The Different Types of No Credit Check Online Loans in Canada

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Same as with online jobs, online loans are quickly becoming a popular option for many borrowers today. Such money loans are different from traditional loans offered by banks and credit unions. For instance, online lenders used a different method in communicating with clients, and there’s no need for borrowers to meet up with a loan manager in person for the loan application.

Another good thing about online loans is that you have more chances of getting loan approval despite having a bad credit score because online lenders conduct non-traditional credit assessments.

For instance, you can get online loans no credit check instant approval Canada with Friendly Lender if you want to borrow money without going through a hard credit check. Plus, your options are more varied due to the competition among lenders in the online lending market.

So, if you need to take out a quick loan for bad credit, here are the different types of no credit check online loans for you.

Online Payday Loans

It can’t be denied that online payday loans are among the most talked-about loans in the past few years. Yes, most of the news about this loan type is not that good. But there are now regulations put in place to curb the predatory practices of some online lenders that offer payday loans.

People in dire need of quick cash can benefit from taking out a payday loan. Just make sure that you choose one with a favorable interest rate. In that case, read and understand the terms and conditions of the contract before signing up.

You also have to know that payday loans are short-term loans, lasting only for two weeks or a month. The short repayment period is both a boon and a bane, depending on how you look at it. But if you pay it off on time, you won’t worry about the high-interest rate and additional charges.

When it comes to access to funds, once you’re approved, you can expect the money to be deposited in your account quickly.

Online Installment Loans

If you want a loan that can be paid on an installment basis, you should consider an online installment loan. Typically, borrowers of this loan option pay the loan amount and interest once a month until the end of the term.

The interest rates and fees of online installment loans are more affordable than payday loans. But there are fines or penalties once you miss payments.

Lending companies that provide online installment loans only conduct soft credit checks. Borrowers need to be of legal age and employed with a steady income to qualify for this type of loan.

Guarantor Loans

Another option for borrowers who don’t have a stellar credit score is a guarantor loan. To qualify for this loan, you need to ask someone with a good credit score to be your guarantor. If you fail to make payments for the loan, your guarantor will have to continue paying what you owe.

Online lenders offer guarantor loans for people who need quick cash. But, as mentioned, you need to find someone with a good credit history to serve as your guarantor. And, it’s hard to convince someone to do that for you.

P2P Loans

Peer-to-peer lending has received significant attention because it allows people to borrow a sum of cash from other people, not from credit unions or banks. Aside from borrowing money, you can also offer a loan to others and profit from the loan’s interest.

Such P2P loan transactions typically happen online. With the internet, it’s now more convenient for borrowers to get matched with lenders and vice versa. If you’re struggling to qualify for a loan due to your bad credit score, getting a P2P loan is a good option.

Cash Advances

Most credit card companies offer a service called a cash advance, which enables you to withdraw cash through a bank, ATM, or a financial agency. You can use the funds for whatever purposes, and you have to repay it with interest according to a repayment plan.

This loan option is no hassle to apply for. For instance, you can visit your credit card issuer’s website to send your application. Some credit card providers also have a mobile application through which you can apply for a cash advance.

Online Small Business Loans

Aside from individuals, small businesses can also avail of online loans to finance their day-to-day operations and other expenses. The good thing about small business loans is that they have favorable terms and interest rates. And the fact that you can apply for this loan online makes it even more attractive.

Takeaway

Do you have a not-so-good credit history, and you need to borrow money? Do you want a loan with an easy application process? If your answer is yes, you should consider applying for online loans. Read the list above to know what are the best online loan options for you.

This article has been financially reviewed by Ben Heir, CFA

Last Updated on September 17, 2020 by Philip Horton

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Author

Philip Horton

Philip Horton

Philip is the Head of Content for OnlineMoneyPage. He is responsible for researching and writing articles. He is also one of the co-founders of OnlineMoneyPage.

He is an experienced finance professional with a proven track record in the field of financial advisory. He has a proven history of success in clients’ personal finance planning. His core competencies include: Financial Planning & Analysis, Budgeting & Forecasting, Financial Modeling, Income Streams Improvement, and more.

Philip holds a MA degree in financial management and is a CFA and CFP charterholder.

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