📅 Last Updated: August 26, 2022
✏️ Written By Bryan Daly
🕵️ Fact-Checked by Caitlin Wood
Filters
Loading...
Loans Canada
Loans Canada
Amount
Up to $50,000
Rate
Prime to 46.96%
Term
3-60 months
Fora
Fora
Amount
$1,000 - $10,000
Rate
19.69% - 46.9%
Term
Varies
Spring Financial
Spring Financial
Amount
Up to $35,000
Rate
9.99% - 46.96%
Term
6 - 60 Months
Fairstone Financial
Fairstone Financial
Amount
Up to $50,000
Rate
19.99% - 39.99%
Term
6 - 120
Cash Money
Cash Money
Amount
$1,500 – $10,000
Rate
Varies by province
Term
Varies
Mogo Finance
Mogo Finance
Amount
Up to $3,500
Rate
9.9% - 47.72%
Term
-
easyfinancial
easyfinancial
Amount
$500 - $100,000
Rate
9.99% - 46.96%
Term
Varies
LoanMeNow
LoanMeNow
Amount
$500 - $1000+
Rate
28% to 32%
Term
3 Months
Nyble
Nyble
Amount
$150
Rate
No Cost!
Term
-
Bree
Bree
Amount
Up to $250
Rate
No Cost!
Term
-
goPeer
goPeer
Amount
$1,000 - $25,000
Rate
7.5% - 31.5%
Term
36 - 60 months
Unfortunately we couldn't find you a provider with the given filters

Living with bad credit in Halifax is not easy, especially when it’s preventing you from getting approval for credit products that you would otherwise use to improve the situation. If your savings and income aren’t enough to deal with your expenses in Halifax, bad credit can leave you stuck in debt for a long time.

Want to learn more about loans in Halifax? Take a look at this.

Bad Credit: The Causes and Resulting Effect

Unfortunately, there are many financial habits and circumstances that can lead to bad credit, including but not limited to:

  • A history of defaulting on credit products (late, short, missed payments)
  • Reduced hours or income at work
  • Medical issues or other situations that result in loss of employment
  • Carrying too much high-interest debt
  • Scamming, identity theft, or debit card fraud
  • Unexpected home or vehicle-related expenses
  • Other financial emergencies

Need to rebuild your credit after a late payment? Read this article.

The Results

As we said, one of the major drawbacks to bad credit is that it can prevent you from getting approved, no matter what kind of product you try to apply for in Halifax. This is because your lender in Halifax can view your credit report and credit score when you apply. Often, they will see your bad credit, assume that you’re too risky when it comes to your borrowing ability, then deny your applications.

Is your credit report scaring away lenders? Find out here.

What’s worse, even if you were to get approved for a credit product, your lender is likely to give you a higher interest rate and less reasonable payment terms than if your credit were healthier. As such, another chain reaction will ensue. Those high rates may put you in more debt, which causes you to default on your payments again. Needless to say, the situation will only continue downhill from there.

Your Credit Score: Why It’s Important and How it’s Calculated

Remember, one of the main elements that your lender can check when you apply for new credit is your credit score. A three-digit number ranging from 300-900, your score represents your health as a credit user.

When your score is at 660-900, it signals that you have good credit. As a result, your lender will have no problem letting you borrow, as good credit shows them that you have been, and will likely continue to be responsible with your payments. In addition, they’ll offer you the most favourable interest rates, which will save you money.

On the other hand, if your score is at 300-560, signalling bad credit, the complete opposite will occur. Since your credit health may have been depleted by a string of defaulted payments, maybe even a bankruptcy or other financial delinquency, your lender in Halifax will become skeptical of your ability to pay them back.

How Does Bad Credit Affect Daily Life?Check out this infographic to see how bad credit can affect your daily life.

Your Credit Score Calculation

To better understand why your credit score is so significant to the bad credit loan process, it helps to paint a picture of how your score is calculated in the first place. Actually, you have two versions of your credit score, one with Equifax and one with TransUnion, which are Canada’s main credit reporting agencies. However, both agencies use a similar formula to compile your credit score.

Essentially, there are 5 elements that both agencies use:

  • Payment History – The most important element for your credit score is your record of payments. Good payments lead to good credit, bad payments lead to bad credit. Simple, effective, and what your potential lender may look at first when judging your creditworthiness.
  • Debts Owed – Keeping your debt under control is important for two reasons, particularly when it comes to credit cards and other revolving products. Firstly, the closer you get to your credit limit, the more your credit score will drop. Secondly, lenders can see how much you owe when they examine your credit report. For obvious reasons, they won’t want to approve someone with outstanding debts all over town.
  • Credit History Length – It’s also better for your credit score to have a few older credit accounts in your report than to constantly be cancelling old ones and applying for new ones. Even if you have bad credit, a lender will still prefer to approve a borrower in Halifax who’s a veteran credit user, rather than someone who’s brand new to the credit game.
  • New Credit Inquiries – Whenever you apply for new credit, your lender can perform a “hard inquiry” into your credit report. While “soft” inquiries (done by yourself or those not considering you for credit) do not affect your score, each hard inquiry will decrease it by a few points and stay on your report for several months. It’s better not to apply for too many new credit products within a short period of time.
  • Credit Account Types – While this component has the least significant impact on your score, it’s still beneficial for you to have a diversity of credit account types listed on your report. Not only that but if a lender can see that you’ve had experience managing different credit products, it will make them more confident that you can handle your potential debt.

Bad Credit Products: Your Options in Halifax

While all this information about bad credit might make you nervous about applying, rest assured that there are plenty of credit products available to you in Halifax. In fact, many of these products, if managed responsibly, can actually help you fix and improve your bad credit situation. The key is to continually make all your payments in the fullest amounts possible and never, ever miss a due date.

As long as you can demonstrate responsibility, you can still get approved for:

  • Bad credit loans (unsecured)
  • No credit check loans
  • Loans using collateral (secured)
  • Loans that are backed by a cosigner
  • Guarantor loans

Read this to find out what bad lenders will assess when considering your eligibility.

Avoiding Scams

When it comes to bad credit products, it’s very important to do proper research before applying, especially online. That’s because, with the ease of internet access, scam artists may set up convincing but fake lending portals with the intent of committing fraud and identity theft against unsuspecting borrowers. While the same type of scam can be seen with any type of “loan”, it’s a particular concern for those with bad credit, who are generally in more desperate financial situations.

What to do and watch out for:

  • Look up the lender’s company name in the Better Business Bureau database.
  • Check all customer reviews and make sure they have a good reputation.
  • If all reviews are 5-stars and clearly fake, be cautious.
  • No lender is allowed to use abusive or manipulative language to get you to pay.
  • If they ask for a security deposit or “loan insurance” before your loan is deposited, they are definitely illegal. No real lender will ever ask this of you.

Credit Improvement Products: Your Options in Halifax

If you’d prefer to avoid the higher rates and stricter terms that come with some bad credit loans, there are other products you can apply for in Halifax that will help fix and improve your credit score to the point when that will no longer be a concern.

These products include but aren’t limited to:

  • Secured credit card
  • Credit rehabilitation savings program
  • Credit counselling
  • Debt consolidation loan
  • Debt consolidation program

Bad Credit? Try Loans Canada!

If you’re a Halifax borrower but your bad credit is getting in the way of you getting approved at your bank, there’s no need to worry. Loans Canada can connect you with bad credit lenders and loan products in Halifax that will help you get back on track.

More From Our Experts

Home Equity Loans For Seniors
Home Equity Loans For Seniors

As a senior, getting a loan can be more difficult due to lower income and age restrictions. Thankfully, there are many home equity loans for seniors i...

Borrower Rights: High-Interest Loan Legislation In Canada
Borrower Rights: High-Interest Loan Legislation In Canada

To better protect vulnerable borrowers, provinces have enacted legislation that sets boundaries on what alternative lenders can and can’t do.

Need Money Today? Find Out Where You Can Get It
Need Money Today? Find Out Where You Can Get It

Do you find yourself saying "I need my money today" often? Here are some simple and quick ways to get money quickly.

Best Bad Credit Loans in Canada 2024
Best Bad Credit Loans in Canada 2024

These are the best bad credit loan options in Canada right now. An easy list to make an easy choice. Here is everything you need to know!

How Does a Line of Credit Work?
How Does a Line of Credit Work?

A line of credit is a less rigid credit option. You only pay interest on what you use. That means flexibility. Read this article to get the

easyfinancial Loan Alternatives
easyfinancial Loan Alternatives

If you've been rejected a loan from easyfinancial, you'll be happy to know that there are plenty of easyfinancial loan alternatives in Canada.

5 Loans Like Fairstone You Should Know
5 Loans Like Fairstone You Should Know

If you are looking for loans like Fairstone, you can find them on Loans Canada. These Alternative lenders offer secured and unsecured loans.

easyfinancial vs. Fairstone
easyfinancial vs. Fairstone

easyfinancial vs. Fairstone? What is the difference? If you have bad credit, you can get a loan from this one faster

Soso (Paluwagan) Or A Personal Loan: Which Is Better?
Soso (Paluwagan) Or A Personal Loan: Which Is Better?

Maligayang pagdating sa Canada! Welcome to Canada! Do you know what is a soso (paluwagan)? Are they better than personal loans?

When Is The CEBA Loan Due? It’s Been Extended!
When Is The CEBA Loan Due? It’s Been Extended!

Did you get the CEBA loan? The CEBA loan repayment due date is close. Find out when and what can you do avoid default.

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers
Caitlin Wood Priyanka Correia Lisa Rennie Bryan Daly Cris Ravazzano Margaret Johnson Kale Havervold Liz Enriquez Sean Cooper Veronica Ott Corrina Murdoch Chrissy Kapralos

A Team of Experts

Get expert tips and guidance from a community of renown personal finance experts right here at Loans Canada. We're here to help you stay informed so you can make the best financial decisions.

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card