Getting a personal loan is not always an easy process, especially if your credit history is not in good shape. In particular, new credit users may have a very short credit history, which doesn’t give them much confidence from lenders. Or if you have had a few defaults in the past, your. Credit may have suffered as a result, which can make it difficult to get approved for a loan. You may also avoid having your credit checked for other reasons. For example, to limit the number of difficult inquiries on your credit report. (Did you know that some credit inquiries have a negative impact on your credit score? Learn more here!)
Fortunately, there are several options for getting a quick loan without having to check your credit at all. Loan terms: the amount, likelihood of approval and interest rate depend on your overall ability to make payments.
Types of loans without investigation:
In Canada, loans can vary greatly in type and amount, with laws in this area changing by province. However, because traditional lenders such as banks have stricter regulations, non-survey lenders are often private companies, allowing them to set their own eligibility criteria. Here are some common types of quick loans you can access without going through banks;
Personal loans
Almost all lenders in Canada, whether banks or other private institutions, offer some form of personal loan.
Personal loans vary widely and can sometimes be in the tens of thousands of dollars. They can also have different repayment terms and frequencies, as well as fixed or variable interest rates. They are also called mini-loans, micro-loans or emergency loans.
There are two common types of fast loans:
Secured personal loans – You must provide collateral in order to be approved. It must be an asset, such as your home or vehicle. You must be diligent, however, as the lender will have the right to seize the asset if you miss too many payments. Nevertheless, providing collateral can help you get a better money loan; lower rates and better repayment terms.
Unsecured private loans may be smaller and have higher interest rates, but they are easier and safer! Repayment terms are also often shorter, as you may be considered a higher risk customer when you do not have collateral. As such, the approval process will depend more on your income. This type of loan is convenient if you need money quickly, as online credit applications often send you the money the same day.
Loans with co-signer
Another form of collateral that some non-credit investigating lenders will accept is a co-signer, also called a guarantor. This must be a borrower with robust credit, someone with sound finances who can “guarantee” that your payments will be made on time, even if you can’t afford them.
A co-signer can help you access a better loan when you don’t have good credit, and you will also have a backup plan if you run into financial problems. It’s important to inform your guarantor or co-signer that they will become responsible for your loan if you default and that their credit could also suffer if they can’t keep up with payments.
Car title loans
This type of loan is similar to a no-inquiry personal loan with collateral, specialized around vehicles. If your vehicle is valuable and you have title to it, you can use it as collateral in exchange for better loan terms. As with any asset, the lender may be more willing to offer you a no credit inquiry loan because you are providing loan collateral.
However, you really need to keep the dangers in mind! Before you offer your vehicle as collateral for a loan, you must once again be fully aware of the potential danger. Although you may get a better fast loan, the lender will own the title to your vehicle until you have made your payments! In addition, they will have the right to sell it if you default on your payments.
Payday loans
A payday loan is normally a small amount of money between $100 and $1,500, most provinces do not allow payday loans greater than 50% of the borrower’s salary. These quick loans usually have a short repayment term (often 14 days, but longer terms may be offered by some lenders). Like most online loans, you will receive the money quickly; the funds will be deposited directly into your bank account shortly after approval.
Payday loans may seem attractive because they are quick and easy to obtain. You usually only have to wait a day or two to receive the funding and there are very few restrictions on approval. Basically, as long as you have a stable income and are a Canadian permanent resident over the age of majority in your province or territory, you can get a payday loan. They are allowed in most provinces, but not in Quebec.
Choosing the right loan
All in all, there are several options for getting a quick loan without a credit check. Most will send you the money quickly after your application is approved. Online personal loan applications are usually easy to fill out and can help you out when you need money urgently.
