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Where Can I Find A Bad Credit Loan Near Me?
Ontario residents have several bad credit lenders to choose from. Here are just a handful of lenders in the province that offer bad credit loans:
Fairstone
For almost a century, Fairstone has been providing personal loans for up to $50,000. Fairstone operates out of several physical branches throughout the province of Ontario, including the following:
151 Yonge St., Suite 1100, Toronto, Ontario M5C 2W7
1170 Burnhamthorpe Rd. W, Unit 29, Mississauga, Ontario L5C 4E6
555 Wellington Rd. S, Suite 4B, London, Ontario N6C 4R3
2991 Longfellow Ave., Windsor, Ontario N9E 2L3
1405 Upper Ottawa St., Hamilton, Ontario L8W 1N3
1006 Princess St., Suite 104, Kingston, Ontario K7L 1H2
116 Albert St., Suite 320, Ottawa, Ontario K1P 5G3
1532 Lasalle Blvd., Sudbury, Ontario P3A 1Z7
831 North May St., Thunder Bay, Ontario P7C 3S2
425 Algonquin Blvd., Timmins, Ontario P4N 1B5
easyfinancial
Easyfinancial provides personal loans for up to $100,000 with loan terms of up to 10 years. Physical branches are located throughout southern Ontario, including the following:
2111 Yonge St, Toronto, Ontario, M4S 1X8
3100 Dixie Rd. Mississauga, Ontario L4Y 2A6
8280 Highway 27, Vaughan, Ontario L4H 0R9
17725 Yonge Street N, Newmarket, Ontario L3Y 7C1
140 Great Lakes Drive, Suite 129 Brampton ON L6R 2K7
146 Lakeshore Rd W Unit C, Oakville, ON L6K 1E4
1290 Steeles Ave E Unit #C3.1, Milton, ON L9T 6R1
901 Harwood Ave N Unit 103, Ajax, ON L1Z 0T4
199 Wentworth St W Unit #19/20, Oshawa, ON L1J 6P4
Spring Financial
Spring Financial is an online-only lender, so there are no physical branches. Instead, the entire application and approval process takes place entirely online. So whether you live in Kingston, Brampton, or London Ontario, you can apply for personal loans for up to $35,000, including bad credit loans with Spring Financial.
LoanMeNow
LoanMeNow is an loan brokerage service that offers short-term loans for up to $1,000 and accommodates bad credit applicants in Ontario and the rest of the country. The majority of the lenders in its network do not conduct credit checks.
Fora
Fora is an online-only lender that provides personal lines of credit up to $10,000 anywhere in Ontario and 5 other provinces. There are no physical branches, so the entire loan application and approval process takes place online.
How To Get A Bad Credit Loan
Here are some steps you can take to get a bad credit loan:
Step 1. Compare Lenders And Get Pre-Approved
Online loan aggregator sites can help you quickly find and compare lenders and their loan products. Simply input a few pieces of information about yourself and the loan you need, and the lending platform will populate a list of lenders and products, along with their rates based on your profile. This will start the process of pre-approval, which will give you an idea of how much you can qualify for and the rate you will be charged. You can then compare offers side-by-side and choose the one that best suits your needs. It's very helpful to start the loan process by getting pre-approved first, especially if you have bad credit, as your credit score can affect the interest rates and loan amount you can qualify for.
Step 2. Apply For A Loan
Depending on the lender you choose to work with, you may apply in person or online. To accurately assess your financial situation and verify your identity, lenders usually require certain documents for review, which may include a government ID, pay stubs and bank account statements. In some cases, you won’t require any physical documents as the whole verification process can be done via instant bank verification services like Flinx, Plaid and Yodlee. During your application process, you’ll be asked to sign into your bank account through a secure portal. This process allows lenders to receive a read-only bank statement and have your bank account verified instantly.
Step 3. Get Funded
Traditional loans can take a few days for funding to come through. But with alternative lenders, you can receive the funds from your bad credit loan in a matter of hours, as long as the approval is made by a certain time. Otherwise, you can expect your funds the next business day.
Going into a loan application with bad credit isn’t ideal, but there are a various types of loans available to Ontarians with bad credit.
Bad Credit Loans
There are many alternative lenders available in Ontario who deal specifically with bad credit borrowers. Rather than focusing a great deal on a person’s credit score, these lenders in Ontario place more weight on other factors, such as income and debt levels. If your credit is poor, getting a bad credit loan in Ontario might be a good option.
That said, it is important to be careful not to continue a vicious cycle of debt, especially since these loans typically come with very high-interest rates. Make sure that taking out a bad credit loan is worth it for your situation.
Peer-To-Peer Loans
These types of loans involve borrowing funds from peer-to-peer lending entities. These lenders allow borrowers in Ontario to get loans from individuals instead of from traditional banks. This type of lending is becoming an increasingly popular way to get a bad credit loan.
That said, there are still certain criteria that borrowers need to meet to qualify. You’ll pay a lower interest rate compared to credit cards, but the qualifications for borrowing may be much more strict.
Secured loans
Any loans that require collateral are known as “secured loans,” and they’re more common among those with bad credit. Collateral is often required for borrowers with bad credit in order to provide the lender with some insurance in case the borrower defaults on the loan. By backing the loan up with a valuable asset, borrowers in Ontario with bad credit may be able to secure a loan much easier.
Can I Finance A Car With Bad Credit?
Yes, you can finance a vehicle purchase even with bad credit. That said, getting approved for this type of loan can be a challenge, especially if you need a big loan.
In this scenario, consider applying for a car loan specifically designed for bad credit borrowers.
Personal loans are typically unsecured and don’t require any form of collateral, which increases the lender’s risk and can make it more difficult for you to meet the approval criteria. Instead, a bad credit car loan is secured by the vehicle, which means that a valuable asset backs it. This minimizes the lender’s risk and boosts your odds of getting approved for the loan.
Watch Out For Bad Credit Loan Scams
While most lenders in Ontario are legitimate, there are some who prey on unsuspecting and vulnerable borrowers. To avoid getting scammed by a predatory lender, be sure to watch out for the following red flags:
The Offer Is Too Good To Be True
Alternative lenders are often willing to provide loans to bad credit borrowers, so the eligibility criteria may be more lax compared to conventional loans. However, the lender should still vet the applicant. There are certain requirements that borrowers must meet to ensure they’re in a financial position to be able to repay the loan.
If the lender guarantees loan approval, this may sound too good to be true. And it probably is, as no lender can legitimately guarantee loan approval without some type of assessment.
The Lender Does Not Have An Online Or Physical Presence
A legitimate lender should be easily found when doing a quick online search. Otherwise, they should have a physical location with an active business address. If the address of the lender is unavailable or tied to a residential location, and there is no website or any other online information about the lender, you’re probably dealing with a fraudulent lender.
There Are No Reviews On The Lender
Ideally, the lender you work with has already been in the lending industry for quite some time and has amassed a growing roster of satisfied clients who leave reviews online. If there are no reviews online, or very few, be wary. Even if reviews exist, take an extra step to make sure these reviews are real and have not been added online by the lender.
The Lender Asks For An Upfront Payment
No lender should ask for any form of payment before the loan is provided. In a legitimate loan agreement, you will agree on a loan amount, interest rate, term, and fees, which should all be written down in a contract. Then, you’ll receive your loan, and only then will you start making repayments.
If you make an upfront payment, no matter how big or small, a scammer will take your money and run.
Other Financial Assistance Programs In Ontario
Being short on cash can result in all kinds of trouble, including missing a rent payment, getting behind on electricity bills, and even being unable to put food on the table. If you’re in a serious financial predicament, several assistance programs in Ontario can help:
Rent Assistance In Ontario
The Canada-Ontario Housing Benefit is available to eligible renters to help offset the cost of rent anywhere in the province. Applicants must live in Ontario and be on the Centralized Waiting List for social housing to qualify. The benefit covers the difference between 30% of the applicant’s household income and the average market rent in the area.
Income Assistance In Ontario
The Ontario Works program offers financial and employment assistance for residents who don’t earn enough to cover the cost of basic necessities, such as food and shelter. It also assists those with a disability who are unable to work and are subsequently in financial need.
Ontario residents who are struggling to afford the rising cost of groceries can access emergency food products at several food banks across the province. For example, if you live on Ottawa, you can look into Ottawa Food Bank or Partners in Misssion Food Bank if you live in Kingston.
Utility Assistance in Ontario
The Ontario Electricity Support Program (OESP) provides lower-income customers with financial assistance to help pay their utility bills and avoid having their utilities cut off due to lack of bill payment. The program pays a regular monthly credit directly to eligible consumers’ electricity bills.
Additional Government Benefits Available In Ontario
How will bad credit affect my ability to get a loan?
Bad credit doesn’t just affect your ability to qualify for a loan, but it also affects the rate your lender will charge you and the loan amount they approve you for. Moreover, in particular, getting a loan from a bank when you have bad credit is very difficult, if not impossible.
Are payday loans my only option if I have bad credit?
No. There are many alternative lenders in Ontario whose entire business model revolves around providing loans to individuals with subpar credit. Whether you need a personal loan, a line of credit or even a mortgage, there is a lender out there for you. You simply need to ensure that your current financial health is in order. This means that you have a steady source of income and a good debt-to-income ratio.
How do I get a lower interest rate with bad credit?
There are a few ways you can lower your interest rate despite having bad credit. For one, researching and using loan comparison websites can help you compare rates and get quotes from different lenders. Secondly, you can reduce your interest rate by improving your current financial status by taking a second job to increase your income or by paying off a couple of debts to better your debt-to-income ratio. Lastly, you can increase your creditworthiness by securing your loan with an asset or by getting a cosigner.
Get The Bad Credit Loan You Need
If you have credit that’s subpar, your only option may be to apply for a bad credit loan in Ontario. Before you apply for a loan, make sure to pull your credit report to see what your score actually is in order to make sure you opt for the appropriate product.
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