According to a report by TransUnion, approximately 20% of Canadians have a credit score below 670, which is considered bad credit. This means that almost a quarter of Canada's population needs help getting extra money for essential or unexpected expenses.
Finding yourself with a low credit score doesn't only limit your access to loans but may affect your ability to get a cell phone plan, rent an apartment, or even secure a job. Fortunately, many lenders are willing to work with you despite having a low credit score.
This article will reveal how to find easy loans in Canada with bad credit or no credit history, allowing you to access emergency funds and even rebuild that credit score. Read on!
The Benefits of Easy Loans for People With Bad or No Credit
Easy Loans earn their name because they don't require a credit check or have flexible requirements for eligibility. This leniency makes them excellent for people with bad or no credit history to get emergency cash and even rebuild their credit score.
Using this financing method also comes with extra benefits worth mentioning, and these include:
Available to Borrowers with Damaged or Limited Credit
It's worth emphasizing that the primary benefit of easy loans in Canada is their availability to Canadians with low credit scores or no credit history. This factor is essential since it's common for both businesses and individuals to need additional financing during unexpected situations.
For people with a low credit score, most traditional lenders, especially banks, will decline their request for financing. This leaves them stranded in a bad situation with no hope within their current financial abilities.
With easy payday loans in Canada, users can solve their monetary issues and repair their credit over time.
Fixed Monthly Payments
The Second most significant benefit of easy loans is their fixed monthly payment, requiring the borrower to pay back a fixed amount. This monthly payment is calculated based on the loan amount, loan terms, and interest rates, which stay the same until you repay your loan.
Besides providing the borrower with extra cash, the fixed monthly payment lets users plan their finances better since they understand how much they will pay monthly. Note that this monthly payment applies to loans stretching over monthly, like a secured loan with your car as collateral.
Unsecured Loans like payday loans have a shorter time frame, giving you instant cash but requiring borrowers to pay within two weeks.
Funds can Cover Most Personal Expenses.
Whether you're going for a secured loan with your car or jewelry as collateral or an unsecured payday loan, the money received is sufficient to handle most of your expenses. For example, some secured loans may offer up to $10,000, while payday loans can go up to $1,500.
Whether you need to cover medical expenses, groceries, home repairs, or even rent, the potential advance cash given will be enough. However, you must repay the loan in time to qualify for a future cash advance or not lose your collateral.
Most easy loans can be processed within minutes or hours since most are done online. This is a different start compared to traditional loans that take days and weeks before approving the loan request.
For payday loans, borrowers can expect their cash advance within an hour of approval, but with Credit Club, we promise less than 10 minutes. We value your time and believe you should wait forever for a much-needed loan.
Therefore, our systems are optimized to quickly scan your credentials and send the money to your bank account via email transfer. The entire process, from document processing to money transfer, takes less than 30 minutes.
Easy loans can be processed quickly, sometimes within minutes or hours. The borrower can receive the funds in their bank account or as cash, depending on the lender and the loan type. This can help them deal with urgent financial needs.
Types of Easy Loans for Bad Credit
With a credit score lower than 670 or no credit history, you're unlikely to qualify for any loans traditional lenders offer. Fortunately, multiple alternatives are willing to work with you despite your situation.
These types of easy loans for bad credit borrowers include:
Payday Loans are one of Canada's most popular and reliable sources of extra cash, with almost 2 million Canadians using payday loans annually. These loans are named after their means of repayment, where the outstanding amount is withdrawn from your account on your next payday or paycheck.
To qualify for this loan, users must present a government-issued photo ID, proof of income and Canadian residence, contact information, and a valid checking account. It's worth noting that these requirements vary depending on the lender, but for Credit Club, these are what we require.
Once your credentials meet our standard, you can receive the cash advance within 15 minutes. Members also have the opportunity to receive up to $1,500 in advance cash, which is sufficient for most personal expenses.
Visit Credit Club loans today and get an easy loan with bad credit.
Car Title Loans
Car title loans are short-term loans that allow you to borrow money based on the value of your vehicle. After evaluation, borrowers typically get between 25 and 50 percent of their car's worth.
However, the biggest drawback with this financing option is that your car functions as collateral, which means that failing to repay the debt allows the lender to legally take your car and sell it to recover their money.
Nevertheless, car title loans are easy to get and don't often require a credit check or a good credit score. You can also get approved and receive the funds quickly, sometimes within the same day or the next.
Another drawback is that the repayment terms are typically short, lasting 15 to 30 days. So, ensure you can handle this loan to minimize the risk of losing your vehicle.
Home Equity Line of Credit
Home equity lines of credit (HELOCs) are an effective way of borrowing money using the value of your home as collateral. These loans are also second mortgages because your property secures them and functions similarly to a car title loan.
The money obtained via HELOCs is typically enough to handle costs for home improvement, debt consolidation, education, and even medical expenses. They also qualify you for more significant amounts than unsecured loans, even if you have bad credit.
However, this method has drawbacks, as a secured loan puts your home at risk. If you fail to make the payments, the lender can foreclose on your property and sell it to recover their money. Therefore, you should only consider these loans if you are confident that you can afford them and have no better alternatives.
Friends and Family
If you have bad credit and can't afford the standard easy loan options, the safest option is to consider asking your friends and family for help. Borrowing money from your loved ones can be a good option since the advance may come with little to no interest, saving you extra cash in the long run.
You also don't need an excellent credit score or collateral since the exchange is based on your good relationship with these individuals. However, borrowing money from your friends and family also has some potential drawbacks, the most prominent being potential damage to your relationship if you fail to repay the loan.
Therefore, before you ask your friends and family for a loan, you should ensure that you have a clear and realistic plan to repay the money and communicate openly and honestly with them about your situation and expectations.
Tips for Finding Easy Loans in Canada with Bad or no Credit
Before hopping on the first lender that offers you money despite your bad credit or absent financial history, here are some crucial factors to consider. These include:
Whether you're going for payday loans or a car title loan, compare offers from different lenders to find the best option. Some financial institutions offer loan amounts, interest rates, fees, and eligibility requirements, which can work in your favour.
Credit Club offers Canada's most favourable terms for payday loans, with interest rates ranging from $15 to $17, depending on your region. We also offer no credit history checks and base our verdict on your income and personal details.
Visit Credit Club now and get a payday loan within 30 minutes.
Consider Secured Loans or Co-signers
Some bad credit lenders may need extra assurance that you'll be able to repay the advance, especially when your income is insufficient. In this case, you may need collateral or a co-signer to vouch for you.
A collateral is an asset, such as your car or home, that you pledge to the lender in case you default. A co-signer, such as a friend or family member, agrees to repay the loan if you can't.
By providing a collateral or a co-signer, you can reduce the risk for the lender and get a lower interest rate and a higher loan amount. However, you should know the potential consequences of losing your asset or damaging your relationship with your co-signer if you fail to repay the loan.
Beware of Scams and Predatory Lenders
Unfortunately, some lenders who prey on people with bad or no credit offer them loans that are too good to be true. These lenders may charge exorbitant interest rates and fees, have hidden or unclear terms and conditions, or ask for upfront payments or personal information before approving the loan.
To avoid falling victim to these scams and predatory lenders, research and verify the lender's legitimacy before applying for a loan—carefully read the loan agreement and understand your rights and responsibilities as a borrower. You should seek professional advice or assistance if you have any doubts or questions.
Having a credit score shouldn't prevent you from accessing emergency cash to fix some unexpected expense. Fortunately, multiple options exist that you can employ to get the cash advance and even slowly build your credit.
However, consider Credit Club if you want the most hassle-free and reliable bad credit loan in Canada. Our requirements are flexible, and we deliver the money to your bank account in less than 30 minutes.
Contact Credit Club today for your reliable, easy loans!