If you’ve got bad credit, loans in Toronto might be challenging to get approved ‒ mainly if you apply at banks. Like all banks worldwide, Canadian banks conduct a thorough credit check to ensure you’re worth the risk of lending money.
Every time you lend money, a detailed record of your repayment behaviour is kept. The more consistent and faithful you are to your repayment commitments, the better your rating will get. Likewise, the more debt you have that is well serviced, the better your score.
Low credit ratings occur when you either don’t have much credit history to start with or have somehow failed to meet your repayment obligations. Once you have a bad credit rating, it can take time and patience to turn it around.
What Is Bad Credit?
Your credit rating is a score between 300 and 900, with a lower number meaning a poor credit rating and a higher number indicating a good one. High credit scores tell less risk for lenders, which means they will be more likely to give you a preferable interest rate. Conversely, lower scores will either fail to get a loan or suffer higher interest rates.
However, the credit rating is just a snapshot overview of your credit history, which is contained in more detail in a credit report. This report will include all of your pertinent personal information and any court judgements, outstanding debts, income levels, and more, which will help a bank determine if you’re worth the risk.
With bad credit, you’re not likely to get a bank to lend you money without some difficulty.
Can You Borrow Money With Bad Credit?
Thankfully, you can borrow the money you need without depending on your credit rating and banks by applying for a bad credit loan from a private lender such as Better Than The Bank.
Private lenders like us don’t check your credit history to approve a loan. As long as you can show you have stable employment, are a citizen of Canada and have a legitimate bank account, your bad credit loan stands an excellent chance of being approved.
We know that your past isn’t necessarily a fair reflection of your present, so we primarily concern ourselves with your current financial situation when approving a bad credit loan.
For bad credit loans in Toronto and other lending options, contact Better Than The Bank today for more information!