Like people in many other countries, citizens of Canada often use credit to finance new homes, vehicles or other items. Over the past few years, consumer debt in the country has increased significantly. In 1980, the average debt to income ratio was 66 percent. As of 2011, the ratio had risen to 150 percent. This indicates that for every dollar of disposable income, people owed $1.50 to creditors. Just over 21 percent of Canadians have an average credit rating, meaning their score is between 680 and 749 while almost three percent have poor credit scores of below 520. This means that as many as 24 percent of Canadians may have difficulty obtaining credit due to their credit score. However, there are no credit check loans Canada-wide that may help those who are dealing with poor credit obtain loans as well as improve their credit score.
No Credit Check Loans Canada
No credit check loans Canada citizens with poor credit may find helpful because they do not base their lending decision on a credit rating. Most do require a regular and stable income in order to qualify someone for a loan. In addition, they may request information on the circumstances that led to poor credit. Most of these types of loans also require that the borrower have a valid checking account. Other than those requirements, these types of loans are excellent options for those who have suffered bankruptcy, entered into credit counseling or have seriously delinquent accounts.
Obtaining a No Credit Check Loan Canada
The first step to securing a no credit check loan Canada is to search for a lender with relatively low interest rates, lending criteria and loan terms. It is important to remember that no credit check loans are often significantly more expensive than traditional loans as the lender is taking on more risk in lending the money to someone who has struggled financially in the past. The lender will request information about employment, income and marital status. They may also request information about mortgage or rent payments, a current address and social security number. Because the borrower may have had credit problems in the past, the lender wants to be sure that they will repay the loan as promised.
Is Collateral Necessary with a No Credit Check Loan?
In some cases, a lender may ask for collateral in the form of a car title or home equity in order to secure payment for the loan. Not all no credit check loans Canada require such security, however. Most offer small loans of between $200 and $1,000 that are designed to help get someone out of financial difficulty for a short time. It is important to remember that all no credit check loans should be considered short-term loans as lengthening the repayment can be very expensive.
Financial difficulties can happen to anyone. A sudden medical condition that leads to high medical bills that are not covered by insurance, a paid-in-full vehicle totalled in an accident that requires someone to purchase another method of transportation or the sudden loss of a job can all lead to financial difficulty. Once credit is damaged, it is difficult to repair. No credit check loans Canada are one way to relieve a financial burden and could help rebuild credit if the loan is repaid as agreed. For more information on no credit check loans contact us by phone or visit our website today. We will work with you to try to get you back on your financial feet as soon as possible and start you on the path to better credit as well.