There are many no credit check loans Canada available to consumers, but just because they exist doesn’t necessarily make them a good option for you. These products are best suited to people in certain situations who would otherwise be very limited in their loan options. The three profiles we’ll cover below will give you a better idea of who can benefit most from these specific types of loans. Who knows – perhaps you fall into one of these categories yourself.
Profile 1: Bad Credit Borrowers
The first common consumer of no credit check loans Canada is also the most obvious: those with bad credit. Bad credit is a black mark on your borrowing record that it can be difficult to overcome in the traditional market because it tends to be seen (often wrongly) as a sign of untrustworthiness. People who know they will not be able to pass a credit check if they are subjected to one have no choice but to look for loans like this when they need to borrow money. Otherwise, they may have a difficult time getting lenders to trust them enough to extend them a loan of any size.
Unlike the other two types of potential loan candidates on this list, bad credit borrowers tend to be in a temporarily difficult situation. There is nothing inherent in how they receive their income that restricts their loan options; it is only their credit that stands in their way, and that can be improved. This means that they can look forward to having an even wider range of options in the future if they play their cards right. For the time being, though, no credit check loans are exactly what they need to help get them through their rough patch – they may even help borrowers to directly improve their credit scores.
Profile 2: Receivers of Non-Employment Income
Because no credit check loans are already being extended to people who pose the lender a bit of a risk, lenders are often also willing to be more lenient with other typical loan requirements. This means that they can be a great fit for people who don’t receive their income from working a job. There are hundreds of thousands of Canadians who depend on pensions, CPP or disability payments to get by, and these people can find it difficult to get a loan when they need one. This is because this type of income is considered potentially unstable (in theory, it can be ended at any time with little notice), and it is often rather low as well.
Both of these things often make providers of traditional loans too nervous to work with these populations, but those who provide no credit check loans are more used to working with clients under these conditions and may not mind as much. For that reason, anyone who gets their income from sources other than a job should consider them. You’ll need to provide proof that you do in fact have that income coming in, though, and you should expect to be approved for only a small amount if your total income is low. If you need more than that, you may need to leverage some collateral you own (like a house, car, other property, etc.) in order to provide more security for your lender.
Profile 3: The Self-Employed
When you’re self-employed, you can’t always count on a consistent monthly income like a traditionally employed person might be able to. This can make lenders a little nervous to extend you any loans, especially if they are of the short-term payday variety – inconsistent income is a very real and very widespread problem for self-employed people. As mentioned above, though, no credit check long term loans Canada lenders are often a little more open to potential risk. The longer time frame for these loans means that you’ll have more time to scrounge up the funds if you happen to have a slow month or two along the way. This means that as long as you’re responsible about the matter, there is no reason that no credit check loans shouldn’t be a great thing for both you and the lender you borrow from.
Don’t think this means that you can get away with writing down whatever estimated level of income you’d like, though. You will still need to prove that you are consistently taking in money and that you are likely to be able to pay off the loan you choose to take. This may mean providing bank statements, invoices, or other documentation to prove that what you report is accurate, so be prepared for that. You should also know that even if you’ve had a very profitable couple of months recently, you may not qualify for as much money as you’d expect – your total loan amount will be based on your full income history, usually dating back to at least a year previously. You have to make good amounts of money consistently in order for lenders to consider that level of income to be something they can count on when lending to you.
The Simple Way to Search For No Credit Check Loans Canada
If you’re part of any of these 3 groups (or just think you might benefit from a no credit check loan in general) and think you might be ready to try one of these loans, consider letting Bonsai Finance help you out through our convenient online portal. There’s no easier way to find no credit check loans Canada, and you can do it right from the browser you’re using to read this. Just log and let us show you what’s out there; we believe you deserve the chance to understand all your options.