Bad Credit Loans Canada

How To Get A Loan With Bad Credit

It can be difficult to find a loan with bad credit, but there are options available. There are plenty of lenders that offer loans for people with poor or no credit history. If you are looking for a loan with bad credit, then you have come to the right place. When it comes to getting a loan with bad credit, your best choice is one that doesn’t need collateral and provides flexible payment options. Learn more about how bad credit loans work and what it takes to get approved for one.

LendingArch - Bad Credit Loans - Image 1

What Determines A Bad Credit Score?

There are a few reasons why your credit score may be low, including failing to make payments on time or at all on credit cards or loans with late payments of 30, 60, and 90 days, declaring bankruptcy, receiving a consumer proposal, or even defaulting on government loans such as student loans. If any of these things have occurred, your credit score has likely dropped significantly and may be around 560 or lower. It might be tough to obtain loans when you have poor credit, but it is not impossible. People with low to no credit can get bad credit loans.

What Is a Bad Credit Loan?

A bad credit loan is a loan given to people with a credit score below 580.

Bad credit loans are available to individuals who haven’t yet built a credit history or who have experienced difficulties. While obtaining a loan with a credit score of less than 580 may be difficult, some lenders are prepared to lend to applicants with scores of 580 or lower. The minimum credit score requirements for different lenders vary considerably, so double-check if your score qualifies through your preferred lender. Some lenders may require that you don’t have any defaulted loans or bankruptcy on your credit report.

How Do Bad Credit Loans Work?

Alternative lenders offer bad credit loans to individuals with credit that is lower than traditional bank standards.

Borrowers with credit difficulties who are turned down for loans from traditional lenders typically turn to bad credit loans. Bad credit loans are generally given in a one-time amount, with terms that range from a few months to three to five years. The amounts available under these loans are typically lower. This is largely due to the increased risk that lenders face with these types of loans. Bad credit loans are often unsecured, therefore if you default on the loan, the lender will have no way to compensate for the loss. To cover this risk, lenders charge a higher premium rate.

Bad credit loans have typically higher interest rates than conventional loans, but they can help you improve your credit score and achieve your financial objectives if handled correctly.

LendingArch - Bad Credit Loans - Image 2

What Is Required To Obtain A Bad Credit Loan?

To obtain a bad credit loan, you must fulfill the basic lending criteria established by the lender you’ve chosen. The standards for approval on bad credit loans are far less stringent than those required for bank or secured financing. In general, you must be the age of majority in the province where you reside, have a bank account, and have a reliable income. There are some lenders who require you to have no defaulted loans or bankruptcies.

The Bottom Line

The decision to get a loan can be difficult and we want you to make the right one. When it comes down to bad credit loans, there are many factors that need consideration before making your choice. Some of these considerations include interest rates and fees which will vary by lender.

If you stick to your payments on a bad credit loan, it will help you repair your credit. It is important not only for the sake of your financial health but also for peace of mind, that you shop around until you find a good match with terms that work best for your needs.

Get The Loan You Need Right Now, On Your Terms

Is your credit holding you back from getting the money you need now? If you’re looking for a loan now but your credit is getting in the way, we can help.

We feel that your credit history should not prevent you from obtaining a loan to fund your future. We provide loans for any credit status, and we can design one to fit your needs depending on how much money you want to borrow and how long you want to pay it back. We offer easy payments options and may create a loan that is tailored to your requirements.

We provide loans up to $15,000 and funding is available in as little as fifteen minutes once we approve you.