Many people believe it to be true but there is no reality in the statement that people who have a low credit cannot apply for a loan. They have as much chance of their application approval as a person who has a good score. The difference here is that banks generally do not approve such applications but private lenders can come to their rescue.
All the details related to this topic will be discussed below. Continue reading!
What is a Bad Credit?
Credit score in Canada is calculated on the basis of the financial history of an individual. Other details taken into the consideration for calculating a score include public records, payment history, available credit, used credit, and diversity of credit etc.
The minimum score is 300 while the highest is 900. If the credit score of an individual falls below 500, it is considered a terrible score. While a score falling somewhere between 500 and 579 is termed as very poor and 580 to 619 as poor.
Types of Loans
Personal Loans are any purpose loans that can be obtained to fulfill any of your wants and needs.
- You can easily obtain it for various purposes.
- It can be either secured or unsecured.
- The borrower generally repays the amount along with the interest amount, in the form of fixed installments.
Read More: Bad Credit Personal Loans in Canada with Guaranteed Approval
Many people believe that if you have a bad credit score you cannot apply for a long-term loan. However, this is only a misconception. There are numerous private lenders who are willing to help you even if your financial past has not been successful.
A point you need to remember here if you are applying for a long-term loan is that despite the lower rate of interest you may have to pay a higher interest amount (overall) due to its long duration.
How to Get Them in Canada?
Borrowing money in Canada is not a tough task. All you have to do is to find a reputed and reliable lender.
- With a little research, you can easily get information on private lenders.
- Make a list of them and compare their terms & conditions.
- Shortlist the finalized names, contact them, and apply for the loan. They will ask for income and other proofs.
Based on these proofs and other verification processes, your application will be processed and, if approved, you will get the money in a matter of a few days.
Read More: How to Find a Trustful Money Lender? & What Rights do I Have as a Borrower?