Bad credit can undermine your ability to move forward in life. This is often highly unfair because bad credit does not always reflect your current ability to repay loans in Toronto. Still, it’s a record of poor lending behaviour in the past, which may or may not have even been your fault.
How Credit Scoring Can Be Prejudiced Against You
Sometimes, your credit score can go down because you’ve paid off a loan too quickly. This may seem counterintuitive, but it can occur because banks and other lending institutions give you a credit rating based on your desirability as a borrower. The more consistent you are with your repayments and the more interest a bank can get you to pay, the more profitable you are to them.
However, if you repay your loans faster than agreed upon, the bank loses out and will penalize you rather than reward you because they are not making as much interest off of you as they would otherwise have done. Therefore, you might be negatively rated.
This can seem unfair. One would think that paying off one’s loans as quickly as possible would put one in good standing as a borrower.
How Can You Borrow Money When You Have A Bad Credit Score?
Unfortunately, most banks will deny you a loan if your credit history is poor. In some cases, with a poor credit score, you will still be approved for a loan. However, the loan size will be limited, and the loan conditions will be more stringent. Sometimes, you must contribute an upfront deposit to secure your loan. In other cases, you might be offered exorbitant interest rates, making the loan prohibitively expensive.
If you are faced with such a scenario, there is another option: You can get bad credit loans from lenders such as Better Than The Bank, where we do not take your credit history into account. Instead, we lend you money based on other criteria that we feel are more relevant and fairer.
Our interest rates are favourable compared to the rates banks might give borrowers with a bad credit history. What’s more is that you will be able to get your money a lot faster than you would from a bank, where your loan might have to go through a whole range of approval processes that could take several days or weeks.
Perhaps you are trying to lift yourself out of financial difficulty and require a small loan to invest in a business opportunity that could dramatically improve your financial situation. Move forward and get out of fine financial trouble. Apply for your bad credit loan in Toronto by contacting Better Than The Bank today, and let us help you find a way to financial freedom and a brighter future.