Finding out that you have a bad credit score can be the worst news you ever receive. But this doesn’t mean you can never get a loan all your life. Even with a credit score of below 600, you can still get a short term loan from a trustworthy lender.
Wondering how that’s possible? Here is a short guide on how you can get a short term loan in Canada with bad credit.
Understanding What Bad Credit Loans Are
If you’re searching for short-term loans, but you have credit problems, you’re no doubt looking for bad credit loans. There are several direct lenders for a short term loan in Canada ready to sort you out.
You can apply for a bad credit loan online and get your loan approved within a short time. This will not impact your credit report in any way.
Where Can You Find a Bad Credit Loan?
There are various places to get a short term loan in Canada, even with bad credit. Different financial institutions, such as online lenders, banks, credit unions, and peer-to-peer lenders, can be good options. You might get loan limits from any of these lenders ranging from $500 to $3,000.
A dozen other subprime lenders are willing to give you a short term loan without doing any credit check. However, you must prepare for huge fees and high-interest rates that come with these loans.
Tips to Getting Short Term Loans with Bad Credit
While getting a Short term loan in Canada with bad credit is possible, you need to know what’s in store for you. Here are tips that can guide you on short term loans and help you make an informed decision.
Check Your Credit Score
Before applying for any loan, you need to understand your credit score. You never know, your credit score may not be as bad as you think. And if it’s not that bad, it means you can get better loan amounts with manageable interest rates.
If it’s too bad, you still need to know where you stand so you can negotiate better. Your lender will check your credit score when processing your loan. It’s only right that you know about it before they do to prepare yourself.
Find Lenders That Can Give You a Loan with Bad Credit
Finding a lender that focuses on lending people with no credit will save you time. You don’t need to go through the trouble of applying for a loan from lenders who base their lending decisions on your credit score.
There are several lenders that will pay no attention to your scores that you can apply for a loan with and get approved.
Consider Credit Builder Loans
You’re not going to rely on bad credit loans forever. You need to think of ways to improve your score to access better loan terms in the future. Credit-builder loans will be a perfect way to do it.
Credit builder loans help you set a term and loan amount. During this period, you can make your payments in monthly installments. The lender will report these payments to credit bureaus, which then go to your credit report.