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Bad Credit Loans in Nova Scotia

Are you in a situation where you need extra money but you don’t have the credit history to get approved? Well, just because you don’t have a great credit score does not mean you are out of options. The good news is that there are plenty of options for people who need a quick loan […]

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    Are you in a situation where you need extra money but you don’t have the credit history to get approved? Well, just because you don’t have a great credit score does not mean you are out of options. The good news is that there are plenty of options for people who need a quick loan in Nova Scotia, even if their credit isn’t the best. 

    Our Bad Credit Loan Application Process

    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 generally know if you have a bad credit score is if it is below the 700 point mark. This can be easily checked by going to websites such as CreditKarma or Borrowell

    Types of bad credit loans in Nova Scotia

    There are many types of loans for borrowers with poor credit in Nova Scotia. You could consider payday loans, microloans, secured loans, or select installment loans. Each comes with its own setbacks and upsides. 

    Payday Loans

    Starting with payday loans, they are the easiest type of loan to get as they will not check your credit. That being said, they also do not report on your credit file either, so you will not get the credit building effects of paying it off. All you will need is just a proof of income as well as ID. Your proof of income for example could be a letter of employment with your pay, employer, and start date. Now keep in mind that payday loans typically are very high interest, sometimes in the range of 200-300%. When you are paying off your payday loan you are going to want to pay it as quickly as possible so as to not pay the full interest amount.


    The next type of loan is called a microloan. These are small loans typically between $500 and $1500. Although they are advertised as having low interest rates, you will likely be paying a number of fees which could total hundreds of dollars. Microloan companies often use these ‘fees’ to circumvent the legislation regulating lending companies and their interest rates. The good part about microloans is that they are normally very quick and easy to apply for and place much less onus on your credit report compared to other loans. 

    Secured Loans

    Secured loans are a good option for someone with poor credit looking for a loan if you have a steady source of income. The reason for this is because instead of offsetting the lender’s risk using interest rates they use your property. Oftentimes they will use your vehicle or your home as collateral, meaning that in the event that you default on payments they can legally repossess and sell your property. Now, even though you are securing the loan, don’t expect low interest rates. While they are likely going to be lower, keep in mind that they won’t be comparable to someone who has good credit. It is also important to make sure your payments are coming out not a day late as defaults may give the lender rights to your property. I would only recommend these if you have a steady source of income you can count on.

    Installment Loans

    The fourth option you might consider is certain installment loans. These are what you might think of as “traditional loans”. The majority of these lenders (depending on where your credit is at) likely won’t help you, but there are a couple lenders that specialize in high-risk lending. Cash money, for example, will lend to people that other lenders would otherwise consider off limits. There is a catch however; it will be very high interest. The best way to combat this is to make payments larger than your scheduled minimum payment amounts, that way you will pay less interest as the remaining balance of your loan will be lower as well. The upside to using traditional loans is they will report on your file, accordingly increasing your credit score with each positive payment you make. Not only that, but you will start developing a relationship with whatever lending institution you choose, fast tracking your funds next time you may need some.

    How do you get a loan with Bad Credit In Nova Scotia?

    So how is it done? Well, I hope it’s comforting to hear it’s rather easy. If you are thinking that a payday loan fits your needs the best, you will need to search up “Payday Loans in my area”. That will give you a list of relevant payday loan companies nearby. From there simply bring proof of income such as a letter of employment, pay stubs and valid non-expired government-issued photo ID matching the name on your proof of income. The company will intake your information and give you an offer based on your documentation and requested loan amount. Oftentimes with payday loan companies you can receive an instant loan but be wary of extra charges, read the contract carefully.

    Microloans are slightly different to payday loans in terms of documentation. In order to get a microloan, you should search “Microloan company near me”. Select one that matches your needs. Bring your non expired government issued photo ID, proof address, and proof of income. 

    Most places accept proof of address as a bill dated within the last 60 days with your name and address on it. You should also bring a direct deposit form in case the company you selected prefers to deposit the funds into your bank account instead of giving you cash. 

    Installment loans are somewhere in between secured loans and payday loans. They tend to be fairly quick barring no major issues. If time is of the essence for you, feel free to search for “fastest loan companies in my area”. Also consider using one of the available online lenders. They tend to be quite efficient and it’s easy to apply. Be sure to have your valid government issued non-expired photo ID, proof of income, 2 most recent pay stubs. An installment loan will be the most difficult type of financing to get approved for with poor credit because unlike secured loans they have no collateral. The lender simply has to take you at your word that you will pay them back. For that reason they place higher emphasis on your payment history, credit card utilization, and credit score. It’s important that you understand applying for a traditional loan might be difficult if your credit is really bad and you might be better off considering secured loans or payday loans. 

    Secured loans will require the most amount of due diligence as they will also need rigorous legal documentation for your collateral. You should expect to need to show your basic government issued non expired identification, proof of income, void cheque, title or certificate of ownership on your chosen collateral (likely a vehicle or a home). Make sure your ID matches the proof of ownership exactly as lenders might be apprehensive about approving you. Be prepared for the lender to ask for a notarized copy of your title of ownership as they are very picky in terms of fraudulent ownership. Don’t be surprised if they ask you to bring the collateral in so they can intake, verify ownership, and appraise. Keep in mind that the higher your credit utilization on your tradelines, the higher your interest rate will be regardless of collateral.

    What companies in Nova Scotia will give you a loan with bad credit?

    Luckily Nova Scotians have plenty of options in terms of high risk lending companies. 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, famous for helping Canadians in all types of credit situations in a time efficient 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 does $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! 

    What Credit score do you need to borrow money?

    A question many borrowers in Nova Scotia have: what does my credit score need to look like in order to qualify? Good news, even with a 400 credit score you will have no problems getting approved using payday loans or secured loans. The reason being is 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 be able to qualify for up to $3000. Keep in mind that adding a cosigner or securing the loan will likely allow you to get approved for more than that.

    If you’re worried about lending companies checking your credit you should elect to use a payday loan. They won’t check your credit and they won’t put a hard inquiry on your credit file, which is typically standard procedure with traditional loans/lenders. For those that are unaware, a hard inquiry shows up at the bottom of your credit report and damages your credit score on average between 5-10 points. Now luckily the credit building effect of making payments on time will reverse that effect tenfold – however that’s assuming you're making positive payments on time that are being reported to the credit bureaus.  

    Get a loan today from Spring Financial

    The good news is that the landscape around high-risk lending is changing, with Spring Financial leading at the forefront of online subprime lending. With Spring Financial’s easy online application process it allows you to get funds deposited into your bank account straight from the comfort of your home. If you have troubles with the technology aspect, they have a helpful team of agents who are only one call away. Not only can they give you upfront funds but also help you build your credit back up with their signature credit building product The Foundation, and that way your options start to open up and you can apply with confidence!

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