Bad Credit Loans For Unemployed
You need money now Right? And it's as simple as that because bad situations are unpredictable. Maybe a large expense popped up, maybe you need urgent money to pay off your bills, or need to repair your house. And approximately you need C$500 or maybe thousands of dollars.
In the perfect world, everyone would have a sufficient amount of money in their saving account. But in the practical world, it is quite difficult because recent studies held in Canada shows that 60% of Canadians have less than C$500 in their saving account. To make the situation worse, more than half of Canadian citizens are tagged with "BAD CREDIT".
So, if you have bad credit status on your credit report and need urgent money now, you're not alone. But the point of consideration is that where can you turn for the perfect solution?
“ Bad credit loans shouldn't lead you to high fees and fixed deadlines. We offer bad credit loans for unemployed with longer terms, larger loan amount and with lower APR for the borrowers who are poor credit or unemployed.”
What are Bad Credit Loans?
Basically, bad credit loans are a type of short-term loans or personal loans offered to the borrowers with weak, bad or no credit profiles. There are many types of different loans and many different types of financial institutions in Canada that offer them like: Banks, Credit Unions, and Online Lenders.
Typically, bad credit loans are more expensive because its interest rates are the little bit higher. But the question is why lenders charge more interest rates? For the lender, it's all about the return of their investment in you. The main purpose behind charging more interest rates with bad credit borrowers is to offset the higher default rate without any intention of making more money and beat down their borrowers.
“However, paying a little bit more interest is good because borrowers with bad credit or poor credit have very fewer loan options.”
What is Good Credit Score VS Bad Credit?
There are many types of credit scores but the most famous and established ones are your FICO score. In general words, anything above 700 is regarded as "GOOD", while the score above 740 or 750 is considered as "EXCELLENT CREDIT". What you don't want to earn is a credit score below 600 because it reflects your credit score as "BAD".
The representative chart below for different scoring models is:
How Does Bad Credit Loans Work?
At this point, you definitely think that I have a bad credit score and I'm totally broke then why lender wants to charge me EXTRA interest?
Well, it is true; Lender is going to charge more interest rates from you. But there is a reason behind it when you are tagged with bad credit or poor credit; it means that you have a history of paying your debts late or maybe not at all. This act makes it highly risky for the lenders to let you borrow money. From a perspective of a lender, you already earn a history of not paying your debts and they lend you thousands of dollars, there's always a point of the real risk that they're not going to be payback in the future.
To reimburse themselves from the risk of money loss, lenders charge higher interest rates to the borrowers who need bad credit loans for unemployed. In this way, they make little bit more money on these risky ways of lending and also secure themselves from any forfeiture.
A bad credit loans for unemployed is a great idea when you're desperate for money and all the doors of hope are close. Look a little closer and you'll see that most of the bad credit loans Canada will make your financial life more stable.
Types of Bad Credit Loans
There are basically two types of bad credit loans: Secured and Unsecured loans
Unsecured bad credit loans for unemployed means that the borrowers need to sign a contract and promise the lender to repay their loan amount according to the terms and conditions of their loan agreement. And if the borrower is failing to repay their loan, the lender may have full authority to collect the money owned through a collections agency. Unsecured bad credit loans including, personal installment loans, credit cards, and student loans.
In Secured bad credit loans for unemployed, borrower required to submit a valuable item like a car, a home or jewelry- as collateral against their loan. This means that if the borrower is unable to repay their loan amount, the lender has full authority to seize the collateral and sell it to recover their losses.
Why Are We Different?
If you are currently facing bad credit, then you definitely know the frustrations of being low credit scorer. You don't want to live with poor credit status forever. The first step of being fixing your bad credit is to put a full stop to the habits that caused low credit score. Don't open a new credit card account, don't let lenders run hard credit checks and don't let the predatory lenders cheat you into taking a short-term loan that you won't able payback.
Taking a loans for unemployed is a foremost decision. Make sure that you're not just selecting a loan, but also choose a lifetime financial partner like us who wants to help you today and in the future.
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