How to Get a $1,000 Loan with Bad Credit in Canada

Published on

Written by SnappyRates Team

Snappy Rates is reader-supported. This means if you click on some of our links, we may earn a commission. This does not affect the objectivity of our evaluations. Read our disclosure.

When you need money right now due to an unexpected expense, getting a $1,000 loan can be a practical solution. However, if you have bad credit or a credit score below 560, you’ll find it hard to qualify for traditional lending services. 

Fortunately, getting a loan is possible with online lenders specializing in providing loans to those with bad credit, such as Loans Canada, Mogo, and FatCatLoans. This article explores various options for people with poor credit to obtain $1,000 loans.  

Can You Get a $1,000 Loan With Bad Credit?

In Canada, bad credit is when your credit score is below 560. Despite common beliefs, you can still get a $1,000 loan with bad credit. Many online lenders specialize in offering loans to those with poor credit, providing quick access to funds. 

Unlike traditional financial institutions, alternative lenders like Loans Canada, Mogo, and FatCatLoans have more eligibility flexibility. They use various yardsticks when assessing borrower creditworthiness. 

These online lenders often have less stringent requirements and look at factors other than your credit score. These include income, employment status, and your ability to repay the loan. 

Loans Canada

Loans Canada is a loans comparison website for various types of loans, including personal loans, car loans, bad credit loans, and debt consolidation loans.

Interest rates: 6.99% to 46.96%.

Loan term: 4-60 months.

Loan amount: $500 to $35,000.

Types of $1,000 Loans You Can Get With Minimal or No Credit Check 

Below are the two primary types of $1,000 loans that require minimal or no credit check.

Installment Loans

Installment loans are loans that let you borrow a lump sum of money, which in this case is $1,000, which you can obtain with minimal or no credit check and repay through scheduled payments or installments. 

An installment loan can be used for various reasons, including personal expenses, home improvement projects, or debt consolidation. These loans are typically offered by banks, online lenders, and credit unions. 

Pros: Interest rates are lower than payday loans; loans can be customized; flexible loan amounts and terms; predictability through fixed payments; longer repayment terms; minimal credit check; flexible repayment structures

Cons: High interest rates; not ideal for people with irregular income; extended period of commitment; potential fees (including origination fees or late payment fees; prepayment penalties (depending on the lender); credit score may be affected 

Payday Loans

Payday loans are short-term, high-interest loans typically due on your next payday. These loans are designed to provide borrowers with bad credit who need money urgently with quick access to funds.

People with urgent financial needs and limited access to traditional forms of credit often use payday loans. While these provide a temporary fix, they need to be managed carefully to avoid falling into a debt cycle. 

Pros: Easy application process; fast approval; quick access to cash; no collateral required; manageable installment payments; flexible usage; multiple lender options; no credit check; minimal documentation

Cons: High interest rates; short repayment terms; late payment fees and other charges that make the loan more costly; risk of debt cycle; short-term relief only

Best $1,000 Loans for Bad Credit 

The following lenders are among the providers of the best $1,000 loans for borrowers with bad credit, offering tailored solutions that cater to urgent financial challenges. 

Loans Canada

Among the leading online lenders offering loans for people with poor credit, Loans Canada provides a loan comparison tool on its website to help borrowers find the most suitable loan product. 

Through its comprehensive database of lenders and loan products, the portal connects borrowers with lenders to find the ideal bad credit loan option. At Loans Canada, bad credit loans refer to loans designed for people with credit scores between 300 and 559.  

Bad credit loans can be secured (with collateral) or unsecured. Loan amounts are up to $50,000, with rates ranging from 6.99% to 46.96%, depending on credit score, loan type, and the lender’s terms. Loan terms range from 3-120 months. 

Loans Canada

Loans Canada allows you to research and evaluate different lenders before you apply for a loan. The loan comparison platform is accredited by the Better Business Bureau and has been used by over 1 million Canadians. It offers many types of loans, including personal loans, debt relief loans, car loans, and business loans.

Loan amount: $50,000

Loan term: 3-60 months

Interest rates: 6.99% to 46.96%

Eligibility requirements: Ability to prove Canadian residence and 3 months of employment

loanscanadalogo-img

On Loans Canada’s website

  • Loan comparison platform offering personal loans, debt relief loans, car loans, business loans, and free credit score checks
  • Available to Canadian residents who can prove three months’ worth of employment
  • Flexible terms with rates as low as 6.99% and term lengths between three months and five years
  • Quick and easy online application – you only need to provide the essential information so that Loans Canada can find you the best deals from their lender network
  • Launched in 2012 and now Canada’s largest network of lenders
  • Allows simplified lending experience with one universal application to find the best available loans rather than individual applications with each vendor

Many types of loans offered

Quick, efficient application process

Large network of lenders

Some lenders charge a loan origination fee

Interest rates up to 46.96% with poor credit

Loans Canada offers one of the best platforms out there if you want to compare lenders. You will easily be able to see what different lenders can offer, and the platform is able to provide many different kinds of loans under $50,000.

FatCatLoans

FatCatLoans is another online platform that matches borrowers with low credit scores with lenders in its network. The company offers 100% no-obligation loan products that answer urgent financial needs.

Borrowers can apply for loan amounts from $1,000 to $50,000, with APR rates ranging from 4.84%-35.99% and 3-84 months for installment terms. Once approved, the funds can be released on the same day, or between 1-3 days.

Bad credit loans from FatCatLoans are suitable for individuals who can’t access traditional loans due to their credit score. Loans offered include personal loans, installment loans, and emergency loans. 

MogoMoney

MogoMoney is an online platform that provides Canadians with various loan options, including installment and payday loans. It’s a financial service offered by Mogo Finance Technology, Inc.

Installment loans at MogoMoney are unsecured, with fixed interest rates, require no security deposit, and have flexible repayment terms. Loan amounts range from $300 to $35,000, with terms from 6-60 months. 

MogoMoney has a test drive feature that allows borrowers to repay the principal balance within the first 100 days and get a refund of interest or fees paid. It’s a risk-free way for borrowers to test the loan without committing to its full term. 

LoanConnect

LoanConnect is an online platform that enables borrowers looking for fast loans to compare loan offers from its network of lenders, get quick pre-approvals., and receive transparent offers in as little as 60 seconds. 

Various types of loans are available, including bad credit loans, personal loans, and debt consolidation loans. Borrowers can loan any amount from $500 up to $60,000, with rates of 8.99% to 35% APR, and repayment terms of up to 120 months.

Applying for a bad credit loan involves answering a few short questions, receiving a pre-approval, reviewing top loan offers, and choosing the most suitable loan. Once all details are finalized, the funds can be made available on the same day.

EasyFinancial

EasyFinancial is a non-prime lender that provides borrowers with limited options with access to loan solutions that they can’t get from traditional banks. It offers services online, via phone, and through a network of 400+ physical locations. 

Borrowers can apply for personal loans for bill payments, debt consolidation, and home and auto repairs. Loan amounts are between $500 and $20,000, with interest rates starting at 29.99% and loan terms ranging from 9 to 84 months.

Getting a loan approved at easyFinancial generally takes only 10 minutes. Plus, if you aren’t happy with your personal loan for any reason, you can return it within 14 days without penalty.  

SkyCap Financial

SkyCap Financial is a non-bank lender that offers alternative financing to Canadians through its variety of loans, such as personal loans, debt consolidation loans, and loan options for people with bad credit.

Individuals with bad credit seeking a $1,000 loan can take advantage of SkyCap Financial’s Bad Credit Loan, which offers loans of up to $10,000, APR from 12.99% to 34.99%, and terms of up to 5 years. 

With its streamlined process, applying for a bad credit loan at SkyCap Financial takes less than 5 minutes, with approval in as little as 24 hours. Once your loan is approved, the funds will be deposited directly into your bank account. 

Best Payday $1,000 Loans in Canada 

Payday loans refer to short-term, high-interest loans that provide quick fund access to cover emergencies or unexpected costs like car or home repairs, or utility bills. Below are three lenders offering such payday loan services.

iCASH

iCASH is an online provider of payday and short-term loans, offering quick cash to individuals needing urgent financial relief, regardless of their credit scores. These loans are typically unsecured, freeing borrowers from the burden of providing collateral.

Loan amounts at iCASH range from $100 to $1,500, with repayment divided generally into three installments, depending on provincial regulations. The interest fee is typically $14 per $100 borrowed (an APR of approximately 365%), which varies by location. iCASH conducts a credit check when you apply for your first loan.

Money Mart

Money Mart is a financial services provider that offers services to individuals with limited access to traditional bank products. Services include installment and cash advance loans, in addition to bad credit loans and payday loans. 

Cash advance amounts at Money Mart range from $120 to $1,500. Interest fees are $14 per $100 borrowed (or approximately 365% APR), depending on provincial regulations. Repayment is on the next payday. 

Cash Money

Another provider of $1,000 bad credit loans is CashMoney, a financial services company offering quick solutions to those who need short-term financial assistance. Loan approval is typically in 10 minutes or less, while fund release can be completed in 15 minutes.

Borrowers can apply for same-day quick cash loans of up to $1,500. The amount is then paid back plus a flat fee of $14 per $100 borrowed (approximately 365.00% APR) on the next payday. 

How to Apply for a $1,000 Loan With Bad Credit

With most alternative lenders, applying for a $1,000 loan with bad credit is a straightforward process involving these simple steps:

  1. Research lenders. Find lenders that offer loans to people with low or poor credit. These can be in the form of payday loans, installment loans or personal loans. 
  2. Compare loan terms. Evaluate each lender’s offer, comparing interest rates and repayment terms. 
  3. Submit application. For most providers of bad credit loans, the application process is done online, often under 10 minutes. Submit the required documents.
  4. Sign the loan agreement. Review the agreement carefully and make sure that you thoroughly understand the terms. 
  5. Receive funds. After you sign the contract, the lender will release the funds through your account or in person at a physical location, depending on your lender.

What to Look Out For in a $1,000 Loan for Bad Credit 

Some key factors to keep in mind when considering a $1,000 loan for bad credit are:

  • Loan amount. The loan amount must meet your financial need. Avoid borrowing more than necessary.
  • Interest rates and fees. Review the interest rates and extra fees as these can increase the loan costs. 
  • Repayment terms. The repayment schedule should ideally coincide with your budget. Also, remember that shorter repayment may lead to higher monthly payments.

When considering a $1,000 loan for bad credit, it’s crucial to understand that payday loans normally come with very high interest rates and fees. The repayments also require a lump sum on your next payday, which can lead to financial pressure. 

For most providers, it’s typical to charge $14 per $100 you borrow, which is around 365%. If not repaid promptly, these high loan costs can result in significant debt.  This is why payday loans must be a last resort.

Before deciding on a payday loan, explore alternative options, such as credit unions, personal loans for people with bad credit, credit card cash advances, borrowing from friends or family, selling unneeded items, or taking on side jobs. 

FAQs:

How much credit do you need for a $1,000 loan? 

This depends on your credit score and your lender’s requirements. If your credit score is below 560, it’s possible to get a $1,000 loan. However, your lender will charge you higher interest rates. 

Will anyone loan me money with bad credit? 

Yes, you can get a loan with bad credit. Many online alternative lenders specialize in helping individuals with low or poor credit. However, compared to those with good credit, you will face higher interest rates and overall costs for the loan.

What are the easiest loans to get approved for?

Payday loans and personal loans from online lenders are among the easiest loans to get approved for due to flexible eligibility criteria and minimal documentation. However, these often come with high interest rates, fees, and loan costs. 

Bonuses & Deals for February

Check your Equifax credit score for free in 3 minutes.

Earn up to 5% cashback with a free prepaid card, get 5% savings interest on your balance, plus a $40 bonus when you make your first purchase!

Get the best personal loan rates in Canada. All credit scores accepted.

No current offers for this category.

Subscribe to our Newsletter!

Subscribe to get the latest personal finance news, offers, and our weekly newsletter. You can unsubscribe at any time.

Gravatar for SnappyRates Team

SnappyRates Team

The SnappyRates Team comprises personal finance writers who have reviewed and personally tested hundreds of financial products in the Canadian space. With over 20 years of combined experience to draw from and expertise in all things credit cards, banking, insurance, and mortgages, our goal is to provide you with the most comprehensive guides and resources to help you on your financial journey.

Leave a comment

Review Your Cart
0
Add Coupon Code
Subtotal