Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Once you become a credit user, a world of possibilities can open up to you, such as the ability to mortgage a home. That said, if you’re not careful, it’s easy to end up with bad credit, which can prevent you from getting approved for any credit products, including loans.
Having bad credit doesn’t mean you have no options when it comes to applying for and getting approved for a loan. In fact, borrowers with bad credit have more options than ever. Whether you’re looking for a quick loan or an installment loan to cover a large expense, we have all the information you need to find the right bad credit loan.
Amount | APR | Term (months) | Type of Loan | ||
![]() | Up to $35,000 | 26.99% - 39.99% | 6 - 60 | Secured & unsecured | More Info |
![]() | Up to $15,000 | 29.99% - 46.96% | 9 - 60 | Personal loan | More Info |
![]() | $5,000 - $35,000 | 5.9% - 45.9% | 12 - 60 | Personal loan | More Info |
![]() | $1,000 -$35,000 | 5.99% - 29.19% | 36 - 60 | Persona loan | More Info |
![]() | Up to $5,000 | 19.9% - 45.9% | 3 - 36 | Personal loan | More Info |
![]() | Up to $10,000 | 43% | 36 - 60 | Guarantor loan | More Info |
![]() | Up to $3,000 | 22% - 35% | 3 - 4 | Installment loan | More Info |
![]() | $1,600 - $25,000 | 9.47% - 20.07% | 36 - 60 | Secured Savings Loan | More Info |
![]() | Up to $20,000 | 19.44% - 31.90% | 36 - 84 | Consumer Proposal Exit Loan | More Info |
Besides researching your lender properly, there are a few things you can do to get approved for the best bad credit loan in 2023, such as:
While requirements may vary from lender to lender, you’ll have an easier time qualifying for a larger bad credit loan, with a more affordable interest rate and repayment plan when you have the ability to pay your debts on schedule. The less risky your lender considers you, the better the result.
Loan Amount | Loan Term | Interest Rate | ||
Bad Credit Personal Loan | $500 - $10,000 | 12 - 60 months | 19% - 46.96% | Learn More |
Payday Loan | $100 - $1000 | 2 weeks | $15 to $25 for every $100 borrowed | Learn More |
Vehicle Title Loan | $500 - $50,000 | 12 - 60 months | 9.9% - 46.96% | Learn More |
Credit Builder Loan | $1,250 - $10,000 | 6 -12 months | 2% - 19.99% | Learn More |
Before applying for any type of loan, whether you have bad credit or not, you should review your financial situation and even check your credit score. This will help you better understand what type of offer you expect to receive.
Depending on the loan you want and your financial situation, it’s likely that certain lenders will be a better fit for you. This is why it’s so important to compare lenders. Compare interest rates, loan amounts, fees, and the total cost of the loan once you’ve paid it back, and check out consumer reviews.
While application requirements can vary from lender to lender, make sure you have the following documents and information ready to help facilitate the application process.
Once you’ve decided on which lender you want to apply with, it’s time to submit an application. The majority of bad credit lenders will have an online application system which means you won’t have to leave your house to apply.
Most alternative lenders will get back to applications within a few days or even sooner. Make sure you check your email or answer your phone in case the lender requires more information or has questions for you.
Once approved, you can expect to receive your loan within 24 hours. Most lenders can send funds via Interac e-Transfer or direct deposit.
Before you apply for a bad credit loan, it’s extremely important to think about your budget and the associated costs of the loan.
APR | Monthly Payment | Total Interest | Total Cost |
10% | $87.92 | $54.99 | $1,054.99 |
20% | $92.63 | $111.61 | $1,111.61 |
30% | $97.49 | $169.85 | $1,169.85 |
40% | $102.47 | $229.66 | $1,229.66 |
Bad credit can be difficult to understand, especially if you’ve just started using credit products. Here’s an example of how credit works:
If your score is in the “good” range of 660 – 900, it’s generally because you’re a responsible borrower. As such, lenders will assume you’re more likely to pay your debts on time, so it will be easier for you to get approved for a large amount of credit, a lower interest rate, and an appealing payment plan.
If you haven’t been paying your previous debts responsibly, your credit score can quickly fall into the “bad” range of 300 – 659. By checking your credit history, lenders can also see every payment you’ve missed over the past few years. As a result, they will consider you more of a liability, so you may only qualify for a small amount of credit, a high-interest rate, and a restrictive payment plan.
Unfortunately, while late or missed payments are the fastest ways to decrease your credit score, there are a few other events that can lead to bad credit, such as:
When you offer an asset as collateral, your lender will temporarily own it until your loan is fully paid. So, if you default on too many payments and don’t negotiate the situation, they will have the right to seize your asset and sell it to cover your debt. The added security of the collateral can not only help you secure a bad credit loan but may help you qualify for lower interest rates.
While having someone cosign your application can lead to better rates and loan conditions, there are certain risks that come with it:
Bad credit loans can be beneficial when you’re in need, but there are also many drawbacks associated with them that you must consider. Check out these pros and cons of bad credit loans before you give away any information:
Essentially, a bad credit loan is a lump sum of money that you can borrow from various lenders in Canada. That sum is normally deposited directly into your bank account and you would repay it through divided installments. Unlike some traditional credit products, a bad credit loan can help you:
Despite all these benefits, you should always research and compare a few lenders in your area before applying for a bad credit loan. That’s because every lender offers different loan amounts, interest rates, payment plans, and approval requirements.
If your borrowing needs are not urgent, consider improving your credit prior to applying for a loan in order to increase your chances of approval and qualifying for a lower interest rate.
While bad credit can make it difficult to get approved for a loan from a traditional financial institution like a bank, you can still get a loan from loan companies for bad credit. There are many online bad credit lenders who base their approval on your overall financial health. These lenders may be more expensive, but they can help you get the financing you need. Submit a request with Loans Canada today and get matched with a lender that accepts bad credit and meets your needs.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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