Had a difficult year? You’re not alone. Canada in recent months has seen wildfires, a recession, and one of its biggest trade deficits.
During challenging economic times, people have to turn to desperate measures. There’s no shame in admitting that you need fast loans in Canada for unanticipated expenses. The question is at what point you should consider no credit check loans.
No credit check loans help you obtain cash–no questions asked–in record time. While they have a very short application turnaround, they’re not ideal for every situation.
Join us as we discuss this loan type in greater detail. We’ll take a look at when it’s best to choose these loan types.
What Are No Credit Check Loans?
When applying for a loan in Canada, a lender will check your credit score from Equifax or TransUnion. Your credit score is, in essence, a number that demonstrates your ability to handle credit.
With it, a lender knows how risky it would be for them to lend you money. A higher credit score means they can charge you lower interest. A lower score means they can get away with higher interest rates to minimize risk.
Unfortunately, many people have seen their credit scores wiped out during the pandemic. They lost homes, mortgages, and jobs.
This caused them to default on their payments and cripple their credit score. Many became ineligible for most average loans.
A no credit check loan allows you to obtain money regardless of credit score. These are online loans that you can apply for from the comfort of your home.
Pros and Cons of No Credit Check Loans
The pros are pretty obvious: you can get them regardless of your financial situation. There’s no need to suffer the shame of rejection for other loans. Most importantly, you get the money ASAP.
The only real downside to them is the subprime (high) interest rate. Not all no credit check loans are collateral-based, so you won’t necessarily have to risk your car or home. If you use this loan in the right situation, you can pay it off quickly anyway.
Let’s look at the reasons why you should choose these types of cash loans.
If You Have Terrible Credit
Plain and simple, a no credit check loan is the best option for someone with bad credit. Most lenders won’t touch you if your credit score is below the median. If they do offer loan options, they may require collateral–which risks your assets.
You may simply have nowhere else to turn with bad credit. Even if you have the capability to pay the loan off, the credit score is sacrosanct. Lenders base all decisions on it before they trust you.
If you need a loan and you have bad credit, then this is the avenue you take. In the future, you can turn to other options.
If You Want to Recover Your Credit Score
Having a poor credit score is nothing to be ashamed of. It happens to most people at some point in their life. Sadly, even if you have cobbled together solid income and good financial habits, your score needs time to recover.
Loans require a hard credit check. Hard credit checks lower your credit score. If you get too many of them, then it can put quite a dent in your overall score–slowing recovery.
There are ways to boost your credit score quickly. In the meantime, you might really need a loan, no matter what. Instead of dealing a blow to your fragile score, you can protect it with a subprime loan.
As an added advantage, paying off the loan on time and in full strengthens your credit score. It’s a chance to prove yourself in front of credit institutions without relying on their evaluation of you.
If You Need a Large Amount of Money
Payday loans are the go-to method for those in need of a smaller sum of money. These are the sorts of loans you apply for to tackle bills to keep the lights on. Many people might use them during a difficult month to keep their heads above water.
That said, they’re not enough for larger purchases. A payday loan might be a couple hundred dollars at most. Above that sum, you’d have to resort to no credit check loans.
If you need more money, that’s where a no credit check loan comes in. You could use them for the following example situations:
- An unanticipated medical bill
- Being between jobs without money
- Buying a car
- Covering vacation expenses
The list goes on. The reasons why a person might need a large sum of money are too many to list here. The point is, you take the no credit check loan when you need more than usual.
If You Want to Avoid Shame and Judgement
Applying for the average loan can feel violating. You have to sit in front of snooty bankers who may speak in condescending tones. When they do a credit check, they may sneer down at you when it shows up below average.
There’s a lot of shame tied to poor finances, no matter where you live. It can deal a blow to your pride getting frequent rejections for loan applications. In the long run, this could damage your self-esteem and confidence–harming your financial security further.
That’s where fast cash loans are superior. There’s no judgment and no shame.
Lenders who offer no credit check loans understand who’s applying for them. They know times are tough, and they know the reasons are varied. At no point will they ever make you feel inferior or pathetic for coming to them for help.
Find Online Loans With Kingcash
No credit check loans are the best last resort for people with bad credit scores. They are similar to payday loans, albeit with a larger sum of money. You can apply for them easily, get them quickly, and do so judgment-free.
King cash loans require under five minutes to apply. We don’t do credit checks, and we treat you with respect. Find our dead-simple application at kingcash.ca to get a loan that works for you.