No proof of income required? Bad credit record? You can still borrow money quickly in Canada!
If you are struggling with problems such as paying rent, maxing out your credit card, and unstable income, don't panic! In Canada, "loans without proof of income" and "loans without credit check" are "financial first aid kits" tailored for you. This article will teach you step by step: how to bypass the high threshold of traditional loans, get funds quickly, and even use an old car, a part-time income, or a reliable guarantor to turn the tide!
1. What are "no income loans" and "no credit loans"?
No income loan: You don't need to provide a fixed salary flow or tax bill. As long as you can prove that you have the ability to repay (such as freelance income, rental income, asset mortgage, etc.), you can apply.
No credit loan: No credit check! Financial institutions assess risks through other means, such as the value of the collateral, the qualifications of the guarantor, and even your social media activity (yes, the big data era is so magical).
Advantages: Lightning approval: Loans can be issued on the same day, saying goodbye to the long wait at the bank;
Flexible threshold: Unemployed, self-employed, and credit-impaired people can apply;
Asset protection: No need to mortgage real estate, you can borrow money with your car, deposits, or even insurance policies;
Credit reconstruction: Repaying on time can also "clean up" your credit record, killing two birds with one stone.
2. What institutions provide this type of loan?
BHM Financial: Provides up to $50,000 in loans for no credit and bad credit based on assets rather than credit scores.(Application link at the end of the article)
Magical Credit: Provide bad credit loans and accept non-traditional income sources such as government benefits.(Application link at the end of the article)
3. Hands-on tutorial: 5 steps to apply for a loan without income
Step 1: Choose the right product
Short-term turnover: Choose a payday loan (Payday Loan), with a small amount (usually 100-1500 Canadian dollars), but a high interest rate, use with caution;
Medium- and long-term needs: Vehicle mortgage loans (the amount can reach 80% of the car value) and secured loans (find a credit-worthy relative or friend to endorse) are more cost-effective.
Step 2: Prepare all the materials
Basic three-piece set: driver's license/passport, bank statement (showing recent flow), proof of residence (water and electricity bills);
Proof of income replacement: freelancer's client contract, Uber driver's order record, rental agreement for rental income;
Credit enhancement magic weapon: vehicle ownership documents, time deposit certificates, life insurance policies (showing cash value).
Step 3: Submit application
Fill in basic information online, it will be done in 10 minutes;
If you need a mortgage, make an appointment for a vehicle inspection or asset evaluation (usually free).
Step 4: Review and contract signing
Loans without credit checks usually have results within 24 hours;
Read the contract carefully! Focus on: interest rate, repayment period, and early repayment penalty.
Step 5: Wait for loan
Electronic transfers can arrive in as fast as 2 hours;
Vehicle mortgage loans need to be registered, but the car can be driven away as usual and will not affect its use.
4. Real case: They borrowed money like this!
Case 1: Unemployed couples rely on a used car to counterattack
Mark and his wife in Vancouver lost their jobs due to the epidemic, and their mortgage was on the verge of overdue. They mortgaged their 2018 Honda CR-V (valued at 20,000 Canadian dollars) to Fairstone and were approved for a loan of 16,000 Canadian dollars, which was repaid in 36 installments, with a monthly payment of only 533 Canadian dollars. After using the money to get by for 3 months, Mark found a new job, paid off the loan ahead of schedule, and his credit score increased by 50 points!
Case 2: Tips for freelancers to borrow money with "zero income"
Emily, an illustrator in Toronto, has no fixed salary, but with her half-year PayPal income (average monthly income of 3,000 Canadian dollars) and her sister's (a civil servant) guarantee, she got a renovation loan of 8,000 Canadian dollars from Loans Canada with an interest rate of 12.9%, saving 60% interest compared to credit card installments.
5. Summary: Borrowing money for emergencies is more important than being "smart"
Although no-income loans are attractive, remember:
1. Do what you can: The monthly repayment should not exceed 40% of your income, otherwise it is easy to "rob Peter to pay Paul";
2. Give priority to mortgage loans: The interest rate is half that of credit loans, and it can also avoid frequent credit inquiries;
3. Beware of "snowballing": Short-term high-interest loans (such as payday loans) are only suitable for extreme emergencies, and should be replaced with low-interest products as soon as possible.
Finally, no matter how urgent it is, check the qualifications of the institution first! The official website of the Financial Consumer Agency of Canada (FCAC) can verify whether the lenders are licensed. Remember: real "life-saving money" will not require you to pay fees or deposits in advance!
Your road to financial freedom starts from this step.
No proof of income required? Poor credit record? In Canada, this is not a dead end! Use the strategies in this article and plan your loans reasonably. You can also turn things around with "unconventional" loans like Mark and Emily. Take action now and say goodbye to financial anxiety!