If you live in Canada and you’ve been rejected for a loan by your bank or credit union because you are one of the people whose credit doesn’t meet their needs and you are now looking for a Bad credit loans, you can actually explore other possibilities that can help your debt problems, re-establish your credit, and get your money back on the good side.
If you have an emergency and need some money right now because you haven’t been able to save up any money for emergencies, then you may need to continue your search and find a company who can loan you the money. Personal loans when you have bad credit in Canada can have an interest rate of around 47%. If your credit isn’t too bad, you may be able to do better than this.
Risk
The amount of risk you take on when it comes to financial decisions can significantly impact your financial future. If you’re a risk-lover, you’ve probably taken out a line of credit, loan or some other form of a financial product. However, if you are risk-averse you’ve probably avoided this, resulting in no credit history and nothing on your credit report. It is safe to assume you have never borrowed money and have no experience paying back a debt, thus you haven’t done anything to establish a credit history or prove that you are financially responsible. When it comes to loans and credit, potential borrowers who have credit histories are often must more reliable and their approval rate is also often higher.
Last Resort
If you’re really struggling with your personal debt and need help, don’t extend the pain with a bad credit loan. Contact an accredited Canadian non-profit credit counselling organization today and get some help to get your finances back on track. The really good thing is that non-profit Credit Counsellors usually help people for free, and their help is completely confidential and typically non-judgmental. You have nothing to lose by talking to one. They are simply there to help.
In Canada, your credit score is a number between 300 and 900 that is assigned to you by a credit bureau (Canada’s two major credit bureaus are Equifax and TransUnion) and is used to tell lenders how you have dealt with available credit in the past. To check your credit score, you can either pay Equifax or TransUnion for a report plus your score, or you can sit down with a mortgage broker and get them to check it for free.
If you have a credit score in the 600-700 range or above, you should be able to get a mortgage loan from one of the big Canadian banks, commonly known as the best lenders on the market.
Those who have taken out lines of credit, loans, or have credit cards understand the repayment process and are accustomed to working to pay off debts. Bad credit gives financial institutions information to work with, including understanding people’s habits and financial decisions.
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