Borrowing in Montreal When You Have a Low Credit Score

old-montrealBeing able to borrow has always been an important thing to many people. People make their life plans based on their ability to borrow money from banks and other financial institutions. Even though loans come at a cost, people often get to achieve their dreams by using them. Given the importance that such loans have, you will find that a lot of people will be very careful so as to ensure that they remain in the good books of lenders.

At times, however, things happen in your life and you might find yourself on the wrong side of the queue when it comes to getting credit from credit card companies and banks. Though this is a bad thing, you shouldn’t despair as you can turn things around in a pretty short time. Below are some of the ways that you can follow so as to get some loan if you have a low credit score rating (

Options to consider in Montreal to access loans when you have low credit rating

  • Credit cards for bad credit – If you have ever defaulted in repaying a loan or a credit card (, you will most likely find yourself turned down by lenders. This means that you will not be able to access low-interest loans and 0% standard credit cards. However, there are credit cards designed for people with low credit ratings. These cards cost a little bit more than the normal cards. The good thing about them is that if you regularly use your card and make prompt repayments, you improve your credit rating and in a few months, you could find yourself eligible to acquire a mainstream lender’s low-interest credit card.
  • Payday loans – These are quite popular among Montreal workers. It is a kind of a loan that you get but usually payable on your next payday or until you have funds in your checking account. Say, you don’t have access to a loan and you really need some cash. You can approach some payday lender and agree on the interest rate and the payment date among other rules. The interest rates are usually higher than on credit loans or normal loans. If the lender agrees to lend you the money, you are supposed to write a cheque for the same amount plus the interest charged and any other expense.
  • High-interest loans – Lenders judge their customers’ according to their ability to repay loans. If you have in the past proven to have a hard time paying a loan, the lender will rather than forthrightly deny you a credit card or a loan, offer you a high interest loan. This type of a loan can be a good indicator as to your willingness to redeem your good name.
  • HELOC –This kind of credit exists when a lender agrees to lend a maximum loan to a borrower for a certain term usually between 5 and 25 years. The borrower, however, provides equity as collateral. This type of credit is similar to a second mortgage. The major difference between these kinds of loans from the conventional ones is that the borrower does not get the whole amount loaned upfront. They access no more than the credit limit through a credit line; very similar to the way a credit card works.
  • Borrowing from friends and family –When all other channels have failed, you can always turn to your family and friends. This is definitely a good thing. People find their source in family loans.

Being blacklisted or having your credit card score rated low is not the end of the journey. It should serve as a wake-up call for you to reorganize your finances and in a few years, you will be back to where you were. You just need patience and a lot of discipline.