PERSONAL FINANCE BLOG

Money shouldn´t stop making your plans come true. Learn how personal loans can help you!
Get No Credit Check Loans Canada
10 Mar 2019

5 Things You Need To Know Before You Get No Credit Check Loans Canada

If you’re getting no credit check loans Canada for the first time, you might not be exactly sure about what to expect during this time. There are a lot of details about these products that you wouldn’t necessarily know without having first gone through the entire process yourself. These 5 bits of insider knowledge can help you to figure out what exactly you’re signing up for and whether or not it’s actually a good solution for you.

#1: They’re Not Just For People With Bad Credit

Usually when people think about no credit check loans Canada, they imagine that these products are only for people who cannot pass a conventionally-required credit check. After all, why else would you want to skip the credit check, right? As we’ll get into below, loans from traditional lenders are often quite a bit less expensive, so they’re the natural first choice for those who can get them. Surely if you had the credit to qualify for something more mainstream, you would choose to do that instead.

That may be true for some people, but others will find that there are many reasons to choose no credit check loans beyond just having bad credit. For instance, there are many people with no credit history at all who would have an equally difficult time passing a credit check, even though they have never actually behaved recklessly with credit in their lives. This is because creditors have no idea what their credit behaviour might be like, so they have no choice but to treat those applicants as a risk. Lenders who forgo the credit check on their applicants are also much more willing to take on risky prospects in general, so you may have more success applying throught them if you’ve been turned away from traditional lenders for other reasons. This includes instances where you’ve been turned away for having non-standard sources of income, too short a borrowing history, or anything else that would make it difficult for an application to a traditional lender to be accepted. Bad credit lenders will likely still be willing to help you out.

#2: They Can Be More Expensive Than Other Types of Loans

Loans that do not force applicants to undergo a credit check might be convenient and accessible as compared to normal loans, but how do they compare in terms of cost? Unfortunately, not very well. Loans in general always have a cost, but these loans tend to be extremely expensive to make up for the forgone safety of the credit check that is being passed over. The usual purpose of a credit check is to give the lender more confidence that their investment (the money they lend you) will be returned to them along with a small extra cut in profit (your interest payments) as long as they are patient; having a good credit score by definition means that you have held up your end of the bargain on other loans and can be counted on to do it again. Without a credit check, they have none of those assurances.

In fact, the payday variants of these loans are often regulated by law, forcing lenders to keep their advertised APR within a certain range in order to remain compliant with their legal obligations. Most lenders will now charge the maximum legally allowed interest rate in order to keep their profits high (usually around $15 per $100 borrowed, depending on what province you are in). That still leaves you with pretty high costs, but at least you know they can never surpass that mandated amount. As for longer-term loans, you have less legal protection to fall back on, but rates tend to be a bit more reasonable. The charges can still add up quickly over time, though, so before you sign up for anything, you should always make sure to calculate the full cost of the loan and consider whether that cost will remain affordable to you throughout the entire duration of the repayment period. All of this is part of being a responsible borrower and keeping yourself out of financial trouble.

#3: They Come In All Sizes To Suit Whatever Purpose You Need Them For

There isn’t just one type of loan that doesn’t require a credit check – you can get no credit check loans Canada in just about any size you need, depending on where you look. For small loans, you would usually look for a payday lender to serve you. These lenders specialize in loaning people just enough money to make it possible for their borrowers to pay them back on their next payday – hence the name, of course. This type of loan is almost always less than $1,500, usually closer to just a few hundred, and it’s perfect to tide you over when there is a small, short-term problem in your way that you need to deal with. Whether that means paying for a small car repair or restocking your empty fridge, payday loans are here for you.

If you have a bigger problem than that to deal with, a no credit check personal loan might be more appropriate for you. These loans can range from as little as about a thousand dollars all the way up to tens of thousands, and they can be repaid over a much longer span of time as well. This means they can end up becoming pretty costly by the end of the full term, but they may still be the best choice for people who need more help than a tiny payday loan can give. Some common uses for these kinds of loans include putting up a new roof or paying for a wedding – big expenses that can’t necessarily wait.

#4: You’re Far From Alone in Needing Them

If you’ve never had to resort to using loans that do not need you to pass a credit check (or maybe even loans of any kind), you might have conflicting feelings about it. It’s not easy to admit to yourself that you need money and not have any way to get it besides asking someone else for it, especially if your sup-optimal credit means you need to practically beg for it. You might be somewhat ashamed to have fallen into this situation, and you may even feel that what you’re going through is an uncommon experience that you need to hide from others.

It’s normal to worry about what others might think if you’ve fallen on hard times or been excluded from borrowing the way that everyone else does, but that doesn’t mean that it’s a good thing for you to be doing. The truth is that there is absolutely nothing to be ashamed or afraid of, as you’re just taking part in a process that thousands of Canadians experience every day. More and more people are having trouble making ends meet, especially when unexpected expenses come up. Jobs are more insecure than ever and wages have remained stagnant for over a decade. The only surprise in terms of how often people resort to no credit check loans is that more people haven’t needed them yet!

#5: You Can Be Done With the Whole Process In Just Minutes

When you choose to get a loan, it’s very common to need to receive the money you’ll be getting as quickly as possible. This means that the speed of the process, both during and after application, is an important consideration when choosing whether or not to request a loan from a particular source. If the money can’t get to you when you need it, after all, it’s as good as useless to you and not worth borrowing to get.

Unlike traditional loans that force you to contend with a mountain of unpleasant paperwork, no credit check loans can often be applied for online, with even the vertification process frequently taking place through digital means only. This modern way of doing things allows no credit check lenders to considerably shorten the period of time it takes for you to get a loan through them. You’ll experience the bare minimum of delays and you can often have your money in your hand in less than 48 hours – sometimes much less. This is particularly true of payday loans, so be sure to look at them first unless the size of loan you need is too large for that to be a viable option. If you need money in a hurry, signing up for no credit check loans is a good way to make sure you get it.

Time To See What No Credit Check Loans Canada Have To Offer

Now that you know more about no credit check loans Canada, you can make your decision to get one for yourself with the right expectations and frame of mind. Visit us on our website to see how we can help you find what you’re looking for in these loans; we’ll display every available offer from our partner lenders that matches your criteria with just the click of a mouse. It’s the easiest way to contract one of these products and experience all of their many benefits firsthand.