Having bad credit does not automatically mean that you are poor at managing your finances. You may already know that most lender base their judgment on your credit rating when considering your loan application for approval. If you have a low score, most lenders, such as brick and mortar banks may turn down your application.
What then do you do if you urgently need the money? Most modern lenders acknowledge your situation and this is why they offer bad credit installment loans guaranteed approval Canada.
Key Facts about Bad Credit Installment Loans Guaranteed Approval Canada
Typically, these loans are only available from direct lenders through their online platforms. All you have to do is go to the lender’s website and fill in your personal details among other details. To qualify, you have to be a Canadian resident, be 18 years or above and have a bank account.
The lender typically approves your loan application shortly after you have submitted your loan application. They also process the money fast and you can have it in your specified bank account within the same business day. Since they do not perform a hard credit check, they use other methods to evaluate your ability to repay the loan. This includes details about the following:
- Your employment, business or other sources of income you have such as government benefits
- The amount of income or salary you receive monthly
- Credit card details
- Information on other loans you might have
What are the Advantages?
Bad credit installment loans guaranteed approval Canada present you with several benefits. Their main advantages include:
- Access To Emergency Funds
Imagine a platform where you could get the cash you need to pay for your car repairs when you have no other alternative. These loans have a 95% approval rate meaning that you will rarely be denied the funds you need. You can access these loans at any time and since they are approved and processed quickly, you solve your financial woes seamlessly.
- Access To Favorable Interest Rates
Installment loans have fixed interest rates. This means that you can plan your monthly expenses well as you can already know how much interest to expect. You can as such manage to repay them easily as compared to other types of loans.
- Flexible Loan Amounts
You can borrow the specific amount you need without any restrictions. The lenders normally offer you an option to specify the amount you need and the period you need to repay it.
- Opportunity To Renew After Full Repayment Of Your Current Loan
This is the biggest advantage these loans have as far as your credit score is concerned. You can pay back the money you owe and take another loan if you need one. The lender will then report your repayment behavior to the credit reference agencies. This means that you get an opportunity to improve your creditworthiness as more payments cause your credit score to increase. Eventually, you could qualify for bigger loans like a mortgage or car loan.
- Flexible Repayment Terms
Most lenders allow you to renegotiate the repayment terms when you run into challenges down the road. You may need to revise your monthly, weekly, or bi-weekly payments.
- Opportunity To Get The Loan Without Credit Check
Since these modern lenders are not concerned about your credit score, they are not strict regarding credit checks. In most instances, they will pull a soft credit check which does not lower your credit score. As such you can get the loans without jeopardizing your credit history.
- Opportunity To Spend The Money on Different Needs
These modern lenders rarely ask for your reason for applying for the loan. As such, you cannot get barred from getting the money you need due to your spending intentions. You could use the money on purpose as long as you can afford to repay it.
- You Can Get The Loans Even Without A Guarantor
Some lenders may or may not require collateral or a guarantor. On numerous occasions, they just review your ability to afford the loan and approve your application. This is advantageous when you cannot find a co-signer but need the cash urgently.
As many direct lenders have emerged it might be complex to know who to trust and if they fit your financial situation. An unscrupulous lender could entrap you in a vicious loan cycle by taking advantage of your desperation. At Bonsai Finance, we specialize in connecting you with reliable lenders. Connect with us today to find out how to access bad credit installment loans guaranteed approval and also grow your credit rating.