What Does “Any Credit Accepted”Really Mean?

What Does “Any Credit Accepted”Really Mean?

Written by Caitlin Wood
Last Updated October 8, 2020

We’ve all seen it before, specialty and online lenders promising that your credit score won’t hold you back from getting the loan you need. “Any credit accepted” has become the new motto for these less traditional lenders. Banks and other institutional lenders typically still rely heavily on credit scores to help them decide a borrower’s creditworthiness.

So what does “any credit accepted” really mean? Generally speaking, it means that your lender doesn’t care about your credit score, or that it will have little to no effect on whether or not you’re accepted. The types of lenders that advertise “any credit accepted” are different from banks and ,therefore, follow different rules and regulations and have different criteria for deciding who they can and cannot approve.

Check out this article to learn about all the credit solutions available to Canadian consumers. 

Credit Scores in Canada

In Canada, a credit score range from 300 to 900. The highest scores are given to those who always make their loan and credit cards payments on time, have small amounts of credit card debt and have no credit accounts in collections or previous bankruptcy filings. The most common ways to lower your credit score are by missing payments, maxing out credit cards and being unable to pay them off, having an account go into collections and filing for bankruptcy.

“Any credit accepted” lenders typically do not even look at credit scores and instead use a variety of other criteria to judge whether you’re a good candidate for a loan or whether you’re too high of a risk.

Canadian Credit ScoreTake a look at this infographic for more information about credit scores.

You’re a Person, Not a Number

Lenders who don’t even look at or consider your credit score are typically more willing to listen to you and your story. You’re not just a number but rather a person with a financial history who needs a loan for a specific reason. New lending start-ups, specialty lenders and online loan companies offer a more personalized loan experience, this means that you’ll be accepted or rejected based on more than just a three-digit number. Loan approval rates are usually higher which means you’re more likely to get the money you need when you need it.

Do You Have a Low Credit Score?

Having a low credit score doesn’t necessarily mean that you’re financially irresponsible and can’t handle a loan. A credit score isn’t always the best way to judge someone’s creditworthiness, especially in extenuating circumstances. That’s why this new wave of lenders who accept any and all borrowers no matter what their credit scores are, are an asset to the financial world.

A low credit score can sometimes feel like it’s holding you back like you’ll be unable to accomplish anything financially until you’re able to build it back up. It’s a frustrating situation to be in and can often be aggravated by the constant rejection by more traditional lenders. “Any credit accepted” lenders understand this issue and are stepping up to help out all Canadians who need loans but can’t get approved because they’re credit scores are being used against them.

Debt-to-Income Ratio

Your debt-to-income ratio is one of the criteria that these lenders always look at. You can calculate your debt-to-income ratio by figuring out how much of your monthly income goes towards paying off your debts. So for example, if you currently have a lot of credit card debt then a large portion of your income is probably going towards paying it off.

For a more detailed look at calculating your debt-to-income ratio, click here

The reason why this is an important factor for “any credit accepted” lenders is because it’s a great indicator of how financially stable a person is. If your debt-to-income ratio is too high it probably means you’re stretching yourself too thin, have too much debt already and probably won’t be able to handle even more debt. But on the other hand, your debt-to-income ratio could be low, thus making you a great candidate for a loan, while other lenders continue to reject you because they’re basing their decisions solely on your credit score.

How Does Bad Credit Affect Daily Life?Did you know that bad credit can affect your daily life? Learn more here

Length of Employment

Lenders who accept any credit also take into consideration the amount of time you’ve been at your current job, this is another way these lenders treat their potential borrower as more than simply a three-digit number. Having a long-term stable job shows a lender that you’ll be able to make payments on a new loan even if your credit score isn’t as high as you’d like it to be.

Work With a Lender Who Wants to Help

If you’re currently looking to apply for a loan but are having trouble finding an institutional lender who is willing to work with you because they consider your credit score to be too low then you need to look into lenders who aren’t interested in your credit score. Working alongside an “accept any credit” lender will not only allow you to get the money you need but will give you the peace of mind that you’ll be treated as more than a number.

Looking For a Lender That Will Approve You?

Loans Canada works with a wide variety of lenders that offer loans and financial services to all Canadians, with good credit and with bad credit.

Rating of 5/5 based on 3 votes.

Caitlin is a graduate of Dawson College and Concordia University and has been working in the personal finance industry for over eight years. She believes that education and knowledge are the two most important factors in the creation of healthy financial habits. She also believes that openly discussing money and credit, and the responsibilities that come with them can lead to better decisions and a greater sense of financial security. One of the main ways she’s built good financial habits is by budgeting and tracking her spending through the YNAB budgeting app. She also automates her savings so she never forgets to put aside a portion of her income into her TFSA. She believes investing and passive income is key to earning financial freedom. She also uses her Aeroplan TD credit card to collect Aeroplan points so that she can save money when she travels.

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