One could need a loan approval for multiple reasons in Canada. Like many other countries, the life in Canada is also quite fast-paced. Unexpected expenses can arise such as car repairs, home improvements, debt, bills, etc. It is usually difficult to procure money from personal finances for such situations.
This is why many people seek loans. However, a bad credit score, which is usually common with poor financial health, can create a major problem in acquiring immediate approval.
Fortunately, there are ways how you can get loans even if you have a bad credit score. All you need is to look in the right place and that is direct lenders. These are way better than going to loan brokers when banks won’t give you an eligibility for loans with a bad credit score. In the following article, we explain why as well as how direct lenders work.
What Makes up Your Credit?
In our opinion, everybody who lives in Canada should know what makes up their credit: new credit accounts, types of accounts, credit history, the balance owed, and payment history. If you have not been very successful in managing these five aspects of your credit, you do not have to worry! There are still lenders out there who accept people with any financial score.
Where to Get Instant Approval?
1 Option: Banks are common sources of getting a loan but they are also known to have strict policies, eligibility criteria, and complicated approval procedures. And they hardly ever entertain a bad credit score. The next best options for loan seekers are brokers and direct lenders.
2 Option: With brokers, you can find loan lenders through their expertise while direct lenders do business without any intermediary or third party. Loan brokers will connect you to a multiple of lenders before helping you choose the most suitable one. With this process, you won’t be able to search the lender on your own, which makes your information vulnerable and creates the risk of a scam.
3 Option: On the other hand, you can search each direct lender on your own. When you are satisfied with one, you can seek their loan offers. You can learn about direct lenders through their official websites, which they typically have. You can confirm information like business history, interest rate calculations, approvals by financial authorities, reporting to credit bureaus, and loan payment flexibility.
How Bad Credit Direct Lenders Work?
It is easy to find direct lenders as they often openly advertise their loan services and promise people with bad credit that they will get an instant approval. These companies usually work online. You can access an online application, which takes just a few minutes to complete.
Once you submit the application, the company will send you the loan contract in an email. You are required to sign the contract if you are satisfied with the offer. Within just a click, you can send the contract back to the company. After the contract is received with your signature, the loan funds are directly transferred to your bank account.
Are Bad Credit Loans a Good Choice?
Bad credit loans may not seem like a smart choice when you are already facing financial troubles. However, you can use this loan to turn around the situation for the better. The direct lenders can offer a flexible payment schedule.
This means that you can pay back over a long period quite conveniently. Meanwhile, you can use the money to pay back the accumulated debt and deal with other immediate expenses.
How to Improve my Credit?
The direct lender will report your timely payments to a credit bureau. Once your ability to pay back shows up on their reports, your credit score will improve. On the other hand, use this second chance to become more financially responsible.
Start saving money for the emergencies and monitor your spending. Another thing you can do is stop excessively using the credit card if you own one. Credit card usage is a poor habit many develop in the big cities. It can easily pile up the debt that you are working so hard to avoid.
Why Loan Away?
Being an online lender, we have made the application process as easy as possible. You fill out our online simple form from the comfort of your home in 8 minutes or less. Usually, it takes 20 minutes for us to review your application and make a decision.
We approve 90% of loan applications up to 5000 dollars each day!