Bad Credit Loans Mississauga
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Written by Kale Havervold
Best Bad Credit Loans Mississauga (Online) January 2021
Living in Mississauga and other parts of the GTA has its benefits, but unfortunately isn’t a place everyone can afford. In fact, Mississauga has recently been given the title of the 14th most expensive place to live in North America.
While some residents in Mississauga make enough to offset these high costs, others do not. This can, unfortunately, lead to excessive debt. If debt is left to continue to grow and grow, it will eventually begin to affect your credit. Having bad credit is unfortunately all too common and can sometimes feel like an endless cycle.
However, not only are you capable of getting yourself out of debt, but there is still a good chance you can borrow the money you need when you have bad credit.
What are bad credit lenders looking for? Find out here.
What is Bad Credit?
But before we begin to look at bad credit loans in Mississauga and how to get them, we first need to understand what bad credit actually is. In Canada, our credit scores range from 300 on a low end up to 900 on a high end. The higher your credit score, the better your credit and vice versa. Things that go into determining a credit score include things like your payment history, age of your credit accounts, and your debt utilization.
While there is no textbook definition of what bad credit is, most would say that anything under a score of about 600 or so would classify as bad credit. Having bad credit can make it more difficult to borrow money as many lenders in Mississauga and Canada in general may not be willing to work with you. The lenders that are willing to work with you, might also end up charging a lot in interest or having some fairly tight restrictions.
Of course, bad credit is all relative. In reality, different scores will mean different things to different people. Someone who has been at a credit score of 375 for years will think a 575 score is incredible and will consider it good. But someone who is used to a score of 850 will think a score of 625 is terrible. It is all relative and everyone has different financial priorities.
Take a look at this for a complete breakdown of what affects your credit score.
What Causes Bad Credit in Mississauga?
Now that we know what bad credit is, let’s take a look at what causes bad credit in Mississauga. While every individual’s situation is different in Mississauga, there are definitely some common things that cause bad credit. These are things like:
- Overspending on your credit card
- Living beyond your means
- Forgetting to make payments on time
In general, any sort of bad financial habits can often lead to bad credit if you’re not careful and don’t correct it soon enough. As a result, it is important to practice good financial habits like responsibly using credit and making your payments in full. If not, you could find yourself dealing with bad credit sooner than you think.
However, bad habits aren’t the only thing that can lead to bad credit. Unforeseen and unfortunate life circumstances can also lead a person in Mississauga to have bad credit. This can include things like losing your job, getting injured, and a variety of other unplanned-for emergencies. So it is important to remember that not everyone who has bad credit is there because of their own bad habits.
What’s worse, no credit history or a bad credit history? Find out here.
Types of Loans Available to Those With Bad Credit in Mississauga
So finally, if you have bad credit, what sorts of loans are you able to get in Mississauga? There are two main types of loans available to those with bad credit. The first is a loan from a lender in who doesn’t check credit. These are often more expensive, but if they are your only option, they can be a lifesaver. There are likely many lenders in Mississauga that don’t check credit but be prepared to pay a price for that.
Next, you have a secured loan (click here for more information about secured loans). These are loans where you will put something up as collateral such as your car or home. You will borrow money against this and if you default, the lender in Mississauga will be able to legally take possession of the collateral. While this is risky, it can often get you better terms and a better interest rate than you would’ve been able to get otherwise. This is because your collateral more than makes up for the risk you bring with your bad credit. Of course, these types of loans do come with some risk, so be careful and only borrow what you can afford to pay back.
Did you know that bad credit can affect your daily life? Learn more here.
Keep An Eye Out For Loan Scams in Mississauga
Unfortunately, there are many people out there who are looking to take advantage of those with bad credit. Loan scams are common in Mississauga and need to be watched out for on your journey to finding an appropriate loan. While not all loan scams are obvious, some things to look out for are:
- Asking for upfront fees
- Guarantees your approval
- They have no history or reputation
- They sound too good to be true
Generally, just do your best to trust your gut. If something seems off or questionable, it is best to look elsewhere.
For more information about loan scams, be sure to read this article.
Bad Credit Loans For You in Mississauga
Have bad credit and are in need of a loan? If so, be sure to reach out to Loans Canada. We are confident we can help set you up with a great provider in Mississauga.