It is challenging to borrow personal loans from most mainstream lenders available. However, note that you can access bad credit personal loans Canada, with a bad credit history.
Bad credit has proven to be a challenge for anyone trying to get a loan to cover urgent needs. Sometimes you may try your best to stay above your financial constraints, but in the process, things happen in your life that end up ruining your credit history. The scale of credit score in Canada runs from 300 to 900 points. With a score of 650 points and above, you can easily qualify for any loan. The challenge comes when your credit score is below 650. You should however not worry because there are bad credit personal loans Canada available for these low credit score. You may, however, wonder how one ends up having a bad credit score. Below are just a few of the causes of having the poor credit score.
Causes of bad credit score
Nobody intends to have a bad credit, however, there are some situations that may lead to you to having one. They include:
- Emergencies that may leave you empty handed such that you do not have extra cash to make your loan repayments
- Poor keeping of payment records
- Debt and loan defaults
- Loss of a job or undesirable change in your workplace like demotion.
- Marital problems like a divorce that may hinder one’s ability to pay the debts or pay in time.
When you have been exposed to these challenges and have your credit score ruined, the odds are your loan application to banks will always be rejected. This, however, should not deter you as there are other alternatives. One of these alternatives is borrowing the bad credit personal loans. A bad credit personal loan is the loan that is offered to individuals who have a low credit score. It is also applicable for individuals who have not yet established a credit history. Unlike banks, lenders who provide these kinds of loans do not need to check your credit score.
Characteristics of bad credit personal loans
The main features of bad credit personal loans include:
- Zero credit checks. This means that the leaders are not interested in your credit score, therefore, you do not have to worry about your creditworthiness.
- The loans are unsecured; you do not need to attach any property or assets as collateral.
- Quick loan approval. They take somewhere between 2 hours and 24 hours depending on the lender and the amount you are borrowing.
- The qualification requirements are not complicated.
How can bad credit personal loans Canada help you?
Financial hardships are common for every person. This is because of the unpredictable nature of the future. Sometimes you may find yourself without money or less in your account and yet you have some pressing needs. These loans can help you in the following:
- Consolidating other debts
- Reconstruction or decoration of your home
- Repairing your car or an electrical appliance
- You can use the loan to pay for a party, a wedding ring or wedding arrangements.
Eligibility for bad credit loans Canada
Since lenders of these loans do not ask for your credit score, they, however, have other requirements that you must meet in order to qualify for the loan. You must also be able to provide valid proof of having each of the stated requirements. These requirements include:
- You need to be of legal age i.e. 18 years and above.
- You must have a valid and a frequent source of income.
- You need to have an active bank account.
- Have an active mobile phone that has access to messaging services.
Once you meet the above requirements, you can be assured of getting the loan which will help you start building your financial grounds. In addition, they are a chance to start building or rebuilding your credit score.
Advantages of bad credit loans
Here are some of the advantages of borrowing bad credit loans:
- Easy application process- The lenders of these loans offer an easy process of applying for the loans. Some offer online applications, which you can apply any time and in any place. The lenders may as well have websites that instantly responds to you and your requests.
- The process is very fast. This is because you do not need to travel and spend time on the queues you can apply from home through online applications.
- Online application offers you a high level of privacy as well as the security.
- When applying online, you can easily compare different lenders before making a choice.
- Some online lenders allow you to have a personal account with them which enables you to access and track of your transactions.
When is it necessary to borrow the bad credit personal loans?
Bad credit loans can be a very good alternative source of money. Here are the instances when its necessary to borrow these loans:
- When it might be the only option remaining. Since your credit history does not favor your ability to borrow loans, it may be very challenging to find lenders to offer you loans. These loans, therefore, become the only option for you.
- When you do not have enough time to build a good credit score. Building a credit history requires a series of loan transactions. This may need a long time to achieve. When you cannot wait for your credit score to improve in order to get the loans, you may consider bad credit personal loans.
- You may consider bad credit personal loans if you do not have a co-signer.
Bad credit personal loans Canada are your solution to financial obligations when all odds of getting a loan are against you. At Bonsai Finance, we are committed to providing you with reliable information and options for your loan borrowing. We make your loan application process easy by connecting you to legit and reliable lenders. Do not hesitate to contact us any time you are in need of one.