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Best Personal Loans for Fair Credit In Canada for April 2024

Jessica Martel
Contributor

Updated: Apr 16, 2024, 1:54am

Aaron Broverman
editor

Fact Checked

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.

Lenders look to your credit score to see how likely you are to repay your loan. A good or excellent credit score signals less risk and typically results in a lower interest rate and better terms.

With a fair credit score (580 to 669), you’re asking the lender to take on more risk. Based on your credit history, there’s a higher chance you could miss a payment. While it’s still possible to get a personal loan with a fair credit score, you can expect fewer loan options and a higher interest rate.

Keep reading for details on what a fair credit loan is, how it can affect your credit score and the steps you can take to increase your chances of getting approved for a fair credit loan.

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Best Personal Loans in Canada For Fair Credit For April 2024

FEATURED PARTNER OFFER

BEST FOR NO CREDIT HISTORY & QUICK FUNDING

easyfinancial

easyfinancial
5.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

No credit history necessary

APR Range

9.99% to 46.96%

Loan Amounts

$500 to $100,000

easyfinancial
Learn More

On easyfinancial's Website

Minimum Credit Score

No credit history necessary

APR Range

9.99% to 46.96%

Loan Amounts

$500 to $100,000

Why We Picked It

easyfinancial bridges the gap for many borrowers who may find it difficult to get loans due to a lack of credit history. Same-day funding ensures swift financial relief for urgent needs. While the APR range is on the higher side, easyfinancial offers perks like autopay and loyalty discounts. With a flexible loan term ranging from 9 to 120 months and no prepayment penalties, borrowers have the freedom to pay off their loans at a pace that suits them.

Pros & Cons
  • Accessible to borrowers with no credit history, making it a viable option for first-time borrowers
  • Flexible loan terms ranging from 9 to 120 months
  • Offers both online applications and human contact every business day
  • High APR range, with the maximum going up to 46.96%
  • TrustPilot rating is only one star, raising concerns about customer satisfaction
  • No 24/7 customer support, which might inconvenience some borrowers
Additional Details

Eligibility: easyfinancial stands out by catering to individuals who don’t have a credit history. Additionally, the co-signer or co-borrower capability offers an extra layer of security and assurance, potentially helping more people get approved.

Loan Uses: With loan amounts between $500 and $100,000, borrowers can cover a variety of needs, from consolidating debts to financing significant life events or emergency expenses.

Turnaround Time: The promise of same-day funding makes easyfinancial a go-to option for those in immediate financial need. The online application streamlines the process, ensuring borrowers don’t have to wait long for their funds.

FEATURED PARTNER OFFER

BEST FOR VERSATILE LOAN AMOUNTS AND FLEXIBLE TERMS

Fusion Credit Union

Fusion Credit Union
4.6
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

Undisclosed

APR Range

5% to 10%

Loan Amounts

$300 to $10,000,000

Fusion Credit Union

Minimum Credit Score

Undisclosed

APR Range

5% to 10%

Loan Amounts

$300 to $10,000,000

Why We Picked It

Fusion Credit Union offers an unparalleled range of loan amounts, catering to both individual small needs and large-scale business investments. The flexibility in loan terms, spanning one to 25 years, ensures borrowers can choose a repayment period best suited to their financial situation. With competitive starting APRs, the opportunity for a beneficial deal exists, although potential borrowers should be wary of the higher APRs, even if their maximum APR of 10% is not as high as some of their competitors. The credit union’s commitment to the personal touch with daily human contact and the inclusion of modern features, like online applications and a mobile app, make its borrowing process both personal and convenient.

Pros & Cons
  • Extensive loan amount range catering to diverse needs
  • Long-term loans available up to 25 years
  • No penalties for prepayments, offering repayment flexibility
  • Potential for very high APRs, going up to 10%
  • Absence of 24/7 customer support may be a drawback for some
  • Unclear turnaround time
Additional Details

Eligibility: Fusion Credit Union offers a broad spectrum of loan options without mandating a minimum credit score. The ability to include a co-signer or co-borrower further enhances the accessibility of their loans across different financial profiles.

Loan Uses: With the capability to lend up to $10 million, Fusion Credit Union can support various financial requirements, from personal needs like debt consolidation and home renovations to substantial business expansions or acquisitions.

Turnaround Time: Specific turnaround time details are unavailable, but the online application system might expedite the loan processing time. Prospective borrowers should enquire about the estimated waiting period.

FEATURED PARTNER OFFER

BEST FOR SMALLER LOANS & SHORT-TERM FINANCIAL SUPPORT

Eastern Loans

Eastern Loans
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

No credit history necessary

APR Range

23.00%

Loan Amounts

$500 to $750

Eastern Loans

Minimum Credit Score

No credit history necessary

APR Range

23.00%

Loan Amounts

$500 to $750

Why We Picked It

Eastern Loans emerges as a clear choice for individuals requiring smaller loan amounts on a short-term basis. With a consistent APR of 23% and no prepayment penalties, it provides transparency and flexibility in the repayment process. The absence of a credit history prerequisite means it’s accessible to a broader spectrum of borrowers. Their four-star TrustPilot rating further attests to a positive customer experience. Coupled with same-day funding, Eastern Loans offers a quick and relatively hassle-free borrowing experience for borrowers with urgent financial needs.

Pros & Cons
  • No credit history required, making their personal loans highly accessible
  • A consistent APR without fluctuations provides clarity
  • 24/7 customer support to assist borrowers anytime
  • Limited loan amounts, suitable only for short-term, smaller financial needs
  • Absence of a mobile app might inconvenience tech-savvy borrowers
  • Short maximum loan term of three months can be restrictive for some borrowers
Additional Details

Eligibility: Eastern Loans provides an inclusive borrowing environment, particularly for those without a credit history. Furthermore, the provision for a co-signer or co-borrower amplifies the chances of loan approval.

Loan Uses: The loan amounts ranging from $500 to $750 cater to immediate, short-term financial requirements. Be it for an unexpected bill, a minor repair or a short-term financial gap, Eastern Loans bridges the divide.

Turnaround Time: For borrowers in a rush, Eastern Loans proves to be an ally with their same-day funding. The online application further accelerates the borrowing process, ensuring minimal wait times.

FEATURED PARTNER OFFER

BEST FOR NO CREDIT HISTORY & QUICK, MODERATE LOANS

Spring Financial

Spring Financial
4.2
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

No credit history necessary

APR Range

9.99% to 46.99%

Loan Amounts

$500 to $35,000

Spring Financial
Learn More

On Spring Financial's Website

Minimum Credit Score

No credit history necessary

APR Range

9.99% to 46.99%

Loan Amounts

$500 to $35,000

Why We Picked It

Spring Financial fills a niche for borrowers who may not have an established credit history but require personal loans for diverse needs. Their competitive starting APR makes the lender an attractive option for individuals who qualify for the lower rates. The lack of late payment fees and prepayment penalties ensures borrowers will have a more flexible repayment experience. Coupled with a high rating on TrustPilot, Spring Financial demonstrates a level of customer satisfaction worth noting. Their promise of a one to two business-day turnaround can be appealing for borrowers in urgent need of funds.

Pros & Cons
  • No need for an established credit history to apply
  • Absence of late payment fees and prepayment penalties
  • Quick turnaround time of one to two business days
  • Doesn’t offer any perks, such as autopay or loyalty discounts
  • No 24/7 customer support or mobile app
  • Doesn’t provide co-signer or co-borrower capability
Additional Details

Eligibility: Spring Financial makes it accessible for a broad range of applicants by not necessitating an established credit history. This can be particularly beneficial for young adults or newcomers to Canada.

Loan Uses: With loan amounts ranging from $500 to $35,000, Spring Financial caters to multiple needs, whether it’s for a small project, debt consolidation or a significant purchase.

Turnaround Time: One of the strengths of Spring Financial lies in their quick processing, promising a turnaround time of just one to two business days after you fill out an application.

FEATURED PARTNER OFFER

BEST FOR QUICK ONLINE FUNDING

GoDay

GoDay
4.1
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.

Minimum Credit Score

Below 620

APR Range

None listed

Loan Amounts

$1,000 to $15,000

GoDay

Minimum Credit Score

Below 620

APR Range

None listed

Loan Amounts

$1,000 to $15,000

Why We Picked It

GoDay offers online installment loans ranging from $1,000 to $15,000 to customers with credit scores below 620 and loan terms range from six months to 60 months. Speed is a major benefit of this lender. They offer payday loans, which you can get in as little as an hour, once your loan has been approved. You can also apply for a loans online and find out if you meet their criteria in under five minutes. When it comes to repaying your loan, they have an autopay feature, helping to avoid late or missed payments. Plus, if you’re able to pay back your loan early, there are no prepayment penalties. GoDay also has strong customer reviews with a score of 4.5 out of 5 on TrustPilot.

Pros & Cons
  • No prepayment penalties
  • Quick access to cash
  • Work with all credit scores
  • $25 NSF charge
  • High borrowing cost
  • No mobile app
Additional Details

Overview:
GoDay has been providing loans since 2012. In addition to installment loans, the company offers payday loans. GoDay is 100% online and prides itself on offering instant lending decisions.

If you don’t have a strong credit score, you can still apply, as GoDay works with all levels of credit.

Eligibility:

  • Minimum credit score: Below 620
  • Must have a steady source of income
  • Must have an active chequing account

Loan Uses:

  • Emergency medical expenses
  • Car repairs
  • Bill payments

Summary: Best Personal Loans For Fair Credit In Canada For April 2024


Lender Forbes Advisor Rating Minimum Credit Score APR Range Loan Amounts
easyfinancial No credit history necessary 9.99% to 46.96% $500 to $100,000
Fusion Credit Union Undisclosed 5% to 10% $300 to $10,000,000
Eastern Loans No credit history necessary 23% $500 to $750
Spring Financial No credit history necessary 9.99% to 46.99% $500 to $35,000
GoDay Below 620 Undisclosed $1,000 to $15,000

Methodology

We reviewed 76 popular lenders based on 17 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the 10 best lenders based on the weighting assigned to each category:

  • Loan details: 20%
  • Loan cost: 35%
  • Eligibility and accessibility: 20%
  • Customer experience: 15%
  • Application process: 10%

Within each major category, we also considered several characteristics that would benefit those with bad credit in particular, including awarding an extra five points for lenders offering a low maximum APR, a low minimum credit score, a high maximum loan term and cosigner/borrower capability. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.

Where appropriate, we awarded partial points depending on how well a lender met each criterion.

A Guide To Fair-Credit Loans

What Is a Fair Credit Score?

A fair FICO  score generally ranges from 580 to 669. While you may find it more challenging to secure a personal loan with a fair credit score, it’s still possible.

Your FICO score or credit score is composed of five major categories:

  • Payment History (35%). Whether or not you pay your bills on time accounts for the largest portion of your credit score. A history of late or missed payments will cause your score to drop. If you want to boost your score, focus on paying your bills on time, every time.
  • Amounts Owed (30%). This is a measure of how much of your available credit you are using, also known as your credit utilization. When you’re constantly using all of your available credit, this suggests to lenders that you may struggle to manage your payments.
  • Length of Credit History (15%). In general, a longer history will increase your credit score. Your score is composed of the age of your oldest credit account as well as the average of your other accounts.
  • Credit Mix (10%). Lenders like to see that you can manage a mix of revolving credit and installment loans, such as credit cards, personal loans and retail accounts.
  • New Credit (10%). Opening multiple new credit accounts in a short period of time can cause your credit score to drop, as it represents a greater risk to lenders. This is especially true for borrowers with a limited credit history.

How Does a Personal Loan Affect Credit Score?

Applying for a personal loan has the potential to impact your credit score in several ways:

  • Hard credit check. A hard credit check is performed any time you apply for a personal loan or a new credit product. This can cause your score to drop by a few points. In general, one credit check will have a minimal impact on your credit score. However, if you apply for multiple loans or credit products at the same time, this can hurt your score.
  • Payment history. Since payment history accounts for the largest portion of your score, paying your personal loan on time each month can help boost your score. If you make late payments or miss a payment, this can hurt your score.
  • Length of credit history. A new loan can potentially lower the average age of your credit accounts, resulting in a slight dip in your credit score.
  • Credit mix. If you only have revolving credit (e.g. credit cards), adding a personal loan, which is an installment loan, to the mix, can help improve your credit score.

How To Improve Your Credit Score Before Applying

To increase your chances of qualifying for a personal loan with a decent interest rate and terms, there are several things you can do to improve your score before applying.

Review your credit report

Regularly review your credit reports from the two main Canadian credit bureaus – Equifax and TransUnion – to look for errors. If you find an issue, you can dispute it by reporting it to the credit reporting agency.

Pay your bills on time

If you want to improve your score, make it a priority to pay your bills on time, every time. Consider setting up auto-pay to ensure you don’t forget to make payment.

Reduce the amount you owe

Avoid maxing out your credit cards and work towards paying down your debts to lower the overall amount you owe.

Only apply for new credit if you need it

Remember, applying for multiple credit products or loans in a short period can hurt your credit score. Only apply for credit when you really need it.

Where To Get a Personal Loan With Fair Credit

You can look for fair credit personal loans at your bank, credit union or with online lenders.

Traditional lenders like big banks tend to have more strict eligibility requirements. To get a loan from a credit union, you typically need to become a member.

If you’re looking for a personal loan with a fair credit score, you may have a better chance of getting approved with an online lender.

By prequalifying with multiple lenders, you can compare interest rates and terms to find the option that best suits your needs and budget.

How To Qualify for Fair-Credit Loans

To qualify for a fair-credit loan, consider the following steps.

Compare multiple lenders

Taking the time to compare multiple fair credit lenders can help you find the best rate and terms.

Add a co-signer

A co-signer is someone who agrees to make your loan payments if you’re unable to do so. Adding a co-signer to your loan application can reduce the risk to the lender and strengthen your application.

Related: Best Personal Loans With A Co-signer

Improve your credit score

If you want to secure the best interest rates and terms possible, consider taking time to improve your credit score before applying for a personal loan. The higher your credit score, the lower the interest rate and the less money you’ll pay over time.

Boost your income

When you apply for a personal loan, lenders will look at your income, in addition to your credit score. Lenders want to see that you have a stable income, as this impacts your ability to repay the loan. Lending companies will typically ask to see your most recent pay stubs or bank statements to confirm your income.

Decrease your debt

To increase your chances of getting approved for a loan, work on decreasing your debt. Lenders will generally look at your debt-to-income ratio (DTI) to see if you can afford to take on more debt.

Tips for Comparing Personal Loans for Fair Credit

When comparing fair credit personal loans, consider the following tips:

  • Prequalify. Prequalifying for a personal loan gives you an idea of the interest rate and terms you’ll get if your loan application is approved. By prequalifying with multiple personal loan lenders, you can see which lender most closely meets your needs and budget.
  • Consider fees and penalties. When comparing loan providers, ask about fees and penalties. Is there a late fee if you miss a payment? Can you pay off your loan early, or will you incur a prepayment penalty?
  • Read customer reviews. Check out customer reviews of companies that offer fair credit loans. What do customers say about the company’s customer service? Is it easy to get a hold of a person if there’s an issue, or do customers complain that it’s difficult to get help?

Best Personal Loans for Fair Credit

Our top picks for the best personal loans for fair credit include:

  • Easyfinancial
  • Fusion Credit Union
  • Eastern Loans
  • Spring Financial
  • GoDay

Frequently Asked Questions (FAQs)

What is the minimum credit score for a personal loan?

There is no minimum credit score for a personal loan. Different lenders have different qualification criteria. However, a lower credit score usually results in fewer personal loan options and a higher interest rate, as the lender is taking on more risk.

Can I get a loan with a credit score of 640?

It is possible to get a loan with a credit score of 640. In addition to your credit score, lenders will also review your employment, income and debt-to-income ratio to get a better understanding of your ability to repay the loan.

Can I get a personal loan with a credit score of 600?

Yes, it’s possible to get a personal loan with a credit score of 600. There are no minimum credit score requirements. However, if you have a lower credit score you can expect to pay a higher interest rate.

How can I get a personal loan with fair credit?

To get a personal loan with a fair credit score, look for lenders that accept applicants with a credit score ranging from 580 to 669. You can check with banks, credit unions and online lenders.

Can a personal loan improve fair credit?

Taking on a personal loan can help to improve a fair credit score if you focus on making your payments on time, every time. Adding a personal loan, which is an installment loan, can also improve your credit mix if you only have revolving credit.

How much do personal loans for fair credit cost?

How much you pay in interest and fees for a fair credit personal loan will vary between lenders. To find the rate that best fits your budget, you can try to prequalify with multiple lenders and then compare rates and fees.

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Jessica Martel Contributor

Jessica is a freelance writer, professional researcher and mother of two rambunctious little boys. She holds a Master of Science degree in Cognitive Research Psychology and a Bachelor's degree in Communications and Culture. Her work has appeared at The Balance, Investopedia, Money Under 30, Time.com, Seeking Alpha, Consumer Affairs and more. When Jessica isn't writing, she enjoys spending time outdoors with her family.