Getting a loan can prove to be a viable way to meet certain urgent expenses or purchasing an expensive commodity. People living in Canada have plenty of options when it comes to obtaining a loan. They can apply for a loan from a bank or a financial institute. However, the issue arises when one doesn’t have a good credit score.
Banks and financial institutes tend to reject the loan application from people who have a bad credit score. If you are one of them and in a daunting situation because of your loan application rejection, there are certain tips you can follow to improve your credit score and qualify for $1000 to $10000 dollars.
How to Turn your Bad Credit into Good Credit
Some of the most effective tips to improve a credit score include:
- Make a schedule of payment
- Make sure you are paying your bills on time.
- Get rid of your debt as soon as possible.
- Pay credit card bills on time.
- Don’t apply for a new loan until or unless extremely important.
- Make sure your credit information is correct.
It is to be noted that it will take some time for your credit score to improve if you are following the tips mentioned. If you have a bad credit score and require urgent money, there is nothing to worry about as you can still get loans as there are many private lenders who offer them.
What is a Personal Loan?
This loan is specifically designed for the people who have a bad credit score. This type of loan is usually to be repaid in form of small, typically monthly, installments. All the details including the rate of interest and other conditions related to this type of loan are pre-fixed between the lender and the borrower.
This type of loan can be obtained for various purposes. Whether you have an outstanding bill to pay or have some urgent expenses to meet, you can apply for a bad credit personal loan. All you have to do is to contact reliable private lenders who offer these loans, compare their rate of interests and other terms, and take the decision accordingly.
How to Get Guaranteed Approval?
Although private lenders have got you covered for loans, there are certain requirements to be met to become eligible for loan approval. For example, if you want to apply for the money for personal use, here are some important requirements that can help you in getting guaranteed approval:
Requirement #1: Income Proof
The most important requirement for guaranteed approval of a $10000 loan is to give proof of your income. This validates that you can repay the loan amount to the lender. For this purpose, salary slip or employment record can be obtained. Self-employed people may be asked for bank statements to ascertain their ability to repay the loan amount.
Those who are employed and living on pensions, they need to show the required documents to the lenders as their regular income proof.
Requirement #2: Identity Proof
Applicants are also required to give their identity proofs to the lenders. A valid driving license can be used for this purpose.
Requirement #3: Canadian Citizenship
Mostly, private lenders in Canada offer loans to people with a Canadian residency only. Therefore, it can be an important requirement for you to get a guaranteed approval.
It is important to know that requirements may vary from lender to lender. Thus, it is important to contact them and understand the basic requirements before applying for the loan as failing to meet these requirements may delay the process of getting your loan application approved.