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Those in Regina and the rest of Saskatchewan have among the highest average incomes across the province. The province also has the highest percentage of debt-free families in the country. While this paints a financially-successful picture of the province, it doesn’t tell the whole story.
Even though there are many people who are debt-free, Saskatchewan also has one of the highest non-mortgage debt numbers in the country, and among the highest rates of delinquency. As a result, there are plenty of people in the province with lower than average credit scores. This means that at least a small percentage of the population are looking for bad credit loans in Regina.
Is it better to have a good credit score or be debt-free? Find out here.
What Are The Credit Score Ranges in Canada?
But before looking at bad credit loans in Regina and what options are available, we need to first understand what bad credit is. In Canada, we have a credit score range that goes from 300 on the low end, all the way up to 900 on a high end. So, as you could imagine, the lower your credit score, the worse your credit is.
Bad credit can make borrowing money a little more difficult and expensive, but what does your credit score need to be in order for you to have “bad credit”? While there is no set-in-stone score that constitutes bad credit for the bureaus, there are some general ranges that you should be aware of:
- Excellent (Scores 780+)
- Very Good (Scores 779-720)
- Good (Scores 719-680)
- Average (Scores 679-620)
- Poor (Scores 619-580)
- Very Poor (Scores 579- 500)
- Terrible (less than 500)
In most of the higher ranges, you will get great interest rates and getting a loan should be easy, but in the lower ranges, it could prove to be a little bit more difficult and more expensive. The actual factors that can help credit bureaus to determine your credit score are your payment history, the amount of debt you have, your credit utilization, the diversity of your credit, and how long your credit account has been open.
What Factors Affect Your Credit Score?
What Causes Bad Credit in Regina?
So, now that we’re all aware of what bad credit actually is, what causes it? Well, the biggest reason for someone to get bad credit simply comes from a lack of financial knowledge or bad habits. Normally, these bad habits can include overspending, not budgeting correctly, and more. For example, if you make $35k a year, it doesn’t make sense to purchase a $50k vehicle, as you will likely struggle to keep up with payments.
Looking for a guide to budgeting? Try reading this.
If you budget correctly and think about each purchase you make, it could go a long way in helping reduce these habits and potentially even stopping them altogether. However, in addition to this, there are also unpredictable events or situations that we face in life that can hurt our credit. These include things like a job loss, a car accident, a medical emergency, or even unexpected travel.
The Types of Loans Available to Those With Bad Credit
Just because someone has bad credit doesn’t mean they won’t require a loan in the future for a vehicle, an education, or anything in between. Thankfully, there are actually many different bad credit loan types for those in Regina. Some of these options include:
No Credit-Check Loans
If a particular lender or company doesn’t check credit before lending, they are the perfect option for those with bad credit. While you will be able to get the funding you need, it will often come at a high-interest rate, so be sure you are making your payments on time or you could find yourself on the hook for a lot of money.
Read this for more information about no-credit-check loans in Canada.
A secured loan is normally quite easy for anyone to get, even those with bad credit. A secured loan involves putting some sort of asset up for collateral on the loan. So if you miss a payment or default on the loan, the lender is legally entitled to take that asset. Because these loans are less risky than unsecured loans, they can often come with lower interest rates.
For a better understanding of secured and unsecured credit, look here.
Family and Friends
These are an informal type of loan but still occur quite regularly. It’s worth a try to ask friends or family if they can loan you money, but if they do, be sure to pay them back on time and the correct amount. If not, you could put a real strain on the relationship.
To see how bad credit can affect your daily life, check out this infographic.
A Word About Loan Scams
So, while there are many legitimate loan options for those with bad credit, there are also some loan scams to watch out for. Unfortunately, many lenders are predatory and will look to scam individuals who are desperate for funding. They know these people don’t have a lot of options and feel that they are easy targets. If a lender ever asks for upfront fees or isn’t honest with you about their terms, you should steer clear of them.
Trying to find debt relief from predatory loans? Click this link.
Helping You Select a Bad Credit Loan in Regina
Have bad credit and looking for a loan? If so, Loans Canada is here to help. Feel free to reach out, as we are confident we can assist in finding you a great bad credit loan in Regina.