Have you ever faced rejection for loans, credit card applications by major banks or traditional lenders? Or have you ever filed for bankruptcy or defaulted on loan payments?
This shows that you’re among one million Canadians who are suffering from bad credit scores.
Poor credit can affect different areas of your life, for instance, getting approval for a loan, credit card, or a mortgage, etc. This can sometimes also affect the chances of getting a job.
Best Bad Credit Loan Lending Institutions In Canada
Many people think that having a poor credit score means that there is no option available to help them financially. In reality, this is not true. There are some options that you can opt for and you can get them from various lending institutions. Here in this guide, you’ll get to know about the best and reliable lending institutions that operate in Canada. Take a look at more bad credit lenders below in this article as well.
Instant Cash Canada
Eligibility Criteria –
Must be above the age of majority as per your province
Must be a Canadian citizen or permanent resident
You can connect with this lending institution and you can easily borrow up to $40000 on the same day of applying for a loan. You will get to know the status of your loan application within a few minutes. You can connect with this source by visiting their website online.
Loan Center Canada
Eligibility Criteria –
Must be above the age of majority as per your province
Must be a Canadian citizen or permanent resident
This lending institute deals in various kinds of financial products. With this institution, you can apply for an Ontario car title loan, personal loan, mortgage, and more. They operate in various locations in Canada such as Ontario, British Columbia, etc. Their offices are present in several cities and have been working for years. You can apply for any type of loan from the website online.
Quick Cash Canada
Eligibility Criteria –
You should be at least 18 years of age
You should be a permanent resident of Canada
You must have a valid driver’s license
Quick Cash Canada has a dedicated team of professionals that are available to help people 24/7 hours. It is quite easy to apply for an equity loan from this institution. They do not perform any hard inquiries on your credit and do not need any permanent income source. You can easily get approval and cash disbursal on the same day of applying.
Canadian Cash Solutions
Eligibility Criteria –
You should be older than 18 years
You should be a permanent resident of Canada
You must not have filed bankruptcy
This institution is a top lending source and your credit history won’t matter. You can apply for various kinds of loans such as personal loans, credit loans, debt consolidation, collateral loans, etc. The requirements are very minimal and the process of loan application is hassle-free. If you’re in between jobs or are looking for better opportunities, you can still apply for this loan.
Here are some of the points that you should know as the institutions will ask about them:
- The average monthly or annual income
- Whether you’re employed, self-employed, or unemployed, and the size of the business
- If you have a friend that can co-sign the loan application for you
- If you have filed for bankruptcy or not
- If you are under debt or have borrowed money from anyone at the moment
Bad Credit Loan Providers vs. Traditional Lenders
Applying for a loan from major banks or traditional lenders includes several activities. These sources check your financial history, credit score, payment history, and also check for bankruptcy. Only a few banks in Canada approve the personal loan applications of people having a poor credit history.
Luckily, nowadays there are several other lending institutions that provide loans along with banks. At the present time, Canadians who have a bad financial history can also apply for a range of financial products.
Traditional lenders have strict terms and conditions and their requirements are also hard to achieve. But alternative lenders made the loan application process simple and hassle-free. They usually accept loan applications with bad credit scores.
Have a look at a few main differences between the approach of alternative lenders and traditional lenders:
- Some alternative lenders in Canada offer bad credit loans with guaranteed approval, regardless of a recent bankruptcy, poor credit score, or no income source. One cannot get this much from the traditional lenders.
- Several lenders that offer bad credit loans also operate online and offline. Since they do not have to be present at brick-and-mortar locations like banks, they can accept the risk of lending money to borrowers with bad credit.
- Many alternative lending sources offering bad credit personal loans do not perform credit checks. They consider numerous factors when deciding whether to give them a loan or not. On the other hand, traditional lenders will always check your credit score.
- Alternative lenders generally charge high-interest rates and fees on bad credit personal loans than major banks as they are taking a greater risk.
- You can get both secured and unsecured personal loans from an alternative lender.
What To Look For In A Personal Loan With Bad Credit?
You should do diligent research before applying for a bad credit loan in Canada. Sadly, there are some fake and unreliable lending institutions. Thus, it is important to keep these issues in mind while applying for a bad credit loan:
High-interest rate: Some lending sources can actually charge high-interest rates. So, always check which institution offers minimum rates before applying for a loan.
Fee: Always check all the hidden prices and fees before signing a loan.
Penalties: Check what penalties the institution charges if you miss a payment or delay payment, or want to pay your loan amount earlier than the due date.
Credit reporting: If you make regular payments on a credit loan, make sure this is updated on the record. Make sure the lending sources regularly report to credit agencies so that your responsible borrowing can help rebuild your credit score.
Therefore, apply for a personal loan with bad credit at any time from a reliable institution such as Instant Cash Canada and get rid of any financial problem.
