If you’ve got bad credit or not enough income, it’s often difficult to get approved for a line of credit from traditional lenders like banks and credit unions. The good news is that there are private lenders that offer lines of credit for bad credit in Canada. The bad news is that steep interest rates and lender fees usually apply.
Keep reading to compare loan options and find out how to get easy approval on a line of credit.
To get approved for a line of credit, you can apply to alternative lenders. Many lenders operating online work with bad credit borrowers. You can apply through the lender directly or use an online loan search platform like Loans Canada or LoanConnect who can match you with a lender that suits your needs.
Rather than focusing on your bad credit score, these lenders will consider other factors when assessing your credit application, such as your income and existing debts.
| Provider | Interest rate | Interest rate type | Loan amounts | |
|---|---|---|---|---|
 | 19.90% - 46.90% | Fixed | $1,000 – $10,000 | |
 | 9.90% - 21.50% | Fixed | $5,000 – $35,000 | |
 | 19.99% - 46.96% | Fixed | $500 – $50,000 | |
 | No interest or fees to access credit, optional $11.99/month membership for premium services like instant funding | Fixed | $30 – $150 | |
| 47.42% | Fixed | $1,000 – $3,500 | |
| 46.93% | Fixed | $1,000 – $3,500 |
Learn about the features, benefits and drawbacks of these providers offering easy lines of credit for bad credit.
Fora is a relatively new lender in Canada that launched in 2022. It offers an unsecured line of credit to suit borrowers who may not qualify with banks and credit unions. You can apply online without needing to email or upload documents, but Fora requires view-only access to your bank statements to give approval.
When you need to access funds from your line of credit, Fora can deposit them into your bank account as soon as the same business day.
It’s easier to get than a line of credit from a financial institution. Fora can consider your income as long as it’s regularly paid into your bank account. This means you can qualify even if your income does not come from employment. This lender is also more lenient with credit scores.
To increase your chances of approval, you’ll need to show Fora you are receiving enough income and you have room in your finances for new line of credit payments.
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Dive deeper: Fora line of credit review
Loans Canada is a loan search platform with the largest network of lenders in Canada. It has been in business since 2012 and is based in Toronto, Ontario.
Loans Canada is worth considering if you want a thorough search of options that best suit your situation. It is not a direct lender but a platform that allows you to fill out one application to get matched with the appropriate lenders. This means you could be matched with lenders who offer lines of credit and/or those who offer other loan types, but you can be assured that your matches are open to giving you a loan based on your finances.
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Dive deeper: Loans Canada review
Online loan search platform LoanConnect can help you find a line of credit through its network of lenders. It has been around since 2016 and its office is based in London, Ontario.
LoanConnect is a solid option if you want to expand your search using a loan search platform. You can apply online within minutes and get matched with suitable lenders, whether they are line of credit lenders or other types. LoanConnect works with borrowers of all credit scores, so you can apply and get results even with bad credit.
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Dive deeper: LoanConnect review
Nyble launched in 2022 in the Canadian loans marketplace and its product is a bit different from the traditional line of credit. With a Nyble credit line, you’re approved to borrow up to a limit. However, you won’t be able to borrow more until you pay off what you previously borrowed.
Apply online for an interest-free line of credit of up to $150 to cover small expenses and build your credit. Get funds in 1-3 business days with a free account. For $11.99 per month, get access to premium services, including funding in 1-30 minutes, a free Equifax credit report and identity theft protection.You can repay your loan on your next payday or roll it over to the following months.
Nyble is one of the easiest lines of credit to get approved for because it offers much smaller loan amounts, doesn’t do any credit checks and is flexible with the type of income you earn. Nyble also provides instant approval and instant funding 24/7.
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Dive deeper: Nyble credit line review
MogoMini is a line of credit offered by Vancouver-based fintech Mogo. You can apply online and get pre-approved in less than five minutes.
This line of credit is easier to get than many other lines of credit in Canada because this product is intended to be a payday loan alternative for emergency funding. Mogo is open to financing borrowers with a credit score of at least 600. You can also apply if your income is more than $35,000/year.
This line of credit can be easy to get, but with such a high interest rate, make sure you pay off the amount you borrow as fast as possible.
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Dive deeper: MogoMini review
Cash Money doesn’t just provide payday loans – it also offers lines of credit. One of the most well-known alternative lenders, it has been operating for decades and has headquarters in Toronto, Ontario.
You can apply for a loan and verify your income online, while in-store and phone applications are also accepted.
This line of credit is easier to get than lines of credit from banks and sometimes even other alternative lenders. Cash Money is open to non-employment incomes and lower credit scores. Its line of credit interest rate is high though at 46.93% . It’s important to be financially disciplined and to pay off your balance as soon as possible if you get this line of credit.
It’s not easy to get a line of credit from a bank unless you have a strong financial profile. To increase your chances of getting approved for a bank line of credit, you’ll need to meet the following:
Securing your line of credit with your home or investments will also help your application.
Banks overall share similar eligibility requirements, so one bank isn’t necessarily easier than another. It boils down to your personal circumstances; everyone is unique and banks look at many factors that make up your financial situation.
If we compare types of lenders though, alternative lenders are easier than banks.
A line of credit is a good idea only if you are financially disciplined. A line of credit is a flexible loan that allows you to access funds as you need them, up to a limit. You can use a portion of your credit limit or the full amount — it’s up to you — and you can use the money for any purpose.
You’re charged interest only on the amount you borrow, not on the full credit limit. You’ll have minimum payments you must make every month, but the main benefit of a line of credit is that you can pay off the amount you borrowed whenever it’s best for you.
This is why a line of credit requires financial discipline. There is a risk of borrowing more than you need, and interest is calculated daily on the unpaid balance. If you have bad credit, consider the steep interest rate, which can have a big impact on the total cost of borrowing. Also, if you miss payments, you could damage your credit score further (although you can make interest-only payments, which makes it more affordable).
Consider credit counselling if you need advice on debt management.
Expert tip
It's important to use a line of credit responsibly, especially if you have bad credit. Before using your line of credit, ask yourself what the purpose is. If it's to buy something you can't afford, it's best not to use it.
— Sean Cooper, Editorial Review Board
If you’re applying for a bad credit line of credit, keep an eye out for these features:
No. Be very wary of any lender that advertises “guaranteed” approval. This is a common red flag that could indicate a personal loan scam, so the safest thing to do is steer clear.
While there are plenty of legitimate online lenders, there are also plenty of fraudsters and scammers. Do your research to make sure a lender is properly registered and licensed in your province, and read customer reviews to find out whether they’re trustworthy.
Even if your credit score is poor, there are several simple things you can do to increase your chances of getting approved by a legitimate lender:
It’s easy to apply for an online personal line of credit for bad credit. Here’s what you need to do:
Find out why your consumer proposal got rejected by your creditors and what you can do about it.
Compare minimum credit score requirements to get approved for a personal loan.
Learn about the costs, benefits and risks of getting an advance on a legal settlement.
Learn what happens to your loan when your lender closes up shop or goes bankrupt.
Compare current personal loan interest rates in Canada.
Use our calculator to find out your debt-to-income ratio (DTI) and see how it affects your ability to receive financing.
See what eligibility criteria lenders consider and learn how to find a loan you’re eligible for.
Here’s what you will need to provide to apply for a personal loan, plus compare online lenders and apply today.
Your income is a crucial factor in determining how much you can borrow and if you’re eligible. Compare income requirements from a selection of lenders.
Learn how the preapproval process works and what you need to get preapproved by a lender. Find out how much you may be able to borrow and compare rates.
