If you have been turned down for credit before, the question you actually want answered is not what a loan costs. It is whether you will be declined again. This page explains what partner lenders in our network look at, what they do not look at, and what happens after you apply — so you can judge your chances before you spend time on an application.
What counts as bad credit in Canada
Canadian credit scores run from 300 to 900, and there are two consumer credit bureaus: Equifax and TransUnion. They hold separate files, so your score is not one number — it is two, and they often disagree.
Lenders draw the line in different places, but as a rough guide:
- 660 and above is generally treated as good credit
- 560 to 659 is where mainstream approval starts becoming difficult
- below 560 is where most bank and credit-union applications stop
A score reflects payment history, how much of your available credit you are using, the age of your accounts, and how recently you have applied for credit. It says nothing about what you earn, and nothing about whether you can afford a particular repayment. That gap is the whole reason this kind of loan exists.
Why your score does not decide this application
Partner lenders in our network do not run a credit check. There is no hard inquiry, so applying does not lower your score, and a low score does not by itself end the application.
Instead of pulling your bureau file, they use Internet Banking Verification (IBV) — a read-only connection to your bank account, provided by Inverite, Decision Logic or Microbilt. It confirms two things a credit score cannot: that money is arriving regularly, and that the account is in working order.
This is the practical difference between a score and a bank record. A score describes how you handled credit in the past, sometimes years ago. Your banking history describes your situation now.
What partner lenders look at instead
Every lender sets its own criteria, but the signals IBV surfaces are consistent:
- Regular income arriving in the account. Steady and predictable matters more than large. Irregular deposits are harder to assess than a smaller amount arriving on a reliable schedule.
- How long income has been arriving from the same source. A recent job change is not disqualifying, but a longer record is easier to verify.
- Whether the account is in good standing. Frequent non-sufficient funds activity is the single most common reason an application stalls, because it suggests the next scheduled payment may also fail.
- Existing loan payments already leaving the account. A lender is assessing whether another payment fits alongside the ones you already have.
None of these require a good score. All of them require an account that shows your actual situation, which is why the IBV step is not optional.
Do you qualify
The baseline criteria are short, and they are the same regardless of your credit history:
- You are a Canadian citizen
- You are over 18
- You are employed full time
- You have an active bank account
- You are not currently in a consumer proposal or bankruptcy
The last two are worth reading closely. An active account is needed because funds are deposited to it and payments are taken from it. A consumer proposal or an active bankruptcy is a legal arrangement with your existing creditors, and taking on new credit during one can breach it.
Note the third criterion as well: full-time employment. If you work part time, on contract, or through gig platforms, you may not meet the baseline — better to know that now than after completing an application.
What a loan costs
Rates are set by the partner lender, not by 514loans, and depend on the risk score of the application. Across the network they range from 22% to 32% APR, with repayment periods of 90 to 120 days.
A representative example at the top of that range:
A $300 loan at an APR of 32% over 98 days is repaid in 7 bi-weekly payments of approximately $44.99. The total amount repayable is $314.93, of which $14.93 is the cost of borrowing. This includes all membership fees as well as interest and capital.
Two fees apply if something goes wrong: partner lenders charge $50 for a payment returned for non-sufficient funds, and $35 to reschedule a payment and extend the plan. The full terms are set out on our loan terms and borrowing example page.
For comparison, a payday loan in Canada typically costs around $15 per $100 borrowed over 14 days, which works out to an annualised rate in the region of 390%. That difference, not the approval odds, is the reason to prefer an installment loan over a payday loan.
What happens after you apply
514loans is not a lender and does not make lending decisions. This matters for what you should expect:
- You submit one application. It goes to our application host, and from there to partner lenders in our network.
- A partner lender reviews it. They assess your IBV and decide whether to make an offer. Because no credit check is involved, this is usually quick.
- A lender contacts you directly. If they accept your application, that lender provides the loan, sets the rate and fees within the ranges above, and services the loan for its full term. Your agreement is with them.
You are not applying to 514loans and you will not be repaying 514loans. It is worth being clear about that before you hand over identification and bank access. Our office hours are Monday to Friday, 9am to 6pm, and a partner lender may contact you outside those hours.
If you are declined
A decline is not permanent and it is not always about your score. The most common reasons are recent non-sufficient funds activity, income that cannot be verified through IBV, or existing payment obligations that leave no room for another.
If the amount you need is to clear existing debts rather than meet a one-off expense, borrowing again may be the wrong tool. Consolidating what you already owe into a single payment is sometimes cheaper than adding to it — see credit consolidation. If your debts are beyond that, a non-profit credit counselling agency or a Licensed Insolvency Trustee can review your options at no cost, and neither will lend you money or charge you to be assessed.
Common questions
Will applying hurt my credit score?
No. Partner lenders do not run a credit check, so there is no hard inquiry on your Equifax or TransUnion file and no effect on your score from applying.
Can I get a loan with a score under 500?
Possibly. The score is not the deciding factor — the IBV is. An application with a low score and steady verifiable income is in a stronger position than one with a higher score and irregular deposits or frequent NSF activity.
Do I have to connect my bank account?
Yes. IBV is how partner lenders verify income without a credit check, so it takes the place of the bureau file rather than being an extra step on top of it. The connection is read-only.
What if I am self-employed?
The baseline criteria require full-time employment. Self-employed applicants are harder to verify through IBV because deposits are usually irregular, and may not meet partner lenders’ requirements.
How much can I borrow?
Amounts depend on what your banking history supports, and the partner lender sets the final figure. The representative example above uses $300 because it is the lower end of the range.
How long does it take?
There is no credit check to wait on, so a decision is usually fast. Funding timing is set by the partner lender that accepts your application, not by 514loans.
Ready to see where you stand? Start an application — it takes a few minutes, and it will not affect your credit score. You can also read the full requirements or our frequently asked questions first.