What Are Bad Credit Loans?
A bad credit loan is an unsecured personal loan that allows you to borrow money from an alternative financial institution at a higher interest rate than what you would normally be charged by a bank. The reason behind this is that these lenders take a significantly bigger risk in giving out loans to people with bad credit. This is to compensate for the fact that these borrowers are more likely to default on their loans and not repay them.
Why Take Out a Bad Credit Loan?
If you are looking for a way to get a quick cash advance, then you should consider taking out a bad credit loan. There are several reasons why you should consider applying for one.
You Can Get Cash Now
The biggest advantage of taking out a bad credit loan is that you can get cash within the day of your application. In fact, a lot of online loan providers boast a 10-15 minute approval time, which means that you can get your cash without having to wait around for days or weeks.
Unsecured Loan
Another great benefit of getting a bad credit loan is that you don’t have to put up any collateral as security. Instead, you only have to provide your name and address as proof of your identity and residence. You will also be required to submit some proof of income, such as pay stubs, to guarantee that you are capable of repaying the loan.
Easy Application Process
If you are looking for a fast and easy way to apply for a loan, then you should look no further than bad credit loans. With most of the online loan providers, you will only need to fill out a short application form and upload some documents to get the money you need. The application process is very simple and hassle-free, which makes it one of the best options for people who are in desperate need of cash.
Drawbacks of Bad Credit Loans
While bad credit loans come with numerous benefits, they also have their fair share of drawbacks. Here are some of the major ones:
High-Interest Rates
Probably the most significant drawback of taking out a bad credit loan is that you will be charged a high-interest rate. In fact, there are a lot of predatory lenders on the internet that are charging exorbitant interest rates to make sure that they can make a profit.
Limited Loan Amount
Another major drawback of taking out a bad credit loan is that you can only borrow a limited amount of money. Generally speaking, bad credit loans only range from $100 to $5,000.
High Risk of Getting Scammed
Unscrupulous loan providers often prey on people who are in need of quick cash. As such, it is highly recommended that you only deal with reputable lenders who have been in business for a long time.
Instant Bad Credit Loan Providers in Canada
There are many bad credit loan providers in Canada. However, if you are looking for a reliable option that will help you get a loan quickly, then you should consider the following companies:
310 Loans
310 Loans is a payday loan provider that offers fast cash to people with bad credit. They offer cash assistance ranging from $300 to $1,500, which you can expect to receive within 30 minutes or less. They charge an APR between 391.07% and 651.79% depending on where you are located in Canada.
Simply Cash
Ontario based Simply Cash offers instant loans for bad credit of up to $2,500 with a repayment period of up to 24 months. They charge an interest rate of 35% to 59% per annum depending on the loan amount and your chosen repayment period. They promise to approve the loan and send the money to you in minutes.
Teka Loan
Teka Loan is another alternative lending company that offers bad credit loans in Canada. They offer loans of up to $1,000 with a repayment period of up to 3 months. Teka Loan charges an APR of 18% with an additional 1.74% monthly interest if the loan remains unpaid. You can expect to receive the money in your account within the same day.
Conclusion
Bad credit loans are not for everyone. If you have a good credit history, then you should definitely avoid them. However, if you are in need of quick cash and don’t have enough time to wait for traditional banks to approve your loan, then you should definitely consider bad credit loans. Just make sure to do your own diligence to ensure that you are dealing with a reputable provider.
Aunt Piggyy
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