Borrowing on a short-term basis is a solution that makes it possible, in particular, to cope with emergency situations or difficult months. And when you have a bad credit rating, the only option is often to apply for a loan without a credit check . Here are three tips for success.
1. Meet the basic criteria
Only a portion of people who do not have access to conventional loans are eligible for loans without a credit check.
Are aged 18 and over
Have had a full-time job for at least six months. Under certain conditions, self-employed workers, beneficiaries of CSST programs, invalidity insurance, annuity plans or people on maternity or parental leave may be accepted.
Have at least an average net income of $ 1,200 per month
Have been using a Canadian bank account that has been open for at least three months
Resident at the same address for more than six months
Are paid by direct deposit or check
Are not bankrupt
Have no garnishment on payday.
Are not in the process of voluntary deposit.
2. Provide the information and documents requested
Even if obtaining a loan without a credit check is easier than a classic loan, you must fill out the form and provide all the information and documents requested for verification purposes and in particular:
A n or two identity documents
Proof of social insurance number
Proof of residence (internet service bill, Hydro Quebec, etc.)
One to two pay stubs
Two to three months of bank statements
A specimen check.
3. Prove your solvency
Once all the requested information and documents are provided and the basic criteria met, it remains to convince the lender that your financial situation can support additional financing. Because if the organization does not require the credit investigation to approve the loan application, it will still verify that you can repay this new loan through another form of assessment.
Most lenders who do not take credit rating into account require you to provide them with bank statements to check the amounts of money that are collected monthly in your bank. They also take the opportunity to check if you already have too many financial responsibilities, and if so, refuse to approve a new loan if they feel that the level of short-term debt is too high.
Lending organizations also look on bank statements for the possible presence of other outstanding loans, including microloans, as well as bad payments. Each lender has their own policy, but generally loan applications from customers who already have two microloans open or who have had multiple bad payments in the last few months are refused.
It is only if the file is complete and all the criteria are met that the loan application without a credit check can be successful. In certain specific cases, such as for self-employed workers, beneficiaries of CSST programs, invalidity insurance, annuity plans or people on maternity or parental leave, the acceptance of the request is subject to an in-depth study. of the file which generally requires additional time.