Installment Loans Canada No Credit Check
Having difficulty making ends meet? Do you prefer loans with no credit check? We may have the solution for you!
With our online application now simpler and quicker than ever, you can get money in your bank account right away. With Canada’s Lend for All on your side, your credit history won’t hold you back.
What is an Installment Loan? How is it Different from a Payday Loan?
You may be familiar with the concept of payday loans. Installment loans are similar. Both don’t require collateral or a credit check. However, there are several advantages to using installment loans over a payday loan. Primarily, the difference between the two are threefold:
- An installment loan has a more flexible repayment schedule
- An installment loan has lower costs
- Installment loans allow you to borrow more money
Let’s discuss those in greater detail.
First, a payday loan – just like an installment loan, is a short-term solution to your financial needs. However, both loans do not have the same short-term repayment schedule. The terms of any payday loan agreement usually require you to pay the entire amount back in one lump sum payment. Not only that, the entire sum often needs to be repaid on your very next paycheck.
Installment loans are different, in that you get to pay the sum back in – you guessed it – loan installments. This type of loan comes with a weekly, bi-weekly, or monthly payment schedule, hence the name: installment loans. In that sense, installment loans are more flexible than other no credit check loans. In addition, the repayment period for installment loans is also much longer, allowing you a five-year payback period instead of one month. As an added bonus, should you be unable to make an installment payment for your loans, you can use collateral to temporarily offset the missing amount.
Second, installment loans have lower costs than payday loans. The costs are significantly lower based on the terms of repayment. Payday loans are designed to be paid off in full, or they are considered “unpaid.” When a borrower signs a loan agreement with a payday loan company and doesn’t repay the entire amount quickly in one lump sum, you are penalized. If you are not able to make the entire payment within a very short period of time – usually two weeks – you end up getting hit with huge ABRs (annualized borrowing rates) on those loans.
In some cases, these rates are usurious, with companies charging between 400% and 500% interest in the amount, however small. When borrowers cannot pay back the payday loan in full, they are forced to roll the unpaid amount into a new payday loan, and this often creates dangerous loan cycles that trap people into debt. In the end, an unpaid payday loan won’t just hurt your credit score, it will force you to pay back much more than the original amount. Payday loans are dangerous financial products, and they are that way by design.
Different Ways to Prove Creditworthiness
What can be used as an alternative solution to lenders to approve a loan without a credit check? A lender will require some other method to find out if you are credit worthy if they are not pulling a credit check for your loan. Working with lenders who are able to give loans without a credit check will be able to, but you will be responsible for supplying them with one of the subsequent qualifications:
Active Bank Statements:
You will find that the lenders that approve loans with no credit check in Canada will need to see that you have an active bank account by having copies of your recent bank statements proving that there is a monthly flow of income and outcome of funds. These documents are needed to prove to the lender that you will be able to repay the loan and have access to sufficient money. A lender may not approve you for a loan without checking your credit if you already have significant debt that is owed. A few of the acceptable ways of providing your bank statements in order to be approved for a no credit check loan are:
- Online Instant Bank Statements: There are many different instant banks available. Depending upon which online program your lender of choice uses, you will be required to sign into your online account using their program that will collect the necessary data in order to establish your portfolio. These online programs allow for the lender to only have access to the required information, and none of your private account details.
- Online Bank Statements: All financial institutions that offer online services provide the account user with online bank statements that they are able to download. Lenders may require copies of these online bank statements to determine your eligibility for a no credit check loan.
In most cases, you can fax these documents directly to the lender as well.
Proof of Income Requirements
Another way that you can prove that you are a good candidate to your no credit check lender is through proof of continual income. One thing that lenders of loans without credit check are looking are candidates that will be able to repay the loan in a timely matter, while not causing further financial stress upon the individual. Lenders want to make sure they are providing a positive experience for their clientele, while not creating more money issues for them.
Security for Repayment
There is the possibility of using collateral as security for the repayment of your loan without a credit check in Canada, in case you have a fear of your credit score or bank statements affecting your loan approval. If you are able to provide collateral, a credit verification will be less likely to be required for your secure loan, since it now plays a less significant part. Having a credit check is less significant in this case because often it is a much higher value than the loan, and thus financially secures the applicant. Having a security for repayment is a smart way of being approved for a no credit check loan of $5000 or more. Secured loans are a positive solution for people who are wanting to avoid a credit verification and you will have higher chances of being approved for more money.
Using A Guarantor
For those that are not receiving steady income or want to avoid a credit verification, there is always the option of using a guarantor which can help get your no credit check loan approved. The use of a co-signer can be a huge sway to get approval of your lender. A guarantor is someone that has a steady and significant income with a positive credit score. In addition, a guarantor will be required to sign a contract that declares them financially responsible for your loan repayments, in the case of you not being able to pay them back and should be aware of this detail before they sign the contract for the loan without a credit check.
In this instance, once the contract is approved the borrower should have no problem getting approval for the online loans with no credit check with a lower interest rate, and of course, no credit check. There will however be a credit check for the guarantor to validate their finances.
Third, with installment loans you can borrow more money. In many cases, the limit for a payday loan is something like $1,500. With Lend for All’s installment loans, you can receive as much as $10,000 in your bank account in no time, all without a credit check. With a simple application process, these short term loans can get you the money you need when you need it.
Why Use Installment Loans?
Installment loans offer you the chance to handle sudden expenses.
These can be any sort of expenses, such as car repairs, utility bills, home renovations, or money for medical care. But you can use no credit check installment loans for much more than emergency repairs. You can fund a much needed vacation, help pay for a wedding, put down money to pay for continuing education, or even invest in a start-up business.
Do you need money to travel somewhere for a funeral? Would you like to lend money to a family member in desperate need? If your bad credit (or poor credit score) have put you at a disadvantage with banks and other traditional lending institutions, Lend for All might be the solution. From British Columbia to Newfoundland, Lend for All is Canada’s #1 solution for short term loans.
No Credit Check Loans Pros and Cons
Understanding the advantages and disadvantages of online loans with no credit check and instant approval in Canada is important and should be researched before applying.
• Low Credit Scores Approved: one of the main reasons for choosing no credit check loans, is that they require no further checks. This is the best solution for people who have low credit scores and can’t get approval at their bank or financial institution and still need to borrow money.
• Short Waiting Time: Most loans with no credit check in Canada are able to lend money with little waiting period. When applying for these types of loans, the lender is often able to approve applications and get you your money on the same day you applied.
• High Interest Rate: Payday loans and loans with no credit check are more likely to have high interest rates and brief repayment terms. Because of these terms and rates, it can cause issues with people being able to pay back the loan. Often people choose to rollover their loan, and take on another loan to repay the previous loan. This can cause people to end up in a negative cycle of debt.
• Precarious Lenders: Most loans with no credit check in Canada are safe, but there is the chance of finding yourself dealing with exploitative lenders.
Are Loans with No Credit Check Secure?
Second, Unfortunately, there are exploitative lenders that will provide loans that will keep the borrower in a continuous pattern of debt. Whenever you apply for a loan, whether it is a personal loan or a loan with no credit check, the most important details are the lending contract details and the reputation of the lender.
Term: Short repayment terms are often included with loans without a credit check, and come with higher payments amounts for the borrower. The borrower can find that paying back the amount required is difficult, causing the interest to continue to amass, making it nearly impossible to fully repay.
Rate: Loans without credit checks often come with very high interest rates, that can cause to borrower to pay back more than what was borrowed.
Worthiness: No credit check loans can be the best solution for people not able to get approved for loans from traditional financial institutions. With lower standards for approval, it should be a warning sign that they are willing to risk loans on people who may not be able to pay it back. Lenders such as this, are looking to make money off of you and don’t care about causing you more financial stress.
Lenders of No Credit Check Loans
A credit check is always required if you apply for a loan from a traditional bank or financial institution. This is done by banks, so that they can decide if you are a good candidate for the loan. An individual may not want to risk being turned down for a loan if they are aware that their credit isn’t the best. When a person wants a loan with no credit check and need money quickly with a short term, the following are types of lenders that meet this criteria:
• Alternative Lenders
Are willing to work with those that have not been approved by traditional financial institutions, and are usually available online
• Private Lenders
Have more lenient rules than banks in order to approve loans
• Niche-Focused Lenders
Specialized for specific people or circumstances
(such as private mortgages, car title loans, etc.)
Varieties of Loans with No Credit Check
There are a variety of loans that require no credit check in Canada. As we have seen, loans without credit checks often mean high interest charges and less time to repay them. These are the most frequently seen no credit check loans that are available:
Paydays loans are typically reduced amounts ranging between $50 and $1,500. These types of loans give the borrower only 14 days to pay it back and have exceptionally high interest rates that can go up to 500% (APR).
Car Title Loans
Using your car as collateral is possible with car title loans. The amount you will receive from a car title loan is often a smaller amount, depending on the value of your vehicle. Car title loans give you more time to pay back often ranging between 3 months to 3 years, with interest going up to 60%. There are car title lenders that will require a credit check, but in most cases, it is not required.
A guarantor loan can be the best solution for those wanting to avoid a credit verification. In this instance, only the guarantor is required a credit check, and not the person requesting the loan.
Personal Installment Loans
Another type of loan without a credit check that is available are the personal installment loans. The following is the breakdown of details for these loans.
• Range of APR
2.99% to 46.96%
• Loan Range
$0 to $50,000
• Loan Repayment Term
3 to 120 months
• Application Fees
Common Questions About No Credit Check Loans
Is it possible to get an installment loan in Canada without a credit check?
Getting an installment loan with no credit check in Canada is possible through many alternative lenders. You will have to prove to the lender that you are a good candidate for the loan by providing proof of steady income and employment, as well as your debt-to-income ratio.
Do I need a no credit check installment loan or a no credit payday loan?
When comparing payday loans with installment loans, when possible, it is always the better solution to go for the personal installment loan. With APRs of over 400% and short repayment terms, payday loans are the riskier choice. When looking at installment loans, you will find that they have much more lenient repayment terms and much lower APR’s. By choosing installment loans over payday loans, you will find yourself being able to keep up with the repayments easier, with less stress on your shoulders.
What can I do to better qualify for loans without a credit check in Canada?
When looking into online loans with no credit check and instant approval in Canada, it is important to remember that the lender won’t be conducting a credit check but will be looking into your debt-to-income ratio, and your income and employment stability. Anything that you can do to make these details look more appealing to the lender, the better your chances of approval.
How is Lend For All Different?
Lend for All uses of Canada’s first Artificial Intelligence lending platform.
We use AI to help us process loans faster, which in turn helps us keep our costs down so we can pass the saving on to you. Having Lend for All’s AI on your side will give you a greater chance of approval in just six fast and easy steps. Our loan application is so simple that anyone can do it!
When submitting your loan application to Lend for All:
- You get the best customer service, and access to Canada’s most reputable lenders.
- Your financial security is better protected , since installment loans allow you to make small payments over a longer period, reducing the stress on your day-to-day financial situation.
- You save money, and no matter what, your Annual Percentage Rate (APR) will remain fixed.
- Installment loans in Canada can help you build (or rebuild) your credit. And there is an added bonus: By improving your credit score, your chances of approval for other types of loans will skyrocket!
Trust Lend for All
Is your bad credit score weighing on your mind? Would you like to avoid filling out a complicated application process? Loans in Canada have never been easier. There is no better choice when it comes to no credit check installment loans. Bad credit or not, we want to help you get the loans you need.
In the end, “Lend for All” is not only our company name, it’s our ideology and guiding philosophy. We offer installment loans for bad credit to anyone in need in Canada. Through our simple application process, you can get the money you need in the short term so you can achieve your goals in the long term.
If you or someone you know needs no credit check loans to make their money problems disappear, contact our friendly staff online or get in touch by phone today by calling 1-800-532-4505. It’s a toll-free call!
We’ll be happy to guide you through our loan application process if need be, and help you get your hands on one of our short term installment loans before you know it!