: High interest rates
- Eligibility requirements: Min. income of $1,800
Other debt consolidation services in BC
The providers below do not offer debt consolidation loans. Instead, they offer other forms of debt consolidation, such as consumer proposals and debt management programs. With these debt relief services, an expert will negotiate with your creditors on your behalf to significantly reduce the rate you’re paying or cut down the amount you owe. Doing so will negatively impact your credit score for a few years.
Debt.ca
Debt.ca is a resource information service that can connect you with various debt consolidation services across BC. Its providers will present you with debt reduction options and outline a strategy based on your specific needs.
- How it can help you: Debt.ca is a resource site that can connect you with organizations that can help you consolidate your debt. It does not provide debt consolidation services or loans directly.
- Cost: It shouldn’t cost you anything to get connected to services through Debt.ca. However, it’s likely that Debt.ca works with paid providers and collects a fee when you click on referral links.
- What to watch out for: It does not offer debt management services directly but instead maintains a database of service providers that you can work with.
- Eligibility requirements: $10,000+ in unsecured debt & a hardship that's preventing you from paying your creditors.
Credit Counselling Society
The Credit Counselling Society of BC is a non-profit organization that specializes in helping customers get control of their finances. Since opening in 1996, the agency has helped over 850,000 Canadians reduce or eliminate their debt.
- How it can help: The service can help you make a budget, sign up for a debt management program (including working with lenders to repay your debt) or provide a referral to a lawyer or bankruptcy firm. It does not provide debt consolidation loans.
- Cost: Since the Credit Counselling Society is a non-profit, its basic services are free of charge. You may have to pay for lawyers or other services as you progress through your debt management plan.
- What to watch out for: Debt management services on offer may lower your credit score.
Bottom and Associates Ltd
Bottom and Associates is a licensed insolvency and financial restructuring firm that helps individuals and companies manage their debt. It specializes in bankruptcy, consumer proposals and connecting customers to suitable debt management services.
- How it can help: This trustee doesn’t provide debt consolidation loans. Instead, it negotiates terms for bankruptcy or a consumer proposal directly with your lenders to help reduce your overall debt load.
- Cost: Consultations are free but you’ll often pay thousands of dollars to set up your debt agreement, depending on how much you owe. That said, you may be able to significantly reduce your debt, so it can be worth it if you’re willing to take a hit to your credit score.
- What to watch out for: There’s no clear indication of fees. Debt agreements on offer will significantly lower your credit score. The service is only offered in New Westminster, North Vancouver and Port Coquitlam.
Sands & Associates
Sands & Associates is a licensed insolvency trustee that can help you negotiate a consumer proposal to manage your debt. This lets you reduce your debts without borrowing funds but can hurt your credit score.
- How it can help: This trustee doesn’t provide debt consolidation loans but can help you reduce and consolidate your debts under a consumer proposal without borrowing funds.
- Cost: Consultations are free but you’ll often pay fees to set up your consumer proposal. These can cost thousands of dollars depending on how much you owe. That said, you may be able to significantly reduce your debt, so it can be worth it if you’re willing to take a hit to your credit score.
- What to watch out for: There’s no clear indication of fees. Debt agreements on offer will significantly lower your credit score.
4 Pillars
4 Pillars was founded in 2002 and is one of Canada’s largest debt management and credit building firms. It is BBB-accredited, has very positive customer reviews online and operates 17 locations across BC.
- How it can help: The service helps with bankruptcies, consumer proposals, credit building and after-care support. It operates a financial literacy program called EmpowerU and runs debt bootcamps for clients. It does not offer debt consolidation loans directly.
- Cost: Consultations are free but you’ll often pay thousands of dollars in fees to arrange debt resolution, depending on how much you owe. That said, you can usually significantly reduce your debt, so it can be worth it if you’re willing to take a hit to your credit score.
- What to watch out for: There’s no clear indication of fees. Debt agreements will significantly lower your credit score.
Types of debt consolidation in BC
Debt consolidation option | How it works | How much it costs | How to qualify |
---|---|---|---|
Unsecured debt consolidation loan |
| Rates start at 9.75% for good to excellent credit |
|
Secured debt consolidation loan |
| Secured personal loans start at 6.99% |
|
Balance transfer credit card |
| Promotional rate between 0% and 3.5%. After promo, rates range from 8.99% to 19.99%. Additional transfer fees from 1% to 3% of amount transferred |
|
Debt management program |
| Free with a credit counselling organization, but you may have to pay for lawyers or other services as you progress through your debt management plan. You may need to pay a set-up fee and a monthly maintenance fee with a for-profit firm. |
|
Debt settlement |
| Consultations are free but you’ll often pay thousands of dollars in fees to set up your debt agreement, depending on how much you owe. |
|
Consumer proposal |
| Consultations are free but you’ll often pay thousands of dollars in fees to set up your debt agreement, depending on how much you owe. |
|
A consolidation loan might cost you more
A debt consolidation loan can help you consolidate all of your debts into one easy lower payment. This will help you make your payments on time and consequently improve your credit score.
Ideally, your debt consolidation loan will have a lower rate and better loan term than what your debts currently have. In many cases, however, your debt consolidation loan might end up costing you more if you don’t get a favourable rate or if you extend your loan term. With a higher rate or longer loan term, you’ll pay more interest overall.
How to apply for a debt consolidation loan in BC
- Compare lenders. Compare loan amounts, interest rates, fees and terms between multiple lenders to find one that suits your needs.
- Apply online or in person. Go to your lender’s website to start an online application, or visit a branch to apply in person. Some lenders operate solely online.
- Provider personal information. Input details like your name, date of birth, address, phone number and email.
- Provide financial information. Provide basic details about your employment, income and the bank account into which you want funds to be deposited.
- Verify your details. You’ll likely be asked to provide proof of ID, proof of residency and proof of income. Examples include your driver’s license, passport, recent pay stubs, tax Notice of Assessment and utility or bank statements showing your name and address.
- Agree to a credit check. Give your lender permission to check your credit score as part of the application process. Some lenders don’t require a credit check, but you may face high rates.
- Submit your application. Many lenders provide application decisions in 1 to several business days, although it could take up to a week. If approved, it may take another 1-2 business days to receive funds.
Debt in BC
According to Equifax Canada, delinquency rates are rising in Ontario and British Columbia. Mortgage delinquency rates in BC increased by 62.2% in Q4 2023 vs Q4 2022. Mortgage holders in BC, particularly young homeowners 36 years old and under, are also missing credit card payments more.
If you’re struggling to keep up with your debt payments, head over to our guide on where to get free credit counselling.
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