​​Loans With Bad Credit in Ontario

What is Considered Bad Credit in Ontario?

The credit rating system in Canada is a three-digit number ranging from 300-900 assigned to each individual based on their credit history. It is similar to the FICO score in the United States. The higher the number, the better the credit history. 

Credit scores from 725 to 900 are excellent; 660 to 724 are good; 560 to 650 are fair; and 300 to 559 are poor. According to financial experts, a credit rating of 650 and above is more than enough to secure a personal loan, mortgage, or a car loan from banks and credit unions. 

Credit scores in Ontario are determined by two of the leading credit bureaus in Canada, TransUnion and Equifax. 

How Can You Improve Your Credit Score?

The best way to improve your credit score is to pay all of your bills on time. Late payments, missed payments, and bankruptcy can all negatively affect your credit score. If you have any outstanding debts or have been late paying your bills in the past, contact your creditors, and work out a payment plan.

What if I Need Access to Quick Cash But I Have Bad Credit?

To illustrate how easy it is to get a personal loan even with bad credit, let’s take a look at two of the most popular bad credit loan options today:

Short-Term Loans

These loans are also known as “payday loans” because they only last for one to two weeks. The borrower pays back the loan with the next paycheck, but interest is charged on the entire amount. Payday loans are ideal for emergency situations when you need access to quick cash, but they come with a high borrowing cost.

Installment Loans

If you are looking for a more flexible and affordable financing option, then you may want to consider an installment loan. These loans allow you to borrow a certain amount over a period of time, typically between six months and two years. With an installment loan, you will be able to make smaller monthly payments instead of a single large lump sum payment.

Basic Requirements for a Bad Credit Loan

To qualify for a bad credit loan in Ontario, you need to meet the following requirements:

• You must be a Canadian citizen or permanent resident.
• You must be 18 years old or older.
• You must be employed for the last 3 months.
• You must provide proof of income and residence.
• You must have an active bank account.

Additional requirements apply to some loans, so make sure to check with your chosen lender for more information.

Bad Credit Loan Providers in Ontario

If you are looking for a reputable bad credit loan provider in Ontario, here are a few options:

CashGO

CashGo is one of the leading providers of bad credit loans in Ontario. They offer loans ranging from $300 to $3,000 with a loan repayment term of 90 days to 160 days. CashGo’s annual interest rates range between 24% and 32%.

GoLoans

GoLoans is another Canadian lender that offers bad credit loans in Ontario. Their installment loans range between $500 and $1,000 with an option of weekly, biweekly, or monthly repayment. GoLoans’ loan maturity date lasts between 90 days and 120 days and they charge an APR of 32% and a transaction fee of $1.

Magical Credit

If you need a bigger amount of loan to settle a financial emergency, Magical Credit offers bad credit loans in Canada ranging from $1,500 to $20,000. They have a loan repayment term between 12 months and 60 months and charge an APR ranging from 19.99% (min) to 46.8% (max).

Conclusion

If you are looking for a fast and easy way to borrow money, a bad credit loan in Ontario might be the perfect solution for you. However, before you decide to apply for a bad credit loan, make sure you understand all the terms and conditions, including the APR and other fees. The online lending industry is full of unscrupulous companies who will try to take advantage of borrowers who are desperate for quick cash. Be sure to read the fine print and do your research before you sign on the dotted line.