If you are in need of urgent money for an emergency situation (an auto repair, home improvement, medical bill, utility bill, etc) then loans can be quite useful. If you happen to be already struggling with your finances, then you came to the right place.
However, you might have a poor financial history, which makes it difficult to qualify for personal funds and get approval from lenders.
What Makes up Your Credit?
In our opinion, everybody who lives in Canada should know what makes up their financial score: new credit accounts, types of accounts, credit history, the balance owed, and payment history. If you have not been able to manage these aspects properly, you do not have to worry. There are many ways how you can improve it.
Loans Through Banks
Banks have always been the common source for borrowing money. They are reputable and reliable sources of lending money to those who need it.
On the other hand, they are also known for having strict eligibility criteria and complicated approval procedures. This is why it is almost impossible to get a loan from a bank if you have a low score. If you are seeking guaranteed approval, then your best option is a direct lender.
Why Direct Lenders are good for Bad Credit?
Direct lenders are those money providers who provide the funds directly to the borrower. There is no third party or intermediary involved so it is very easy to get approved.
- People prefer direct lenders, as it is easier to confirm their credibility on your own. On the other hand, brokers and other third parties can often take the control away from you on how to choose the best lender for your situation and affordability.
- Additionally, these lenders offer flexible payment schedules as well as lower interest rates. Therefore, they are more feasible for borrowers with poor credit.
How to Get a Guaranteed Approval?
When you have a poor financial history and you are planning to apply for money for personal use, direct lenders may seem like a great idea. It is also quite easy to find them since they advertise their services do openly. However, with so many options, it is also important to choose carefully. You never know what company is a scam and just simply trying to get your information and misuse it.
Direct lenders are more common online but can also be found in an office near you. Here are a few things to learn before you make your final choice on the direct lender:
- The company history; the time they have been lending loans
- The variety of packages they offer
- The flexibility in their rules and regulations for low scores
- The process of calculating interest rates
- Certification from a financial authority
- Reporting to a reputable and authorized credit bureau
Where to Find Information about Loans and Lenders?
This information can be easily found through a website, which these companies are likely to manage if they are reliable, transparent, and trustworthy. If they have an office, you can talk to one of their experts there.
Tell them about your situation in detail and confirm how they can help you. In any case, don’t give out any of your information until you are absolutely sure that the company is not a scam. You can also read the reviews or testimonials left by previous loan borrowers who got the approval.
How Can Loans Help You?
Taking out some extra funds when you already have poor financial situation seems like the wrong idea. However, that money can help you pay back the debt while you can increase your score by paying back on time. The lender will report the timely payments to a bureau, which will improve your financial history.
Take this as a second chance to turn around your financial situation. You will be able to pay back over a longer period of time but resolve existing debt at the same time.