Bad Credit Loans for $1000 in Canada

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How to Get a $1,000 Loan

If you’re looking to secure a $1,000 loan, there are 2 main paths you can take: installment loans or payday loans. An installment loan is a personal loan that’s typically smaller, has shorter terms, and has higher interest rates than regular personal loans. On the other hand, payday loans offer even smaller amounts (and much shorter terms). They’re also the most expensive type of loan and should only be considered as a last resort.

Installment Loan Features

Here are a few details about installment loans:

  • Loan Terms: typically last between 6 months and 5 years. A longer-term usually means a lower monthly payment. But, you typically end up paying more interest overall.
  • Interest Rates: Interest rates typically range from 8% to 60 %, depending on your credit score, personal factors, and the loan provider (e.g., credit union, online lender, bank, etc.).
  • Predictable Payment Plan: Since the loan can be paid over a few years, you will typically work out regularly scheduled payments with the loan provider, which will give you a consistent monthly payment.
  • Bad Credit: If you have bad credit, it may be harder to get an installment loan, as installment loans typically require information from credit bureaus. You may have to pay a higher interest rate or pay the loan off sooner than you would if you had a higher score.
  • Prepayment Penalties: Most lenders will let you pay back your $1,000 loan early without facing any early payment fees.
  • Credit benefits: Unlike payday loans, making on-time payments can increase your credit score by improving your payment history. 
  • Simple application process: Online lenders allow you to apply online and complete the approval process from your device. This can be done in just a few minutes. 

Payday Loan Features

Here are a few details about payday loans. While these types of loans can be enticing to those who have bad credit due to their easy approvals, they do end up causing more financial hardship over the long term. 

  • Loan Terms: Your repayment terms are very short compared to installment loans. Typically, you’ll be required to pay it back by your next payday (in 1 to 4 weeks). Plus, there are also usually additional fees to pay. 
  • Interest Rates: Interest rates can be extremely high with payday loans. You should expect to pay about $15 to $60 for every $100 you borrow. This means your interest rates can be about 15% to 60%, however, they’re also known to go as high as 400%. 
  • Quickly Secured Loans: One of the biggest benefits of a payday loan is just how quickly the loan can be approved and in your bank account. You can usually have access to the funds on the same day you apply, and sometimes it’s instant. That said, many personal loans will be able to do the same while providing fast approvals.
  • Bad Credit: Another major benefit to payday loans is that you can easily secure one even if you have a bad credit score or a fair credit score. However, payday loans have no positive effect on your credit score, making getting low-interest loans difficult. 

Type of Bad Credit Installment Loans

If you’re looking for a personal loan, there are two different types that you can get. These are unsecured loans and secured loans. Unsecured loans are essentially cash loans. Lenders give these to you under the assumption that you will pay the loan back. That said, in order to mitigate their risk, interest rates on unsecured loans are going to be higher. 

Secured loans are personal loans that require you to provide a large asset as collateral. If you have bad credit, these are the easiest types of installment loans to get. This is because if you default on the loan, then the lender can seize the asset. The most common types of secured loans are auto loans, home equity loans and secured credit cards. 

How to Get $1,000 Unsecured Bad Credit Loans

So, how exactly do you get an unsecured $1,000 loan with bad credit? The steps are actually quite simple. Here’s how you can borrow money even if you have a low credit score:

  1. Fill out an application: As is the case with most loan types, you’ll have to fill out an application. This means providing personal information such as your name and contact information. It also typically means providing financial information like your employer, income, and assets and liabilities. Most lenders also require bank statements to prove that you have a valid bank account. 
  2. Review Loan Offers: Once you’ve filled out your application, the lender(s) will usually send you a notification by email (or on their website) letting you know you’ve been approved. They’ll show you an offer (or multiple offers) for a loan, including the total amount, interest rate, and payment plans.
  3. Accept Loan: Once you’ve reviewed the offer(s), you can either accept or decline. If you choose to accept, you’ll formally accept the terms of the loan by signing and sending back the contract.

4: Receive Funding: After you’ve accepted the loan, you just need to wait for the lender to receive and certify the loan. Once they’ve done this, they will transfer the funds to your requested account. Depending on the type of loan you’ve applied for, you could receive funding in as little as 1-3 business days or the same day via e-transfer.

Completing The Loan Process Online

With online lenders that provide installment loans, you can provide all of your supporting documents online. That said, you do need to be a Canadian citizen, so lenders will require you to upload a picture of your government-issued ID. They’ll also require you to fill out something called instant banking verification. This allows you to enter your online banking information securely, which will provide the lender with your bank statements and pre-authorized debit form in order to direct debit your monthly payments.

You’ll also be asked to upload proof of income, such as paystubs. They may also require a bill with proof of address. Before the lender runs your credit check with the credit bureaus to get your full credit report, you’ll also have to provide permission for the lender to do so. This type of credit check allows them to get your current credit rating as well as your full credit history, including other existing loans.

Once the lender gives final approval on the loan, you will be presented with a loan offer that will be emailed to you. It will show you which financial products you’re approved for, the loan terms, the loan amount and the total cost of the loan. This will vary with different lenders.

Where to Find Bad Credit Personal Loans With a Guaranteed Approval of $1,000

The hard truth is no lender can guarantee a $1,000 loan for just anyone. However, even if you have bad credit, your chances of acceptance are significantly higher when you apply with online lenders since they don’t always need to examine your credit history. This means online cash advance (payday) lenders are able to approve the majority of loan applications. Since they approve such a high number of applicants, these $1,000 dollar loans are usually marketed as a “$1,000 dollars guaranteed approval loan”.

But these loans aren’t approved 100% of the time. There is still a tiny percentage of applicants who are denied, as lenders make approvals based on different sets of criteria. You can find payday loans available at cash advance businesses. These are usually present in most Canadian cities.

However, with the rise of fintech companies like Spring Financial, you’re able to secure personal loans quickly by simply filling out an application right from your computer at home. With Spring, you can get personal loans ranging from $500 to $35,000 with any credit score. Plus, they have interest rates starting at just 9.99%.

Frequently Asked Questions

  • Why should you get a personal installment loan?
  • What kind of credit check do lenders use?
  • Is there a minimum income requirement to get approved for a personal loan?
  • Do you need employment income to get personal installation loans?

Can You Get a $1,000 Loan With No Credit Check?

Yes, you can get approved for a loan without a credit check. While installment loans typically require a credit check, you can usually get a payday loan (cash advance loan) without one. Keep in mind that even if you aren’t required to go through a credit check, you’ll still need to submit different personal and financial information. You’ll likely need to submit information like your income, paycheque schedule, assets and liabilities.

The lender needs to see proof that you’ll be able to pay back the loan, even if it’s just $1,000. That said, it’s important to consider that payday loans, or no credit check loans, have no positive effect on your credit score. Plus, their high interest rates can make it difficult to get out of the payday loan cycle. For this reason, bad credit installment loans are a much better option. 

Credit Score Needed for a $1,000 Loan

The short answer is you don’t technically need to provide your credit score for a $1,000 loan. However, you’ll have to apply for a payday loan—which means you’ll pay much higher interest (and will have to pay back the loan very quickly). If you choose to go with an installment loan, most financial institutions will perform a credit check. This is because the interest rates are much lower than payday loans and you can pay it back over longer periods of time like 1-4 years.

A general rule of thumb for minimum credit score requirements with many lenders is to have a score of at least 580 to get a $1,000 installment loan. Just keep in mind—even if a lender doesn’t check your credit score, it doesn’t mean you’ll be guaranteed a loan. You’ll still have to meet their eligibility requirements, which means proving you have the means to repay the loan. With credit check loans, you can increase your credit score, though, and make a positive difference in your financial future. 

Why choose Spring Financial?

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Max Amount $35,000
Interest Rates From 9.99%
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Bank Loans
Max Amount $50,000
Interest Rates From 9.99%
Fully Online Application
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Same-Day E-Transfer
Credit Cards
Max Amount $10,000
Interest Rates From $19.99%
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Payday Loans
Max Amount $1,500
Interest Rates From 200-450%
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*Information is based on averages and may vary by institution or lender. It is not intended to address specific circumstances or any individual case.

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