Loans & Debt · Bad credit
This is the corner of lending where predatory products live — so accuracy matters most. Since the federal 35% rate cap took effect in 2025, the honest non-prime lenders all top out near 35%; the real traps now are cash-advance apps that hide payday-level cost behind "0%," and payday loans themselves. Here is who is legitimate, who to avoid, and how to build credit instead.
Best for: Fair-to-good credit (600+) who want transparent, all-in pricing
Publishes a clear floor: 600 credit score, $35,000+ income, debt-to-income under 35%.
Best for: Borrowers rebuilding credit from a low or thin file
The Foundation is a 12-month credit-builder (payments reported to Equifax + TransUnion, savings held in trust) — not cash up front.
Best for: Non-prime borrowers; homeowners who can secure the loan for a far lower rate
Canada’s biggest non-prime lender. Unsecured rates start at 29.99% — high; the secured option (as low as 9.99%) is far cheaper but puts your home on the line. goeasy’s old ~46.9% max is gone; it now tops at 35% under the cap.
Best for: Homeowners with fair credit who can secure the loan for ~20%
Unsecured tops at 34.99% (repriced under the 35% cap). The secured loan near 20% is the version that makes sense.
Ranked by genuine value — a lower rate plus credit-building — never by who pays us. Every figure verified at the lender’s own site, stamped June 13, 2026. Your rate depends on your credit. How we rank.
Five very different products get marketed to people with bruised credit. They are not equivalent.
| Type | For | Typical cost | Builds credit? | Watch for |
|---|---|---|---|---|
| Low-interest personal loan | Good credit | Single digits to mid-teens APR | Yes | The best option if you qualify — see our consolidation lenders. |
| Non-prime / bad-credit loan | Fair to poor credit | ~20%–35% APR (capped at 35%) | Yes | Secure it with collateral for a far lower rate. |
| Credit-builder product | Thin / damaged credit | Program fee, often 0% interest | Yes — the whole point | You pay to build a file, not to get cash up front. |
| Cash-advance app | Anyone, short-term | "0%" + membership / express / tip fees | Usually no | Effective cost can rival payday loans on small amounts. |
| Payday loan | Last resort | $14/$100 ≈ ~365% APR (14 days) | No | The most expensive mainstream credit — avoid. |
Useful for building a file or bridging a gap — but not cheap sources of cash, and only one of these reports the way a real loan does.
Rates sit at the top of the mainstream range, but the structure is clean — no hidden fees.
The monthly membership fee on a small balance annualizes steeply — useful for credit-building, not as a cheap source of cash.
A flat express fee on a small, short advance can annualize to payday-level cost. No credit-building value.
We do not recommend payday lenders (Money Mart, Cash Money (affiliated)) — we list them only to warn. They cost $14 per $100 borrowed (the federal cap where a provincial regime exists; Ontario allows $15), which works out to ≈ 365% APR for a typical 14-day loan. Provincially regulated and exempt from the 35% federal cap. A $500 loan for 14 days costs about $70 to repay $570 — the most expensive mainstream credit there is. If you are considering one, almost any other option on this page — or a conversation with a credit counsellor — is better.
Report scams to the Canadian Anti-Fraud Centre: 1-888-495-8501.
Marketplaces match one application to many lenders with a single soft credit check — useful when you are not sure who will approve you. They are not lenders and are paid by the lenders they refer you to, so confirm the actual rate with whoever approves you. LoanConnect (8.99% – 35% across partner lenders). Borrowell (Partner products from 19.99% (unsecured); home-equity from 6.69%). Loans Canada (9.99% – 35% (homepage); its FAQ lists 3% – 35%).
The fastest way out of bad-credit pricing is to stop needing it. A credit-builder product or a secured card, paid on time for six to twelve months, can move you from 30%+ pricing toward the single digits — at which point a mainstream consolidation loan or a low-rate bank loan becomes available. If you are carrying high-rate debt now, model whether consolidating even helps with the debt consolidation calculator, and which payoff order is cheapest with the snowball vs avalanche calculator.
Non-prime installment lenders like Spring Financial, easyfinancial and Fairstone approve borrowers banks turn down, and goPeer publishes a clear 600-score floor. "Easy" comes at a price, though — rates run 25%–35%. If you own a home, a secured loan can cut that to around 20%. And if you simply need to build a file, a credit-builder product (Spring’s Foundation, Nyble) does that without a high-rate loan.
The federal criminal interest rate is capped at 35% APR, in force since January 1, 2025 (down from roughly 48% APR before). The whole non-prime market has compressed to ~35% as a result. Two big exceptions: payday loans (governed by a separate $14-per-$100 cap, which works out to roughly 365% APR on a two-week loan) and small pawn loans under $1,000 (up to 48%). If a lender quotes you above 35% on an ordinary loan, walk away.
They are not loans in the traditional sense, and the "0% interest" headline hides the real cost. Bree charges a size-based express fee (plus optional tip) and does not report to the credit bureaus, so it builds nothing — a flat fee on a small, short advance can annualize to payday-level cost. Nyble is a 0% credit-builder line that does report to Equifax, but its $11.99/month membership is expensive relative to its $30–$250 advances. Use them for what they are (a one-off bridge, or credit-building), never as a cheap source of cash.
The clearest red flag is an upfront fee demanded before you receive the loan — that is illegal in most provinces. Others: "guaranteed approval" with no review of your finances, "no credit check" paired with a very high rate, and payment demanded by wire, prepaid card or gift card. Verify any lender with your provincial regulator, and report scams to the Canadian Anti-Fraud Centre at 1-888-495-8501.
If you can afford the payments and the rate beats your current debt, a loan is the lighter-touch choice. But if your minimum payments already cannot keep up with the interest, a 30%+ loan only deepens the hole. At that point a non-profit credit-counselling plan or a consumer proposal through a Licensed Insolvency Trustee — which can legally reduce what you owe — is the honest next step. Run the numbers first with the debt consolidation calculator.
Educational information, not financial advice. APRs, amounts, terms and fees were verified at each provider’s own pages on June 13, 2026 and change without notice; the rate you are offered depends on your credit and income. Cash-advance and credit-builder effective costs noted here are illustrative calculations, not provider quotes. The federal criminal interest rate is capped at 35% APR; payday loans are provincially regulated and exempt. Confirm all terms in writing before borrowing.
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