Do you have a poor credit history or a bad credit score? If you do and are trying to get credit fast, then you can be certain that traditional channels of loan application are highly likely to result in rejection. Don’t lose hope though. We can help you obtain no credit check loans Canada from reputable lenders. Want to find out more? Here’s what you should know:
What are No Credit Check Loans Canada?
These are types of loans offered to borrowers’ who cannot obtain loans from traditional lenders due to bad credit. Unlike other types of loans, no credit check loans do not necessitate a hard credit check. Instead, lenders gauge your creditworthiness by your current financial position.
So, to obtain these types of loans, lenders will not be concerned about your credit history or credit score, but they will rather focus on the amount of income you get and your ability to repay the loan within the term that you agree upon. Bonsai Finance works with such lenders and we can help you get to them easily and conveniently.
Characteristics of No Credit Check Loans Canada
- No credit check: This is the main feature of these types of loans, which means that borrowers with bad credit, adverse credit, bankruptcy, or a CCJ, can get credit easily without their past being dug into.
- Instant approval: Once the relevant paperwork is provided, these loans are usually approved and payment received on the same day.
- Short-term: They offer a temporary financial solution to bridge the gap between mid-month and pay day. So, if groceries are needed, rent is due, or you are unable to get to work due to a temporary cash flow crunch, these types of loans are an ideal option.
- Non-collateralized loans: These loans don’t require you to put up collateral in order for you to be approved.
- No usage restrictions: While no credit check loans are ideal for people with bad credit, they are different from bad credit loans in the sense that they don’t have restrictions on how they can be utilized. This simply means that you can use your loan for any purpose.
Key Points to Keep in Mind
- High interest rates apply: Lenders know that lending to borrowers with bad credit is very much likely to result in loan default. For these reasons, most charge interest rates ranging from 50-60% on unsecured loans. Nevertheless, with some help, you can find lenders that charge reasonable rates. For instance, the lenders that we hook borrowers with offer these loans at very competitive rates.
- Impact on your credit score: Whether you have bad credit or no credit, you can access these types of loans. Even though your previous loan repayment history won’t matter when applying for these loans, your repayment history with this next loan will matter a lot. The lenders that we work with report to credit bureaus, which means that they will report your repayment history, which will have an impact on your score. So, it’s important that you repay your loans on time and as agreed upon to ensure that your score is impacted positively.
- There are alternatives: The fact that these types of loans offer only a short term financial solution means that those living from paycheck to paycheck may become short of money the month after. It’s good to know that there are other alternatives, such as bad credit loans, bad credit credit cards, and credit card cash advances.
Whatever type of loan you’re looking for, whether it is no credit check loans Canada or bad credit loans, Bonsai Finance can help you find reputable and considerate lenders.