Bad credit loans come in different varieties, from consumer and car loans to payday and other lenders. Credit cards are also available to customers with fair and tarnished credit, and union members often resort to this option.
Bad Credit Loans
There are different ways to gain access to cash, even with a less-than-perfect rating. One idea is to apply for a home equity line of credit and pledge your home equity as collateral. Ask financial institutions whether they offer tax-deductible lines and what the interest rate is. Another option is to check with payday lenders, especially if you need a small loan to cover emergency expenses. There are reputable lenders that offer quick cash to borrowers who have bank accounts and stable income. Interest rates are considerably higher compared to traditional providers, but payday lenders point to the fact that they deal with high-risk borrowers. Peer to peer loans are yet another option for customers with thin credit profiles. There are online platforms which connect borrowers with individual lenders that are willing to offer financing to consumers who meet their criteria. Individual lenders are often more empathetic and willing to deal with bad credit borrowers compared to banks. Read more: https://www.creditandloans.ca/getting-a-loan-with-bad-credit/
Bad Credit Car Loans
If you are looking for a car loan and have poor credit, there are several options to finance the purchase or cover the down payment. There are lenders that specialize in subprime loans but the rates are higher than conventional financing options. You may want to check with your local bank first, especially if you have a savings or checking account with them. Your credit union may also offer better terms provided that you contact them and explain the reasons why you experience financial hardship. Auto financing is also available from some insurance companies. You may want to check with your employer as well. Other lenders to look into include online banks, regional financial institutions, and car dealerships. In any case, look for car financing with a short repayment schedule and attractive APR. Avoid lenders that offer add-ons such as insurance packages, after-market services, and extended warranties because this adds to the cost of financing. Read more: https://www.creditandloans.ca/bad-credit-car-loans/
Credit Cards for Bad Credit Offered by Unions
Unions are known for superior service and lower interest rates on loans, credit cards, and other financial products. The reason is that they are owned by union members and aim to provide affordable financial solutions. Consumers also benefit from no minimum balance requirements, flexible repayment terms, and fewer strings attached. Fees and charges are also lower. Unions also offer different types of credit cards, and some products are available to borrowers with poor ratings and limited credit exposure. If you are a member and have established a relationship already, you have better chances of getting approved. One option to look into is a secured credit card whereby you make a deposit as a guarantee of timely payments. With time, your financial institution may be willing to offer an unsecured card if you make on-time payments.
There are other solutions to look into if you have poor credit, one being subprime credit cards. While this is a last resort because of the higher rates, payments are reported to the major bureaus. Other options include department store and prepaid cards. Read more: https://www.creditandloans.ca/secured-credit-cards-for-canadians/