Bad Credit Loans Canada
A decade ago, when banks and credit unions comprised the majority of lending institutions, guaranteed approval loans for poor credit Canada seemed unreal and completely impossible.
Applicants had to undergo a tedious and time-consuming loan approval process. To get money, a borrower had to fax and deal with piles of documents, stand in queues, and waste their time. Previously a person was required to have excellent credit to borrow money.
Luckily, times have changed. North’n’Loans has become one of the best web platforms. It offers unsecured bad credit loans with guaranteed approval. In such a way, now you can easily get a loan online without visiting a bank office.
North’n’Loans is ready to give you a helping hand in any financial situation. We send money 30 minutes after the loan approval and work 24/7 to deliver the best lending services.
What is a bad credit loan?
A bad credit loan is a personal loan issued to a borrower with a low credit rating. Bad credit loan lenders allow people to get money irrespective of their credit scores. You can use the funds for a wide variety of loan purposes.
You can try to get a bad credit loan from a bank or credit union, but it may be challenging. Luckily, today we have great alternatives to traditional financial institutions, such as online lenders. They make bad credit loans in Canada available for almost everyone.
A bad credit personal loan may become a helping hand if you need fast cash and can’t boast of excellent credit history. You don’t have to meet harsh requirements to qualify for this loan type. In most cases, bad credit loan providers offer no-credit-check options for people in need. Due to this, you can get money within one business day.
However, if you choose a bad credit loan, be ready to pay relatively high-interest rates and an annual percentage rate. It is the price lenders charge for bearing increased risks.
Types of bad credit loans
Bad credit solutions fall into secured and unsecured loans. The first loan type uses personal property as collateral. The most popular examples are home equity loans (house as collateral) and car title or auto loans (car as collateral).
Secured loan options may considerably increase your chances of a bad credit loan with a lower interest rate. However, you risk losing your property if you fail to repay the debt.
On the other hand, unsecured bad credit loans are the ones that don’t require collateral. If you meet the lender’s requirements, you only need to get money to sign a loan agreement. There are several unsecured loan types you may consider. Among the most popular ones are bad credit payday loans, cash advances, and installment loans.
Payday loans for bad credit
Payday or cash advance is a type of unsecured personal loan issued quickly. It allows you to borrow the money you have earned but haven’t received. A borrower has to repay this debt from the next paycheck. In such a way, payday lenders provide small, short-term loans with high-interest rates for people with poor credit ratings.
To qualify for an online payday loan, a borrower must provide proof of income. It doesn’t mean that officially unemployed people can’t be eligible for bad credit loans of this type. Indeed, most personal loan lenders accept social benefits, rental and freelance income, etc.
Unlike traditional lenders, online platforms rarely look at borrowers’ credit scores or bank statements. They offer loans for poor credit within one business day for people who need instant cash. Among other things, no-credit-check options won’t harm your credit score. Payday lending companies usually don’t report to credit bureaus.
Unsecured personal loans
As mentioned above, unsecured personal loans don’t require collateral. Traditional lenders and online platforms offer these loans in Canada. If you have a low credit score, it may be difficult to qualify for an unsecured option. In some cases, secured loans can be the only way to get money with a poor credit rating.
If you opt for an unsecured loan, remember that the interest and annual percentage rates may be high. It will depend on your credit history and the chosen type of loan. There are installment and credit card solutions to get instant cash.
The first loan type is the most traditional credit option. Installment bad credit loans help solve financial emergencies without putting much pressure on your budget. The loan application approval process usually takes a few hours, but the debt can be repaid in several months or even years. However, if you miss monthly payments, you may face insufficient funds fee and an unpleasant financial situation.
The installment loans are entirely beneficial if you have a stable income and a low credit score. To qualify for such an option, look for lenders that offer unsecured loans without minimum credit score requirements.
What is Considered a Bad Credit Score?
In this article, we consider unsecured and secured loans for bad credit. But what does bad credit mean? A credit score is your rating in the financial world. It is based on your credit report and shows your creditworthiness.
If you deal with a traditional lender, a bad credit score may become a reason for the loan rejection. Luckily, bad credit loans exist. According to the FICO rating (300-850), a low credit score is between 300 and 579. Most lenders set 670-739 ( good credit) as a required credit rating.
At the same time, the VantageScore model (ranges from 300-850) deems the scores between 300-499 as very poor and 500-600 as poor. A good credit score starts at 661.
Different lending companies set different demands on borrowers. While looking for a bad credit lender, read the loan terms and conditions carefully. There you will find the minimum credit score requirements and define whether you are eligible for a chosen credit solution.
Minimum requirements to get a loan with bad credit
If you believe that taking risks and accepting this lending solution together with fees and interest is worth it, go ahead and apply online!
Private loans are a great opportunity to receive extra financing for the short term. Generally, the repayment period is up to three weeks or until the next pay day. To get a loan with bad credit you need to:
- be over 18 years of age
- have a Canadian residency/citizenship
- have a monthly income of $800 and more
- have a valid and active bank account
- provide proof of steady employment with a Canadian company for a minimum of 3 months.
What loans for bad credit can be used for?
Everyone can face unforeseen expenses from time to time. Unfortunately, people rarely have safety bags for solving money issues.
Bad credit loans with instant approval are perfect for covering urgent costs in case you don’t have enough savings. Conventional lenders are likely to reject your loan request if you have no guarantor to co-sign a contract or any collateral to secure bad credit loans.
North’n’Loans allows applicants to use a bad credit personal loans for any of these purposes:
Urgent home repairs
Car repair costs
Medical or other urgent expenses
Purchasing new appliances/big-ticket items
Whatever your personal need is, we will never ask you about your issues or why you want to take out a loan for bad credit. It’s up to you to decide what immediate expenditures or emergency you need to cover to remain financially stable until the next paycheck.
However, avoid getting trapped into further debts. The statistics show that 26% of Canadians pay off their debts using various loan options. After a while they take out another loan again.
Guaranteed Approval Loans for Poor Credit Canada
While you may be depressed and totally stressed out because of sudden costs and unpredictable life situations, your aim is to find the most suitable lending solution among hundreds of offers.
North’n’Loans cooperates with a huge network of direct lenders who are ready to provide loans for bad credit in Canada to people who don’t have the time to repair scores right away.
Bad Credit Loans Instant Approval Canada
It might be tempting to accept the very first offer as your rating is poor and you suggest you won’t have too many chances. However, it is worth saying that bad credit loans in Canada with guaranteed approval don’t exist in real life. This is a widespread trick chosen to attract more clients and charge them with premium fees and penalties while you risk losing your money and damage your rating even more in case of non-payment.
Avoid scams and eliminate dangerous risks while we strive to help you save your time and money by connecting you only with the most trustworthy and reputable lenders in Canada. Each of them works according to the laws and regulations in each particular province. Read more about payday loans Alberta if you live in this province.
How to Get an Instant Response on Your Loan Request
If you need to fulfill an urgent cash need, alternative lending services can be a wonderful solution. Getting online loans for bad credit has never been easier. You can forget about sleepless nights and long queues in banking institutions. Leave copies of your papers and fax machines far behind. Today, you can simply apply online and get small loans for poor credit even if it is below 600.
How can I get a bad credit loan in Canada?
Firstly, you should fill in a simple request form on our web page and include basic personal and banking details. We won’t disclose your sensitive data to anyone and use it only to verify your identity. We perform a soft credit pull to check your credit history and previous payments.
*Remember that, unlike hard credit checks, soft ones won’t damage your rating. The lenders we work with value each applicant and think about the client’s credit.
Secondly, we will connect your application with our database of lenders and send you an instant answer. The majority of bad credit payday loan requests are approved, so there is no need to worry. To qualify for a bad credit loan, you must have monthly income and stable employment to ensure you can repay your debt.
Once you get connected with the lender and negotiate the terms and interest rates, you sign a digital contract for payday loans Ontario or any other province from the comfort of your home. After that, small loans for bad credit will be deposited into your bank account automatically. As you can see, getting a personal loan can be an easy and convenient paperless process.
Consider Adding a Cosigner
If your payment history is far from perfect, you can consider finding a cosigner. It is a person who shares equal responsibility for the debt with the borrower. A cosigner must have a high credit score and an excellent credit report. In other words, you should find a perfect client for any lending company. This strategy allows you to get instant cash irrespective of your credit score. However, finding a cosigner may be challenging. If you fail to repay your loan, it will be the responsibility of a cosigner. Make sure you differentiate between a cosigner and a co-borrower. The first option means a person does not have ownership rights until a borrower goes bankrupt.
Know your credit score
Before sending a loan application, check your credit score. A credit score is based on your credit history, debts, credit mix (different credit accounts), new credit, etc. It will help you define the most beneficial loan type and lender.
There are several ways to get to know your credit score. Many providers of bad credit loans in Canada offer credit score data for their clients. It may be found on your statement or the lender’s website.
The second option is to get a credit score from one of the three leading credit reporting agencies (Equifax, Experian, and TransUnion), FICO, or the like. The last option is to visit a credit score service or free credit scoring websites. Some platforms provide free credit score data, while others may charge a monthly subscription fee.
Advantages of Taking a Bad Credit Loan
Bad credit loans shouldn’t be viewed as a panacea. Even a small loan may lead to a high-interest debt. But if you take the loan application process seriously, bad credit solutions may bring numerous benefits.
Since bad credit lenders don’t check your credit history or credit score, you can receive the money within one business day. You also don’t have to worry about a poor credit score. Just prove you have a regular source of income and get a bad credit loan today.
2. Easy to get
You can qualify for a loan even if you are not officially employed. This fact makes bad credit loans in Canada available almost to anyone.
3. It may help you improve your credit
Some borrowers also choose bad credit solutions to fix their credit scores. If you fulfill your financial obligations as expected, your rating will increase.
4. Fixed interest rate
Most lenders offer bad credit loans with fixed interest rates. Well, the interest itself is higher when compared with traditional loans, but bad credit loans allow you to solve financial emergencies quickly and easily.
Cons of Bad Credit Loans
Despite numerous advantages there are still many disadvantages to consider.
Short repayment period
Bad credit options are usually short-term loans. It becomes a real challenge for some borrowers to repay the debt from the next payday.
2. High interest rate
If you have a bad credit score, you will pay high interest. If your financial issue can wait, it is better not to take a bad credit loan. Try to borrow money from friends or save it by yourself.
3. Hidden fees
Some unfair lenders can charge extra fees for their services. Before signing a loan, read loan terms and conditions carefully, especially in small print.
4. Many scammers
You must be very attentive while looking for a bad credit loan provider. The financial sector is full of scammers. To avoid unpleasant scenarios, read customer reviews of the chosen company and its overall rating. You should deal only with licensed companies and not believe in unreasonably appealing offers.
Bad credit personal loans vs payday loans
It is difficult to define the best loan type. Your choice should depend on your financial reputation, needed loan amount, and acceptable interest rate. If you have good credit, it is better to consider payday options. This loan type will cost you less.
At the same time, bad credit personal loans resemble payday ones. For such a loan, you will pay higher interest and APR. However, it will be easier to get. The qualification requirements are regular income, Canadian citizenship, and appropriate age (18+). On the other hand, payday lending companies may set additional demands and conduct hard credit checks. Such inquiries harm the borrowers’ credit scores.
Bad credit personal loans are entirely beneficial for borrowers who can’t qualify for traditional loans. Online lenders offer quick and convenient financial solutions for people in need.
Just fill in a short loan request form and wait for money within one business day. Most lending platforms are available 24/7 without weekends and holidays.
What’s more, to get money, you don’t have to deal with the paperwork and go through harsh credit checks. To qualify for a bad credit loan, you must have a stable source of income and meet some basic requirements.
Before taking a loan, make sure you can afford debt repayment. A bad credit loan is worth considering if you are ready to face high interest rates. At the same time, you shouldn’t take such loans for granted. Even a small debt can spoil your life.