Personal loans for bad credit
There are few experiences more stressful than needing money and not having it. If you’re in such a situation, don’t despair. There are many lenders out there who offer personal loans for bad credit. We know – we’ve connected many of them with Canadians just like you.
When You Need Money Fast
It’s a fact of life that you never know what’s going to happen next. Unexpected bills can crop up, entrepreneurial genius can strike, impromptu celebrations can reel you in, and all of these sudden events usually cost money. It’s not surprising that even those who do their best to stick to a budget can often find themselves running short on funds. In cases like these, people often turn to personal loans to bridge the gap.
Personal loans are loans extended to people based on their individual creditworthiness. This subjective measure is usually approximated by their credit score. The trouble is that it only takes a short run of bad luck to leave you with long-term scars on your credit report, even if you’ve been diligently making payments on your debts for years. Just a few missed payments can bring your credit score so low that it makes you look like a terrible credit risk.
Unsecured Personal Loans for Bad Credit in Canada
We here at Bonsai Finance believe there should be more options for people who have trouble accessing traditional borrowing options. Our lenders understand that bad credit doesn’t always mean you can’t be counted on to pay your debts. Rather than look at your financial past through credit reports, they focus on your financial present. Your current verifiable income is the single most important criteria in their lending decisions. They never ask for collateral, so you’ll never have to worry about losing out on an offer because you have nothing to match it with. You get the money you need with as little hassle as possible, no matter what misfortunes might have befallen you before.
Bad Credit Personal Loans in Canada with No Credit Check
When your credit isn’t great, it’s only natural to be worry about what you might be doing to make it worse. Loan applications that do use credit checks will typically cause a dip in your credit score that makes a bad situation even worse. Being trapped between two unappealing options like this can take a great toll on your mental well-being.
With our services, there’s no need to fret. We only connect our clients to lenders who we know and trust to do things a certain way. There’s no credit check involved in any of their application processes, so you can spare yourself both the stress of worrying about what impact your credit might have and the additional credit hit that usually happens when a report is requested.
Bad Credit Personal Loans in Canada with Guaranteed Approval
The process of getting a loan can be surprisingly slow and uncertain if you do it the traditional way. After you apply, you could spend days or even weeks in limbo wondering whether you might be denied. Given that many of the reasons people apply for personal loans are at least somewhat urgent matters, this isn’t an ideal situation.
Our lenders work a little differently. Because we make sure to choose partners with very simple guidelines for their decision-making process, you can expect a much quicker and more relaxed approval process than you’ll find with traditional lending arrangements. All you need is to be a resident of Canada and to have sufficient present income to reasonably be able to make your payments. As long as you meet those criteria, you can expect to be approved for these personal loans for bad credit; it really is that simple.
How does it work?
When you want to apply for the personal loans for bad credit, you need to look for loan lenders who issue loans to people with no credit or with bad credit. Different lenders give different application procedures. You can, for instance, apply for the loan at a physical branch or store of the lenders. Others offer online applications. Once the lenders have approved your application, you may be given the money on the same day or wait for some days. With the online application, the money is disbursed to your bank account.
- You need to be a Canadian resident aged 18 years and above.
- You need to produce proof of a regular source of income.
- You need to provide a bank account which is active.
- You may also be required to have a working phone number.
Sources of bad credit personal loans
People with bad credit may find it difficult to find loan lenders with ease. However, the following are some of the options you can consider when looking for the lenders:
- Online Lenders- You can obtain a personal loan from the online lenders if you qualify for the same. The online loan is faster to get as compared to some of the other sources of loans.
- Credit unions- Credit unions offer funds to borrowers with all types of credit. They also offer the loans at a lower interest rate. However, the credit unions require you to register and become a member for you to get the loans. It may also take you some time before you get the money. They are suitable for people who do not urgently require the cash.
- Short-term loan lenders- Some of the financial lenders may offer short-term loans, which take short time for approval. These may include local lenders.
Types of personal loans for bad credit
There are several types of personal loans for bad credit Canada. The following are some of these loans:
- Cash advances- The creditors may offer you cash advance when you have a constant source of income or a job. You can also get cash advances from your employer.
- Credit builder loans- Loans are not always taken to solve financial problems. Loans can be used even when you have enough cash to build your credit. You can borrow low-interest loans and pay them in time in order to increase your credit score.
- Installment loans- Some lenders can give you loans and request you to make payments in intervals. Equal amounts of money are paid in each interval. Such loans are unsecured and however, have high interest rates.
- Payday loans- These are usually short-term loans that one takes to pay on receiving their salary. These loans are unsecured; hence you do not need to provide a collateral for you to qualify for the loan.
Advantages of bad credit personal loans
- Simplified procedures. The bad credit personal loans in Canada are advantageous because they do not involve complexities. This is as opposed to bank loans, which involve long and complicated processing. With bad credit personal loans, you save time due to the elimination of such procedures.
- No collaterals. You can get these loans without attaching your personal valuable assets as security.
- Building your credit. When you get such loans and repay them on the agreed time and terms, you stand a chance to improve your credit score.
- A source of emergency funds. Sometimes life is full of emergencies. You may have unexpected bills such as car repair when you do not have money in your account. Personal loans such as payday loans can be good alternatives for such cases.
Personal loans for bad credit Canada can, therefore, be very helpful to many Canadians. They can also improve your lifestyle. When you work with us at Bonsai Finance, you will be sure of getting a loan with less hassle.
Are Personal Loans for Bad Credit Right For You?
Deciding to take out a loan is a big commitment, and you shouldn’t approach it lightly. There are two main instances in which taking on a bad credit personal loan might be a good idea for you.
The first case is the most obvious; most people who are looking to take out a loan want to do so because they need money for something in the immediate future. This might be an inarguable and urgent need, like a dental appointment to take care of some teeth that might be developing a life-threatening infection. The situation doesn’t have to be that dire, though – maybe your TV broke and the thought of going without any entertainment for possibly months is making you anxious. The important thing is that you don’t feel comfortable waiting until you’ve saved up enough money to purchase the product or service you’re looking at. Whatever your reasons, the fact that you have bad credit should not be the thing that keeps you from getting the money you’re after. Just make sure that you want it badly enough to pay the sizable sum it will cost you in interest fees. If thinking about that cost makes you reconsider your willingness to wait, you probably should not choose to take out a bad credit personal loan.
However, even if you don’t need any extra money right now, though, you might still benefit from considering personal loans for bad credit. Because they are usually paid back over long stretches of time, getting a personal loan can be an effective part of a credit rebuilding strategy that will allow you to regain your good financial standing. Making your payments consistently demonstrates financial responsibility when this pattern is reported to the credit bureau, and that means your credit score will usually rise. You can also use this credit recovery strategy in tandem with other ones, like using a secured credit card, to amplify the positive credit effects you’ll experience. This is why in some cases, it may be wise to take out personal loans for bad credit purely as a way to speed up the credit improvement process. If you choose to do this, you should be prepared for the high interest rates you will still incur as you pay off the loan over time.
The Price of Bad Credit
You may have noticed that as a person with bad credit, borrowing can be expensive. Personal loans for bad credit often cost the borrower a fair amount more in interest fees compared to what a more typical borrower might pay. This can be especially galling if you have formerly had good credit and can remember the lower total cost of the loan offers you received at that time.
It’s important to recognize that this difference is not simply the result of greed or an attempt to take advantage of someone in a vulnerable situation. Lending someone money is always a risk to the lender because they can never guarantee that they will be paid back. Someone with a good credit score has a history of repaying their debts on time and in full, which is exactly what a lender wants to see; it means that chances are good that this person will honour their debt obligations without too much fuss.
A person with bad credit, on the other hand, has a history of doing exactly the opposite. Even if the reason why you ended up with it wasn’t your fault, once you have bad credit, lenders start to fear that they may not be able to recover the money they lend you. Doing business with you and people like you may cost them more money, so they have to charge more up-front to make up for that potential loss. Were they to charge less, they would not be able to continue to serve customers with a high risk profile like this.
It’s never fun to pay more than other people do for a product or service, but in this case, it’s a necessary part of recovering your credit. It’s important to remember that bad credit is only a temporary problem when you have a plan to address it, and that these loans are a part of helping you get your credit score back. Once you’ve conquered this setback, you’ll once again be a candidate for loans and other financial products at the standard rate that other customers enjoy.
Bad Credit Is Nothing To Be Ashamed Of
There are myriad reasons why a person or a family might experience credit problems, and it doesn’t always have to do with continually missing credit card or loan payments. Bankruptcies are becoming increasingly prevalent in Canada, and having bad credit no longer carries the stigma it once did. That’s because more people understand that having bad credit may not be your fault. Some common life events that might put you in this situation include:
- going through a divorce
- getting hit by unexpected medical expenses not covered by your provincial health system
- losing your job
- losing your house to foreclosure
- having an unplanned baby
None of these things are your fault, and they are far from the only instances in which your credit might be drastically damaged for reasons largely outside of your control. People from all walks of life fall into bad credit standing. That’s why when you’re looking for personal loans for bad credit, you need to work with a lender who understands that you are more than your credit score and treats you like a valued customer.
Getting a Better Deal Is Possible With Our Help
As we mentioned above, though, it can sometimes be difficult to find personal loans for bad credit to apply to at all, let alone ones with competitive terms or rates. You don’t have time to scour the market looking for lenders whose terms work for you and whose fees you can afford. That’s why we’d like to offer you our