Here’s what most people looking for bad credit loans Canada probably know about their credit score: it’s a 3-digit number somewhere on a scale from 300-900, and the lower that number, the harder and costlier it generally is to get credit, and vice versa. Nobody wishes to have a bad or poor credit score, but for some reason, many people end up in that unfortunate situation.
If you’re having a bad credit score and needs to take out an auto loan or mortgage, there’s still hope for you. We help people like you get access to bad credit loans Canada without a hassle. Therefore, a low credit score should not stop you from considering a loan when you need one.
Why Does the Credit Score Matter?
While it’s not as vital to memorize your credit score, say like your area code or the CVV on the back of your credit card, this 3-digit number has far-reaching consequences. The score becomes quite crucial when the time to making a big purchase, such as purchasing a car or home, comes.
Your credit score number matters because it’s what lenders look at to see how responsible you are when it comes to paying back your debts. The higher your score is, the more creditworthy you are in the eyes of lenders. Therefore, how quickly you repay your current loan(s) is what impacts that magic number.
What exactly is Bad Credit?
Bad credit is generally a credit history that contains problems, such as delayed payments, collection accounts, charge-offs, credit max-outs, declined credit inquiries, foreclosure and bankruptcy records, etc. Therefore, negative entries in your credit report can result in bad credit. You should note that lack of credit is also widely considered as bad credit.
While legitimate problems may exist in your credit report, it’s also possible for a few errors to occur. Common errors include wrong mailing addresses, unauthorized hard inquiries, signs of identity theft, and incorrect social insurance number, etc. Therefore, it’s imperative to check your credit report with TransUnion and Equifax to ensure that there are no errors.
What Credit Ratings Really Mean
According to reports, the average Canadian scores approximately 600. Lenders typically use credit ratings in order to determine where you stand. The following are the credit ratings in Canada and what they mean:
- Excellent (780 and above) – With a credit score this high, you will not only be approved for a loan fast, but you’ll also get to enjoy the best interest rates on the market.
- Very Good (scores range from 720-779) – This range is considered near perfect, and individuals with these scores also get to enjoy some of the best interest rates available.
- Good (scores range from 680-719) – Individuals with credit scores within this range usually have little to no trouble getting their loan requests approved.
- Average (scores range from 620-679) – With a credit score that’s within this range, you’ll get slightly higher interest rates compared to those with higher scores.
- Poor (scores range from 619-580) – Individuals with credit scores within this range are considered a high risk. They can have a very hard time getting approved for loans, and if approved, they get very high-interest rates.
- Very Poor (scores range from 500-579) – Individuals in this category rarely get approved for anything. However, they can still repair their credit.
- Terrible (below 500) – Individuals with such a low credit score will not get approved for a new loan, thus should focus on improving their credit before applying for a loan.
Why You Need Help Applying for Bad Credit Loans Canada
1. You’ll get approved fast
With a poor credit score, you can still be approved for a bad credit loan, though it won’t be easy if you don’t know where to look. With our help, the process of finding lenders who are willing to lend to borrowers with your specific credit score becomes super easy. This is made possible by the wealth of connections we’ve built with many lenders over the years.
2. You’ll get a loan that suits your needs
With so many loan options available, you may be unable to know which one best suits your need. We’ll not only give you access to all the available loan options for your situation, but we will also enlighten you on what makes one option vary from another. This will enable you to choose the most ideal loan option that best suits your unique needs and financial situation.
3. You’ll get competitive rates
You’ve probably heard that bad credit loans Canada come with high interest rates. While this is true to some extent, we strive to get you the best possible rates on the market. We’ll help you decipher how much you qualify for, terms of loans, fees, interest rates, and help you find the lender that’s willing to offer a loan on terms that are in your favor.
4. You won’t have to hurt your credit score any further
Remember that too many turned-down loan requests will have a negative impact on your credit score. So, you have to identify only those lenders who you’re absolutely sure that they’ll approve your loan request. The lenders we work with will offer you the credit you need, whenever you need it. With us, you don’t have to worry about being turned down.
5. You’ll get a loan from an authentic lender
With bad credit and few good options available, some lenders (and scam artists) can take advantage of your bad situation. Such lenders target desperate borrowers and normally have very unfavorable terms and charge obnoxiously high interest rates. With our help, you can avoid falling into the hands of unscrupulous lenders. The lenders with work with are 100% authentic and trustworthy.