Being skeptical when you see an offer on the internet is a very good way of behaving. There are so many sources of misinformation online, and you can end up getting into a spot of bother if you are not careful about the sources you trust.
Many people are skeptical when they hear of loans that you can obtain without getting a credit check. Any bank you visit is going to run a credit check, not only for a loan but to open a bank account in your name. Credit card companies are the same.
Do these no credit check loans Canada exist? The answer is yes, there are no credit check loans you can get. They are 100 percent legitimate. Below is a guide on how to get no credit check loans in Canada.
What is a No Credit Check Loan?
A no credit check loan is money you can borrow without having to provide your personal data for a credit check. The lender will still require your name, address, date of birth and bank account, but they will not ask you for any other information.
The reason why these loans exist is because there was a vast market of people who were kept out of traditional lending. Someone who may have made some mistakes earlier in life and has a poor credit score – they were not able to borrow money.
Now it is possible, through these no credit check loans. So long as you have a job that pays you with direct deposit, a valid bank account and provide accurate personal information, you can get a loan of $300 to $1000 very quickly.
Application Process
The application process for getting a no credit check loan in Canada is very swift. You go online to a reputable lender’s website, enter your details, and submit the application. Most lenders will have a notice of your approval within a few minutes, as the electronic system does everything automatically.
There is always the odd case where information is not verified by the system. It does not mean your loan is denied. You will have to wait for someone from the company to run a check manually. If it is a working day, you should have an answer within a couple of hours.
When you do receive your approval, make sure you are taking the time to read through every line of the contract. Understand all the terms that are listed, such as the interest rate, loan repayment schedule, and what can happen if you are late with your payments.
Late Payments on No Credit Check Loans
One of the ways that a no credit check loan differs from a regular bank loan is the amount of time you have to pay it back. A regular bank loan is one that you pay using monthly installments. If you borrow $3000, you may get a couple of years to pay back that money.
No credit check loans are short term loans. You must pay them back within a few weeks or months. They also have a higher interest rate, which means you do not want to owe the money for very long.
Most lenders will be flexible when it comes to a payment schedule. The ideal situation is that you borrow the money, and then pay it back within three to four weeks. But sometimes things do not go as planned.
If you are late with your payments, you can contact the lender to ask for leniency. They may waive the late payment fee the first time you are late. But you must remember that each day you delay is more time for the interest on your principal balance to accumulate.
Plan the Repayment Before Borrowing Money
The mistake a lot of people make is they only think about how they will repay a loan when they have already taken the money. That is not how you should borrow money. You must have a repayment plan in your mind before you apply for the loan.
Assess your finances, determine whether you can afford to use the loan and then repay the lender within a month. If you can make the repayment, you are a good candidate for a no credit check loan. Those who are not sure how they will make the repayment should look elsewhere for quick cash.
A no credit check loan is a true lifeline to someone who needs money and has a low credit score. So long as you have a clear plan regarding the use and repayment of this money, you should have no issues with these short term loans.