Do you think you cannot get a loan in Canada as your credit score is bad and there is loan no credit check facility, then that is not right? There are places or lenders ready to offer no credit check loans in Canada and they are real substitutes form the big financial institutions and traditional bank loans.
The advantage is that the loans no- credit- checks lenders do not pull your report of credit score to assess your worthiness. They do not speak a word about the credit check and only ask you to provide a substitute to verify your current financial situation that supports the additional financing.
Credit Score Alternatives
In case a lender does not ask for a credit check to give you a loan approval, what they ask as a replacement? Yes, it is true that they do not demand the credit report, but verifies the other documentation or considers other type of assessment as verification. They go for the underwriting procedures and here you will be required to submit the following documents:
The lenders who ignore the credit scores ask you to provide your bank statements to verify the money you receive and the money that goes regularly from your bank. The reason is that the lenders want to assure you can afford buying and repaying a loan. In case you have numerous responsibilities, a lender will re-consider and may not give a loan approval. If so, also there are few other ways of convincing such as:
- Instant banking verification: There are different programs provided as service. It means you can log into online and through this program the lender can automatically get your account snapshot and build a report.
- E-statements: Banks offer e-statements using the online banking portal, and a lender can check that to validate your standing. Or it is best you fax your bank statements to the lender.
Documents confirming income
There is a way of no credit check lender wishing to determine your creditworthiness is through going through the income source. The lenders just wish to make sure they are giving the loan to the right person who is getting paid monthly. It is equally important for the lenders to offer loans to people who are making money sufficient to meet their needs and can pay the loan back to make it sound affordable loan. Make use of it considering a systematic approach.