- Any credit accepted
- Rates from 6.99%
- Doesn't affect your credit
- Loans up to $50,000
- Re-establish your credit
- Apply once, get multiple options
Do you live in Surrey, BC? Are you currently struggling with bad credit and aren’t sure how to gain access to the loan options you need? Keep reading to learn more about borrowing with bad credit in Surrey.
Click here if you want to increase your credit score but not your credit card debt.
Your credit score is a three-digit number ranging from 300 to 900. Typically it’s assigned to you once a lender reports your first payment activity to Canada’s credit bureaus (Equifax and TransUnion). From that point on, your score will fluctuate according to how you use the credit product in question. For example, if you pay your monthly credit card bill on time and in full, your score will rise. However, if you paid it late, short, or missed it entirely, your score will drop.
Wondering which credit bureau your lender might check? Find out here.
If you apply for new credit down the line, other lenders in Surrey may use your score to judge your strength as a borrower, otherwise known as your ‘creditworthiness’. Depending on what kind of lender you choose and what product you apply for in Surrey, it may also be used to determine what interest rate they’ll offer you. The closer your score is to 900, the easier it will be to get approved for a large amount of credit at a more affordable rate and vice versa.
Payment History (35%) – The largest percentage of your score varies according to the way you pay off your credit products. Remember, the more complete payments you make, the higher your score will rise. The cleaner your payment history looks when a new lender checks your credit report, the better the overall results for your loan will be.
Debt Owed (30%) – The calculation of your score also relies heavily on the amount of debt you’re carrying currently. The more money you owe to a lender, the lower your score falls. This effect is particularly apparent with products that have revolving credit limits, such as credit cards and lines of credit.
Credit History Length (15%) – When it comes to the age of your credit accounts, the older the better. For instance, a credit card that you’ve been using regularly for years is far more beneficial to your score than constantly activating and cancelling new ones.
New Credit Inquiries (10%) – Every time you apply for new credit in Surrey, your lender can potentially check your credit report. Whenever this happens, it’s known as a ‘hard inquiry’ and will decrease your score slightly. While no damage will occur when you or a non-credit entity (landlords, employers, etc.) checks at your report, too many new hard inquiries can cause it to drop rapidly, making you look less creditworthy in the process.
Account Types (10%) – To further improve your score, it’s also healthy to have a variety of product types listed in your report, such as credit cards, installment loans, and lines of credit. The more responsible you are at managing these products, the better it will be for both your credit score and the credit ratings associated with each of the accounts.
Although there are now several online services that will provide you with your credit score, the standard way of checking it is to file a request with either credit bureau (we recommend you look at both versions), which will cost you a small fee.
You’re also entitled to one free copy of your credit report yearly. It’s important to monitor these regularly so you can track your progress, as well as to check for errors or signs of fraud and identity theft. If you’re having trouble getting approved for new credit, it’s best to start with this step and work your way from there.
Check out these common errors that can show up on your credit report.
If your score is within the 660 – 900 range, it generally means you have good credit, which leads to better approval odds and more affordable interest rates.
However, if you have a score within the 300 – 560 range, it means you have bad credit and will have the opposite effect. Though many subprime lenders in Surrey, such as private and alternative institutions will still approve you for a smaller credit amount, your interest rate will be higher due to the heightened level of risk they’re taking on a borrower with a larger chance of defaulting. Prime lenders, like banks and credit unions, may not approve you at all because of their tougher borrowing standards.
That said, defaulted payments aren’t necessarily the result of your forgetfulness or unwillingness to pay. Sometimes life is unpredictable.
Other causes of missed payments and bad credit include (but aren’t limited to):
Take a look at this infographic to see how bad credit can affect your daily life.
Since bad credit reduces your overall financial strength, your loan options will be more limited in Surrey. After all, most banks and credit unions in Surrey will consider you too risky. Before you get discouraged, however, keep in mind that there are plenty of lending institutions in Surrey that deal specifically with bad credit clients and those with less healthy finances.
There are even some lenders who don’t perform credit checks, who will instead base their approval process mainly around your income and employment status. Just remember that you may receive less money than a prime lender will offer and your interest rate will be higher, costing you more in the long run, so be sure to factor these notions into your budget before you apply.
Click here to find out what bad credit lenders look at when you apply.
Nevertheless, once your bad credit loan application is approved, a lump sum of money will be deposited directly into your bank account. Afterward, every responsible payment you make will elevate your credit score and with it, your creditworthiness.
Here are a few loan types you can get in Surrey, even with bad credit:
While we’re on the subject, it’s essential to discuss the idea of predatory loans and loan scams, which are unfortunate liabilities in the world of bad credit products.
Sadly, having bad credit and other financial problems can lead to desperation for a solution. Predatory lenders and scam artists are well aware of this and will use manipulative tactics to get you to pay ridiculous loan rates or, even worse, to steal your money, identity, and banking information.
Stay away from this supposed ‘lender’ if they:
If you’ve decided that a bad credit loan is not what you want or you’d simply like better results when you do apply, remember that your credit score is a key factor. The healthier your score is, the easier it will be to get approved and the cheaper your loan will be. Therefore, one thing you should do before applying for any loan is work to improve your credit score.
Although this can be difficult if your credit is already so bad that you don’t qualify for any traditional credit products, there are a few programs and services you can still take advantage of, including but not limited to:
For more advice on how to improve your credit score, click here.
If you live in Surrey and are interested in being match with a lender, regardless of your credit history or past financial issues, Loans Canada can help find you the best option to meet your needs.
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