Bad Credit Loans Ontario

Having bad credit makes it difficult to get approved when you need to borrow, and finding a lender that will consider your application can be a challenge.  

AimFinance provides affordable loans at fair rates for those with bad credit that need extra funds to cover things like unexpected expenses, bills or for just about any reason you choose. If you qualify, the funds are yours to do with how you choose.  

Applying online for loans means no matter where you are in Ontario, you can get the funds you need. Even with bad credit an online loan makes it possible to borrow. Some assume that because they might have bad credit they won’t qualify. Ideally, you have a regular income and fair credit score.  

The best way to find out whether you might qualify is to simply apply. The process is quick and applying online beats traveling across town to stand in line when you can do it from the convenience of just about anywhere with your smartphone.  

What is Bad Credit? 

The definition isn’t always the same, and the answer can vary. In Canada, the average credit score is about 650 according to the credit bureaus. Credit scores range from 300 to 900 in Canada, and a good credit score often starts at 720 or more for many sources. 

If your credit score is more like 600 to 700 you will have what is considered a fair credit score and might be eligible for approval. AimFinance works with people that have fair credit scores and meet the loan requirements in Ontario as described below. 

Based on a study by Borrowell, the average credit score for some of the cities in Ontario are: 

  • Toronto: 696 
  • Mississauga: 695 
  • Ottawa: 688 
  • Kitchener: 679 
  • Brampton: 675 
  • Hamilton: 660 

When looking to borrow, the banks often require good or even excellent credit scores. Having a high score suggests you are a reduced risk to the lender and can provide you access to better interest rates for a loan. But for those with fair or poor credit ratings, the cost of borrowing is almost certain to come with higher interest rates.  

If you find yourself in a situation where you have a need for urgent loans and have bad credit, online lenders like AimFinance make it easy to get access to fair credit and the funds you might need.  

Payday Loans vs Bad Credit Loans 

A payday loan is a quick way to get fast cash, but an expensive way to borrow. They can also be troublesome and create a debt spiral. 

Since a lender of payday loans requires repayment on your next payday for the amount borrowed plus interest and fees if applicable, this often leaves some people short on funds again. Which means they need to borrow again and can be the beginning of a debt spiral. 

The advantage of payday loans is they are probably the easiest to qualify for, but as mentioned the actual cost of borrowing is problematic. Even with a very bad credit score it is possible to get approved for payday loans.  

A better option for borrowing is Installment Loans, such as those offered by AimFinance.  

An installment loan is more budget friendly since the payments are spread across multiple payments instead of everything to be due on your next payday. These smaller payments make it more affordable to borrow and don’t disrupt your budget in most cases. 

An installment loan is similar to a bad credit loan, which allows you to borrow up to a few thousand dollars and repay it with scheduled payments. This type of loan has a fixed interest rate, so the amount stays the same for each payment.

Ontario Personal Loans for Bad Credit 

A personal loan is almost the same as an installment loan. The main difference being that to qualify for a personal loan you will require good to excellent credit to be eligible for approval. 

An installment loan for bad credit has higher interest rates than a personal loan, but this is the tradeoff between the two. Your creditworthiness is determined by your credit score, along with other factors like alternative data that provides insight to your ability to make payments on time, number of loans and debt you may currently have and similar details that help lenders make decisions about your application.  

Requirements for Bad Credit Loans in Ontario 

Applying for online loans in Ontario with bad credit is easier than you think. You will complete our application and submit it. Ensuring the accuracy of your application is important, and completing all required fields also matters. You also need to complete the banking details and use IBV (instant banking verification) to complete the process.  

The standard requirements to apply for bad credit loans in Ontario also include: 

– being at least 18 years or older  

– be a Canadian citizen or a permanent resident and employed 

– a minimum monthly income of $1,200 or greater deposited into your bank account  

– an active Canadian bank account where you receive income by direct deposit 

– have a valid mobile phone number, email address, and a Canadian physical address of residence.  

– meet the minimum credit score requirement of 600 or greater 

As long as you meet the minimum requirements and don’t have credit issues like collections, bankruptcy or similar your application should have a good chance of being approved. 

To learn about loan requirements, payments and how AimFinance works you can visit our FAQs for more information.  

If you are concerned with the amount you might have to pay for interest on the loan, the place to start would be to start working on improving your credit score. You can read our guide on How to Go from a Bad to Fair Credit Score to learn more and how to get started. 


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Loan availability and loan amounts vary by location. Available in Ontario only.

Installment Loans: Loan minimum of $100 to a maximum of $1,000, based on a completed application, net pay and other qualification requirements, and customer verification including a credit check. Installment loan terms are based on the amount borrowed. Payments are due on scheduled income deposits. AimFinance offers personal loans and is not a credit repair service. APR/Annual Interest Rate 46%. Lending decisions and funding times subject to bank processing and system limitations. 

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