No credit check loans Canada are great products that nevertheless come with a ton of risks. One one hand, they make it possible for consumers to borrow money without having to worry about what their ever-fluctuating credit score looks like at the moment. On the other hand, they are among the most costly of loan products and that makes them incredibly dangerous to take out without a plan. We’ve laid out some steps you can take to make sure that you can always repay any of these loans when you take them out, removing this danger for you and letting you enjoy the more accessible credit without restrictions.
Forecast Your Expenses First
The first and most important thing you need to do if you’re considering using no credit check loans Canada is to figure out approximately what each loan you’re looking at is going to cost you. Knowing the interest rate alone is not enough because it’s too abstract a number when compared to an actual dollar amount. It’s easy to underestimate the cost of a loan when it’s presented to you like that, and that’s something you absolutely need to avoid during this process.
Many lenders will provide you with the tools to do this right on their website, but if the one you end up choosing doesn’t have this service, you can always do it yourself by hand. It isn’t difficult to do this provided that the lender has posted the APR range that covers what they usually offer to their customers; not all of them do this, but it is extremely common and you should have no trouble finding one that does. Assume for the sake of caution that you will be on the higher end of that range since it’s better to have an estimate that is too high than one that is too low.
Draw Up a Hypothetical Budget
Now that you know just about what your loan is going to cost, you can then try and fit it into your current spending patterns. Take the amount you expect to be paying each month and add it to your current budget. If you can’t pay for it with the discretionary income you currently have available to you, this is where you’ll have to start figuring out exactly what you’re going to cut out to make room for that expense. You can move things around, taking from some categories and adding to your debt repayment funds, until you find the combination that works for you.
If the payments are going to be too much for you to handle over the long run, it should become fairly obvious at this point. While no one wants to have their loan planning attempts foiled like this, it’s far better to know at this stage than it would be to find out months after you’d already accepted the loan and struggled to make it work. Instead of doing that, you can either choose to forgo borrowing entirely or to look for a loan with rates or terms that would make it more manageable for you, ultimately leading to a good outcome.
Create a Separate Savings Account
The next part of a successful loan repayment is ensuring that you actually have enough money in the bank to cover that cost when it comes time. Many people forget about their loan payments or figure that they aren’t as much of a priority as some other thing they want to do with their money. Keeping the money away from your usual chequing account limits your ability to access it and therefore makes it less likely that you will spend it – accidentally or otherwise.
That’s why it’s a good idea to open an account specifically to hold your loan repayment funds until you actually have to surrender them. By putting them away like this, you draw a clear boundary between money that is yours to spend and money that you have earmarked for this purpose. You can do this for free at virtually any bank, and many will even allow you to make the savings deposits automatically from another account you have with that institution to save you even more work. Don’t worry about what you’ll do with the account when you’re done with your loan – you can always just close it down, but even if you want to keep it open, you can always use it for simple everyday savings funds or even for another loan in the future.
Set Up Reminders
The very last thing you’ll want to do during this process is provide reminders for yourself to actually make a payment on the loan when you need to. Again, some providers have tools that you can use for this purpose; usually, those come in the form of built-in automated reminders that use text messages or email to prompt you to start thinking about paying back your loans in the next few days. If yours doesn’t, though, it’s extremely simple to do this for yourself. Just open up your phone and enter the appropriate dates into your calendar app.
You’ll want to include notes for several points along the way – perhaps one the week before the due date and one 3 or so days before it. If you want to be even more thorough, you might consider setting alarms on the actual repayment date so that you have at least an hour or so’s notice before the deadline falls. You want to give yourself the best chances of remembering and paying the bill on time so you don’t have to deal with late fees or compunding interest further down the line.
We Make It Easy To Get No Credit Check Loans Canada
You now have the knowledge you need to borrow safely with no credit check loans Canada – all that’s left is for you to apply for one. Luckily, that won’t take long at all. You can finish this last step in mere minutes by going online with Bonsai Finance and filling out an instant application form. You won’t hear back right away in most cases, but it won’t take long. With all the risk and the work taken out of this process, you’ll be amazed at how simple it is to get some extra money in times of need without undergoing any credit check at all.