How to Get a Loan With Bad Credit in Nova Scotia

Getting a bad credit loan in Nova Scotia is actually pretty simple. You can apply online with alternative lenders, and you can know if you’re approved within minutes. All you need is a piece of government-issued ID, proof of income, and access to your online banking.

If you’re approved, you can borrow anywhere from $500 to $50,000 as soon as the same day you apply. While these loans will have higher interest rates than loans with good credit, your rates will be much lower than payday loans. These loans will also help increase your credit score.

Companies in Nova Scotia that Give Bad Credit Loans

Luckily, Nova Scotians have plenty of options in terms of high-risk lending companies to help them find the right loan. Cash Money is a good option as they do both payday loans and traditional installment loans, so based on your qualifications, both will be available to you.

Another fantastic option is Spring Financial, which is famous for helping Canadians in all types of credit situations in a timely manner. Their large client care team, as well as professional agents, creates a very positive customer experience. A third option is Mogo Financial, a lending company that offers $500-$35,000 and specializes in small business start-up financing. They also offer instant approval loans to homeowners, so they are a good option if you own your home and would like to secure your loan to your home. Just make sure you don’t miss a payment! That said, these are just a few, but there are plenty of other lenders to choose from. 

What are Bad Credit Loans

The best way for people with bad credit to get a loan in Nova Scotia is by utilizing a ‘bad credit loan.’ These are essentially loans given to borrowers who are deemed to have bad credit. Lenders offset their risk by increasing the interest rate higher than what a person with prime credit would pay. One major thing lenders look at is your payment history/credit history. Some indicators to lenders of subprime credit might be that credit card you forgot to pay off. That not only hurts your payment history but also your debt-to-income ratio, another major indicator of subprime credit. A good way to know if you have a bad credit score is to check if it is below the 700-point mark. This can be easily checked by going to websites such as CreditKarma or Borrowell.

Credit Score You Need to Borrow Money

A question many Nova Scotia residents have is: what does my credit score need to look like in order to qualify? The good news is that even with a 400 credit score, you will have no problems getting approved using payday loans or secured loans. The reason is that secured loans allow lenders to offset a large, if not entire, part of their risk factor. This allows you to get approved! Payday loans do not report, nor do they check your credit report, so the lender will be oblivious to your subprime credit. In fact, one of the foremost and fastest growing sectors of high-risk lending now happens entirely online, so you can receive your funds the same day from the comfort of your home. As mentioned above, Spring Financial specializes in this type of lending (I would definitely recommend checking them out). Even with bad credit, you’ll likely qualify for up to $ 3,000. Keep in mind that adding a cosigner or securing the loan will likely allow you to get approved for more than that. Plus, it’s as easy as filling out an online application.