If you are among the lucky people who have a good credit score, then you don’t have to think much about before getting a loan. You can easily find the best options. On the other hand, a guaranteed approval for loans comes with fewer options for those who have a bad credit score.
However, loans for people with poor credit are absolutely possible in Canada and may even actually be beneficial. Once you are through with the process, you need to follow a few steps so you can turn around your financial situation. We will talk more on this later when we have first described the guaranteed approval process.
The First Step of the Loan Process
Your very first step is to find a lender that is willing to ignore a poor credit history. There are specific direct lenders who work online that provide loan offers specially designed for bad credit. No matter how low is your score, they will be able to find a loan solution for you.
All you need is to search the web. You might want to use keywords that are suitable for your loan criteria. For example, if you are seeking bad credit loans or long-term loans, you should mention this. Of course, when you are looking for a guaranteed approval in Canada, you should also mention the name of the country or the province you are living in.
How to Select a Lender?
You will come across multiple lender websites. It is easy to recognize them because they openly promote their offers. It is true that the most visited websites will be in the top results but you should always do a thorough research on your own. The best way is to pick a few lender websites that you feel are suitable for your loan needs.
From here on, you should start learning about each lender. There are a few details that are great for determining the reliability and transparency of a loan company. For example:
- Read up on the company’s history.
- How long they have been in this business?
- What is the number of loan approvals they have closed successfully?
- Find out if the lender is certified by a credible financial authority of Canada and if they report borrower payments to credit bureaus.
Applying for a Guaranteed Approval
After finalizing the lender you will use, apply for their loan offer that suits your needs. You will have to access their online application form. In case it is not available directly on the website, you will have to make contact and receive the application form. These forms are quite easy to fill; taking only minutes. Once you submit the form, you will be sent a loan contract.
If you agree with the contract’s terms and conditions, you can sign and send it back. The lender will receive the signed contract and transfer money immediately to the account you have provided.
Making Your Financial Situation Better after the Guaranteed Approval
Now that you have received the loan, it is important to improve your credit score and get you money matters back on track. Use the loan money to resolve as much debt as you can. If you have any immediate expenses, deal with them too. Using your long-term and flexible payment schedule, pay the borrowed money back on time. This will get reported to the credit bureau hence, improving your credit score.
Generally, you should monitor your way of spending and start saving for the future. These are the best tips to have good financial health.