If you find yourself in a financial pickle where you are in need of some quick cash, it is likely that you have seen “Guaranteed Approval” payday loans advertised online or at a lending institution. While this, of course, sounds tempting, perhaps you are skeptical. Are guaranteed payday loans too good to be true? And what are your options for a payday loan in Canada if you have a bad credit score?
A guaranteed payday loan is surely hard to come by, and with all the different lending options out there (both in person and online), we want to make the process of understanding payday loan applications and approval easy for you.
Essentially an advance on your paycheck, a payday loan is a short-term loan that can provide you with quick cash up to $1500. It is unsecured (meaning you don’t need to provide any collateral), and usually you can receive the funds in minutes. They are also much easier to qualify for than a traditional bank loan. Just like you would with ODSP loans.
While it uses your paycheck as a reference for income stability, it’s important to note that a payday loan is completely separate from your employer, and is instead provided by a direct lender.
For many Canadians, a payday loan is a valuable resource to help them get back on track to financial stability. Unexpected expenses such as car repairs, home maintenance or a family emergency can come out of the blue and disrupt your careful budgeting. If this sounds like you, don’t worry. Even if you have a not-so-great credit score, lenders like My Canada Payday are committed to helping you access quick funds and relieve the financial stress that can come from an emergency.
Reputable lenders in Canada have criteria that must be met to be approved for a loan, and reserve the right to deny an applicant that is considered too risky to lend to. This means that no loan is totally guaranteed. After all, it's all about responsible lending.
However, lenders these days understand that there is more to a person than their credit score, so approval for a loan may be more within reach than you realise.
The short answer is no, but there’s no need to fret! Some lenders may advertise "guaranteed online loans"; however, these should be treated with skepticism. While any reputable and licensed lender reserves the right to deny a loan, there are many online lenders that are virtually guaranteed.
If you have been previously denied a loan from a bank or an agency because of bad credit, you may believe that you are not eligible for a personal payday loan. This shouldn’t be seen as a barrier, as at My Canada Payday we use eligibility criteria that goes beyond the credit score!
While some lenders may require a minimum credit score, we don’t. You will likely still be approved, or you may qualify for an amount lower than $1500.
It’s important to remember that any advertised “guaranteed” loans likely aren’t safe, reputable, and maybe aren’t even licensed. These should be avoided at all costs, and a lender such as My Canada Payday should be used instead. Money matters are important and sensitive, and should always be highly considered and researched.