What is a Bad Credit Loan?
The term bad credit loan can be a little confusing, but it is basically a loan designed for people with credit scores ranging from 300 to 574. There are a few different types of bad credit loans available, but two of the most common are payday loans and installment loans. They are short-term loans that are typically offered at high interest rates. They are also considered to be unsecured, which means that you do not have to put up any collateral to secure the loan.
Pros and Cons of Bad Credit Loans
Just like any other form of credit, there are pros and cons to getting a bad credit loan.
pros
Easy to Apply – Bad credit loans are very easy to apply for. You can apply online in just a few minutes and the application process is very simple. You can get approved for a bad credit loan in as fast as 10 minutes.
Fast Approval – Instead of waiting for weeks, or even months for your loan to get approved, you can get approved for a bad credit loan within a few hours. Depending on the loan amount, you can expect to receive the money in your bank account within a day or two.
No Collateral – You don’t have to give up any of your assets as collateral for this type of loan. This means that you don’t have to worry about losing your house or car in the process.
cons
High Interest Rates – These loans can have high interest rates, ranging anywhere from 20% to 50% APR (for installment loans) and up to 500% APR (for payday loans). This is because non-traditional lenders take on a lot of risk when they offer bad credit loans.
Fraud Risk – You have to be very careful when it comes to the companies that offer bad credit loans. There have been many reports of people being scammed out of thousands of dollars by unscrupulous lenders.
Most Popular Lenders That Offer Bad Credit Loans in Canada
There are a lot of companies out there that offer bad credit loans, and many of them are online lenders. Below is a list of some of the most popular bad credit loan providers in Canada.
Loan Me Now
Loan Me Now is an online lender that offers no credit check loans between $500 and $1,000. They have a standard repayment term of 3 months (up to 90 days) and a maximum APR of 32%.
Loan Away
Loan away is a top-rated Canadian non-traditional lender that offers bad credit loans ranging from $1,000 to $5,000. They offer loans amortization between 6 months and 36 months and charge an APR of 19.9% to 45.9%.
Easy Financial
If you need a substantial amount of cash to settle your outstanding debts or pay for a major purchase, Easy Financial can help. They offer bad credit loans for as low as $500 all the way up to $75,000. Their interest rates start at 34.99% with loan maturity dates ranging from 9 months to 240 months.
Conclusion
With bad credit loans, you can get the money you need in as fast as 24 hours, with no collateral and no credit check. However, you should be very careful when it comes to the companies that offer these kinds of loans. There have been a lot of cases of people being scammed out of thousands of dollars by unscrupulous lenders, so make sure to do your research before you apply for a bad credit loan.
Pig Daddy
Share this article:
