Legit Cash Loans for Bad Credit

What is a Cash Loan for Bad Credit?

Cash loans are short-term loans that allow you to borrow money against your future wages. In Canada, they are also known as payday loans, which are usually offered by alternative lenders and online loan providers. The term payday loan refers to the fact that you are expected to repay the loan within two weeks, when you receive your next paycheck. 

This type of loan can be useful if you have bad credit or no credit history at all. They can be used for any purpose, but typically they are used for short-term expenses such as emergency car repairs, medical bills, and grocery purchases. 

How Do I Get Approved for a Cash Loan for Bad Credit?

Previously, if you wanted to take out a cash loan, you would have to go through a formal loan process that involved a long application process and a credit check. However, with the rise of online payday loan lenders, this process has become much easier.

Online payday loan lenders do not perform a credit check on their applicants, so they are able to approve anyone who meets their minimum requirements. When applying for a cash loan, you will simply have to provide your name, address, bank account number, and proof of income. You may also be asked to provide a recent pay stub and proof of employment.

Instead of digging through your credit history, payday loan providers will look at your capacity to pay back the loan, so for as long as you have a steady source of monthly income, you’ll most likely qualify and get approved for a payday loan.

What are the Drawbacks of Cash Loans for Bad Credit?

While cash loans and payday loans are easy to obtain, they come with a few drawbacks.

First, they carry a very high APR (annual percentage rate) which can range from 400% and more. This means that the amount of interest you will pay on the loan will be so much higher than what you would pay on a traditional personal loan from banks and credit unions.

Second, you will be required to pay the entire amount of the loan back within two weeks, by hook or by crook. If you are unable to repay the loan on time, you could be charged exorbitant late fees and penalties.

Lastly, if you are already struggling financially, the high cost of borrowing of payday loans can make it even harder for you to manage your finances. 

Companies That Offer Cash Loans for Bad Credit

If you are looking for alternative lending companies in Canada that offer cash loans for bad credit, here are some of the best options available:

Cash 4 You

Cash 4 You is an Ontario based online lender that offers payday loans ranging from $120 to $1,500. They charge $15 for every $100 borrowed, which translates to an APR of 391.07%. 

My Canada Payday

My Canada Payday offers payday loans of up to $1,500 across major cities and territories in Canada. For Ontario, British Columbia, and Alberta, they charge $15 for every $100 borrowed (APR of 391.07%). For Manitoba and Saskatchewan, they charge $17 per $100 borrowed (APR of 517%). Lastly, for Nova Scotia, My Canada Payday charges $19 per $100 borrowed (APR 495.36%).

310 Loan

310 Loan is another online lender that offers payday loans of up to $1,500. They also offer payday loans across major cities and provinces in Canada, including Alberta, British Columbia, New Brunswick, Ontario, Prince Edward Island (APR of 391.07%); Northwest Territories, Nunavut, Yukon (APR of 651.79%); Newfoundland and Labrador (APR of 547.5%); Nova Scotia (APR of 495.36%), and Saskatchewan (443.21%)

Conclusion

Payday loans are only meant to be used for short-term financial needs, and should never be used as a long-term solution. They are only designed to help you get through a temporary cash crunch because if you don’t know what you are doing, they can cause more problems than they solve.