What types of Bad Credit Loans and Services are offered in Ontario?

Bad credit loans are loans acquired by people with bad credit histories or those with no credit histories at all. These loans often have very high interest rates, and therefore are perceived as being very risky. Many banks in Ontario use credit scoring as device to check your credit accountability. Once a client’s score falls below a given score point, few banks will be willing to extend a loan to them.

This is because many of these banks or financial institutions term anyone with a bad credit as a risky investment to their service and business. However, having bad credit does not mean that you cannot acquire any financial assistance since many other companies are willing to give bad credit loans to you.

There are different types of bad credit loans in Ontario including:

Payday Loans

Payday loans exist to help individuals with bad credit history get quick cash. These can sometimes be acquired online by simply filling out a form. Payday loans aren’t always the best solution for those needing extra money because it is very easy to get into a cycle of repaying and taking out more loans, and increasing your debt load.

Car Title Loans

Car title loans are also called auto loans and can be a great way to borrow using the equity in your car. When you apply for a car title loan, you can have cash in hand within 24 hours. A car title loan allows you to use your fully paid-off vehicle as collateral, but you can keep driving the car throughout the term of your loan. These loans do not require a check of your credit status. The amount you are eligible to receive depends on the value of your car.

Mortgage or Home Equity Loans

These loans are given to people with bad credit who own homes. The equity in your home can be used to obtain a larger loan that can be used to consolidate your debt, renovate your home, or pay for emergency expenses. A home equity loan from Prudent Financial has much lower interest rates than any other kind of loan and can help you get your financial life back on track.

Personal Loans

These loans are given to individuals with bad credit who are looking for a way to get a loan quickly and easily. For one to get this kind of loan you are required to have a good source of income. You should also be an Ontario resident 19 years of age and older. The individual must also be in active employment and should have worked for more than two months. You should also have an active checking account. A personal loan will allow you to borrow up to $3000, depending on your income and debt.

Since a bad credit score reduces your chance of acquiring loans from banks or other mainstream financial institutions, applying for bad credit loans in Ontario can be a sure way of having access to loans. When choosing a bad credit lender, evaluate whether they would report to the credit bureau on cases where you pay the loan on time as this can boost your credit rating over time.

At Prudent Financial, we offer a range of bad credit loans to Ontario residents. Call us today to learn more about our loan options.

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