Life in Canada is expensive at the best of times, and things don’t always go according to our plans. There are tons of reasons why someone might run short of money, from a contract falling through to a sudden emergency that you were unable to save for beforehand. Bad credit personal loans Canada guaranteed approval can be a great solution in any of these cases. We’ll cover what they are and why they’re useful as well as address some concerns you might have about them in this article.
What Are Bad Credit Personal Loans Canada Guaranteed Approval?
If you’ve never taken one out for yourself before, you may not know exactly what bad credit personal loans Canada guaranteed approval are. These products are mid- to large-sized loans geared toward people with shaky credit that will never turn you down as long as you meet the minimum requirements they insist upon. Usually these requirements are very minimal and include things like being of age (a legal necessity) and having some form of regular income (it may need to be a standard hourly job, but often these products are open to the self-employed or those with pensions, who are on social assistance or who have other independent forms of income). Although they target people with bad credit as their main audience, anyone can apply for and get these loans if they happen to be interested in them. Anyone who fits those minimum standards will be approved.
The total amount you will be extended varies from lender to lender and will depend on your personal circumstances as described in your application, but it will usually number in the range of thousands to tens of thousands. $35,000 is a common upper limit amount, but it’s by no means the highest out there. If you need a particular amount, you can usually get that much just by shopping around a little bit. Doing this may also get you a better deal on your interest rates and reduce the total overall cost of the loan. Once you have your loan, you’ll have to repay it over a certain period of time (the exact length of which you’ll agree to in your loan contract), making steady payments to reduce the amount you owe. If you can manage to scrape up enough to pay more than the minimum amount that is due each month, you can shave time off of this period, but you cannot extend it without renewing the loan.
It’s clear that these loans are extremely easy to get – it’s right in the name, after all. However, it’s actually even easier to get them than it sounds. Virtually all loans like this can be contracted entirely online, so you never have to even leave your seat once you’ve decided to get one. Instead of having to fill out a pile of forms and other papers, there are just some simple online questionnaires to fill out. Even the verification process can be done all online and in a matter of minutes in some cases – although this isn’t always the case and you should always check if this is true beforehand if it matters to you. If you need money, there is no easier or quicker way to get it.
Why Might You Need Them?
There are many reasons why you might be in need of bad credit personal loans Canada guaranteed approval. After all, money makes the world go round, and there are few problems that it can’t help to solve. You might consider taking one out either because you aren’t getting as much income right now as you are used to having, or because you have a sudden need that you feel compelled to take care of as soon as possible. Depending on your needs, you could potentially use these products to pay for:
- Your child’s tuition
- Needed dental work
- A new work wardrobe
- A used car to help you get around
- Retrofitting a house to accommodate a disability
- Consolidating existing loans or credit debt
- Supplies for a new business venture
- Living expenses during a dry spell of income
- And many other potential expenses.
Whatever you need, you can probably use one of these loans to pay for it. It also doesn’t necessarily have to be a strict need – you can use these loans to pay for things you simply want, too, although that may not always be a prudent choice. If you’re going to take that route, you should pay extra attention to the weak points of these loans that we’ll be detailing below. Ultimately, though, this is a subject where nothing matters except your own situation and judgement. If you think you need them, you probably do, and it’s as simple as that.
What Are Their Strong Points?
Because they are so universally accessible, taking out bad credit personal loans Canada guaranteed approval is always an option, making it easy for you to stay calm and confident in your financial future at all times. If anything ever goes wrong, you can simply contact one of the lenders offering this product and get a large amount of funds with practically no questions asked. This can be a huge relief when you’re in a vulnerable position at a stressful time and just want to be told that everything will be okay. No matter who you are – a newcomer to Canada, an ex-convict, a student, a person with a history of bankruptcies or other financial troubles, an elderly person on a pension, a disabled person trying to get by on social assistance payments, or just a regular Canadian in need – you can always get these kinds of loans to help you cover whatever expenses you need.
Another great point in their favour is the financial freedom you’ll get from them entirely as a result of their large size. Personal loans for several thousands of dollars are the great equalizer in life. As we’ve stated above, the amount you’ll often get is sufficient to cover a wide variety of potential expenses or splurges, even when you would have otherwise needed to save for years to get your hands on that amount. There are very few catastrophes you could run into that will cost you more than what a personal loan will cover immediately, and that’s a big thing that will help give some people a lot of comfort. No matter what goes wrong in your life, you can potentially use these products to help you get over it, and that’s a great thing to know to give you peace of mind.
The last great thing about bad credit personal loans Canada guaranteed approval is that their longer repayment periods give you some extra time to work out how you’re going to repay your loan amount. While short-term payday loan products might be extremely common, they also pose some problems for consumers with very little income or who have a history of debt problems. Because they ask you to pay back the entirety of what you owe immediately, there is very little room for error: you either hit your repayment date head-on or you miss it and suffer the consequences. Loan amounts are kept small to make this more feasible, but it can still be a huge challenge. Personal loans are much more forgiving. You can often pay back your loan over a period of several years, giving you lower individual payments and much more leeway to earn and save as you go. This makes it much less likely that you will run into trouble with your loan as long as you stay responsible and do your best to work out any bumps in the road along the way.
What Are Their Weak Points?
Before you take any action with these kinds of loans, it’s important to remember that bad credit personal loans Canada guaranteed approval are not all good. There are some downsides to think about too, and while they don’t outweigh the positives, they can sometimes make taking one out a fairly weighty decision. The first is that these are expensive loans with high interest rates and sometimes a broker’s fee and other costs to pay as well. Because they are available to people with bad credit, these loans must charge a premium to outweigh the risk of non-payment and stay profitable, so that’s what they do; interest rates on these products are often several percentage points higher than what you would find on personal loans targeted toward the public at large, and those are often already not very cheap themselves. This doesn’t make bad credit personal loans bad options by any means, since they still retain their high accessibility and the expense is probably easier to work around for most people than simply being barred from a loan outright. Still, choosing bad credit personal loans Canada guaranteed approval should be a carefully considered decision that you make with this issue in mind.
The second primary issue is that because these are longer-term loans, you potentially face being in debt and paying them back for a very long period of time. This is to be expected with almost all personal loans, but the fact that these ones are particularly expensive only adds to the concern here. An expensive loan means higher monthly payments, and a longer term means you will be paying those payments for many months, likely over the course of years. You can see how this can easily spiral into a very worrisome cash flow problem over time. When all the money you have coming in must go to debt repayment, you can end up in a very strained financial situation after a while, even if you can technically afford the loan you chose to take. This causes stress, and stress tempts some into looking for solutions to that discomfort even if it would be possible to just ride it out. One thing that many choose to do in that case is to take out another loan, but that only compounds the problems they were already facing. The end result is a potential debt spiral that never gets any better without intervention or bankruptcy, something both you and your creditors want you to avoid. While none of this is an inevitability and anyone who makes sure to gather plenty of information and come up with a plan of attack before getting these loans is sure to do all right with them, you should always keep this in mind.
You’re Not Alone When Choosing Bad Credit Personal Loans Canada Guaranteed Approval
When you’re considering taking on any sort of debt (but especially a larger commitment like this), it’s important to be absolutely certain of what you’re choosing to do. You can’t have any regrets by the time it comes time to sign the loan agreement papers, because you will then be under that contract for the next several years of your life. With so much on the line, it pays to be picky about who you’re choosing to do business with.
Bonsai Finance can help you make the bad credit personal loan choice that’s right for you. We have a large network of trusted partner lenders to draw on that lets us bring incredible diversity to our clients. We’ll help you find as many offers for bad credit personal loans Canada guaranteed approval as you feel you need to be sure of your final choice. By the time we’ve gone through every step of this process together, you’ll know that you got the best possible deal on this lynchpin credit product.