In today’s financial climate, we hear a lot about high interest rates, tough approval terms, and soaring debt. As a result, many new loan companies have appeared, offering to help those with bad credit histories. However, it’s important to understand what a bad credit score is and why it matters before jumping into a lending agreement.
In Canada, credit scores range from 300 to 900, with 300 being the worst possible score and 900 being the best. Most banks, lenders, landlords, and employers consider anything 574 or lower to be a bad credit score. This means that you have not been paying off your debts in a timely manner, which can hurt your credit score over time.
If you have a bad credit score, it is still possible to get a loan from some lenders. However, it’s important to be aware of the risks and policies that come with borrowing money from these companies. One of the main risks is high interest rates, which can range from 18-47% for unsecured loans and 10-30% for home equity loans. In addition, lenders may charge additional fees or bump up costs for those with bad credit histories.
When considering a loan, it’s important to read the fine print and understand the policies involved. This includes paying attention to interest rates, fees, loan terms, and the application process. While many lenders are legitimate, it’s still important to do your research and be cautious of scams.
At Infinite Mortgage Solutions, we only work with lenders we trust and know. We strive to provide our clients with the best options for their situation, and we will work with you to find a loan, rate, and term that meets your needs.
If you’re interested in learning more about us,
please visit our website or contact us by phone or email.