Bad Credit Scores and Guaranteed Approval Loans

Is a Bad Credit Score Keeping You Out of the “Game”?

Are You Looking for a Guaranteed Approval Loan?

When you have a bad credit score, loan approvals may be hard to come by; forcing those who have a bad credit history to seek a bad credit loan, or even worse, the “guaranteed approval” loan, to secure money when an unexpected expense occurs in between their paydays. If this happens, this can be quite stressful because of the uncertainty involved regarding one’s finances. But looking for these types of loans are only a “band-aid” solution. Today, the folks at Friendly Lender would like to walk you through what credit scores entail; and also debunk the myth behind “guaranteed approval loans” for those with a bad credit history.

Guaranteed Approval?

A guaranteed approval loan for those with a bad credit history: does that exist? No, and if a lender is promising you that much certainty on a loan application, you can expect something to be amiss. A credible lender will probably always evaluate the risks involved in loaning you money. Regardless if you seek an e-transfer loan through an online lender, or a conventional loan through a bank, for example, lenders want to make sure that they do not lose money in servicing a loan request. Subsequently, your credit history can play a major role in opening the door to loan access.

How Do You Get a Credit Score?

The first time you apply for credit from a lender, a report is created about you: this creates your credit report; which will then precede any subsequent loan application you make. After this, your loan activity is then recorded to it; and these recordings go to form your credit history (2023, Government of Canada). Your credit history may track such things as: loan applications made; loan defaults; and late payments; but these are just a few examples listed by the Government of Canada; and a more complete list can be seen on their website. Clearly, though, you can see that credit history will play a significant role in boosting your potential to acquire a loan.

How Credit Score Information is Gathered About You:

When Lenders process loan requests, the associated information is sent to a credit bureau, where it is then recorded on your credit report. The agencies then use this information to calculate your “worthiness” of credit: ie. your credit score. But that is not all: information about your mobile phone, and internet bill payments, for example, may be submitted by such providers to these agencies to use on your record. They have “eyes” on you.

What is a Good Credit Score, and How Can I Improve Mine?

According to Equifax, Canada, a good credit score ranges from 660 to 690 (2023, Equifax, Canada) but this can change depending on the agency that calculates the score, as each uses a different evaluation model. But there are common practices that can be used to help you boost your “numbers” and increase your potential for loan approval:

Where to Check Your Credit Score

You can access a credit score about yourself easily, through on an online service provider such as Credit Verify. To do so, simply follow the instructions of their online application; and, if you use Credit Verify, you will receive your score immediately. So if you think a bad credit history may be holding you back from loan approvals, look into what your credit rating looks like, so you can get better clarity about this.

That's It...

So there you have it. Keep these things in mind as you look to improve your credit rating. But, for the time being if you find yourself in need of a short-term loan to take care of costs in between paydays, and have a bad credit score, Friendly Lender is here to help you with that, “24/7”; providing access to a network of lenders who specialize in servicing those with a bad credit history; providing those they do approve for loans, with e-transfer loan service.

Sources

Equifax, Canada, What Is A Good Credit Score?”, “https://www.consumer.equifax.ca/personal/education/credit-score/what-is-a-good-credit-score/”, October 10 2023.

Government of Canada, “Credit report and score”, https://www.canada.ca/en/financial-consumer-agency/services/credit-reports-score/credit-report-score-basics.html#toc5, October 10 2023

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We helped thousands of people in Canada access cash quickly, and securely;
are you ready to get started?