It is a well known fact that people with spine injuries have less freedom of movement. They are limited in what they can do and often have to refrain from some activities – impact sports, for example.
Well, think of credit as the backbone of your finances. When it is in poor condition, it interferes with your financial autonomy by making it more difficult to fund purchases, get a mortgage and access a personal loan. This last drawback is particularly disadvantageous when you need quick cash for an emergency like a broken car or paid medical services.
Fortunately, some lenders think that your credit should not get in the way of quality of life, and that is why they offer no credit check loans. Let’s see how it works.
The ABC of no credit check loans
Banking institutions carefully examine your credit history when you apply for a bank loan. If you have a low score, they consider you to be at risk and move on to the next candidate. But you always have the option of reaching out to lenders who don’t require credit checks.
However, reaching out to a private lender for a personal loan without credit check is easy and almost always guaranteed. Lending companies often accept online applications only. Simply visit their website to fill out a short form that asks for basic information: Your age, your telephone number, your weekly or monthly income and the date you started working at your current employer, for example.
Then the lender verifies your information using a secure and automated method called Instant Bank Verification. This technology confirms the validity of your source of income in seconds without giving access to your personal information or your banking data to anyone. Thanks to Instant Bank Verification, you rarely have to wait more than an hour to know if you were accepted. Even better, the money is deposited directly into your account in less than 24 hours.
Of course, no credit check loans are not 100% perfect. Although simple, fast and accessible, they tend to have a limit that rarely exceeds $1,500. Interest rates are higher and, since renewing them is so easy, some people abuse them and get into debt. As with any loan, be responsible and only borrow what you can repay.
Healthy spending habits are always important
No credit check loans are a convenient short-term solution to fill an immediate need for cash. They are not something you should rely on often or without a good reason. The best way to have a healthy financial life and improve your credit score is to manage your money properly.
Some people who struggle with financial difficulties simply need to review their budget and reevaluate their priorities. Financial advisors can assist them in their efforts: the ACEF is an organization that offers free counseling to people in difficulty. Budget apps are also a handy tool to keep track of spending habits.
Use your credit wisely. Keep your credit card balance as low as possible, ideally never more than 30% of the limit, and always pay on time. Don’t ask for a higher limit or new credit products too often. After all, the more cards you own, the more likely you are to get into debt!
Other ways to improve your financial situation
Debt consolidation has the advantage of monthly payments and lower interest. It does not tarnish your credit report, unless you use it several times. However, for a bank to agree to consolidate your debts, you must have a good credit report.
If you only have a few creditors, individual negotiations may allow you to reduce the amount of the debt, get a lower interest rate or receive an extension of the repayment period.
Remember to confirm agreements in writing!
In Quebec, voluntary deposit is a measure provided for in the Code of Civil Procedure. It allows you to pay your debts by handing over to the Court an amount of your income that is fixed by law. The Court then distributes the money to all your creditors, in proportion to their claim.
The consumer proposal is a legal process that can also solve your financial problems while avoiding bankruptcy. It allows you to keep all your property and settle your debts using a single monthly payment determined according to your actual ability to pay.
Alas, when you have exhausted your options, bankruptcy is a legal procedure by which you can quickly erase your debts and start afresh. Under certain conditions, you may even be able to keep your house or car. As soon as the bankruptcy is in effect, you no longer have to pay your creditors and all recovery procedures will be stopped, including any legal actions and seizures that may exist, thus putting an end to the harassment to which you may be subject.
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