Getting a loan when you have outstanding debts, been refused for a credit card, had past issues with loan payments, or declared bankruptcy can be very tricky. However, it is possible to still be approved for a loan because bad credit does not only affect you but also more than a million other Canadians.
Bad Credit Loans Approval in Canada 2019
Applying for a personal loan with bad credit does not mean that you have no choice. The fact is, there are plenty of lenders who would approve bad credit loans. The tricky part is in identifying these lenders and reaching out to them. That’s why we’re here at Mortgage Central Canada!
It is possible to get a loan even with bad credit because lenders have different requirements for a person’s income, credit history, and other factors. When you apply for a loan, your lender will check your credit history and see your personal financial data such as any defaulted debt, recent declaration of bankruptcy, and your credit score. Banks often have very strict requirements and immediately decline anyone who does not meet their requirement even in instances where the borrower nearly meets the requirements.
Bad credit lenders are more lenient than banks and usually look at the whole picture. This is because they are often private lenders who are free to set their own criteria for approval. Being alternative lenders allow them to approve personal loans for people with bad credit.
Why Choose Private Lenders to Borrow from When You have Bad Credit
Private lenders do not discriminate, unlike banks. Even with a recent bankruptcy, delinquent credit account, defaulted payables, and other issues, it is possible to find a lender that will provide a loan to you.
If you’re a homeowner, we can connect you with bad credit loan providers at Mortgage Central Canada. Some have guaranteed approval and some may ask for more details. The fact is, it is possible to get a secured loan with our help.
Benefits of a Bad Credit Loan in Canada
A loan doesn’t have to be a negative mark in your financial history. Many Canadians benefit from getting a bad credit loan because it allows them to:
- Build their credit score by repaying on time. By doing this, qualifying for other loans in the future will be much easier. Interest for future loans will be significantly lower too!
- Borrow thousands of dollars at a time so that they can consolidate their smaller loans or choose to spend it for an emergency.
Get a Bad Credit Loan the Smart Way
Just because you can get quick approval for a bad credit loan does not mean that it will be a smart decision to grab a loan from the first lender you come across with. You must make sure that you can pay both the principal and the interest by going for the lender with the best rate. Read the fine print of any document before signing so you will not fall for extra fees that you are not aware of. Also, ask about penalties for late payment and missed payment as well as possible penalty for prepayment.