Easy lines of credit for bad credit in Canada

If your credit score isn’t the best or you have too many debts, 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 who 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 for bad credit, and find out how to get easy approval.

Compare lines of credit for bad credit in Canada

1 - 3 of 3

Sort by:Please select

Finder Score (low-high)Finder Score (high-low)

Product	Finder Score	APR Range	Loan Amount	Loan Term	Requirements
Loans Canada Line of Credit	Finder score 8.5 Great	9.99% - 35.00%	$5,000 - $35,000	Open	Requirements: min. credit score 300 Note: Loans Canada is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.	Go to siteView details Compare	loading Fetching your data...
LoanConnect Line of Credit	Finder score 8.5 Great	8.99% - 35.00%	$500 - $60,000	Open	Requirements: min. credit score 300 Note: LoanConnect is a loan search platform with access to multiple lenders. Applicants will be matched with a suitable lender based on credit history and borrowing requirements.	Go to siteView details Compare	loading Fetching your data...
Fora Line of Credit	Finder score 7.5 Great	19.90% - 34.90%	$1,000 - $15,000	Open	Requirements: Steady source of income	Go to siteView details Compare	loading Fetching your data...

loading

Finder Score for personal loans

To make comparing even easier, we came up with the Finder Score. Interest rates, fees and features across 110+ personal loans are all weighted and scaled to produce a score out of 10. The higher the score the better the loan—simple.

Read the full methodology

Learn more about lines of credit for bad credit

Learn about the features, benefits and drawbacks of these providers that offer easy lines of credit for bad credit.

• Loans Canada
• LoanConnect
• Nyble
• KOHO
• Mogo
• Fora
• Cash Money

1. Loans Canada line of credit

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 to thoroughly search for options that best suit your situation.

Is this line of credit easy to get?

Loans Canada is not a direct lender but a platform that allows you to fill out one application and get matched with 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 reasonably sure that your matches are open to giving you a loan based on your finances.

• Line of credit details

  • Loan amount: $250 – $50,000
  • Loan term: Open
  • APR: 9.99% - 35.00%
  • Eligibility requirements: Canadian resident, age of majority in your province of residence
  • Serviced provinces: All of Canada
  • Accepts bad credit: Yes
  • Instant approval: No, but instant pre-approval is available
  • Credit check required: Loans Canada doesn’t do credit checks, but the lender you’re matched with may
  • Guaranteed approval: No

• Pros and cons

  • Network of over 60 lenders
  • Easy online application process
  • No fees for using Loans Canada’s service

  • Higher rates for bad credit
  • Quotes aren’t online—you’ll need to speak to a Loans Canada representative over the phone
  • Not a direct lender

Go to site

2. LoanConnect line of credit

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.

Is this line of credit easy to get?

By applying to LoanConnect, you get access to its database of 30+ lenders. You can apply online within minutes and get matched with suitable lenders, whether they offer lines of credit or other types of loans.

• Line of credit details

  • Loan amount: $500 – $60,000
  • Loan term: Open
  • APR: 8.99% - 35.00%
  • Eligibility requirements: Canadian citizen or permanent resident, age of majority in your province of residence, current debts must total less than 60% of your income
  • Serviced provinces: All provinces
  • Accepts bad credit: Yes
  • Instant approval: No, but instant pre-approval is available
  • Credit check required: LoanConnect doesn’t do credit checks, but the lender you’re matched with may.
  • Guaranteed approval: No

• Pros and cons

  • Convenient online service
  • Get money within 48 hours
  • Easy comparison process

  • Not a direct lender
  • Watch out for high rates for bad credit
  • You can only compare loan offers from lenders in LoanConnect’s network

Go to site

3. Nyble credit line

Nyble launched in 2022 in the Canadian loans marketplace, and its product is a bit different from a 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.

You can repay your loan on your next payday or roll it over to the following months.

Is this line of credit easy to get?

Nyble is one of the easiest lines of credit to get approved for because it offers much smaller loan amounts than most other lenders, doesn’t do any credit checks and is flexible in the types of income it accepts. Nyble also provides instant approval and instant funding 24/7.

• Line of credit details

  • Loan amount: $30 – $250
  • Loan term: 30 days, extendable
  • APR: 0% interest with optional fees
  • Eligibility requirements: You must be 18 years or older, have an active bank account with minimal NSF transactions and satisfy income requirements.
  • Serviced provinces: All provinces and territories
  • Accepts bad credit: Yes
  • Instant approval: Yes
  • Credit check required: No
  • Guaranteed approval: No

• Pros and cons

  • Bad credit is okay (no credit check)
  • No need to be employed—many types of income are acceptable
  • Fast approval with no application fee

  • Will be costly if you keep rolling over your loan
  • Small loan amounts
  • Paid membership required for fast transfers and other premium perks

Go to site

4. KOHO Cover

KOHO offers a cash advance of up to $250. It’s not exactly a line of credit, but it’s very similar to one. You’re approved to borrow up to a limit, and you can repay the amount you borrow any time with no late penalties.

Is this cash advance easy to get?

KOHO Cover is one of the easiest cash advances to get because you don’t need to go through a credit check or submit proof of income.

• Line of credit details

  • Loan amount: $20 – $250
  • Loan term: Flexible
  • APR: 0% interest with a subscription fee starting at $2/month
  • Eligibility requirements: KOHO account—access higher loan amounts over time by using KOHO for everyday spending, repaying your monthly fees and using its other services
  • Serviced provinces: All provinces and territories
  • Accepts bad credit: Yes
  • Instant approval: Yes, you get instant access
  • Credit check required: No
  • Guaranteed approval: Yes, at the time of writing, KOHO is advertising “guaranteed approval” for KOHO Cover

• Pros and cons

  • Bad credit is okay (no credit check)
  • No need to be employed
  • No interest
  • Reputable lender

  • Monthly fee required
  • Small amounts

Go to site

5. MogoMini line of credit

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.

Is this line of credit easy to get?

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.

• Line of credit details

  • Loan amount: $300 – $5,000
  • Loan term: Open
  • APR: 34.36%
  • Eligibility requirements: Canadian resident, age of majority in your province of residence, annual net income of $35,000
  • Serviced provinces: BC, AB, SK, MB, ON, NB, NS, NF, PEI, NU, NT
  • Accepts bad credit: Yes
  • Instant approval: No, but instant prequalification is available
  • Credit check required: Yes
  • Guaranteed approval: No

• Pros and cons

  • Fast pre-approval
  • Designed for borrowers who struggle to qualify with traditional lenders
  • Mogo account holders also get a range of other perks

  • Steep interest rates for bad credit
  • Other lenders offer higher loan amounts
  • Watch out for additional fees

Go to site

6. Fora line of 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 before it can give approval.

When you need to access money from your line of credit, Fora can deposit it into your bank account as soon as the same business day.

Is this line of credit easy to get?

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 chance of approval, you’ll need to show Fora that you are receiving enough income and that you have room in your finances for new line of credit payments.

• Line of credit details

  • Loan amount: $1,000 – $15,000
  • Loan term: Open
  • APR: 19.90% - 34.90%
  • Eligibility requirements: Steady source of income, be a Canadian citizen or permanent resident, be a resident of and legal age of majority in one of Fora’s serviced provinces and have an active personal bank account
  • Serviced provinces: AB, BC, NB, NS, ON and SK
  • Accepts bad credit: Yes
  • Instant approval: No
  • Credit check required: Yes
  • Guaranteed approval: No

• Pros and cons

  • Fast access to funds
  • No additional fees
  • Easy application process

  • High interest rate
  • You won’t be able to get this line of credit if you live outside of AB, BC, NB, NS, ON and SK

Go to site

7. Cash Money line of credit

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 is headquartered in Toronto, Ontario.

You can apply for a loan and verify your income online, while in-store and phone applications are also accepted.

Is this line of credit easy to get?

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 35.00% . It’s important to be financially disciplined and pay off your balance as soon as possible if you get this line of credit.

• Line of credit details

  • Loan amount: $500 – $10,000
  • Loan term: Open
  • APR: 35.00%
  • Eligibility requirements: Steady source of income, active bank account, min. 600 credit score
  • Serviced provinces: AB, BC, MB, NB, NL, NS, ON & SK
  • Accepts bad credit: Yes
  • Instant approval: No
  • Credit check required: Yes
  • Guaranteed approval: No

• Pros and cons

  • Easy to apply
  • Bad credit accepted
  • Operating since 1992

  • High interest rates
  • Not available everywhere
  • Check the fine print for any additional fees

How do I get a line of credit with bad credit?

To get approved for a line of credit with bad credit, you can apply to alternative lenders. Many lenders operating online work with bad credit borrowers. You can apply through a 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 credit score, bad credit lenders will consider other factors when assessing your credit application, such as your income and existing debts.

Can I get a guaranteed line of credit with bad credit?

Not really. Be 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.

If you need almost guaranteed approval, check out cash advance apps with repayment flexibility like Nyble and KOHO. These providers tend to be lenient because they offer small loan amounts only and don’t require a credit check.

Are there banks that provide easy approval for a 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 chance of getting approved for a bank line of credit, you’ll need to meet the following:

• Have sufficient income (steady full-time employment preferred)
• Monthly debt payments are less than 40% of your monthly income
• Credit score over 660

Securing your line of credit with your home or investments will also help your application.

What is the easiest bank from which to get a line of credit?

Overall, banks 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.

Should I get a line of credit if I have a low credit score?

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 only charged interest on the amount you borrow, not on the full credit limit. There are 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 borrow 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 insight

"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

Features of lines of credit for bad credit

If you’re applying for a bad credit line of credit, keep an eye out for these features:

• High interest rates. Interest rates on lines of credit for bad credit can be as high as 34.36%. With this in mind, it’s a good idea to make more than the minimum monthly payment to minimize the interest that accrues.
• Fixed rates. Line of credit interest rates for bad credit are usually fixed, which means your rate will stay the same.
• Lower credit amounts. Online lenders tend to offer smaller credit limits than the banks. If your credit score is less-than-perfect, you can expect to qualify for a lower amount than someone with excellent credit.
• Improve your credit. Making on-time payments on your line of credit can help rebuild your credit score.

Secured vs unsecured lines of credit

• Secured lines of credit. This type of line of credit is backed by collateral (usually your house) allowing you to access a higher credit limit and better interest rate. However, this product is not easy to get if you have bad credit because it’s offered by traditional lenders, not alternative lenders. For reference, the average secured line of credit rate is 5.65%.
• Unsecured lines of credit. With no collateral to secure the loan, unsecured lines of credit have higher interest rates. This is easier to get than a secured line of credit if you have bad credit because you can get one from an alternative lender. The average unsecured line of credit rate is 9.41%, but if you have bad credit, you’ll be charged much more than this.

Tips to get easy approval on a line of credit with bad credit in Canada

Even if your credit score is poor, there are several simple things you can do to increase your chance of getting approved by a legitimate lender:

• Check your credit report. Find out what your credit score is to get a better idea of which lenders may be willing to work with you. You can also check whether there are any inaccuracies in your credit report that need to be fixed.
• Pay down your debt. Your debt-to-income (DTI) ratio is a key factor lenders will consider when you apply for credit. By taking the time to pay down your existing debts, you’ll ensure that a smaller portion of your income goes towards paying back what you owe. Lenders typically want to see a DTI below 40%, but lenders of lines of credit for bad credit are open to higher DTIs.
• Apply for a smaller amount. Lenders are more likely to approve you for smaller amounts than larger amounts.
• Get a cosigner. Finding someone with strong credit who is willing to cosign your loan will also boost your chance of getting approved. However, that person will have to step in and cover the repayments if you fall behind.

How to get a line of credit with bad credit

It’s easy to apply for an online personal line of credit for bad credit. Here’s what you need to do:

1. Compare your options. Compare lenders to find out about their eligibility requirements, line of credit amounts and interest rates. You can do your own research or go through a loan search platform to find a loan that’s right for you.
2. Submit your application. Fill out an online application form with your name, contact details and income and employment information.
3. Provide supporting documentation. You may need to provide proof of ID, such as your driver’s licence or passport, and bank account information to prove your income.
4. Get funded. It’ll typically take between one and three business days to get approved and funded. You can then withdraw from your available credit as needed to fund any expenses.

Frequently asked questions about credit lines for bad credit

• Can you get a line of credit with bad credit Canada?

  Yes. While you may not be able to qualify with a bank or credit union, some online lenders offer lines of credit for bad credit in Canada. However, high interest rates typically apply.

• What credit score do I need to get a line of credit with bad credit?

  It depends on the lender, but generally, your credit score needs to be over 570, sometimes even 600.

• Can you get instant approval for a line of credit?

  Unless it's a non-traditional line of credit like Nyble, you can't get instant approval for a line of credit.

• Are there home equity lines of credit (HELOCs) for bad credit?

  HELOCs are typically given to people with good to excellent credit. You'll need to apply for an unsecured line of credit if you have bad credit.

• Is taking out a line of credit bad?

  It depends on your situation. A line of credit can be a convenient way to cover unexpected expenses, but it requires discipline with spending and making payments. Also, if you have bad credit, be aware that high interest rates will apply when you access credit.

• How can I get a line of credit for bad credit in Ontario?

  If you have bad credit, you can apply for a line of credit from an online lender that offers loans in Ontario. These lenders will look past your credit score and consider your employment, income and existing debts to determine your ability to pay back what you borrow. However, watch out for steep interest rates.

• Can I get a student line of credit with bad credit?

  It'll be difficult to get a student line of credit with bad credit. This is because a student may not have sufficient income, and, combined with a low credit score, there is a high risk that banks will not get their money back if they lend to a student.

• How much can I borrow with a line of credit for bad credit?

  Lines of credit for bad credit typically have limits of up to $10,000.

• How hard is it to get a line of credit?

  It can be hard to get a line of credit because it provides you with easy access to money. Because of this, lenders will want to make sure you're the type of person who pays back your loans on time.

To make sure you get accurate and helpful information, this guide has been edited by Stacie Hurst and reviewed by Sean Cooper, a member of Finder's Editorial Review Board.

Written by

Tim Falk

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

Co-written by

Leanne Escobal

Publisher

Leanne Escobal is a publisher for Finder. She has spent over 12 years working with financial products and services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University. See full bio