How to obtain short terms emergency funds ?
When you are in need for a no credit check loan, many solutions exist based on your financial situation. Based on your current income level, your expectations and your financial institution that you choose, let's find out which one corresponds best to your ability to borrow money.
The line of credit
This financing solution is usually offered by a financing institution that allows you to withdraw money when you want to, up to an established credit limit. You'll pay interests on the used amount until all of it is fully reimbursed. This solution is useful to avoid penality fees from companies that have pre authorised payments that pass in your bank account, as an exemple.
Beware, the interest rate is variable and not guaranteed. You are dependant to your bank, that can change their rates without prior notice. The principal benefit of the line of credit is with interest rates that are usually lower than other kinds of loans. The major drawback is that it eases access to funds that can lead some people in finances difficulties that are even more serious than the situation they were in at first.
Personnal loan
To obtain a personnal loan from a bank, a lot of things will be verified: Your income (that usually have to be between $35,000 and $50,000), your curent indeptness level and a credit rate check. It is also possible that your solvability report shows that you already have a lot of depts and sometimes, banks will even determine that you have too much depts related to your reimbursment capacity. That is what we call the debt ratio. Personnal loans can be short-terms, but are usually extended on minimal periods of time and have a fixed reimbursement calendar that you cannot change. Interest rates on personnal loans are usually a bit higher than line of credits, but are lower than other financing methods. They can be a good solution depending on your financing situation.
Cash advance on the credit card
If you need to obtain urgent funds, doing a withdraw on your accessible credit card can sometimes be easier than the line of credit but requires fixed payments. Appliable fees can also be higher and you also might have to pay withdrawl fees at the counter. That is why it is always important to make sure that you have to covered funds when it's time to pay bills. In a case of unplanned expenses, that is also an option to consider.
The variable facility with no credit check
The cash advance on your credit card is a borrowed amount based on your limit of credits. This limit is decided based on your current income and your reimbursment capacity. However, the variable credit facility do not requires a credit check. Be careful, you pay interests the moment you start to withdraw until the moment the amount is fully payed back.
Unlike other usually low amounts loans (between $250 and $1,250) offered by Canadian broker firm, variable credit facilities are more flexible and can be reimbursed at any time. There is no fees to pay in advance and no expiration date. So, even if your past credit are not looking good, that is not a problem as long as your income level is enough.
The variable credit facility allows you to receive funds in a simple, secure and confidential process. The interest rates are usually higher but you get an immediate deposit and the reimbursement frequency is flexible. It is a very appreciated financial solution in emergency cases or for people with bad credit scores.
To learn more about different offers of no credit check that we propose.