Traditional lenders usually issue personal loans and other cash advances to people with good or excellent credit. They use the consumer's credit score and report as their main basis for approval, and they deny people who do not have scores that are within a certain range. This process leaves many Canadians without a way to obtain a cash advance for emergencies, repairs, bills, and other reasons. These establishments do not have faith in consumers who have poor credit. Additionally, they often give consumers with no credit the cold shoulder. No credit payday loans can provide Canadian residents with funds even if he or she does not have existing credit.
Bad Credit vs. No Credit
Two consumer situations will turn away traditional lenders more than any other situations: bad credit and no credit. When it comes to approving personal loans, the lenders look at both of these situations as if they are the same. However, having no credit is completely different from having bad credit. A person with bad credit has had a chance with lenders and has not proven himself or herself worthy with timely payments. This person may also have an overwhelming amount of credit accounts open, which also causes the credit score to drop.
A person with no credit has not yet gotten the opportunity to establish such. This person may be a young adult, a college student, a new resident, or an elderly person who never bothered to request a credit card or credit line. Although these people have never proven themselves worthy or unworthy, many traditional creditors use this as a red flag to deny credit. They often choose not to issue a financial product to a person with no credit, instead of giving that person a first opportunity to prove himself or herself. Sometimes people with no credit have a harder time being approved than bad credit consumers.
How no Credit Payday Loans can Help
Payday loans are a special type of financial product that gives consumers of all classes a chance to receive help. These types of loans are not contingent on a person's credit score. In fact, the lender will not even look at an applicant's credit report. Instead, it reviews the person's monthly income and the ability to repay the advance. Unestablished debtors are welcome to apply for such products, as long as they meet the minimum criteria for approval.
Qualifications for Payday Loans
My Canada Payday offers no credit loans to needy Canadian residents. To secure such a loan, the applicant must be 18 years of age. The borrowing process requires a contractual signature, and minors are not eligible to enter into contracts. The applicant should also have a stable job with an income of at least $1,000 per month. At least three months with the same employer would qualify a person for the advance. This ensures the lender that the individual will repay the loan, and he or she will most likely not leave his or her job before repaying the monies.
It is also necessary for the consumer to have proof of Canadian residency and an established bank account. The bank account must be active for approximately 180 days and free of any negative transactions. Negative transactions include overdrafts and insufficient funds transactions.
Once the borrower qualifies for the advance and signs the contract, the company will disburse the loan proceeds into the person's bank account. The company and the person can complete the process in 24 hours. In some cases, the consumer can receive funding in a few hours. The lender will withdraw its payments from the borrower's bank account approximately 14 days after the loan disbursement, or when the client receives a paycheck.