Getting payday loans in Montreal through lenders such as Better Than The Bank is a great way to get some emergency cash if you’re struggling to get small loans from banks because you have an unfavourable credit history.

Poor credit history can either mean that you get high-interest rates on loans, or you might be denied loans outright.

Thankfully, we don’t bother with your credit history when approving payday loans. However, failing to repay your payday loan could negatively impact your credit history, so it’s still essential to keep it in mind if you need to borrow larger sums from a bank one day.

How do credit histories work, and why do they matter?

Let us take a look.

Credit Report Vs Credit Score

Your credit history is summed up on a credit report, which is a breakdown of your previous financial activities involving borrowing money and repaying debts. This includes bank loans, mortgages, cell phone plans, clothing accounts, and medical bills.

A credit score further sums up your credit report, a three-digit number between 300 and 900 that illustrates your reliability as a lender to repay your debts on time and in full. The higher your score, the better your standing as a lender, whereas the lower your score, the more unfavourable you appear.

Naturally, the more considerable risk you appear to be to lenders, the less likely they will lend you money or give you a reasonable interest rate.

Your credit score can change over time, for better or worse, as your lending behaviours improve or worsen.

Who Is Keeping Record?

Two main credit bureaus collect, store and disseminate credit information in Canada. These two private entities are Equifax and TransUnion, which only track your financial behaviour within the country. Any activities abroad are not considered unless through special requests and the sourcing of credit reports from credit bureaus in those countries.

The more credit checks are recorded on your name, the more suspect it looks since it appears as though you might be attempting to live beyond your means.

Thankfully, at Better Than The Bank, we don’t check your credit report or your credit score when you apply for a loan. However, it will go on your record unless you default on your repayments.

We offer payday loans in Montreal that sidestep credit checks entirely, making it easier to get the money you need without affecting your record. Contact us today to apply.