Loans With a 400, 450 or 500 Credit Score in Canada: What It Costs

Finance

October 23, 2026

12 min read

LoanBoys Editorial Team

Updated October 23, 2026. Every figure below is dated and linked to its source.

Short answer: Yes, you can get a loan with a 400, 450 or 500 credit score in Canada, but usually not from a bank. Online lenders that decide on income offer $300 to $1,500. Since January 1, 2025, none of them can charge more than 35% APR, which is about $29 in interest on $500 repaid over 3 months.

Key facts, October 2026

Canadian credit scores usually range from 300 to 900, according to the Financial Consumer Agency of Canada (FCAC, 2026).
Equifax Canada (2026) places scores below 560 in its poor range, so a 400, 450 or 500 score is poor on its scale.
Equifax Canada (2026) says lenders generally see scores of 660 and above as lower risk, which is why most banks decline lower scores.
Since January 1, 2025, no lender in Canada can charge more than 35% APR, all fees included, under the Criminal Interest Rate Regulations (SOR/2024-114).
The FCAC (2025) says a payday loan costs $14 per $100 borrowed, which works out to an annual rate of about 365%.
Late payments can stay on your Equifax Canada credit report for up to 6 years, and a hard inquiry for 3 years (Equifax Canada, 2026).

Definition. A loan with a 500 credit score is a small personal loan, usually $300 to $1,500, for a borrower with a poor score, approved mainly on income and bank history.

What does a 400, 450 or 500 credit score mean in Canada?

A 400, 450 or 500 credit score means your file is in the poor range, where most banks will say no to a new loan. According to the Financial Consumer Agency of Canada (2026), scores usually run from 300 to 900. Higher is better. Canada has two main credit bureaus, Equifax and TransUnion, and each one calculates its own score.

Equifax Canada draws the lines clearly. On its page about what a good credit score is (2026), it calls 660 to 724 good, 725 to 759 very good and 760 and up excellent. Scores below 560 fall in the poor range. People in that range, Equifax says, are more likely to have trouble getting credit or better loan terms.

A score of 400 or 450 usually points to something serious in your file. Common causes are accounts sent to collections, a consumer proposal or a bankruptcy. A score near 500 often reflects a run of late payments or maxed-out cards. The fix is different for each, so it helps to pull your free reports and find the cause before you apply.

These scores are more common than many people think. The Equifax Canada Market Pulse for Q2 2026 found that 4.19% of credit card balances were 90 days or more past due. For a full breakdown of score bands and what lenders see in each one, read our guide to what a bad credit score is in Canada.

Can you get a loan with a 400, 450 or 500 credit score?

Yes, you can get a small loan with a 400, 450 or 500 credit score, as long as your income and bank account show you can repay. Banks lean on the score, so they rarely approve below 600. Online short-term lenders lean on your deposits instead. That is why they approve many people that banks turn away.

The table below compares what each score level usually means when you apply for a small loan, and what helps most at that level. The bands follow Equifax Canada's 2026 ranges.

Your score	What lenders usually conclude	What helps your application most
400 (poor)	Banks and credit unions decline. Online lenders may approve a small amount if income is steady and the bank account is clean.	Ask for $300 to $500. Show 3 months of regular deposits. Mention a finished consumer proposal or discharge.
450 (poor)	Same as 400 for banks. Income-based lenders look at recent NSF events and any open payday loans first.	Clear any open payday loan. Avoid NSF charges for 90 days. Keep the request well under half of one paycheque.
500 (poor)	Banks still decline. Online lenders approve $300 to $1,500 routinely when income is verifiable.	Use one application that reaches several lenders, so you avoid a pile of hard inquiries.
560 to 659 (fair)	Some credit unions start to consider you. Online lenders approve on income.	Compare a credit union offer before you take a short-term loan.
660 and up (good)	Equifax says lenders generally see you as lower risk. Bank loans and lines of credit open up.	Shop for the lowest APR. A short-term loan is rarely your cheapest option.

The jump from 450 to 500 matters less than people expect. Both are poor scores, and an income-based lender treats them almost the same way. What changes the answer is your bank account. Our guide to bad credit loans in Canada explains how these lenders make their decisions in more detail.

Many lenders that accept low scores skip the hard credit check altogether. They verify your identity, income and banking instead. Our article on no credit check loans in Canada explains what that phrase really means, and why it protects a fragile score from more damage.

Are there guaranteed approval loans for a 450 credit score?

No, no licensed lender in Canada can guarantee approval for a 450 credit score, or for any score. A real lender has to review your income and bank account first. A site that promises approval before it sees your file is either stretching the truth or setting a trap. People search for this phrase often, so scammers use it often too.

The Canadian Anti-Fraud Centre (2026) lists the warning signs. It flags offers that promise approval no matter your credit history, and slogans like good credit, bad credit, apply now. It warns about very fast approvals, and about requests to pay by e-transfer, money service or prepaid card. It also says that in most provinces, a company cannot legally ask for a fee before you receive your loan.

The losses are real. The Canadian Anti-Fraud Centre (2026) received more than 112,000 fraud reports in 2025, with more than $704 million in reported losses. People with low scores are prime targets, because they have been turned down before and want a yes.

What does exist is a high approval rate. When several lenders review the same application, the odds that one of them says yes go up. Our article on why guaranteed approval loans don't exist explains the difference between a high approval rate and a promise.

What do lenders look at when your score is under 500?

When your score is under 500, lenders look mostly at your income, your bank account and your current debts. The score has already told them you had trouble before. Now they want proof that this month is different. You can improve most of these signals in a few weeks.

Regular income. A job is easiest to verify, but many lenders also accept Employment Insurance, the Canada Child Benefit, CPP, ODSP or AISH. The deposits need to be regular and land in a Canadian bank account. Gig income is harder to prove, so keep 3 months of statements ready.

A clean bank account. An NSF (non-sufficient funds) charge in the last 90 days is one of the strongest warning signs. Lenders also check how long your account has been open. An account that is a few weeks old reads as risky, even with good deposits.

Open short-term loans. An open payday loan lowers your odds sharply, because the new lender would be sharing your next paycheque. Paying off one loan before you ask for another helps more than almost anything else.

Your insolvency status. Many 400-range scores come from a consumer proposal or bankruptcy. According to Equifax Canada (2026), a consumer proposal comes off your report 3 years after you finish paying it. If 6 years after filing comes first, it leaves then. A first bankruptcy stays 6 years after discharge. You are not alone. Canada recorded 37,523 consumer insolvencies in Q2 2026, up 6.9% from a year earlier. That is Office of the Superintendent of Bankruptcy data, as reported by the Canadian Association of Insolvency and Restructuring Professionals on August 14, 2026.

How to apply for a loan with a 400, 450 or 500 credit score, step by step

Loan Boys is a Canadian loan-matching service: one short application is reviewed by several lenders, with no hard credit check and repayment over 3 to 6 months. Because several lenders see the same request, approval rates are high, and no hard inquiry is added to your file. Loan Boys is not a lender. It serves Ontario, Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, New Brunswick and Newfoundland and Labrador.

Find out why your score is low. Get your free reports from Equifax and TransUnion. A collection, a proposal or a string of late payments each needs a different plan.
Pick the smallest amount that solves the problem. Every extra $100 costs up to $35 a year at the legal cap. With a 400 or 450 score, a smaller request is also easier to approve.
Check that you qualify. You need to be 18 or older, live in one of the provinces listed above, and have regular income deposited in a Canadian bank account.
Clean up your bank account first. Pay off an open payday loan if you can, and avoid an NSF charge in the weeks before you apply.
Gather your details. Have your phone, your employer or benefit details and your banking information ready.
Start your application. The form is short. Lenders in the network review it, and decisions usually arrive in minutes during business hours.
Read the offer before you accept. Check the amount, the APR, the number of payments and the dates. Then get funded by e-Transfer, and set each payment for the day after your payday.

What does a loan with a 500 credit score cost in 2026?

A loan with a 500 credit score costs at most 35% APR in 2026, the same legal ceiling as any other loan in Canada. That limit comes from the Criminal Interest Rate Regulations (SOR/2024-114) under section 347 of the Criminal Code. It applies to agreements made on or after January 1, 2025. All fees, including origination and insurance charges, count toward the 35%.

The table below compares the legal maximum on an instalment loan at 35% APR with a payday loan of the same size at $14 per $100. We calculated it on October 23, 2026. It assumes equal monthly payments, a monthly rate of 0.35 divided by 12, and no other fees. Real offers can be lower, never higher. The last payment can differ by a cent because of rounding.

Amount borrowed	3 months at 35% APR	6 months at 35% APR	Payday loan at $14 per $100 (one term, up to 62 days)
$500	$176.48 a month; $29.45 interest	$92.04 a month; $52.26 interest	$70.00 in fees
$1,000	$352.96 a month; $58.89 interest	$184.09 a month; $104.53 interest	$140.00 in fees
$1,500	$529.45 a month; $88.34 interest	$276.13 a month; $156.79 interest	$210.00 in fees

The payday column costs the most for the shortest time. A $500 payday loan costs $70 for one term, often just two weeks, and the full $570 is due at once. The same $500 over 3 months at 35% APR costs $29.45, spread over three payments. The FCAC (2025) shows the same gap on $300 for 14 days. That costs $5.92 on a line of credit, $7.65 as a card cash advance and $42 as a payday loan.

Which mistakes cost the most with a low credit score, and what are your rights?

The costliest mistakes with a low credit score are applying everywhere at once and rolling over payday loans. Each one either drops your score further or drains cash you need for the repayment. Your province also gives you rights that can protect you.

Applying everywhere at once. According to the FCAC (2026), hard inquiries can lower your score. Too many close together may make lenders think you urgently need credit. With a 450 score, five bank applications can push you lower and still end in five refusals.

Rolling over a payday loan. Paying $70 every two weeks to carry $500 costs $1,820 over a year. In Ontario, according to the Government of Ontario, lenders must offer an extended payment plan once you take three loans in 63 days. A 3-month instalment loan ends the cycle sooner.

Know your provincial rights. In Ontario, a payday loan cannot exceed 50% of your net pay, and the NSF fee is capped at $20. Default interest is limited to 2.5% a month, and you have two business days to cancel. British Columbia and Saskatchewan also cap payday loans at 50% of net pay, while Manitoba and New Brunswick cap them at 30%. Manitoba gives 48 hours to cancel. Alberta requires at least 42 days and two instalments to repay.

How can you raise a 400 or 450 credit score to 600?

You can raise a 400 or 450 credit score toward 600 by paying every bill on time and lowering card balances. Adding one account that reports good payments each month also helps. According to the FCAC (2026), payment history is the most important part of your score. The FCAC also suggests using less than 30% of your total credit limit.

Start with what is already on your file. Late payments stay up to 6 years, and collections 6 years from the first missed payment, says Equifax Canada (2026). You cannot erase true items early. You can dispute errors for free with each bureau, and every error removed helps right away.

Then add new, positive history. A secured credit card with a small limit, used lightly and paid in full each month, is the classic tool. A credit-building membership such as AvenaCredit, which reports a monthly tradeline to Equifax Canada, is another option that does not mean taking on a loan. Ask any lender whether it reports to a bureau, because a small loan paid on time only helps if it is reported. Once the loan ends, keep sending the old payment amount to savings, so the next surprise bill does not need a loan.

FAQ

Can I get a loan with a 500 credit score in Canada?

Yes. Banks usually decline a 500 credit score, but online lenders that decide on income often approve $300 to $1,500 in Canada. You need regular income deposited in a Canadian bank account and no recent NSF charges. Since January 1, 2025, the loan cannot cost more than 35% APR, all fees included, whatever your score.

Can I get a personal loan with a 450 credit score in Canada?

Yes, a small personal loan is possible with a 450 credit score in Canada, usually $300 to $1,000 from a lender that looks at income instead of your score. Steady deposits, a bank account open for several months and no open payday loan matter most. The legal maximum cost is still 35% APR, all fees included.

Can I get a loan with a 400 credit score in Canada?

Sometimes. A 400 credit score is deep in Equifax Canada's poor range, below 560, so banks and credit unions will decline. Some income-based lenders still approve a small amount, often $300 to $500, if your income is regular and your bank account is clean. A finished consumer proposal or bankruptcy discharge helps your case.

Are there guaranteed approval loans for a 450 credit score in Canada?

No. No licensed lender in Canada can guarantee approval for a 450 credit score or any other score, because it must review your income and bank account first. The Canadian Anti-Fraud Centre warns that promised approval and upfront fees are signs of a loan scam. What does exist is a high approval rate when several lenders review one application.

What is the lowest credit score to get a loan in Canada in 2026?

There is no legal minimum credit score for a loan in Canada in 2026. Banks rarely approve below about 600, and Equifax Canada says lenders generally see 660 and up as lower risk. Income-based lenders can approve small loans at 400 to 500 when income is steady, at no more than 35% APR.

How much does a $500 loan cost with bad credit in Canada?

At the legal maximum of 35% APR, a $500 loan repaid over 3 months costs $176.48 a month and $29.45 in total interest in Canada. Over 6 months it costs $92.04 a month and $52.26 in interest. A $500 payday loan at $14 per $100 costs $70 in fees for one short term.

Will applying for a loan lower my 500 credit score?

A hard inquiry can lower your score, and Equifax Canada says it can stay on your report for 3 years. Many income-based lenders skip the hard inquiry, so applying does not affect your score. Sending one application to several lenders through a loan-matching service avoids a pile of hard inquiries on a 500 credit score.

How long does it take to go from a 450 to a 600 credit score in Canada?

It depends on what caused the 450 score. A score hurt by late payments can climb within months of on-time payments and lower card balances, while a bankruptcy stays on an Equifax Canada report for 6 years after discharge. The FCAC says payment history matters most, and suggests using less than 30% of your credit limit.