well this may be an odd thing to ask on empty closets but i am going to ask it anyways What are the chances of being able to get a personal bank loan with bad credit? is it still possible? or not even worth trying?
Certain banks cater to people who have terrible credit here in the US. I would expect that these types of venues exist in Canada.
It would depend on what you want the loan for. I don't really know. I've maintained good credit and never had trouble getting a loan when I've needed to.
What you're looking for are "subprime lenders"; I attached a link, you can read more about it. Though beware, subprime lenders take a higher risk and compensate by for example charging higher interest rate (very important to read the fineprints!).. so unless you really need the loan... my personal advice is to try your best not to draw out any loans to prevent your credit rating plummeting even further. http://www.canadabanks.net/default.aspx?article=Subprime+Lenders
If you want a personal loan, the bank will look at a couple things: 1. Credit history 2. Income 3. Other owed money Do you owe other money? To things like credit cards, lines of credit, cars, mortgage, etc...? How high is your income relative to the amount of money you want to borrow? Is your job stable? How bad is "bad" credit? Banks will do a credit check on you when you apply for a loan - it will likely preclude you from getting an un-secured credit card, but certain loans might be possible, your bank will have to weigh the factors. Lastly, they will ask you what you want the loan for - consolidating debts, major purchase, cash flow reasons - which will also help determine a yes/no.
If you have crappy credit, you'll generally end up with loans from places like CashMoney and other check-cashing type places. Interest rates are generally obscene; you'll almost get a better deal from the Mafia. Depending on what you're trying to do, there might be other options, such as the rent-to-own places (also obscene in their pricing.) But if you have no other choice, and are really conscientious about getting it paid off quickly, in some cases it can work to your advantage.
Do you have NO credit (as in not much on the books because you're young), or do you have BAD credit (as in you've gotten some credit cards and missed payments, had a collection, anything in that realm)? Because if it's the former, you can get some smallish bank loans without much problem. If you have BAD credit, it'll be a lot tougher unless you have something to offer as collateral. Lex
Yes Lexington brings up a good point. When I was 17 I got a $2000 loan from a small local bank. I had been working for a few months, but I needed to buy a car. I also had a phone line I had been paying for, so I was able to show the bank some history of paying debts. I do remember that the local officer called my dad and every one of my references. I don't remember what the interest rate was. It couldn't have too terrible, or I wouldn't have taken the loan.
