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Bad Credit Loans In Canada Guaranteed Approval
Bad credit loans in Canada guaranteed approval is how borrowers search online for loans that are given to people in Canada who do not have good credit but need their loans approved.
In the search for bad credit loans, you may wonder if any of the lenders will offer you a ‘guaranteed approval’ loan in spite of your bad credit. Fortunately, there are lenders who give credit to Canadians who have bad credit but need some financial assistance.
Thousands of Canadians run into difficulties daily. This can be in the area of their jobs; where there is job loss, or they face legal battles and other economic situations. This can altogether affect your credit score as income that is available will not be enough to cater to important needs anymore.
When you have bad credit scores/bad credit, everything can come into ruins. This is because most of the financing that will be needed in the future for some things in your life will require loans. Once you can’t get access to the loans, life can come to a standstill.
That notwithstanding bad credit loans in Canada guaranteed approval are available for those facing this myriad of problems. There are bad credit loans to finance your business and personal needs.
There are lenders in Canada who are willing to give guaranteed approval to those who apply for bad credit loans and meet all the requirements. Such lenders are particularly interested in your ability to pay back the loan than the credit history that you have.
Once you are able to demonstrate that you can pay back the loan, you can get bad credit personal loans in Canada with guaranteed approval. This can be the beginning of a credit turnaround for you.
How Does Guaranteed Approval Apply In The Search For Bad Credit Loans
Lenders often advertise “bad credit loans in Canada guaranteed approval”. We definitely imagine that when we apply there will be 100% approval. Sometimes it’s not so, the fact of the matter is legitimate lenders may not give guaranteed approval whilst borrowers are actively seeking guaranteed approval.
A 100% approval does not exist but scammers use this to increase their client base. Once a borrower hears “guaranteed approval”, their antennae’s go up. It has become so prominent that in Canada, there are offices dedicated to fraud and other financial crimes. This need arose because of the numerous counts of scams that people experienced.
During the processing of your loan, if you discover any shady dealings, offices like Service Canada are available to help protect your personal information.
Credit bureaus such as Equifax and TransUnion are also available to provide credit monitoring services to those who believe their accounts have been compromised.
Guaranteed approval is the wish of everyone who is applying for a loan but we must also take into account that it doesn’t just happen. It will take some effort from the borrower’s side. Nevertheless, a lot of people are actively searching for bad credit loans in Canada guaranteed approval.
Increasing Your Chances Of Getting Approved With Bad Credit
There are steps an individual can take to increase their chances of being approved. It doesn’t come overnight in a wish or with some sort of magic. The borrower has the responsibility of making themselves as creditworthy as they can be. Below are some of the ways you can increase the chances of being approved for bad credit loans.
• Fixing and improving your credit health.
This may take some time but will be beneficial in the long run. Credit health consists of a credit score, credit rating, and payment history. This is done so that bad credit lenders can know whether you can be trusted when it comes to loan payments.
Some lenders may not check your credit score at all but it is a good practice to be constantly working on your credit score so that you can get guaranteed approval. These are some of the ways by which you can have bad credit loans in Canada guaranteed approval.
a. Make timely and full payments of all existing credit products you have subscribed to.
It doesn’t matter the number of credit products that you have subscribed to, the effort should be made to ensure that you don’t come behind on any of the payments. A delay or half payment made towards any of these will hurt your credit score and affect your ability to be approved for loans in the near future.
b. Reducing credit utilization to 30 or 35% of credit available to you
This is mostly true in the case of credit card usage if you are to maintain a healthy credit score. It is advised that you use only 30% of the available credit on your card.
So if your card limit is $20,000 at the end of the month you should have used just a little above $6,000 or under $6,000. This will keep your credit score in a healthy position. If you are unable to do this effectively, it will mean you will be overwhelmed with payments on the different credit available to you and your credit will be affected negatively.
c. Reducing the debt-to-income ratio to between 30-40%
Debt-to-income ratio refers to the figure that you get after dividing your monthly debt as against your monthly income. Having a debt-to-income ratio of 50% means you have too much debt on your hands. The best rate is between 30 and 40 percent. The lower the debt-to-income ratio, the more your chances of securing bad credit loans in Canada with guaranteed approval can be achieved.
You can improve upon your debt-to-income ratio so that you can get bad credit loans in Canada guaranteed approval. You can think of either renting a space in your home out, taking a second job or getting a higher paying main job, getting an online job or paying your debts more quickly. All these can be steps that can be taken so that you can have bad credit loans in Canada with guaranteed approval.
d. Reviewing your credit report at least once a year
It is important to review your credit report at least once every year. This is to be sure that the figures and records you are seeing are a true reflection of your credit habits within that particular year. Should in case there are some errors that will damage your credit score, you can quickly amend them.
• Applying for a guarantor loan
Guaranteed approval is not entirely possible when your credit is low but you can apply for guarantor loans. Applying in this way increases your chances of approval. It will mean finding someone with a better credit score and getting them to co-sign your loan.
This situation can be due to financial mistakes in the past. Bad credit can also cause bad credit loans in Canada guaranteed approval to be difficult for an individual to get. In the case where there are repeated missed payment and excess credit utilization, getting approval for loans can be tough.
Not everyone can get approved for a loan without getting help from someone due to their bad financial background. In case a lender does not feel confident to give you a loan, you will need a co-signer who will bear the cost when the loan is not paid back. If the borrower fails to keep up with the necessary payments, the guarantor will be contacted.
Thus the guarantor for bad credit loans in Canada guaranteed approval, should be capable and responsible enough to pay back the loans should in case something goes bad.
Why consumers want guaranteed approval
Consumers with bad credit want guaranteed approval for bad credit loans that they take. This is because sometimes even going in for a bad credit loan can end up improving your credit score once you are responsibly paying the loan off. Here are some of the reasons why consumers may want guaranteed approval:
• They have bad credit
Bad credit often causes individuals to think of guaranteed approval. This is because the consumers’ credit may be so low that they will think they do not qualify for any loan. Canadians will like to be connected to lending agencies that will give them bad credit loans in Canada with guaranteed approval.
Low credit scores can in some cases make it difficult for borrowers loans to be approved and interest rates on such loans can be so high. Hence if they know a lending agency that will guarantee them a 100% approval of their loans even with their bad credit, they will gladly apply to them.
• To avoid credit checks
Some consumers who have negative credit scores often want to avoid activities that will further damage their credit score. If borrowers are of the view that a credit report will bring out the dents in their finances, they will opt for bad credit loans to avoid credit checks.
This is because there are some instances where no credit check is done on the loan being applied for but said to have guaranteed approval. They may not give authorization to lenders to check their credit. This can mean the person will not get the loan because it’s a prerequisite for some lenders before a loan can be extended.
But if they know there is guaranteed approval on the loan that is being applied for, it makes it easier to apply for it because there will be no hard checks on their credit history. The consumers will also be assured of receiving their loans.
What bad credit lenders consider before giving out loans
Bad credit causes difficulty in getting loans when you need them. Once your credit falls below the 600 marks, conventional lenders are not likely to lend to you. Even so, now you can get loans from bad credit lenders in Canada with guaranteed approval. Bad credit loans in Canada guaranteed approval are available to help Canadians who have credit below the acceptable levels.
It is however advised as an important thing for individuals with bad credit to constantly engage in activities that help boost their credit score. This includes ensuring all debt are paid in full and on time. Also the expenditure on credit facilities you go in for should be minimal. You should also generally hold on with taking new credit.
Lenders consider different factors before giving loans out. These are some below;
1. Employment history
Bad credit lenders are concerned with employment history. This enables them to generally know the finances of the borrower. Reviews will be focused on how long those applying have been employed with the current company.
Whether they are part time, full time, or permanent employees. A permanent employee, for example, will be more stable than contract and part-time employees. Bad credit loans cannot be given without verification of employment.
2. Recent credit history
Bad credit loans in Canada guaranteed approval, requires that your credit shows the most recent efforts you have made to improve your credit. The credit history should show a good payment history on mortgages, rent, utility bills, credit card bills.
This will determine a lot in the loan application process. In addition to this, sometimes your assets such as the money in your bank account, investments, bonds, and possible mutual funds and other financial assets that you have are also considered by bad credit lenders. This will enable them to know better whom they are giving their loans out to.
3. Your monthly net income
The monthly net income forms part of your recent credit history and will be used as an assessment for you to be given a loan. In Canada, bad credit lenders consider the fact that the higher your monthly net income the more loans you are eligible for because you will have some form of free income that will enable you to pay your loans back.
The lower the income, the less disposable income you have to cater for yourself and also the loan repayments and bills that you have. This will enable bad credit lenders to determine how much you can borrow and generally how much debt you can handle.
4. Credit score
Despite the fact that it’s obvious you have bad credit, bad credit lenders will still want to know your credit score. Bad credit lenders will need a credit report from the credit bureau to know the borrowers means of handling their finances.
With bad credit lenders, a low credit score does not mean your loan application will be rejected. Your credit report provided will be enough for them to assess how you can pay back the bad credit loans that are granted to you.
Bad credit loans
Bad credit loans are loans tailor-made for borrowers who have less than perfect credit score. Having bad credit makes you high-risk to lenders because when they view your credit history they will not see any means by which you can repay your loan.
This makes it unprofitable for them to give you a loan. Having said that, in Canada, bad credit loans are still given out by some lenders. Gradually, there’s a market being found for those who want bad credit loans in Canada with guaranteed approval.
There are some advantages of going in for bad credit loans. Firstly, you wouldn’t have to worry about your credit score because bad credit lenders would have already taken into account the fact that your credit score is not too good.
Bad credit loans are also approved quickly because lenders are already aware of your financial situation. Moreover, bad credit loans also help to improve your credit. Once you begin to pay back these loans, your credit begins to improve.
Your debt-load plays some part in calculating the credit score. It is advised that you use less than 30% on the limit you have when you go for a credit card. Hence if the limit on your credit card is $10,000 for instance, you should aim at using less than $3,000 at any point in time.
When you overspend this budget, your credit score can be affected. If you make all your payments on time and follow all the terms and condition of your agreement consistently, your credit score will be positively affected.
Will bad credit loans in Canada with guaranteed approval be good for you?
This question is usually one that comes into the minds of a lot of people seeking bad credit loans in Canada with guaranteed approval. The answer will depend on the lender and whether they are able to find a loan option that they will be comfortable with.
Bad credit lenders do not give one size fits all kind of loans because their customers already have a not too good credit score. Hence after reviewing all the necessary information, they will be able to tell which type of loan will be best for the applicant.
Bad credit loans in itself is not a bad thing for any individual to get for themselves. Once you are able to schedule the payments on time and keep at it consistently, your credit score will improve. The high interest rates sometimes ward off borrowers from taking bad credit personal loans.
Others can also be afraid that they will meet untrustworthy lenders who may not be legitimate in their dealings. This may sometimes make borrowers unable to apply for bad credit loans when they need to.
Bad credit loans in Canada guaranteed approval are for everyone who is ready to work on their credit. Lenders are available all over to meet your needs. The most important thing is to search well for reputable lenders who are willing to lend to you.
Types of bad credit loans
This has been mentioned briefly in another section of this write-up but for other purposes, it will still be mentioned here. Getting a guarantor loan can be one of the best ways to fix your bad credit.
Only if you are able to get someone with good credit who can sign for you so that you can get the loan that you need. Guarantor loans sometimes have high interest rates so it will be no good for you to borrow a huge amount nor have a long tenure loan.
Personal loans are actually the last resort anyone with bad credit should choose because bad credit does not qualify you for one. It’s just a few who qualify for such loans with bad credit. Sometimes if you are not borrowing a lot of money, you can be approved for the loan that you want.
You may pay high interest rates though within the 1-7 year period of repayment if you get a personal loan from outside the bank. Those who qualify for bad credit loans from the bank will have better interest rates.
This type of lending is an older form where a borrower transfers the ownership of their car, motorcycle or van to a lender as a security for a loan. If you have tried all other loans and may not have had success this can help you in your finances.
Whilst the borrower is repaying the loans the vehicle will still be in their custody. After the loans are repaid, they retain ownership of the vehicle they used as the security for the loan. The downside of this is that the loan interest can be very high.
Homeowner loans allow you to use the equity in your home as security for loans. The home is your guarantee that you will pay for the loan. If there’s a failure, you can risk losing your home. If you have a longer time to pay back the loans, you can have smaller monthly payments to make which when made faithfully can change bad credit to good. It will mean you are borrowing a decent amount at a low-interest rate that you can manage effectively.
Bad credit loans in Canada guaranteed approval, can serve as a safe haven for all those who have been rejected by mainstream lenders. When managed well, bad credit loans in Canada with guaranteed approval can be the source of change in a borrowers credit history. This is because once the individual is able to make committed payments on their bad credit loans, the credit history will change for the better. Being approved for a loan is a big deal for every borrower even if they have bad credit.
Disclaimer: All loans offered through this website are subject to credit and underwriting approval. AfterLoans.ca is a lead referral company, not a lender. AfterLoans only works with financial service providers that adhere to Canadian laws and regulations. Our lenders lend from $500-$5,000. Loans amortization is between 6-36 months. APRs range from 19.99% to 55%. The actual APR charged will depend on the lender’s assessment of your credit profile. For example, on a $1000 loan borrowed for 12 months at 29.9%, the monthly payment will be $97.24; with a total repayment, including interest, of $1166.88 There is also lender’s optional loan protection policy. In the event of a missed payment an insufficient funds fee of around 45$ may be charged (dependent on the lender). If you default on your loan payment plan the lender may terminate the plan and the remaining balance will become payable immediately. Our lenders employ fair debt collection practices, but will pursue the payment of Outstanding debts to the full extent that Canadian law allows.