Personal Loans for Bad Credit

There is this pre-conceived notion that if you have a bad credit score, you will be unable to receive the assistance of a loan. In reality, though, personal loans for people with bad credit history are now very easy to receive.

In Canada, borrowers can be awarded upwards of $1,500 from online lenders, payday loan stores, as well as pawnshops.

Since these types of small personal loans are usually desired when you face a surprise monthly expense like the need to fix a car’s wonky brakes, the application and approval processes are designed to move quickly.

All you have to do is provide your personal contact information, as well as answer some questions regarding your employment status, income, and financial history. Although a credit check will be performed on you, direct private lenders for bad credit personal loans in Canada look at other pieces for their decision-making. Online lenders are more risk averse and prefer to look at a bigger picture when going through the approval process.

After your application has been submitted, an instant decision is given to you. Once your instant loan has been approved, funds can then be e-transferred to you in just a couple of minutes.

In some cases, you may be approved for a lesser fast and easy short term loan amount than you requested. This happens when a responsible lender decides to only provide you with a sum of money that you can easily pay back by the agreed upon date(s). The goal here is to help you avoid creating any additional debt.

You see, there are repayment fees of 15% to 25% (per $100 borrowed on a two-week term) attached to the best personal loans for bad credit. The fees vary per province. In British Columbia, the rate is 15%, meaning it would cost you $45 to borrow $300. If you are unable to pay your loan back in time, you will also be responsible for an insufficient funds charge.

Changing your mind about taking out a loan is also possible. In Canada, each province offers a “cooling off period.” Here, you are given a specified period of time in which you can cancel your loan. No questions will be asked, nor will you have to pay any fees.

We suggest that you only find a personal loan for bad credit in Canada if you have trouble getting financial assistance elsewhere. These loans are great for covering emergency expenses and should not be used to pay recurring bills (i.e. hydro, phone.).

Taking out multiple loans from multiple loan companies during a concentrated period of time could create more unnecessary debt. To experience the true benefits of these types of short term loans, we suggest using them in moderation.

What Does Bad Credit Mean?

Most of us have heard the term “bad credit” bandied about at one time or another. However, hearing the term and understanding what it means is a whole other story altogether. In short, an unfavourable credit score can come from a history of not paying your bills and/or longstanding debts back in a timely fashion.

More specifically, a poor credit standing can be developed by filing for bankruptcy; defaulting on a debt; appearing in court to settle a debt-related situation; and applying for numerous credit products (i.e. credit cards) over a short period of time. Your credit file will house records related to these matters for a number of years.

The easiest way to check on the quality of your credit situation is to find out your score. In Canada, credit scores range from 300 to 900 points. While a score of 800 or above is deemed to be excellent, those that range from 300 to 599 points are seen as poor credit scores. If you happen to fall into the latter category, receiving a loan from traditional banks and credit unions can be challenging.

To find the best personal loan options for bad credit, it is important to know what kind of shape your credit is in. You see, banks and credit unions will focus mightily on your credit history – they want to know that it is solid before giving you approval.

Thus, it is a very good idea to be proactive and find out ahead of time where your credit score stands. If it is poor, you should save yourself the time and immediately avoid banks.

Instead, turn your attention to direct private lenders who offer personal loans for poor credit in Canada. They will get you the money you desire, before your debt has a chance to grow.

How Can I Use Bad Credit Personal Loans?

Those who apply for personal loans from banks generally do so because they have a sizeable expense in mind and need some help to close the deal. Whether it is to purchase a new property, or renovate a current home, these ventures sometimes need tens of thousands of dollars to complete. Those with a good credit score are most likely to receive monetary assistance from a bank to support such investments.

Meanwhile, an easy personal loan for bad credit is designed to work differently. These loans have more modest monetary parameters, allowing you to borrow $100 to $1,500 (plus applicable fees).

Some of the best personal loan options available for those with bad credit come from iCASH. Here, we offer Cash Advance, a plan that allows you to repay the loan by your next paycheque. We also have Flexpay, an offering that gives you two to three paycheques (seven to 62 days) to complete the repayment process.

If your credit is poor and an small emergency loan is needed, it is important that you are not focusing on the seismic purchases and projects listed above. Rather, you are getting this money to assist you through an unanticipated expense that does not jive with your monthly budget.

These types of loans are not restrictive and give you the freedom to use the funds how you see fit.

Best Small Personal Loans for Bad Credit

You can apply for the best personal loans for bad credit in Canada easily. Nowadays, advanced technology has helped direct private lenders look deeply into your loan application and consider more than just your credit score when making an instant decision.

A big reason why this can occur, is because more and more lenders are giving you the opportunity to apply for these bad credit personal loans online. There are a number of advantages to this:

Private Lenders for Personal Loans with Bad Credit

Thanks to modern private lenders and their desire to approve bad credit personal loans, anyone can get the funds they need to clear a monetary hurdle. Whether you need just $100 to $300 to cover a modest added expense, or $1,000 to $1,500 to pay off a more substantial surprise bill, you can get money fast.

Anyone can apply for assistance through iCASH, as long as the following requirements are met:

When you have to find a provider of loans for poor credit in Canada, we recommend that you do plenty of research ahead of time. Go into this process with a clear idea of what your expectations are and see who can meet them.

Visit some direct private lender websites to gain further knowledge about their business practices. Once you create a shortlist of companies who offer these loans, seek out online customer reviews. See who has received the most glowing feedback and allow that to help you make a decision.

During this process, it is also advised that you understand the repayment terms and conditions offered by your lender of choice. The best private loan lenders for bad credit personal loans in Canada are usually very open with this information.

Unfortunately, there are questionable lenders out there who are willing to take advantage of those in delicate financial situations. To avoid getting connected with a company like this, look out for the following:

Great options for poor credit or no credit loans are out there for anyone. By doing the right amount of research and following the instructions provided, bad credit personal loans can be a great resource for you.