People with poor credit will quite often find it hard to secure many options when it comes to getting loans. However, there are lenders in Canada who offer no credit check loans.
No credit check loans are offered without the issuer conducting a verification process on your credit. These loans can, therefore, solve a financial crisis of any Canadian with all types of credit history. This includes people with a credit history, those who have not yet established a credit history as well as those whose credit history has been tarnished.
What is a credit score?
A credit score is a statistical number based on the credit history that is used in the determination of your creditworthiness. In Canada, credit score ranges between 300 and 900 with 650 as a magical middle score. People with a credit score of above 650 are likely to qualify for a loan while those below this score may be regarded to have a poor credit history.
Factors that affect the credit score
- People with very young credit history may have a poor credit score since it grows with time.
- Failure to honor loan terms such as date of payment or defaulting a loan affects your credit score.
- Having so many credit inquiries on your credit report within a very short time can cost your credit score a big deal.
- Your credit score can also be affected by your level of debts. You should avoid keeping your debts too high or having too much debt balances.
Options available for loans with no credit check
These loans exist in various types. Here are some of these types:
- Payday loans– These are short-term loans with terms as short as 16 days, which one is offered to pay back in their forthcoming payday.
- Unsecured loans with no credit check– These are loans in which no security is attached. They do not need collateral.
- Secured loans with no credit check– These loans offer a higher amount of money compared to unsecured and payday loans. You need to attach an asset to act as collateral for the loan.
Factors to consider when applying for no credit check loans
For you to get the best loan that suits you, here are some of the factors to consider.
- Lender’s reputation- You should always ensure that you access a loan from a lender you can trust. This includes the ease to contact the lenders, the validity of their website as well as loan terms.
- Loan terms- The terms and conditions of loans vary from one lender to another. It is important to find a lender whose loan terms suit your financial situation.
- Loan Fees- Some lenders may have some charges and fees associated with the loans. These include the interest rates and the late repayment charges.
- Loan repayment flexibility- Some lenders may offer very strict terms of loan repayment terms while others provide flexible terms. Some may give you a chance to make a decision on which debts to pay while others do not offer such flexibility.
- Loan limits- You should also check if the loan limits offered by the lender is going to meet your needs. As such, you should also select a loan that you can afford to repay.
Here at Bonsai Finance, we can help you to actualize your dream when it comes to securing the loans in a very easy and efficient way. We work with the best loan lenders in Canada. We ensure we have lenders with a wide variety of loan options. Our experts can assess your financial situation and help you select the best loan option for you. We also help you through the application process.
You can, therefore, take advantage of no credit check loans to solve most of your financial problems. You can always contact us at Bonsai Finance for more information and help.