Getting loans with bad credit score in Canada isn’t easy. You’re in credit rehabilitation and you’ve sworn off loans for now. But who knew what would happen?
Bad Credit Personal Loans Canada
Sometimes there’s no option but to try to get a loan. So how do you get one? Alternative money lenders are always there, but their interest rates are high.
Mainstream finance companies are the better option. Some banks and finance companies have lending options for customers trying to recover their creditworthiness. At least for short-term loans Canada and reasonable amounts. Even if you have a bad credit history, most companies will grant loans on evidence of regular income.
They need to know you can pay back within the agreed time. Many offer flexible payment options.
Loan Options With Bad Credit
Rebuilding financial credibility is hard. Needing another loan adds to stress. But there are solutions. Short term loans for reasonable amounts can be arranged.
Bear in mind that in the absence of a sound credit rating, the institution will find another way to establish evidence of your ability to pay. No lending institution will take on a blatant risk. You will have to provide evidence of employment and regular income. The lender must be satisfied that you’re capable of repaying the loan within the stipulated time.
They may ask for someone with a sound credit rating to sign as your guarantor, so should you default, the guarantor will be obliged to repay your loan. Should you ask someone to sign as your guarantor, please remember that this will be a risk for the other person. In some cases, you may need to pledge your home equity or car to secure the loan.
Bad Credit Personal Loans Canada No Credit Check
So if you default, they will hold your property. If these terms seem harsh, remember that prompt repayment of your loan will go in your favour. Once your loan is repaid, your property will be restored. And your credibility as a borrower will have gone up. Secured loans might even be a better bet than unsecured loans.
The interest rates on unsecured loans can be rather high. Certain finance companies are known for being positive towards giving loans to borrowers with no credit check loans or bad credit ratings.
They’re listed here, in no particular order:
Tribecca Finance Corporation
Prudent Financial Services
These are all reputed finance companies.
Finding the Solution
As you can see, securing loans with bad credit score in Canada is possible. In Canada bad credit loans can help in emergency situations. They’re not an easy option, but if you’re diligent about repayments, things should work out well.