Obtaining financing can be tricky when you have bad credit. People with poor credit still need access to financing. Fortunately, there are bad credit personal loans available for you. These kinds of lenders assess other factors of your personal finances as opposed to focusing on your credit score and report. Ready to learn more? Continue reading to understand the ins and outs of bad credit personal loans in Canada.
What Are Guaranteed Approval Personal Loans For Poor Credit In Canada?
Guaranteed approval means a borrower is “guaranteed” to be approved for a personal loan regardless of the borrower’s credit score and history. These loans are typically offered by lenders who specialize in providing loans to individuals with poor credit. Unfortunately, this doesn’t mean you’re guaranteed to be approved under any circumstances. The lender will still consider other factors outside of your credit score before giving their stamp of approval.
Due to the high risks involved, these loans usually come with higher interest rates and fees compared to regular loans. However, they can be helpful for individuals who have difficulty qualifying for traditional financial solutions due to their credit history.
Do $10000 Loan With Guaranteed Approval Exist In Canada?
It is essential to understand there is no such thing as 100% bad credit guaranteed approval loans in Canada. When determining whether to approve a loan request, lenders consider various factors such as credit history, income, and debt-to-income ratio. Creditors may still reject the loan request even if an applicant meets the general requirements and has a bad credit history.
The fact is, many companies fraudulently advertise “100% guaranteed loan approval,” which is illegal against federal regulations and often a hook for scams.
When applying for a loan through the online platform at WeLoans, we cannot guarantee that you can get approved right away. What we can do is connect you to multiple lenders with easy-to-meet conditions to maximize your chances of finding the best loan amongst many bad credit personal loans.
What Can I Do With An Online $10K Personal Loan For Bad Credit?
$10K bad credit personal loans are flexible and versatile for all financial purposes as there is no limit on usage. Some of the most common reasons why people use a $10K personal loan include:
- Handle emergency expenses: Nothing in life is certain. Sometimes significant expenses, such as home repairs, car repairs, or medical bills, may pop up unexpectedly. Personal loans can provide the much-needed funds to cover your expenses without heavy repayment pressure afterwards.
- Build your credit profile and improve your credit rating: Personal loans are usually mid- to long-term loans which will be reported to credit bureaus. By taking out a personal loan and making your loan payments on time and in full, you can effectively build up your credit score in the long run.
- Borrow more money with lower interest rates than a credit card: A personal loan allows you to borrow much more money than you can with a credit card and at a much lower interest rate.
- Refinance and restructure debt: You can use a personal loan to refinance existing debt, such as credit card and other unsecured debt, to a lower interest rate and save money on interest over time.
What Are The Requirements To Get $10K Personal Loans For People With Bad Credit?
Getting a $10K personal loan with bad credit is relatively easy through our panel. Although, you still need to fulfill some of the basic requirements to get your bad credit personal loan approved:
- Be 18 years of age or older
- A valid Social Insurance Number
- Proof of income and employment
- A valid government-issued photo ID
- An active checking or savings bank account
- Proof of residence in Canada (utility bill, rental agreement, etc.)
- No outstanding or recent bankruptcy filings
Note that these requirements may vary depending on the lender. It is always best to check with the specific lender for their eligibility criteria in advance before submitting your request.
Process Of Getting An Instant Personal Loan With Poor Credit Through WeLoans
Not sure what to expect when applying for a bad credit personal loan? Here’s a general guideline of the process:
- Prepare and submit your information and loan requests: Supply the relevant personal information on the indicated fields on the WeLoans website and submit your application with the requested documentation.
- Assess and choose the right offer: WeLoans will forward your request to a panel of online lenders. You'll receive multiple offers from them at a time. Review and compare the terms, interest rates, and fees of each offer. Choose the loan offer that best fits your needs and you are most comfortable with.
- Set up banking information and receive funds: Provide the lender with your banking information and sign loan agreements to finalize the deal. Then wait to receive the funds into your account, typically the same day, or at most, 2 to 3 working days.
Why Should I Consider Applying for Bad Credit Personal Loans Through WeLoans?
WeLoans is an online loan broker that connects you to a vast network of reputable personal loan lenders that offer various online financing services. Here are reasons to consider applying for a bad credit personal loan through WeLoans:
- Instant response and process speed: You will receive multiple personal loan offers within minutes of submitting your application on WeLoan's website. After selecting an offer, the lender quickly processes the request, and you can get the funds into your account within the same day.
- Large licensed lender network: WeLoans partners with a large network of licensed lenders in Canada. This aspect can increase your odds of approval for a legitimate personal loan and finding a reliable lender that fits your specific needs.
- Instant funding: Most of our partner lenders provide instant loan services via Interac e-Transfer. Meaning you can receive the loan funds quickly and securely right after getting approved.
- Competitive interest rates: We work with lenders that offer competitive interest rates, which can help reduce the pressure of repayment while you handle urgent financial needs.
- Bank-level data security: Our online platform uses full-time bank-level data encryption technology to protect your personal and financial information, giving you peace of mind and ensuring the safety of your sensitive information.
Is it possible to get a loan with a 500 credit score?
Yes! You can still get a loan with a credit score of 500 or less. However, you will have to look for bad credit personal loans. In addition, you might have to accept a higher interest rate and less favourable terms. But if you manage your bad credit personal loan responsibly, it can actually improve your credit score in the long run.
How "Bad" Is My Bad Credit?
In general, scores below 574 are considered poor credit scores in Canada.
Credit scores range from 300 to 900, and there are currently two credit rating systems, Equifax and TransUnion. Although the two systems use different algorithms to calculate an individual’s credit score, they measure credit score levels similarly.
Note that credit score ranges considered to be "bad" can vary depending on the lender. Some lenders may consider a score of 600 as "bad," while others may consider a score of 550 as "bad." You should reach out to your loan service providers to get more information about credit score ratings before submitting your request.
Is It Possible To Apply For Bad Credit Personal Loans Online Without Credit Checks?
It is possible to apply for a no-credit-check loan in Canada from certain lenders with a poor credit history. These lenders will not perform any form of credit checks. Rather, they will assess your overall financial situation to determine your repayment ability.
How Long Does It Take To Get My Funds?
Getting a personal loan through the lender network at WeLoans is straightforward and fast. Depending on the lender you choose to deal with, you can get funds into your bank account within the same day of application in most cases. Normally, you won’t have to wait longer than a few days to access your funds.
Can I Use A Bad Credit Personal Loan To Improve My Credit Situation?
Yes, you can use a bad credit personal loan to improve your credit score. A personal loan can be a great long-term financial solution to build and increase your credit score over time by making timely, full payments.