Guaranteed Approval Loans for Poor Credit Canada

Having poor credit in Canada can make it challenging to borrow when you need a loan, but there are some lenders that will consider your application. One does not need to assume there are no options with poor credit and that there are options available.

If you find yourself in need of such a loan, it is important that as you review your options, that you also read any loan agreement before signing.

Sometimes those with poor credit seek to borrow guaranteed payday loans no matter what but they can find it difficult to get approved if their credit is too poor. Many payday lenders do not rely on the typical credit score because they are aware that people applying for payday loans which have higher interest rates do so because they know there is little chance of being approved for personal or installment loans with bad credit so they turn to payday loans.

Guaranteed Loan Approval

Guaranteed loan approval is something you might hear about when looking for online loans but we will attempt to set the record straight. A similar option is no refusal payday loans, which are practically the same as saying guaranteed. You could say that guaranteed approval loans do not exist because no matter what a lender will review your application to determine what level of risk the borrower might be and can not guarantee every application would be approved.

Finding guaranteed loans in Canada where all applications would be approved simply does not exist. There are lenders that will take on the risk for those with poor credit at times, but there are no guarantees. These are known as high interest loans that cost more to borrow. The lenders of these types of loans will take on the risk and have higher interest rates, knowing that there are a few factors about these types of borrowers. For one, there are some that will default. Being the case, lenders of so called guaranteed approval loans for people with poor credit do provide those that would find it challenging to get quick funds for whatever the reason, but the cost of borrowing is higher than most other loan options.

Loans with Bad Credit Guaranteed Approval

While guaranteed approval loans for bad credit sound appealing, it’s important to understand how these work and what they are. You might say that the term guaranteed approval is used to attract those with bad credit to apply, but they don’t really exist. This is because lenders would not be able to exist if they just approved anyone. Most payday lenders do not use a credit score when reviewing applications since the people looking for high interest loans would be unlikely to have anything but a bad credit rating so lenders use other methods when reviewing a loan request. By using instant bank verification they are able to validate their income along with seeing other aspects about their account such as debt, other loans and if they make payments on time. This helps lenders with determining a borrower’s risk and whether to lend. 

Understanding the types of loans with bad credit and which might be options for you will help you with making the right choices and possibly even prevent you from doing further damage to your credit score by preventing hard credit check inquiries. So while guaranteed approval loans might not be a real thing, there are borrowing options for you to consider.

Many lenders that offer loans to those with poor credit will use other options that a credit check and rely on data such as IBV (instant bank verification) to look at an applicant’s history of making payments, outstanding debt, confirming their income and whether they could afford the amount requested even with other outgoing expenses to cover.