Borrowing Money with Bad Credit

Having bad credit in Canada can feel like being trapped in a financial prison with invisible bars. Traditional lenders slam doors in your face, leaving you wondering if you'll ever qualify for the funding you need.

But here's the truth they don't want you to know: bad credit isn't a life sentence, and innovative solutions like KOHO are rewriting the rules of Canadian lending.

The hidden reality of bad credit in Canada's lending landscape

Bad credit affects more Canadians than you might think. With credit scores below 600, millions of Canadians face rejection from traditional banks, forcing them into predatory lending situations or abandoning their financial goals entirely.

But what if we told you there's a different path—one that not only helps you borrow money but actually improves your credit while you do it?

Why traditional banks have failed Canadians with bad credit

Canadian banks operate on outdated risk models that paint anyone with bad credit as financially irresponsible.

They ignore the reality that life happens—job loss, medical emergencies, divorce, or simply making mistakes in your twenties shouldn't define your financial future forever.

This systemic failure has created a massive opportunity for fintech companies to step in and serve the underserved.

KOHO Credit Builder

KOHO Credit Builder is a feature that helps you build or rebuild your credit history through a secure line of credit that reports your payment activity to Equifax.

A line of credit is a set amount of money you can borrow from and repay over time. In this case, it's a $225 credit that helps build your credit history.

KOHO members have seen their credit scores go up by an average of 31+ points in just 4 months¹.

Why credit builder loans are perfect for bad credit

• No credit requirements

• Payments are reported to credit bureaus, improving your score

• Forces savings while building creditworthiness

• Creates a track record of on time payments

The alternative lenders

Canadian alternative lenders specialize in bad credit situations and often provide more flexible borrowing options than traditional banks.

Instant cash advance apps

Sometimes money gets tight before payday. When surprise car repairs or unexpected bills show up, KOHO Cover can help bridge the gap without the crazy interest rates that payday lenders charge.

Why Choose KOHO Cover

• No interest - We don't charge interest, no matter how much you borrow

• No credit checks - Everyone who signs up gets approved

• Up to $250 - Borrow what you need based on your eligibility

• Money right away - Access your cash advance instantly in the app

• Financial coaching - Get tips to manage your money better

Apply for a cash advance and have money in your account in minutes!

Peer-to-peer lending platforms

These platforms connect individual investors with borrowers, often resulting in:

• More personalized approval decisions

• Competitive rates for bad credit borrowers

• Faster approval processes

• Flexible repayment terms

The light at the end of the tunnel

Bad credit isn't permanent, and with the right strategy, you can access the funds you need while building toward a brighter financial future. KOHO's financial tools have made it possible to break free from the traditional lending system that has failed so many Canadians.

Remember, every Canadian with excellent credit was once where you are now. The difference isn't in their inherent financial wisdom—it's in their willingness to start somewhere and stay consistent. Your transformation begins today.

¹ Based on users with a starting score of 500 or less and who signed up for credit building in October 2024. Credit Building is not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.