Loans with No Credit Check in Canada
Trying to find loans in Canada with no credit check that you can get approved for might seem highly unlikely, but it isn’t that difficult.
Using our easy and quick online application, in Canada, it is possible to find loans with no credit check that do not require a traditional financial institution, and can be a fantastic alternative to what banks can offer.
Lenders of loans with no credit check in Canada will not require your credit score in order to find out your credit history, but will require some other form of verification to prove that you and your finances are an ideal candidate.
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.
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.
The Final Step: Being Approved
You are more than just a 3 digit number, and that’s how lenders see you.
Getting approval for a no credit check loan is accessible to more people since lenders do not look into your financial history, which means rejecting less applicants, and providing more people with the money they need. Borrowers of no credit check loans will find that most lenders want to work with them to find the best terms, loans, and outcome for their financial circumstance.
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!