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Frequently Asked Questions About Bad Credit Loans in British Columbia
Why might I need a bad credit loan in B.C.?
If you’re a resident of British Columbia, struggling for cash, in need of a loan, and have a credit score of less than 600, then a bad credit loan is probably your most viable financing option. Most traditional lenders have a minimum credit score requirement of 600, and so anyone falling under this threshold will need to find a loan provider who is willing to work with bad credit borrowers. Although the average credit score in B.C. is 680, there are plenty of residents of the province who fall into the “bad credit†category who need this option.
What can I use a bad credit loan for in B.C.?
Bad credit loans can be used for a wide range of purposes, including paying monthly bills, covering one-off expenses and emergencies, debt consolidation, funding tuition, and so on. B.C. does not have any specific restrictions on what a bad credit loan can be used for, although each individual lender may have their own guidelines.
How do I apply for a bad credit loan in B.C.?
Applying for a bad credit loan in B.C. is fairly straightforward – especially if you do so online. The exact information you need to provide will depend on the lender, but in general you’ll need to be at least 19 years old, a resident of the province, in possession of an active bank account, and have some form of income. Depending on the type of loan you’re applying for, you may also need to provide collateral for the loan, or show other financial documentation (for example, detailing your existing debt levels).
What bad credit loan providers are there in B.C.?
B.C. is Canada’s third most populous province, so it’s no surprise that there are plenty of bad credit loan providers for locals to choose from. These providers fall into several categories: online lenders, bad credit financial providers, no credit check lenders, bad credit auto loan providers, and payday loan companies. Choosing between these options is a matter of considering how much you need to borrow, for how long, and how much you can afford to pay in interest and fees.
What’s the average interest rate on a B.C. bad credit loan?
Interest rates on bad credit loans in B.C. are much the same as across the rest of the country, thanks in part to the spread of online lenders and the homogenization of the loan market. Typical rates for bad credit loans range from 5% to over 40%, and this disparity is due to the vast differences that can exist between bad credit borrowers and bad credit loans. The average APR for a bad credit loan sits at around 20%.
How much can I borrow in B.C. with a bad credit loan?
The amount you can borrow through a bad credit loan depends on the type of loan you get, the provider, and your exact financial circumstances (for example, a higher income will likely give you access to more borrowing room). Generally, borrowing amounts range from as little as $500 to as much as $50,000. Loan terms can be just a few months to five years.
How much will I pay in fees for a bad credit loan in B.C.?
Fees are an important consideration when taking out any loan, as their cost must be accounted for along with interest charges and late/early payment penalties. Each lender has their own fees, most commonly consisting of an application fee and a loan origination fee; there may also be loan service fees, closing fees, underwriting fees, insurance fees and more. Reputable companies will always be transparent about their fees, but untrustworthy lenders do exist in B.C., so it’s crucial to be vigilant about who you borrow from.
What if I’m unemployed and need a bad credit loan in B.C.?
It is possible to get a loan if you have bad credit and lack steady employment in B.C. While most bad credit providers require some proof of income, there are exceptions to this. Unemployment loans are available to most, but you may pay higher interest rates or have more restrictive loan terms because of your increased financial insecurity. It might be worth considering a guaranteed loan, if this is an option for you, as having someone else act as guarantor in case of default will make it easier to qualify for a loan without income and with bad credit.
I don’t live on the mainland. Can I still get a bad credit loan?
British Columbia is known for its fantastic coastline and many islands, and nearly a million of its residents don’t live on the mainland. This fact does not affect ability to access financing though; the same bad credit loan options exist for all residents of the province – as long as you can prove your residency and address.
Can I use a bad credit loan to improve my credit?
Yes, it is possible to use a bad credit loan to improve your credit – as long as you are able to make your loan payments. A bad credit loan may be the only financing option to those with bad credit, and can be a method for affordable debt consolidation; by making regular, reliable payments on the loan, you will over time improve your credit score. However, this is a knife that cuts both ways: if you fail to make your payments, then this will adversely affect your credit score. Utilize our loan calculator to better understand your repayment requirements.
Written by:
Amy Orr
Amy Orr is a professional writer and editor with over 10 years of experience in the Canadian, U.S. and U.K. financial markets. She has written for numerous publications on topics as diverse as economic literacy, corporate finance, and technical analysis of numerical data. Prior to transitioning to full-time writing, she worked in the hedge fund sector. Her academic background is astrophysics, and she has a Masters in Finance from the University of Edinburgh Business School.
Reviewed by:
Jenna West
Jenna West is Smarter Loans' in-house financial writer and content director. She has been covering the Canadian FinTech and finance industry since 2017, including financial trends analysis, industry surveys, regulatory updates and changes in Canadian consumer behaviour when it comes to finance.
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