Did you know that credit reporting has been around since the early 19th century?
The methods and accuracy has changed a lot in that time, but the concept remains the same. If you have a good credit history, then you’re a low risk for lenders. You’re highly likely to repay the loan on time and in full.
If you have a poor credit history, however, then you represent a high risk for lenders. That’s why many people with a poor credit history can find it difficult to get loans. That’s where no credit check loans come in.
The good news is that even if you have a bad credit history, you may be still be able to borrow money with no credit check loans. Not everyone will be approved for these loans, however.
Read on as we take a look at some tips for improving your chances of getting no credit check loans in Canada.
1. Get a Guarantor
If you want to get a loan, you need to convince the lender that you’re not a risk. The more evidence you can provide to prove that you have the means to repay the loan in full and on time, the more likely a lender is to approve your loan.
This is where having a guarantor can help. A guarantor is somebody who is willing to cover the loan should you be unable to make your payments for any reason. This provides certainty to the lender, who knows that even if you are unable to repay the loan, they will receive the money from the guarantor. Since this dramatically reduces the risk for the lender, they are far more likely to approve the loan.
The guarantor will need to sign paperwork to guarantee that they will pay the loan in the event that you cannot. They will also need to have a good credit score and be able to provide evidence that they have the funds to cover the loan.
2. Have The Right Paperwork
Another way of getting approved for fast loans in Canada is to ensure that you have all the relevant paperwork. Lenders will want to see evidence of regular income, and that income must be high enough that it can cover your cost of living as well as the loan repayments.
If you’re applying for a no credit check loan, some of the information you’re likely to need to provide are:
- proof of Canadian citizenship
- bank account details
- proof of regular income and the amount you are paid
- proof of employment
If you have several non-sufficient fund transactions on your bank account, or have previously been made bankrupt, then it may be the case that even with the requisite paperwork, you will not get approval for your loan.
3. Have Something to Offer as Collateral
Another way to reduce the risk for lenders is to have something to use as collateral for a loan.
For example, if you own a vehicle, you can use that vehicle as security for the loan. If you fail to repay the loan, then the lender can take the vehicle as a way of recouping their costs. This means that the loan is much lower risk than a loan without any collateral involved, so lenders are far more likely to approve the loan.
There are a number of things that can be used as collateral for a loan. These include:
- a property that you own, including our own home
- vehicles such as cars, motorcycles, or boats
- expensive jewelry
- valuable art
- valuable collectible items
- stocks and bonds
- life insurance policies
- cash tied up in savings accounts
The value of these items needs to be high enough to satisfy the lender, and you may not be able to borrow against the full value of the item. For example, a lender may agree to lend up to 50% of the value of your vehicle if you’re using it as collateral.
4. Family or Friends
One of the most common routes of getting quick loans with no credit check is to borrow from friends and family.
Obviously, the terms of the loan are something that you will need to agree with your friend or family member. It’s important to agree a repayment plan too, so that the lender knows when they will get their money back.
Loans from family and friends may not require credit checks, but they come with their own risks. There is the potential that a relationship with a family member or friend could be damaged or even totally ruined if there are issues with repaying the loan. Asking friends and family for a loan can also be an uncomfortable thing to have to do.
There are people who make these types of loans work, but you should be aware of the risks.
5. Use a Good Quick Loan Company
One of the simplest and safest ways to get fast loans without a credit check is to use a reputable quick loan company.
These companies offer short-term loans without the need for a credit check. The repayments will usually need to be made fairly swiftly; in the case of some payday loans, for example, you will be expected to pay back the loan and interest when you receive your next paycheck.
The interest rates for these types of loans are usually higher than for longer term personal loans, but since the repayments are made more quickly, they can be an affordable way to access quick cash when you need it most. Another major benefit of these types of loans is that without the need for any credit checks, you may be able to get the loan approved and receive the cash the same day that you apply.
Are You Looking for No Credit Check Loans in Canada?
If you’re looking for no credit check loans in Canada, then you’re in the right place.
Here at Kingcash, you can get quick and instant loans from $500 to $750 with no credit checks at all. Even if your credit history is poor, you could still be approved for a loan with Kingcash. Simply complete our paperless application in as little as five minutes, and you could be approved for your loan the same day. We offer a wide range of repayment installments, ranging from three to twelve payments.
Claim your cash now!