The Ultimate Guide to Guaranteed Approval Loans for Poor Credit in Canada

By Heidi Unrau | Published on 19 Jul 2023

Guaranteed approval loans for poor credit canada

Guaranteed approval loans for poor credit in Canada would be a lifesaver right now. Juggling the unexpected, keeping up with the kids, and financial adulting feels like you’re the Marvel Universe wrapped up in one person. But unlike Tony Stark, we don’t all have billions at our disposal when life throws a mean money-curveball. 

So you knock on the door of every bank in town, only to have them slam it in your face. It’s a demoralizing experience. Then you hear about guaranteed approval loans for poor credit in Canada and, suddenly, you don’t feel so defeated. But are these miracle loans really the hero you think they are? Here’s everything you need to know about guaranteed approval loans for poor credit in Canada. 

Are guaranteed approval loans for poor credit in Canada legit?

I hate to be the harbinger of bad news, but no, they’re not. Guaranteed approval loans for poor credit in Canada sure sound great, until you dig a little deeper. Right off the hop, the term “guaranteed approval” is hella misleading. 

In reality, no legitimate lender can guarantee a loan approval. Each application undergoes a review process to determine if you’re a qualified borrower. And while some lenders may empathize with your situation, they need to make sure you can at least afford to repay the loan. A credible lender will pull your credit report, confirm your income, and assess both your debt-to-income ratio and your credit utilization ratio.

That means there is no such thing as guaranteed approval loans for bad credit in Canada. But don’t lose heart. There are loans out there that act like the Guardians of the Galaxy — a rag-tag team of solutions for those deemed “high-risk”.

But before we dive into that, it’s critical to protect yourself from bad actors. Guaranteed loans don’t actually exist, and the ones claiming to be are usually straight-up scams. 

A lender promised me a guaranteed loan approval for poor credit, now what?

Run. As fast as you can. There are supervillains out there who promise vulnerable people guaranteed loan approvals for poor credit in Canada. But if it sounds too good to be true, it is! Upfront fees, high-pressure tactics, and grandiose promises are as suspicious as Lex Luther. 

To avoid guaranteed loan scams, look out for these major red flags: 

  • No credit check required
  • Time-sensitive, must act now
  • High-pressure language/behaviour 
  • Requires money upfront, even if they say you’ll get back when the loan is funded
  • They demand your SIN number
  • They demand your personal information via unsecured or unconventional channels
  • The offer is from a lender you have never done business with or have never heard of
  • The offer came by email, digital ad, pop-up, text message, phone call, or social media
  • The offer was made by email from an address ending in hotmail, gmail, yahoo, or other non-professional domain
  • The offer was by telephone from a number outside your province, Canada, or says “Private/Unknown” caller 
  • The company does not have a physical address
  • The company phone number does not match their address
  • The website is new and/or there is no direct contact information
  • Repayments must be made with crypto, eTransfers, prepaid cards, or gift cards

But there’s an exception

Having said that, there is at least one reputable lender in Canada that offers legitimate guaranteed approval loans for poor credit in Canada – by invite only. If you’ve ever gotten junk mail from Fairstone Financial, their guaranteed loan cards are legit and available to people with bad credit.

Even if you have the Joffrey Baratheon of credit scores, you’re likely to get the loan as long as you can afford to repay it. Having said that, you still have to jump through some hoops, like filling out an application and submitting to a credit check. Fairstone also reserves the right to rescind the offer if they have reason to believe you’ll default or don’t meet their basic qualification requirements for the offer.

Traditional lenders vs Private Lenders

If you have bad credit, you’re well aware the big banks won’t lend to you. But you might not understand why. It comes down to financial regulations and a legal responsibility to minimize unnecessary risk. 

Traditional lenders

Traditional lenders, like banks and credit unions, are considered the Superheroes of the financial world. As industry stalwarts, they command respect primarily because they’re regulated by rigorous governmental standards.

Just like Batman’s code of honour, these institutions must comply with a structured, disciplined approach to lending. They offer a range of financial products with competitive interest rates and are often the go-to choice for those with a strong credit history.

But if your credit score has fallen like Gotham to Hugo Strange, traditional lenders won’t swoop in to save the day. These institutions quickly become impenetrable thanks to their strict lending criteria.

Private lenders

On the flip side, we have private lenders, or the Robin to your financial Gotham. Even though Batman is the preferred hero, private lenders bring a different set of skills to the financial table. They aren’t governed by the same stringent regulations as traditional banks and are more flexible with their lending criteria. This makes them more willing to work with people who have poor credit.

A key advantage of private lenders is their agility, especially if you need money fast. They can offer quick application and approval processes, and it’s possible to get funded within a day or two. Plus, many of them provide a bevy of loan products specifically designed for people with poor credit.

However, there can be a dark side to private lenders.

How do loans for poor credit in Canada work?

The price of this quick, flexible lending is a much higher interest rate. So high in fact, many people wonder how those rates can even be legal. If you’re not careful, you could accidentally level up your financial situation from struggle to catastrophe. But that doesn’t make private lenders or loans for poor credit inherently evil. 

Loans for poor credit in Canada can open doors that were previously slammed in your face. The key is knowing when and how to use one to improve your situation. If handled properly, you can improve your credit score, one payment at a time. Eventually, the banks that previously snubbed you will roll out the red carpet. 

So how do you manage a loan for poor credit the right way? And where do you even get one? Like fighting a Marvel supervillain, it may seem daunting. But with a little bit of skill and guidance, it’s absolutely doable.

How to use a loan for poor credit the right way

Before we dive into where to get a loan for poor credit in Canada, you need to know how to manage it first. Yes, there is a right and a wrong way to borrow from a private lender. Here’s your Bat-plan:

Stay focused on the mission

You need to stay laser-focused on the reason why you took out the loan. This is where need vs want is critical. Borrow only when absolutely necessary, and use the loan only for its intended purpose – like to consolidate debt, cover an emergency expense, or make a necessary purchase.

Plan your moves

Batman always has a plan, he doesn’t just jump into the fray willy-nilly. Draft a repayment plan and use a calculator to determine how much interest it will cost you. Factor the loan payments into your budget and stick to it. Every repaid loan is a step towards improving your credit score and eventually qualifying for those coveted bank loans. 

Borrow the bare minimum

It’s not uncommon to get approved for more money than you actually need. And while it may be tempting to take every dollar you can get, it’s a bad idea. The more you borrow, the higher your payments will be and the more interest you’ll pay. Keep payments as low as possible to avoid financial stress. You also want to repay this loan as fast as possible, so leave room in your budget for extra payments. 

Stay vigilant

Never let your guard down. Avoid falling into the debt trap with risky behaviour like missed payments, using credit to make ends meet, or getting new loans to pay off old ones. If you start doing this or see yourself headed in that direction, it’s time to reevaluate your strategy.

Get professional help

Even Batman needs a hand from Alfred and Commissioner Gordon sometimes. There’s no shame in asking for help. If you’re struggling to manage your bad credit loan, immediately reach out to your lender and explain the situation.

They’re more likely to compromise with you before you miss a payment. If your situation is serious, consider credit counselling services. They can guide you on how to manage your debt and potentially negotiate better terms with your lenders.

Monitor your credit

Since the purpose of getting a loan for poor credit is to improve it, you need to monitor your score like a hawk. Apps like Borrowell and ClearScore let you check your score as often as you want for free, without hurting it. Why is that important? Because you only want to date your bad credit loan, not marry it!

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As soon as your credit score lands within the average to good range, you could qualify to have your own bank refinance the loan at a much lower rate – saving you a ton on interest charges and getting you out of debt faster. It won’t happen overnight. But with each on-time payment and other healthy credit habits, you’re credit score will get stronger and stronger. 

How to get a loan for poor credit in Canada

If you need a loan for poor credit in Canada, chin up. You’re not alone and a bad credit score has nothing to do with your moral fibre. Let’s pretend for a moment that you’re Peter Parker before he became Spiderman. 

You’ve had some financial hardships – think of losing income equivalent to losing Uncle Ben – like a death, divorce, or job loss. Or an injury that renders you unable to work. Right now, your financial landscape is as harsh and unpredictable as New York after dark. For example, what if you don’t have traditional employment income or any income at all? Let’s break it down.

Meet the basic eligibility criteria

Make sure you know what private lenders expect of you before you apply. You need to meet these basic eligibility requirements:

  • Be at least 18 years old
  • Be a Canadian citizen or permanent resident 
  • Meet income or employment minimums
  • Have an active Canadian bank account 

Potential lenders need to ensure you’re not going to pull a Jason Bourne disappearing act. Oh, and that you’re legally old enough to enter into a financial contract. So you’ll also need to prove who you are and where you live, with: 

  • Government-issued photo ID
  • A bill or bank statement with your name & address on it

Prove you can repay the loan

Once you tick the basic eligibility boxes, you need to show you can afford to repay the loan. It is next to impossible to get a loan for poor credit in Canada if you do not have any money coming in. 

In most cases, you will need to show proof of employment and income with paystubs or a letter from your employer. But that doesn’t necessarily mean you need to have traditional employment income or even a job. 

Some lenders accept the following income sources: 

  • Self-employment income
  • Government benefits
  • Child tax benefits
  • Pensions

How to choose the best loan for poor credit in Canada

Next, you need to compare lenders. This part is super important. It’s like trusting a sidekick to have your back. You want to choose the lender that understands you, your credit flaws, and offers the best support. Check out their interest rates, fees, and loan terms – these can make or break how your hero story ends. 

The interest rate is potential Kryptonite. A sky-high rate could render you financially powerless. Big payments and aggressive interest charges are financial booby-traps. That’s why you need to put in the legwork to find the lowest possible interest rate with the best possible terms for your situation. 

Once you find a potential private-lender sidekick, you apply for a loan. Hopefully, you get approved and, voila! You’ve got your funding. 

Top 5 lenders offering loans for poor credit in Canada

Like every hero-origin story, the path to getting a loan for poor credit in Canada can be challenging. But with the right guidance, you can navigate your way to financial security. Below is a list of the 5 best private lenders in Canada for people with bad credit.

Fairstone Financial 

Amount: $500 – $50,000
Rate: 26.99% – 39.99%

Based in Montreal, Fairstone is one of the largest private lenders for personal loans in Canada. With over 240 branches across the country, Fairstone is available to Canadians in almost every province. You can apply in-person, online, or over the phone with a lending specialist.

The company offers a lending armoury packed with tools for every occasion, including personal loans, home equity loans, car loans, and the lifesaver of many – debt consolidation loans. If your application is successful, funds are directly deposited into your account within 24-48 hours, or you can opt to receive a physical cheque on the spot. 

SkyCap Financial

Amount: $500 – $10,000
Rate: 12.99% – 39.99%

Not available in NS, QC

Based out of Kingston, Ontario, SkyCap Financial stands out as a lifeline for Canadians struggling to secure conventional bank loans. Specializing in short-term personal loans for poor credit in Canada, SkyCap offers a quick application process, flexible repayment options, and fixed interest rates.

Navigating SkyCap’s loan application process is fairly simple. You can fill out an online application in just a few moments – no collateral required. Upon approval, funds swiftly teleport into your bank account within a day. Loan payments are set up to automatically debit your account according to the repayment terms. 

What sets SkyCap Financial apart is the added bonus of SkyCap University access – a complimentary online course that serves as a personal finance masterclass. This learning platform is SkyCap’s thank you token for choosing them. Completing this course could unlock a lower interest rate on your loan, resulting in potential long-term savings.


Amount: up to $35,000
Rate: 9.90% – 45.9%

Not available in NT, NU, QC, SK, YT

Hailing from Vancouver, Mogo is a standout in the Canadian fintech landscape, offering lending solutions that cater to people with bad credit, as well as a stock trading app. Unsecured personal loans are a mainstay in Mogo’s financial arsenal. 

You can apply online in as little as 3 minutes. If approved, you’ll get a fixed interest rate that is determined by your credit profile and where you live. Mogo offers flexible repayment terms and the freedom to pay off your loan anytime without penalty charges.

A key advantage of Mogo is their no-obligation pre-approval, enabling you to explore your loan options without any commitment. But it doesn’t stop there. Mogo also offers a unique 100-day test drive on most of its loans. Not feeling entirely satisfied within the first 100 days? Simply repay the principal and Mogo will refund any fees or interest that you’ve paid.

Magical Credit

Amount: $500-$20,000

Not available in QC, SK and MB

The Toronto-based Magical Credit is a lifeline to Canadians exposed to the Kryptonite of poor credit, or no credit history at all. This company offers a variety of loan options, including personal loans and cash advances. Uniquely, Magical Credit considers government benefits and other unconventional income streams. 

This private lender operates by analyzing your application in light of your overall financial circumstances, not just your credit score. This translates to a glimmer of hope if you rely on government subsidies or other forms of income support. That means you could still qualify for a loan even if you don’t have a job.

The application process is straightforward: fill out an online application form with information about your income, expenses, and employment status. If approved, funds usually find their way into your bank account within 24 hours.

Spring Financial

Amount: $500 – $35,000
Rate: 9.99% – 46.96%

Not available in SK, QC, NB

Spring Financial is a leading Vancouver-based lender that specializes in personal loans designed to improve your credit score. Their various loan solutions include unsecured personal loans, secured personal loans, car loans, and even mortgages for people with bad credit.

Spring’s unique “Foundation” program is a cornerstone product that offers you an ingenious way to build credit. This savings loan requires a fixed monthly payment over 12 months, which is reported to the credit bureaus. By the end of the term, you’ll find $750 saved up just for you. You’ll also get a guaranteed loan approval, called the “Evergreen” offer, of $1,500 at an 18.99% interest rate.

You can apply for a Spring loan online. If approved, you can get your money same-day by eTransfer, or by direct deposit into your account within 2-3 business days.

When you need money RIGHT NOW but guaranteed approval loans for poor credit in Canada don’t exist…

Nyble stands apart from the crowd by offering an experience free from sky-high interest rates or mounting late fees. Instead of your credit score, this lender evaluates your creditworthiness based on your income and banking transaction history. In fact, Nyble doesn’t check your credit at all – they only care about your capacity to repay the loan. This makes Nyble the closest thing to a guaranteed approval loan for poor credit in Canada.

Serving as a lifeline when traditional lending avenues are out of reach, Nyble offers a revolving line of credit up to $150. Whatever you borrow needs to be paid back in full on your next scheduled payday. In doing so, Nyble is able to offer a safer, less expensive alternative to predatory payday loans. And because it’s a revolving line of credit, you can borrow and pay it back as often as needed.

All transactions are reported to the credit bureaus. As long as you never miss a payment, that positive history helps to improve your credit score over time.

Advice about guaranteed approval loans for poor credit in Canada

Remember, guaranteed approval loans for poor credit in Canada do not actually exist. A credible lender will still perform due diligence to ensure you can, at the very least, afford to pay it back. It’s also crucial to remember that a loan for poor credit is not a quick fix. 

You can’t just snap your fingers and have your credit score repaired like Thanos. Rebuilding your credit takes time, discipline, and good credit habits.

✅ Make every payment on time without fail

✅ Do not borrow more than you can handle

✅ Pay down your debt as fast as possible

And you’re not alone on this journey. One in every two Canadians is $200 away from bankruptcy. That might not be your situation, but it’s half of all the people you know. 

So if you’re reading this, it means you’ve got the resilience of Spiderman, the determination of Arya Stark, and the tenacity of Batman. Like these heroes, you will overcome your bad credit challenges. It just takes a little time, and maybe a loan for poor credit. 

Even though life might feel like a Game of Thrones episode right now, remember: In the end, the Iron Throne was claimed by the least likely character. And he had a lot of help getting there. 

Yes, bad credit sucks, but we believe in you. Now, it’s time for you to believe in yourself. Go forth and conquer your bad credit!

Heidi Unrau is a senior finance journalist at Hardbacon. She studied Economics at the University of Winnipeg, where she fell in love with all-things-finance. At 25, she kicked-off her financial career in retail banking as a teller. She quickly progressed to become a Credit Analyst and then Private Lender. This hands-on industry experience uniquely positions her to provide expert insight on loans, credit scores, credit cards, debt, and banking services. She has been featured in publications such as WealthRocket, Scary Mommy, Credello, and Plooto. When she's not chasing after her two little boys, you'll find her hiding in the car listening to the Freakonomics podcast, or binge-watching financial crime documentaries with a bowl of ice cream. Fun Fact: Heidi has lived in five different provinces across Canada and her blood type is coffee.