{"id":7330,"date":"2022-06-19T09:00:00","date_gmt":"2022-06-19T13:00:00","guid":{"rendered":"https:\/\/goday.ca\/blog\/?p=7330"},"modified":"2022-06-22T21:53:54","modified_gmt":"2022-06-23T01:53:54","slug":"bad-credit-loans-in-canada-find-the-best","status":"publish","type":"post","link":"https:\/\/goday.ca\/blog\/bad-credit-loans-in-canada-find-the-best\/","title":{"rendered":"Bad Credit Loans in Canada: Find the Best"},"content":{"rendered":"
\n
\"bad<\/figure><\/div>\n\n\n

Bad credit loans in Canada are available for those who can\u2019t meet the requirements of traditional lenders. However, like any other financial products, some are good while others you should avoid.<\/p>\n\n\n\n

As a result, we think it is important for you to know what to look for in a loan and a lender if you want to find the best. These are just a few of the most notable features you\u2019ll want to check to find the best bad credit loans in Canada.<\/p>\n\n\n\n

The Best Bad Credit Loans in Canada Offer Convenience<\/h2>\n\n\n\n

Unfortunately, many lenders that offer bad credit loans in Canada don\u2019t make it that easy to get one.<\/p>\n\n\n\n

You may need to book an appointment and take time out of your day to visit an office. This isn\u2019t only inconvenient \u2013 it\u2019s totally unnecessary too.<\/p>\n\n\n\n

Luckily, some good lenders offer bad credit loans in Canada via the internet. Since they operate online, you can apply from any device at any time.<\/p>\n\n\n\n

Exceptional lenders also provide digital income verification and digital loan contract signing. Consequently, the process takes up less of your time and involves less hassle.<\/p>\n\n\n\n

The Application Process Should Be Simple<\/h2>\n\n\n\n

Just because a lender claims to offer good online loans, it doesn\u2019t necessarily mean their application process is any simpler than in-person. However, it certainly should be.<\/p>\n\n\n\n

After all, the internet should make it easy and straightforward to access the best bad credit loans in Canada. Nonetheless, you will find some lenders want you to provide information on what you\u2019ve been doing over the past three to five years. Clearly, that has little to do with where you stand now.<\/p>\n\n\n\n

Luckily, good lenders focus on your current situation since this offers a better reflection of your ability to repay at the moment. Therefore, your application form should be simple enough that you can complete it in under 15 minutes.<\/p>\n\n\n\n

Good Lenders Welcome Comparison<\/h2>\n\n\n\n

All too often, those with bad credit tend to grab onto any loan they can get. However, this can mean they pay far more than they should.<\/p>\n\n\n\n

Always look for a lender that offers a soft credit inquiry and pre-approval process too. This benefits you, because you\u2019ll see what the lender offers without lowering your credit score. If you decide you want to look elsewhere, you\u2019re under no obligation.<\/p>\n\n\n\n

Choosing a lender that uses a hard credit inquiry isn\u2019t wise. Each hard inquiry lowers your credit score even further and stays on your credit file for up to three years. That\u2019s the last thing you need if your credit isn\u2019t that great in the first place.<\/p>\n\n\n\n

This also discourages you from shopping around to find the best possible bad credit loan in Canada. Choose a lender that welcomes comparison instead.<\/p>\n\n\n\n

Types of Bad Credit Loans<\/h2>\n\n\n\n

For many people with bad credit, payday loans and installment loans are the best pathways towards loan approval. This is because the focus of these loans can be more about your earnings, rather than just your credit.<\/p>\n\n\n\n

However, applying for a payday loan and installment loans usually means you need to complete two applications. Obviously, that\u2019s very inconvenient and time-consuming. Luckily, this isn\u2019t always the case.<\/p>\n\n\n\n

Some lenders automatically review your finances and let you know if you qualify for an installment loan. As a rule, installment loans are usually preferrable as they offer a wider choice of repayment terms, including more time to repay.<\/p>\n\n\n\n

On the other hand, payday loans are normally repaid in-full quickly. You do not get a choice of when you want to repay either. It normally coincides with your next full two-week income cycle. In some cases, this may extend to 62-days, but never more.<\/p>\n\n\n\n

The maximum allowable payday loan in Canada is $1,500, which isn\u2019t a great deal of money. On top of that, provincial and lender restrictions may reduce that amount even more.<\/p>\n\n\n\n

In many provinces, you are only allowed to borrow a percentage of your average earnings over the past two pay periods. Lenders may not grant you the entire amount if it is your first time borrowing through them either.<\/p>\n\n\n\n

Choose a Licensed Lender<\/h2>\n\n\n\n

There\u2019s no getting around it \u2013 those with bad credit pay more for loans. However, how much more depends on the lender.<\/p>\n\n\n\n

Some lenders hope you are desperate enough to accept anything without question. As a result, you could pay steep penalties, extremely high interest rates, and fees they\u2019re not eager to reveal.<\/p>\n\n\n\n

Luckily, a good licensed lender is legally required to reveal all costs upfront when you apply for a payday loan. They will ask you for your province of residence, as fees differ between regions. However, your personal information data should not come into play, unless you decide to borrow. If you decide not to borrow, your data remains safe and you can look elsewhere.<\/p>\n\n\n\n

Regrettably, even though lenders should have a license, some don\u2019t bother. Both provincial and federal governments warn not to use them as it puts your data at risk. You won\u2019t know your costs to borrow upfront either.<\/p>\n\n\n\n

Plus, unlicensed lenders aren\u2019t governed by provincial or federal consumer laws meant to protect you. As a result, they could use illegal methods to collect their money.<\/p>\n\n\n\n

Review Their Requirements<\/h2>\n\n\n\n

A good lender tells you what they need from you to potentially qualify for a loan. However, you\u2019ll soon discover that many lenders expect you to complete an application form first.<\/p>\n\n\n\n

Clearly, this makes little sense. Why waste your time with an application if you can\u2019t possibly get a loan?<\/p>\n\n\n\n

Luckily, a good lender tells you their requirements and for bad credit loans in Canada they are usually fairly lenient. They aren\u2019t concerned whether you\u2019ve lived, worked, and banked in the same places for years. Equally, their income requirements are often lower than the banks.<\/p>\n\n\n\n

For those with bad credit, you will definitely want to check whether the lender has a minimum credit score requirement. Some lenders do not have one, which is a definite advantage if your credit isn\u2019t very good.<\/p>\n\n\n\n

You Shouldn\u2019t Wait Very Long<\/h2>\n\n\n\n

The best bad credit loans in Canada offer a very fast process. If you apply online, a good lender should make a decision within minutes, not hours, days, or weeks. If you apply in-person, you can expect the process to take longer.<\/p>\n\n\n\n

You should also be able to sign your loan contract quickly once you\u2019re approved. As mentioned, the lender should process the paperwork electronically and you shouldn\u2019t need to visit an office.<\/p>\n\n\n\n

Once signed, you shouldn\u2019t have to wait hours or days for your funds release either. The process should be seamless and quick. In most cases, a good lender will have payday loan money in your account in hours.<\/p>\n\n\n\n

If you\u2019ve used a lender that pre-qualifies you for an installment loan, the process may take slightly longer. Nonetheless, it shouldn\u2019t be longer than the next business day after signing your loan contract.<\/p>\n\n\n\n

Bad Credit Loans in Canada Through GoDay<\/h2>\n\n\n\n

GoDay is one of the few lenders in Canada that automatically screens you for an installment loan when you apply for a payday loan. There\u2019s no need to fill out two applications.<\/p>\n\n\n\n

There are also many other reasons to consider us for a bad credit loans in Canada:<\/p>\n\n\n\n