Bad credit? Need a loan? It IS possible! | Refresh Financial

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Bad credit? Need a loan? It IS possible!

bad credit loan canada

If you're struggling with bad credit, and you're looking for a personal loan, chances are you've probably been turned down at any major bank you have approached. Banks are very unlikely to give out bad credit loans in Canada. What is considered a bad credit loan? Generally speaking, a loan given to anyone with a credit score below 650 (which is considered good and means that you are a low default risk and a better candidate for lending) is a bad credit loan from a banks perspective. Note that this number is just intended as a guide - different banks' requirements will vary.

Major banks, however, are not the only option when it comes to accessing personal loans. There are plenty of loan companies who are willing to issue bad credit loans, and GreedyRates.ca has a good list of those providers.

But - and this is a big BUT - with a bad credit loan in Canada, you are going to pay much higher interest rates. We're talking upwards of 25%-30% interest. And whatever you do, stay away from “payday loans,” which often have rates of several hundred percent!

Check out our loan calculators which will show you exactly how much a bad credit loan in Canada can cost you.

Ask yourself, do you really need the loan?

Before signing on for a bad credit loan, ask yourself if the loan is to satisfy a want, or a need. Do you want to buy a new TV, or do you need to pay bills this month? If you're looking for a loan to satisfy a want, and you have bad credit, please reconsider! You will pay sky-high interest rates for something that can wait several months until you have built your credit score.

If you are seeking a personal loan for a need, such as bill payments, groceries, or something else that simply cannot wait, first make sure you have exhausted all other options before getting a high-interest bad credit loan. Look at what expenses you can cut down on for the short-term to save money. For example, you could:

  • Stop eating out for a few months
  • Cancel your cable
  • Take one vehicle off the road

For more ideas to cut daily expenses, check out this blog. All too often, people go straight to a bad credit loan to solve short-term money problems rather than cutting back on their expenses. It's not going to be easy, but if you can manage without getting a loan, you'll be so much better off in the long-term.

Build your credit score and qualify for lower interest rates

Of course, the best solution is to invest the time into building your credit score so that you don't even need to look as far a bad credit loans. With a higher credit score you will qualify for much lower interest rates, making all purchases - wants and needs - that much more affordable.

Check out our custom credit building solutions. The application involves 4 easy steps and can be completed in under 20 minutes!

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    What Canadians are saying about Refresh

    I would like to thank Refresh Financial for helping me get out of a bad spot. I never thought it was possible and almost gave up on things and then I saw Refresh Financial and and gave it a try. At first I was unsure of things but to see my credit score now makes me a believer in this program.

    – Aaron A

    “It hasn’t even been a year yet, possibly only 6-7 months, and my TransUnion score has gone up over 100 points. That was only the tip of the iceberg as recently I was able to get a consolidation loan from my bank that allowed me to move forward and make things easier for me. Talk about second chances!”

    – Angelica M

    “I am now in a position where I am able to obtain credit (just bought a brand-new car and refinanced my mortgage for a fantastic rate) and it took little to no time at all. I would 100% recommend Refresh to anyone looking to rebuild credit with as little hassle as possible.”

    – Cathy M

    “I had not heard of a company doing such a thing before someone suggested it to me and it made sense. I am not very good at saving money and Refresh Financial helped me. I have dealt with them for years now and never had a problem. The customer service is excellent and fast.”

    – Chris C

    Refresh helped me regain credit following a nasty divorce, which left me with a very poor rating. They were able to remarkably help me go from a 480 to a 600 score, in just over a year. Thank you Refresh!”

    – Deb K

    I have watched my credit score jump since being with Refresh and I have already recommended it to friends and family. Thank you for helping me build my credit faster for my future and my children’s future :)”

    – Heather T

    At first I was skeptical because I wasn’t getting funds upfront and had to make payments when I really needed the money. I’ve been in the program a year now and have noticed my credit has improved drastically!”

    – Irene L

    I have been a client of Refresh Financial for approximately 3 years. Since being a client they have improved my credit immensely. Definitely recommend this company to anybody that needs help re-establishing credit.”

    – Jason I

    “I recommend this program to anyone having credit issues. At the end of the agreement, your money is refunded to you. There were times I found myself short on cash and Refresh, with permission, used a portion of my money to clear up my arrears.”

    – Margaret L

    “I would like to thank Refresh Financial for their professionalism, great customer service and for helping get back to a better financial situation. I have always been treated with the utmost respect.”

    – Martine B

    Refresh Financial is an amazing program to help people get back on their feet. I was rock bottom with nowhere to turn. My credit was beyond poor. I would recommend them to anyone. If I can do it surely anyone else can.”

    – Matthew S

    “Great company to deal with for rebuilding credit, very simple process to get started. Good service if you ever have questions.”

    – Mike L

    This business truly cares about its clients. The customer service is always quick to return calls or emails. Their online portal functions very well so as a customer you are always updated as you progress with your loan.

    – Phil J

    “Refresh Financial has made us more aware of how to take care of our financial situation and be more responsible, and making payments on time is rewarding in the end for credit. Thank You sincerely.”

    – Rocky M.

    “Refresh financial is great!!! They boosted my credit score, helped me save money and helped my husband and I buy our house;) I was not only a number to them, they stayed in touch and helped me out along the way. Answered all my questions and concerns.”

    – Sara B

    “Refresh Financial had been exceptionally good to me! I’ve just been out on medical leave and they have accommodated me with my payments without hesitation!! I was in a really bad spot with my credit and they have helped me to try and correct it!! Bravo!”

    – Shannon B

    This company has been nothing but fantastic. They have gone above and beyond to help me. This program has given me the relief and peace of mind I need. I would certainly go back to them and give them names of people who could use this.”

    – Shirley K

    The financial services products are excellent for new immigrants, low-income earners and small business owners. Loans, savings and credit building all in one solution is a perfect fit to help with financial goals and stability.”

    – Soraya H

    “After successfully going through a credit rebuilding loan, I was able to use my built-up equity to purchase a newer vehicle and I have since been approved through a financial institution for a loan.”

    – Tanya W

    “I made some poor credit choices when I turned 18 and have always had this lingering thought of how am I ever going to better my score. Since being with Refresh I have realized that I took the right step towards bettering my future.”

    – Taylor B

    “Thank you Refresh, and my relationship manager for giving me the tools for a better score with a secured card and two credit builder loans. I feel absolutely confident I’m on a better path to financial success. I am happy to be a long term client.”

    – Trevor P

    I’m so excited I’ve joined refresh! I’ve already seen a huge increase on my credit after the first month! The staff are a delight and make this so easy to understand. I strongly recommend Refresh Financial even if you have good credit this will give you a boost and you’re saving money with the reverse loan!”

    – Wayne B