Are you experiencing financial problems right now? Are you trying to minimize your wants and needs? Are you looking for guaranteed approvals? Unfortunately, money is what controls all of our moves. This is why loans in Ontario, Toronto, Alberta, BC, and Newfoundland are so handy. Every other person has a need for a loan at least once in their life in order to fulfill their life’s requirements.
Whether it is the need of a home, a car, or any personal expense, loans are required. To make life somewhat easier, people apply for mortgages, personal, unsecured, and many other types of loans. However, the process is easier said than done. Loan Away is a direct lender that is happy to answer all of your questions and help you get your application approved.
Factors That Determine Your Credit History
In Canada, if you are willing to get a guaranteed approval and, if possible no credit check, good financial history is one of them. Yet, maintaining good score is among one of the hardest things for the majority of Canadians. So why a credit score is important?
It is very hard to borrow money for people who had financial problems in the past. However, you do not have to worry. We will help you learn what a credit score is and how to prevent bad credit or how to improve an already existing one.
Everything You Need to Know.
1. What is a Credit Score?
2. What is Bad Credit?
3. How to Prevent Bad Credit?
4. How to Improve Your Score?
5. Guaranteed Approval for a borrower
6. Bad credit in Canada
7. Loans in Canada helping You Get a Mortgage
8. How to get instant Approval?
9. What documents do I need to apply?
What is a Credit Score?
The credit score is a 3 digit number that defines a person in terms of financial handling / personal credit rating. In Canada, your score can range between 300 and 900. There are also different kinds of credit score available for people.
There are many benefits of having a good credit score but whatever your score is, that is what determines your approval. The requirement of the score is different for varying types of loans. It may also differ from lender to lender.
- Generally, a score above 750 is considered excellent.
- A score above 650 is good whereas anything below 600 is bad for most lenders.
Wondering how bad credit score can affect your life? Well, people with lower scores are denied services from institutes such as banks. But, direct lenders are more welcoming. The issue with a poor score is that firstly, it is hard to get an approval. Secondly, even if you get an instant decision, you are charged a ridiculous percentage of interest.
If you are worried about your score too, LoanAway will help you.
What is Bad Credit?
As we have mentioned above, a score equal to 600 points or bellow is considered as bad or poor. However, you do not have to worry about being declined. Here at Loan Away, we are doing our best to approve the most of applications. It does not really matter for us how bad your credit is as long as you are a Canadian resident and have a steady source of income.
Usually, scores under 600 or bellow means that banks and lenders will decline your application. However, we have a 83% guaranteed approval rate that makes us unique.
How to Prevent Bad Credit?
The best thing to do to make your life easier is to always maintain and upgrade your financial history. If you are wondering how to build your credit score, you can follow along these guides.
1. Wondering how to build your credit score in 6 easy steps? The first step is to always pay your bills on time. This is the number one factor that builds a credit score. And budgeting can ensure that you fulfill this step, showing us that we can approve you if you can provide us with a proof of income.
2. Delaying a payment for more than 30 days is a credit score destroyer. A trick to help through this process is to figure out which bills matter the most. If you are going through a rough financial time, you can skip paying the bills that do not affect your score.
3. The next thing you can do to maintain a good score is to avoid building up your expenses. This is the only way to avoid more and more debts. The more you burden yourself, the worse your situation will be. This is one of the most important warning signs of a bad credit score.
4. Think practically before taking any steps. Find out about the many useful benefits of unsecured loans.
5. Start managing your money.
How to Improve Your Score?
The best life advice we can give you right now is to learn to make do with whatever you earn. Divide your income into sections and be very strict about spending outside the determined boundaries. Following our tips on how to improve your credit score, they will:
To help yourself, keep your credit card usage minimal. Stay away from the path of getting too many cards. More cards will only mean more payments and a higher chance of poor credit. Lastly, have enough knowledge to realize a red flag. The sooner you realize you are going downhill, the faster you will take an action, and the lesser your damage will be. Do not hesitate to read our free "How to Improve Your Credit Score Guide" to find out more information about everyday habits that will boost your credit.
Guaranteed Approval for a Borrower
Even if you manage to get bad credit personal loans with guaranteed approval, we would recommend you to start adopting habits that will improve your financial future. This way, next time, you wouldn’t have to worry about any risk at all. You will also have a better shot at getting lesser interest rates on your future loans.
Few Things How to Improve Your Chances of Approval
1. Find out how to understand and read your credit report and do not worry about old debts
2. Rectify mistakes in your report
3. Upgrade your credit limit by increasing it
4. Do not miss your bill payments
5. Automate your payments
6. Use your credit more often
7. Get a secured credit card
8. Keep a low balance on your credit card
9. Check your credit report frequently to avoid mistakes on your profile
As previously mentioned, your bill payments determine your score for the most part. Implement the same technique of paying important bills on time and in full. If you feel the need, skip the ones that are not important for the time being.
- Your first priority should be to pay the bills in full. If that isn’t possible, pay whatever amount you can. If you start paying the least required amount every month, you’ll at least stop worsening the score.
- You should also instantly stop getting more debts. Unpaid loans in Alberta, Ontario, BC, and Newfoundland will appear on your record and worsen your score. A lot of debt will lead to a lot of credit accounts too. Not only are they hard to manage, they aren’t the best for your score either.
What is the Trick?
A trick that is not very well known is regarding hard inquiries. Whenever you apply for financial institutions or direct lenders, this is a hard inquiry for your credit report. If you are approved, this is a positive hard inquiry. If you are declined, it shows as a negative hard inquiry and can affect your score.
1. More you apply for new loans, the more hard inquiries your record will show. This will be interpreted by lenders as rejections. This rule affects all different types of lenders products. Therefore, minimize applications for new credit.
2. You should also look into your report every now and then to keep track of your progress. You should also apply for a secured credit card. This will give you an easy ticket and almost 100% guarantee approval for your application.
Read More: How Can I Get A 5000 Loan With No Credit?
Guaranteed Approval for a Borrower from Direct Lenders
Loan Away is a Canadian owned and operated direct lender that uses unique proprietary technology to approve the vast majority of applications. We go way over and above banks in personal attention to each application.
When you are looking for bad credit loans with guaranteed approval, a smart decision would be to consider direct lenders and apply through them. Fortunately, nowadays, there are a lot of lenders who offer various terms and conditions to choose from. Do not forget to ask your friends or relatives about direct lenders they have ever heard of or used. Read online reviews and select a lender that best suits your needs. Please, make sure to eliminate common mistakes on your credit report before applying.
What to do if your score under 600 points?
3 Major Things That Affect Your Score
- Your Payment History
- Your Income
- Your Total Existing Debt
We want to assure you that you do not have to worry if your points under 600. We help people with financial problems to get approved and enjoy the funds in 24 hours. In addition, paying your monthly payments on time will boost your score and will allow you to qualify for better rates and terms.
Guaranteed Approval in Canada
1. Find out About Your Credit Situation.
2. Try to Improve Your Score
3. Set up a Budget
4. Contact a Lender and find out how to get bad credit loans in Canada?
6. Get Approved
7. Receive Your Money
If you are looking for the best bad credit personal loans, we have got you covered! Make sure to carefully select a private lender and contact them before applying. Talk to customer service representatives and find out about the company's terms, conditions, and policies.
Loans in Canada: Helping You Get a Mortgage
Loan Away is a direct lender that does not offer bad credit mortgages to people, however, we are happy to share our professional knowledge with you. The general score that is considered good enough to approve a mortgage in Canada is around 680. If you are in the danger zone of a score below 600, you will definitely need to head towards a private lender.
However, feel free to try your luck with all possible options and do not forget to check our amazing infographic "How much does it cost to live in Canada in 2018"
Luckily, score is not the only thing that plays a role in the approval. A lender will look into a few other things.
- The first thing is your credit report. This is a completely different document and unrelated to your score. The report shows your successful or unsuccessful financial history. This helps the lender get an insight into your records such as when you paid your bills, how many loans have you borrowed, all about your line of credits, any debt relief programs in Canada (if used), and if you have filed for bankruptcy in Canada. This detail helps the lender confirm whether or not you should be trusted with the money.
- Since you do not have a good score to stand on your side, your financial history will play a major role in determining whether you eligible to get approval. Please, think twice when selecting a lender because there are many loan scammers in Canada nowadays.
- The other important factor is your gross income and employment records. Very simply put, lenders are only concerned with one thing: will the borrower be able to pay back the money? Your employment and income details will be proof of how consistent or inconsistent your financial status is. It’ll give the lender the confidence to trust you. Requirements can vary for different types of loans in Canada.
If your income is enough to make constant payments on time, you will have a good chance of getting the mortgage approved. Your income tax details will also be required if you’re self-employed. All of these documents will display around 2 years’ of your details.
- If none of these factors are in your favor, your only solution is to go back to our tips to improve your score. Implement them and wait patiently. You will end up with positive results and we will approve your application.
- Lastly, do not give up. Keep applying with lenders even if you are rejected the first time. There may be a time when the applications are sparse and you might bag a good deal!
How to Get Instant Approval?
Canada had a boom in the property world for the last 15 years! Unfortunately, it is over and that leaves a rather tricky situation behind for people in search for loans with instant approval in Toronto, Calgary, Edmonton, British Columbia, or Newfoundland. However, you do not have to panic!
The good news is there are a few lenders who are still approving small loans and with no credit check. Your saviors will not be banks but finance companies, credit unions, and online lenders will be happy to help. Of course, you need to be very careful. Do not get yourself trapped in a vicious cycle of long term high interests.
Check our video about instant loans for more information.
Instant Approval in Canada
1. The first step to getting instant approval is to have an open eye. People are going to try to take advantage of your situation. Don’t let that happen!
2. The aforementioned long-term loans from direct lenders will be very useful for you. They will put forth an easy payback plan that will mostly comprise of small but frequent payments. They will be convenient to apply for as well as to pay. You will have to fill out a quick application. But, do not rush through. Read every detail in the contract to ensure your safety.
- Majority of lenders who provide their services online. For such lenders, your income status will matter more than your score. They will want a guarantee of whether or not you can make timely payments.
- Another way around to get your application approved is to apply for unsecured loans with a co-applicant. Both applicants will provide their income details, employment record, marital status, and more personal information. It all depends on the lender but if you have a string co-applicant, you can up your chances of approval too.
3. Make sure to read customer reviews about the lender you are planning to deal with. If possible, try to find past or current customers and ask them about their experience and satisfaction with the services provided.
One thing you must keep in mind is regarding the guarantee of approval. When lenders advertise that they are offering loans, what they really mean is that you have a higher chance even with bad financial history.
These lenders are more dependent on the income of the borrower instead of the financial history. However, even if they don’t matter as much, all of these factors still play a role in the approval process. Do not be tricked and do not fuel false hopes.
Whether you are looking for instant approval or your search is limited to Toronto, Alberta, Ontario, Calgary, or Edmonton, we have got you covered!
What Documents do I Need to Apply ?
A lot of Canadians residents are looking for loans with no documents. Unfortunately, it does not work that way. Even companies that offer fast loans with instant approval, ask you to present certain documents in order to qualify. However, the application process has become much easier now as you can apply online from the comfort of your home.
The information below will tell you what documents are the most popular when you are applying for different types of loans in Canada. If you are looking for a loan with a cosigner, the set of documents will be different.
1. Proof of Identity
Passport / Driving License / Provincial ID
2. Proof of Income
- Salaried Applicants: Latest 3 month’s bank statement if you are paid by cheque. / Latest 1 month bank statement if you are paid by direct deposit.
- Self Employed Applicants: Latest 3 month’s bank statement.
3. Void Cheque
Void Cheque / Pre-authorised debit form