Unfortunately we couldn't find you a provider with the given filters
Types Of Loans You Can Get With Bad Credit In Montreal
With the rise of technology, the way lenders, particularly online lenders, evaluate a borrower have changed. Instead of using your credit score, these lenders will emphasize your overall financial health by checking your income level, employment stability, debt level and more.
Depending on the lender you work with, you can apply for:
No Credit Check Loans
Some lenders offer loans without a credit check. These lenders place more weight on other factors associated with loan approval, including assets, income, and current financial behaviour.
If these factors are healthy, you may qualify for a no credit check loan. However, do note that these loans often come with higher interest rates.
Secured Loans
If you want to qualify for a lower interest rate or high loan amount, you could apply for a secured loan. With secured loans, you’ll have to provide collateral, which is used to back up the loan.
That means if the borrower defaults on the loan payments, the lender can repossess the valuable asset that collateralized the loan to recoup their losses.
Guarantor Loans
A guarantor loan involves finding a borrower with stronger credit and finances to co-sign your application. If approved, you may receive a loan with a more reasonable interest rate without your credit being a factor (instead, your guarantor’s credit will be examined).
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.
What Do You Need To Get Bad Credit Loans In Montreal?
Name, date of birth, contact information
1 or 2 government-issued IDs (1 photo)
Social Insurance Number (SIN)
Proof of employment (income, employers name, job title)
Loan purpose
3 months' worth of bank statements
Bank account details (for direct deposit and withdrawal of payments)
Where Can I Find A Bad Credit Loan In Montreal?
If you can’t get approved for a loan with a conventional lender because of your bad credit score, there are alternative lenders available in Montreal that can help. Here are a few lenders in the city that offer bad credit loans:
Fairstone
915 rue Mont-Royal Est, Montreal, QC, H2J 1X3 3461 rue Robert Chevalier, Montreal, QC, H1A 3R7 630 René-Lévesque Blvd W #1400, Montreal, QC, H3B 1S6 2027 Metcalfe St, Montreal, QC, H3B 4G7
Fairstone has been providing personal loans to Canadians for nearly a century. Loan amounts range from $500 to $50,000. Within minutes, you can get a free loan quote to find out what you can qualify for without hurting your credit score.
easyfinancial offers personal loans of up to $100,000 to Montreal residents as an alternative to payday loans. You can get approved in as little as 10 minutes, and easyfinancial will come up with an affordable payment plan that suits your budget.
Spring Financial is an online lender that offers personal loans to all Canadians, including those in Montreal. Loan amounts go up to $35,000, depending on your financial and credit profile. Loans for bad credit individuals are also available. You can apply online, over the phone, or through text.
LoanMeNow is an online loan broker offering quick, short-term loans of up to $1,000. No credit checks are performed as part of the loan application process, so bad credit borrowers can still get approved.
Several important factors impact your credit score, including the following:
History of payments – Missed payments may have a negative impact on your score, while regular timely payments will help to improve it.
Credit utilization – It’s advised to spend no more than 30% of your credit card limit.
Credit history – Older credit accounts are considered a good thing for credit scores. So limiting the number of credit accounts you open and close is recommended.
New inquiries – Applying for too many loans will place “hard inquiries” on your credit report, which can have a negative impact on your score.
Public records – Bankruptcies, consumer proposals and collection accounts can negatively impact your credit score as well.
Can I Finance A Car With Bad Credit?
Yes, you can still get approved for a car loan even if your credit score falls under the minimum threshold for conventional lenders. Instead, alternative lenders work with bad credit borrowers when the banks say no.
However, bad credit loans are expensive and may come with much higher interest rates. Plus, you may not be able to qualify for a high loan amount.
You may want to consider applying for a bad credit car loan specifically, which uses the car to collateralize the loan. Since the loan is secured by an asset (the vehicle you’re financing), the lender may be more willing to offer a higher loan amount or keep the interest rate within an affordable range.
Be Wary of Loan Scams
As helpful as bad credit loans in Montreal may be, it’s extremely important to be watchful for any bad credit lenders who may be out there to scam unsuspecting borrowers. To spot a predatory lender, look out for the following red flags:
Asking For Upfront Fees Or Payments
A loan that requires an upfront payment is a scam. The lender may tell you the payment is needed to cover things like administrative fees, insurance, or processing fees. But such fees should never be necessary for a loan.
Guaranteeing Loan Approval
Realistically, loan approval is never really guaranteed. Even payday lenders will want to make sure that you have some form of income to cover your payments. Only predatory lenders will assure you of loan approval, even without looking into any aspect of your financial or credit health.
Not Having A Website Or Physical Address
Every lender should have either a physical location or an active website. Don’t initiate any loan applications with a lender that doesn’t have one. These fraudsters attempt to avoid legal issues by being untraceable, and as such, won’t have a physical or web address.
Pressuring You To Act Immediately
A tell-tale sign of a loan scam is being rushed to sign a contract within a certain amount of time to take advantage of the “deal”. Businesses that use these tactics might simply be trying to reel you in before you have a chance to do your homework and discover the scam they’re trying to pull. With a legitimate lender, you should have at least a few days or even weeks to accept an offer.
Other Financial Assistance Programs In Montreal
Bad credit loans are always an option if money is tight. But they’re not the only option out there. Plenty of resources are available throughout Montreal to help residents in need, whether it’s to cover the cost of food, rent, utility bills, and other expenses.
A quick and easy way to find these services is to use www.211.ca. Simply type in your location and the service you’re looking for, and a list of relevant search results will pop up for you to skim through. Here are a few options to help you get started:
Food Assistance
There are several food banks and meal programs available throughout the Greater Montreal Area for residents. Some serve the general population in need, while others serve specific groups, such as seniors, women, and Indigenous peoples. Here are a few places that offer food assistance in Montreal:
Les Accordailles — 465 Gilford Street, Suite 101, Le Plateau-Mont-Royal, Montréal, QC, H2J 1N5
Rent Supplement
The Quebec government offers a Rent Supplement Program that helps low-income individuals and families cover the cost of rent. Recipients of the supplement must live in Quebec and meet income criteria. The amount provided in rent is equal to 25% of the total household income for the year before signing the lease and includes heating costs.
Legal Aid
The cost of legal services can be too expensive for low-income individuals to cover. To alleviate this financial burden, the Community Legal Centre of Montreal assists individuals and businesses in Montréal and Laval with legal matters. Depending on the situation, applicants may qualify for free legal aid or contributory legal aid for anywhere from $100 to $800.
Housing Assistance
Housing assistance programs are offered through the Société D’Habitation Du Québec to low-income Quebec residents and those with special needs. The program is designed to provide eligible participants with references to non-profit housing organizations, housing co-ops, and housing offices to assist with various housing needs.
Tax Clinics
Filing your taxes can be complicated, especially if you’re a newly arrived immigrant. If you’re an immigrant in Canada with a low income, you can have your taxes handled by a professional through the Support Centre For the Immigrant Community of Bordeaux-Cartierville
Similarly, Canadians can opt for these tax software providers to file their taxes for free.
How can I increase my chances of getting a loan with bad credit?
Qualifying for a loan with a bad credit score can be difficult with a traditional lender. To boost your odds of loan approval, you can apply with an alternative lender. These lenders look at other factors besides your credit score. To increase your chances of being approved even more, consider having a cosigner added to your loan contract, or collateralize your loan with an asset of value.
Can I get a no credit check loan in Montreal?
Yes, there are no credit check loans available from some lenders in Montreal. If you’re concerned that your bad credit will hinder you from getting approved, then look for a lender that does not perform a credit check. Instead, these lenders look at your income level, job stability, and debt level.
What interest rate will I get if I have bad credit?
If you have bad credit, your lender will charge you higher interest. Generally speaking, interest rates on personal loans can be as high as 46.96%, though lenders can charge up to 60% under Canadian law.
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...
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
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.
