Bad Credit Loans
Those seeking bad credit loans can have limited options to borrow when funds are needed.
With lenders like AimFinance you can often borrow, even with bad credit loans can be possible.
Applying for online personal loans for bad credit is an easy process and the payments can be an affordable option for many.
Find out what your payments might look like and use the tool below to calculate the potential costs to borrow.
AimFinance offers loans to those with fair or even bad credit.
Find out if you’re eligible by applying today.
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Loan Amount: $2500
Loan amount, interest rate and payment amount subject to change upon final loan approval. Representative interest rate for Personal Loans calculated at 46%.
What are bad credit loans?
Bad credit loans are personal loans that are available to borrowers with a low credit score, often around 580 to 620. Lenders who offer bad credit loans know that an applicant’s credit score is not the only way to determine if someone is willing and able to repay a loan, and will often consider alternative data as well.
A bad credit loan is like a personal installment loan with regularly scheduled payments. After you apply for a loan, if you meet the criteria and become approved, you’ll be offered a loan and have the option to choose the terms that are right for you.
Since this is an installment loan, you’ll be offered a set amount of money and be expected to pay the loan back over a set amount of time. For example, you might borrow $1000 and pay it back in biweekly payments over the next 12 months. When all the payments have been made, you’ll have completed the steps and paid back the loan in full.
Lenders of bad credit loans typically have higher interest rates loans since these loans come with risks to the lender when most applying have fair to bad credit scores.
It is worth noting that the longer the terms of your loan, the higher the interest you will likely pay over the term. But even with a slightly higher rate, personal installment loans are usually more affordable than other types of emergency loans.
Get up to $5,000 loans with bad credit in Ontario and BC through AimFinance.
How to be approved for a bad credit loan?
Since your credit score is not the only factor for bad credit loans, you need to demonstrate sufficient income to borrow, along with minimal debt.
If you’re in the majority of Canadians residents without income volatility, you should be able to qualify for a personal loan, even if you have bad credit. You’ll simply need to demonstrate the following:
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Employed with steady monthly income ($1,200 or more monthly)
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Canadian citizen or resident (at least 18 years)
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A Canadian bank account (Chequing, access to online banking, open 90 days or more)
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Note that you should also have a valid mobile phone number, email address, and a Canadian physical address of residence.
Other factors that can affect your application can include inaccurate data or typos, existing loans and debt, your income and other issues. It’s also important to complete the instant bank verification (IBV), an important step required for your application.
If you meet the criteria and have an acceptable amount of debt (e.g. multiple loans or other forms debt) your application could be approved. There isn’t a numerical answer to an acceptable amount as this is related to your debt to income ratio, which is different for everyone.
Having a strong payment history, acceptable debt and requesting an amount that works with your income and expenses are often helpful insights that can affect your chances of your loan request being approved.
In most cases, no documents like bank statements, paystubs, utility bills or similar are required when applying for a loan with AimFinance.
Finding the Best Bad Credit Loans
While some traditional banks may claim to offer bad credit loans, you’re often likely find better loan solutions through online loans. This is true for many reasons, including it doesn’t matter where you live in Canada, often easier requirements, faster processing, and quicker deposit to your account if approved. At AimFinance you can apply for $1,000 and even a loan of $5,000 for bad credit, and if approved the funds are deposited soon. This if often within 24 hours but funding times are subject to your bank processing and any system limitations that may cause delays.
You’re more likely to be approved for online loans.
Traditional banks don’t typically approve loans for borrowers with bad credit. If you have bad credit, you may be invited to apply for a personal loan from a traditional bank, but you’re far less likely to be approved. That means you’ve wasted time, energy, and hope on an application that got you nothing in return. Online lenders like AimFinance can make it easier to get the funds you need.
You’ll get funds faster through online loans.
The use of financial technology makes online lenders nimbler and more expedient when it comes to processing loan applications. This simplifies the loan application process for borrowers. Traditional banks might require an appointment, taking a few days to happen, and can take a few more days before you have a decision. Online lenders often provide a decision and funding (if approved) within one business day, and AimFinance is one of them.
You apply online through a simple form. You provide the supporting documents requested by the lender by uploading them through your application. Once approved, the lender can deposit funds directly into your bank account. Funds appear quickly, providing cash when you need it most.
You’ll pay less for an online loan.
Borrowing money means paying interest. Many options for borrowers with bad credit, like credit cards or emergency loans, have extremely high interest rates that create a debt cycle that is hard to break.
Online loans usually offer lower interest rates and a set repayment schedule. Rather than continuing to pay the most interest on an expensive credit card every month, a personal loan lets you pay down the actual loan balance in a set number of payments. When you’ve completed the payments, you’ll have paid off the loan completely. Borrowing from an online lender that doesn’t have overhead or additional costs like multiple branches can mean less costs to the end user or applicant as well.
Is a Bad Credit Loan Right for you?
How do you know if a bad credit loan is the right choice for you? You’ll need to consider a few factors to determine if this type of loan is the right fit for you and your situation.
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You are looking to rebuild your credit. A bad credit loan is a personal installment loan. That means when you’re making payments on the loan, those on-time payments are being reported to the credit bureaus and boosting your credit score to help with future borrowing needs.
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You have sufficient income. You can apply for personal loans if you have sufficient income through almost any documented source. If you have a steady job or even steady income through government or pension benefits. Just be sure you have the documents to support that steady income over time before applying.
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You can repay the loan. Before you borrow money, be sure that you have the means to repay it. Adding a new loan payment every month when you’re already struggling to pay your current bills can create a budget crisis.
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You need the money. There are many reasons to borrow money through a bad credit loan, such as consolidating your debt or paying for an emergency. Borrowing money just because you can is likely not the best use of a bad credit loan.
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While some lenders might mention guaranteed approval or similar phrases, it’s important to understand that such offerings are often talk since a lender could not make such a promise of no refusal or guaranteed approval without having issues of their own later. Even talk of no credit check loans is another example of carefully chosen language to attract your interest but lenders can’t deliver on since all applications go through some kind of check. It might not involve credit bureaus but can include alternative data. From the lenders side, a bad credit loan must be carefully reviewed to ensure repayment.
If you’re ready to apply for a bad credit loan, we want to help. Simply click the Apply Now button to get started.
You can get from $1,000 with bad credit and loans up to $5,000 in Canada are available to those that qualify.
At AimFinance, our application process is fast and easy, allowing you get the money you need when approved, with agreeable terms.
Bad Credit Loans Canada
Those looking for poor or bad credit loans in Canada will often find AimFinance as an option. When you have a less than perfect credit score and can use funds quickly to take care of whatever emergency or urgent need you may have, it can be good to know that AimFinance is available if needed.
If you are looking for Ontario bad credit loans or something similar, AimFinance loans are easy to apply for with quick decisions and the funds are deposited as soon as the next day if approved.
Many that are looking for loans with bad credit in Canada can find it difficult to get a personal installment loan when they need money now. Most lenders reference a credit score, but also look at other factors. Does the applicant make payments on time, do they have multiple loans, do they have a lot of debt. How someone manages their money can tell a lender how likely they’ll be repaid. Borrowers with bad credit looking for loans will find the above and more can affect their ability to get approved, but as long as you meet the minimum requirements you should have a good chance for approval.
Bad Credit Loans Ontario
If you live in Ontario with bad credit and looking for a loan, AimFinance may be able to help. From Toronto to Brampton, Sudbury and everywhere between you might be eligible to borrow. The process for applying is easy and usually takes just a moment to get a decision.
Getting approved for Ontario bad credit loans is not difficult as long as you have a fair credit score and meet the requirements.
Requirements When Applying
When applying for bad credit loans it’s important that you might meet the requirements. This will help ensure that you have a reasonable chance of your request being approved.
- Acceptable credit score – should be ‘fair’ or near 600 or better.
- Resident or Citizen – must also be employed
- Monthly income of $1,200 or more
- Canadian bank account (open 90 days and access to online banking)
- Provide valid details about address, phone number and similar
- Include a Canadian physical address of your place of residence
- Allow instant banking verification (IBV) access for ID verification
To successfully submit an application, you should complete all required fields.