Having bad credit past can be a
frustrating circumstances.
Many lenders don’t give out payday loans
with poor credit.
But in order to obtain a good credit
score you must to get a loan, or some other kinds of credit.
It’s the ultimate catch.
In this article we’re going to go over
options for bad credit people to have a loan, and methods you can set up and establish
credit.
Loans
for No Credit History People
To build a good credit score you will
need credit history of at least 6 months. Whether it be a credit card, personal
loan, or auto loan. The problem comes with most credit lines and loans need
credit record to acquire approved.
There are for options for people with bad
credit to get a cash advance. Here are some no credit check guaranteed loans. We will also go over several
strategies you can apply to swiftly build that credit history so you can be
eligible for all types of loans.
Payday
Loans
Payday loans are very short term cash
advance for a small amount, usually between C$200-C$1,000. They act as a cash
advance until your next pay day when the loan is due. While payday loans can be
an benefits for those who actually want it.
But! They can also start a vicious cycle
of needing loan after loan. In the matter of a payday loan this is amazingly
financially devastating as they have tremendously high rates of interest as
high as 500%.
There are lenders that offer these loans,
if you default on the loan it will be reported to your credit score as a
negative collection account.
If you don’t have any option but to get
a payday loan you must pay back ASAP to stay away from ridiculous extra fees.
Valid
Reasons to Get a Payday Loan
✓ Avoiding repossession of a car loan or
foreclosure on a home ✓ Repair broken down vehicle ✓ Pay utility bill to avoid disconnection ✓ To buy food Poor
Reasons
to Get a Payday Loan
✓ Consolidation of debt ✓ Unnecessary purchases ✓ Entertainment ✓ Home renovations
Personal
Loans
Personal loans do need a credit score in
most situations. They are obtainable to borrowers with bad credit. If you have
a 580 credit score or higher you may be eligible for this loan with some
lenders. A personal loan is a short term
installment loan, usually pay off in 12-24 months but will be associated
with higher interest rates the lower your credit score.
Start
Establishing Credit
Getting an advance with no credit is no simple
task. Even if you’re accepted for a loan the interest rate will be sky-high. In
order to be able to go to any lending agency and opt any loan you need you’re
going to need to start building a credit score.
You
May Begin Your Building Credit Score Right Now by Follow These 3 Strategies
Get a Secured Credit Card A secured
credit card works in the same way to an unsecured card but is possible for
people with no credit history. Let’s say you apply for a C$300 secured credit
card, you will need to send the bank a C$300 deposit. You may use the card just
like any other ordinary card.
Use it to fill up your bank each week
and make the monthly payments. The account will be reported to all three major
credit bureaus CANADA and will start establishing your credit record. After a
period of 6-12 months you may be eligible to convert the secured account to an
unsecured and receive your deposit back.
Get
Linked as an Authorized User
On any credit card account you have a choice
of adding a second person who has access to use the account. When an endorsed
user is added the entire account history is reported to your credit report,
helping your FICO score.
If you have any close friends or family
members with a credit card in good scoring you can ask them to adjoin you as an
authorized user. You do not even need to physically own a card, thus reducing
the risk for the account holder.
Get
an Online Loan
An online loan like Payday Loans with No Credit Checks is offered by your local lending
agency. Lending agencies are ideal because they are more focused on helping
their community than any big bank or credit builder will.
They
work by having a certain amount of cash in an active account that secures the
loan.
For example: If you get a C$500 loan, a
bank account will be established to hold your C$500 deposit. Once you have
completed your installment payments on the loan the C$500 is released back to
you.