Compare No Credit Check Loans?

Top Questions...

What are the advantages of a no credit check loan?

This type of online loan may appear to be a viable option if you have an emergency, such as a medical problem or a car repair that requires immediate funds. Many of these loans provide the quick approval and immediate funds transfer needed to solve the problem at hand. Borrowing amounts typically range between $300 and $50,000.

However, it is important to understand the terms of your loan and the interest rate. Therefore, you should carefully read all paperwork before agreeing to this type of loan.

Why should you avoid this option?

They have very high interest rates, often exceeding 100%. These types of bad credit loans are notorious for trapping Canadian borrowers in a cycle of high-interest loans that they cannot repay.

Avoid online lenders in Canada who charge high-interest rates and encourage you to take out a second loan to repay the first.

While they do not improve your credit score, they can harm it if you fail to pay. This is due to the lender's ability to sell the debt to a collection agency, then report your delinquency to the credit bureaus.

What borrowing options are available in Canada?

Online loans and lenders come in many forms and sizes in Canada. Because prime lenders like banks are regulated more strictly, non-prime lenders are generally privately owned, allowing them to set their approval procedures. Here are some examples of online borrowing options you can get from alternative or subprime lenders:

• Short-Term Loans Short-term borrowing is usually between $300 and $1500, with a shorter repayment term (longer terms may be available with some companies). After approval, the online lender will transfer the funds immediately into your Canadian bank account.
• Personal Loans Personal loans exist in various quantities, up to tens of thousands. They can also have varying repayment terms, installment frequency, and interest rates.
• Guarantor Loans Some lenders will accept a co-signer, often known as a guarantor. It must be a more significant borrower than you who can "guarantee" timely payments even if you cannot afford them.
• Title Loans If your car is worth something and you own it, you can use it as collateral to get better loan terms. In addition, because you're providing security, the lender may be willing to waive a credit check.

What qualifications are required?

To be approved, you will need to provide personal and financial information. Although requirements vary by lender, here are some of the things they may look for when you apply:

• Income While some Canadian lenders are more flexible, most online lenders require you to have regular employment in Canada and be earning between $1,000-$2,000 per month.
• Bank Statements You'll usually be required to provide your most recent Canadian bank statements (the last 30 – 90 days) as proof of your income. They may also ask for a pre-authorized debit form or a voided cheque.
• Identification Lenders will typically request one or two pieces of Canadian government-issued photo ID, such as your driver's license and passport, to confirm that you are of legal age and a permanent resident in Canada.
• Recent Bills To verify your Canadian address, some lenders may also request a utility bill or other proof of residence.

Is this a safe lending option?

Although Canada does permit this form of online borrowing, they may not be the best option due to high-interest rates. In addition, the lender may also include various hidden costs, leading to a debt cycle.