High Risk Loans Guaranteed Approval Canada

Alistair Croll
Fact Checked
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Are you looking for high risk loans in Canada due to your bad credit history? PaydayMart helps you without harming your credit score.

According to major credit bureaus in Canada, if your credit score lies below 560, you come under the category of "bad credit." But don't worry, you are not alone! Approx. 15% percent of Canadians suffer from "bad" credit ratings.

A credit score indicates borrowers' creditworthiness, which helps the lenders make a firm decision about whether to lend the money or not. Getting a loan in Canada with a bad credit history might be challenging, but it is not impossible. Some direct lenders are willing to work with people with bad credit by offering online high-risk loans in Canada.

Do guaranteed approval loans exists in Canada?

At times of financial crisis, searching for loans that offer "guaranteed" approval is natural. Such loans may sound attractive, but guaranteed approvals or loans for bad credit don't exist in Canada.

There are some rules and eligibility criteria that every lender has to follow while approving loan applications. Lenders must check the factors that include the borrower's ability to repay the loan, income, debt-to-income ratio (DTI), and other aspects.

If your credit score is bad, your only option is high-risk loans online. At PaydayMart, 40+ Canadian direct lenders offer high-risk loans for poor credit people. We cannot guarantee loan approval but can connect you with lenders with high acceptance rates (98.99%).

What do you mean by high-risk loans?

Generally, borrowers who don't have a solid past credit record search for "high-risk loans." Since high-risk loans are offered to borrowers with a higher risk of default, lenders charge high-interest rates and fees.

It is to compensate for the losses of offering loans to high-risk borrowers having bad credit or no credit history. Due to high interest, many lenders offer online loans for high-risk borrowers at lenient terms and by showing proof of stable income.

What are your best high-risk loan options?

Getting a loan with a bad credit history might be hard but impossible. Some loan options are available in Canada for people with high-risk profiles. Some are included as:

Secured loans: Whatever credit history you have, bad or no credit, such loans only require you to submit an asset as collateral, such as your home or car, to get approval. If you default on your loan repayment, the lenders can sell your collateral and cover their losses.
Second chance loans: There are some lenders like we have who are always willing to work with people with less-than-perfect credit scores. However, such second-chance loans in Canada come with high interest rates and are approved based on the borrower's affordability. So, ensure you have a stable income to repay your loan on the due date.
Payday loans: If you want to borrow small amounts ranging from $100 to $1,500 to cover short-term cash shortages, you may consider online payday loans in Canada. Usually, lenders focus more on your current financial position and income than your credit history. Payday loans are easy to approve but involve double-digit interest rates.
Guarantor loans: If you have a "high-risk" credit profile or no credit history, you may need a guarantor that helps to qualify you for a personal loan. A guarantor could be anyone willing to guarantee to make your loan payments if you can't repay your loan on the due date.

Many high-risk loan lenders in Canada might help you with a personal loan. But, before you apply, thoroughly check your loan contract to find out about terms and conditions, interest rates, and other fees.

Eligibility requirements for loans with high-risk lenders in Canada

If you want to qualify for a high-risk loan online in Canada, you'll need to be matched with the following:

Be 18 or older (or the age of majority in your province).
Be a citizen or permanent resident of Canada.
Have a steady source of income from employment or benefits.
A Canadian personal bank account must accept online money transfers or e-transfer.
You should have a valid mobile phone number, email, and residence address.

If you match with above criteria, you are eligible to start the application process shown below.

How can I get high-risk loans with guaranteed approval in Canada with PaydayMart?

Get up to $5,000 in high-risk personal loans in Canada in just 3-steps!

Step 1: Complete our online application in minutes to find a recommended lender.
Step 2: Our high-risk loan lenders review your application and provide instant decisions.
Step 3: Once your loan is approved and you accept the loan contract by e-sign, we'll send the money directly into your bank account through e-Transfer.

Please note that PaydayMart provides a platform to compare lenders who consider other factors rather than credit scores. The final loan decision depends upon your lender because we are not a lender or broker.

How to increase your chances of getting approved for a high-risk loan?

The following tips will help you increase your chance of getting approval for high-risk loans in Canada.

Find a lender that matches your needs: It is always better to find one that offers loans to people with high-risk profiles. Directly discuss with the lender about what financial products they offer and at what conditions.
Always try to borrow what you need: If you have bad credit, it is better to borrow a small amount of money because it increases your chances of loan approval and makes it easier to repay the loan on time.
Show your ability to repay the loan on time: Lenders are more willing to work with borrowers with enough stable income to repay the loan. Usually, high-risk lenders focus more on income and ability to repay than credit history.
Try to reduce your debt ratio: Pay off your small debts to reduce your debt-to-income ratio. Generally, managing your DTI ratio below attest 40-43% is good.

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Frequently Asked Questions

What makes a high-risk borrower?

In most cases, lenders label an applicant as a 'high-risk' borrower with a low credit score or bad credit history. It means the borrower has the highest possibility of defaulting as a high-risk borrower with limited loan options and very high-interest rates.

Can I get guaranteed high-risk loan approval in Canada?

No, if you find someone who offers loans with 'guaranteed approval,' beware of them and don't apply. PaydayMart does not offer high-risk loans with guaranteed approval in Canada, but our approval rates are high. While we never offer 'guaranteed' or 'no refusal' loans, 9/10 of our applicants still get an instant decision after application.

Can I get a loan with a 500 credit score?

You can get a loan even if your credit score is 500 or below. Some specialist direct lenders in Canada offer high-risk loans to people with bad credit scores or no credit history. However, you must have the ability to repay your loan on time.

Should I apply for a high-risk loan?

Whether you apply for a high-risk loan or not depends on your financial position and ability to repay. If you are facing rejection for a traditional loan due to bad credit, but you need money as soon as possible, then a high-risk personal loan might be a good option. It is important to compare as much as lenders with each other to crack the best loan deal that suits with needs.

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We understand the challenging financial situations. That is why, we strive to improve your lifestyle by providing best rage of loans at low rates to suit your needs.

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*Timing might be varied. T&Cs apply. Applying won't affect your credit score

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