Realize Small Urgent Works: Opt for a Loan Solution

Water damage, roof torn off by a storm, flood … faced with these unforeseen, it is often necessary to react quickly to make the necessary repairs so that your property is damaged as little as possible. Yet our personal funds are not always able to cope with such emergencies, so many are turning to a loan solution.

Work is one of the five most common reasons for using credit. A practice thus widely diffused which invites however to the reflection.

Loan solution: assess the type of work to be done

There are several types of work that often require the use of a loan. These repairs, constructions or repairs are more or less urgent depending on the case and the necessary funds may exceed the funds available.

Long-standing renovation projects

In general, major renovations are often thought upstream. The necessary funds are collected for several months to meet the needs.

For this type of operation, banks offer loans on condition that renovations are justified. Some private financial institutions also offer lending solutions for this type of work, with the advantage of not requiring proof.

Urgent works

This is one of the fears of any owner: unplanned work. A water damage or damage caused by a storm must be settled immediately so as not to impact your property permanently and to depreciate the value. That is why to possess the necessary resources, the loan of urgent money is a frequent recourse.

Why use credit for urgent repairs?

There are several types of loans offered by different financial institutions. Choosing a particular type of credit depends on the importance of the work and the situation of each.

The traditional bank loan

By habit, in case of unforeseen events, we tend to turn to our bank to ask for a loan.

Yet when there is urgency, this solution is not the fastest. Going through a bank for a credit takes time for your file to be accepted. There are also many constraints such as justifying urgent work, or risking undermining your credit rating if you have problems repaying the loan. Fortunately in case of imperatives you can turn to faster solutions.

Instant loan: a quick fix

In an emergency, instant lending is an attractive alternative. The acceptance rate is fast (around 24 hours) because there is no credit check. Another advantage is that you do not need to justify your work to qualify.

These loan solutions are most often offered by private financial institutions. The procedures are simplified, you just have to fill out an online form to make a request and the answer is very fast.

Some banks now offer instant loans, but the terms of acceptance are stricter because such requests require a more thorough verification of your situation.

Unlocking funds to make major renovations through a loan or putting on the table his own personal funds, this is planned well in advance. However small urgent work caused for example by water damage or sudden deterioration of infrastructure, this is not expected. We must therefore react quickly despite sometimes lack of funds. That’s why instant lending is one of the best alternatives to unlock money quickly.

For any question or request, do not hesitate to contact our advisors or fill out our online form.

Get a loan in Canada without a credit check

Even if you think that it is impossible for Canadians to be approved for a loan without a credit check, this is not the case. In Canada, loans without credit investigations are an excellent substitute for more traditional loans from banks or other major financial institutions. No credit check with your creditworthiness; instead, you will have to prove otherwise that your current financial situation can support additional financing.

Alternatives to credit surveys

credit

So, if a lender does not require the credit inquiry to approve a loan, what does he need instead? As mentioned before, the lender will generally check creditworthiness through another form of valuation. If you choose to work with a lender who does not consider credit ratings in their underwriting procedures, you will typically need to provide one of the following:

Bank statements

Some lenders who do not take the credit rating into account will require you to provide them with bank statements to check how much money is in your monthly bank account. Lenders can thus ensure that you can actually support this loan. If you already have too much financial responsibility, a lender might not want to approve you a loan. There are many ways to do this, but here are some of the most common ones:

  • Instant banking verification. There are many programs that provide this service. You will log in to your online bank through the program your lender uses and will automatically take a snapshot of your account and build a report. Your lender sees a report, not your account information.
  • Electronic declarations. All banks offer electronic returns via their online banking portal, and a lender can request them to validate your financial situation.
  • Or you can simply fax your bank statements to your lender.

Documents to confirm your income

Another way for the lender to assess your creditworthiness without doing any credit check is to check your income. Lenders want to make sure that they will be reimbursed on a regular basis and it is important for them to only provide loans to people who have enough income to repay. Most lenders do not seek to create additional financial difficulties for their clients.

Use warranties

If you think your credit rating or financial history may be detrimental to your chances of being approved for a loan, you should consider providing collateral. Most secured loans do not require a credit check because your assets make your credit history less important. The guarantee protects the lender. This is a great way to get a personal loan that is $ 5,000 or more. With a secured loan, you will not have to accept a credit check and will have a better chance of getting a higher loan.

Lenders who do not check your credit rating

 Lenders who do not check your credit rating

If you are looking for a loan from a bank or other more traditional financial institution a credit check is always required. This is how banks assess the creditworthiness of a potential borrower. If you know that your credit rating is not extraordinary, you could avoid applying for a loan from major financial institutions. If you want a fast, short term loan or simply without a credit survey, you should consider the following types of lenders:

  • Alternative lenders. Mostly found online, they are willing to work with borrowers who are rejected by the banks.
  • Private lenders. They do not need to follow the same strict guidelines as the banks.
  • Lenders specialized. Work with specialized lenders (for example, private mortgage lender or title lender).

Approval

The approval process without a credit check is based on more than just a 3-digit number. This means that more people are able to get approval for the loans they want and fewer people are rejected because of their past financial missteps. Lenders without credit inquiries are willing to work with you to find the loans, terms and products that best fit your borrower needs.

Private Loan vs. Payday Loan

If, for one reason or another, you find yourself in a dead end on the financial side but you need a large amount of money to acquire a property or to make a payment, you will surely fall on option to apply for a private loan or for a payday loan. But what is a good option?

If you are tinkering with a loan until you get back to its basic state, you will notice that a loan is essentially made up of a few factors: the size of the loan, the loan term, and the cost of borrowing. Another noteworthy method is the method of payment required to repay the loan, as this is important when considering payday loans. In the same vein, ask yourself the following questions:

How much money do you need?

money dollar

2. When do you need it?
3. How much can you afford to repay each month? (This concerns the cost of borrowing, for example the interest rate)
4. How long can you afford to make these payments?

So, let’s look at a few different scenarios to determine the type of loan that works best for you.

If time is a factor, and the amount of money you need is less than $ 1500, then a payday loan would be the right choice. Payday loans are fast and convenient, and it works in a very simple way: you get the loan for which you applied and the day you get paid, a certain amount of money will be withdrawn from your bank account to repay your loan. This is a quick and convenient approach because you can get the loan you want very quickly and without having a headache, as long as you meet the loan qualification requirements.

Payday loans are known to be very expensive, but this cost is justified by the infallible automation offered by most lenders.

If you need a larger loan, your first option may be to opt for an unsecured private loan

If you need a larger loan, your first option may be to opt for an unsecured private loan

Once again small (usually below $ 5000), this type of loan is not as “automatic” as a payday loan would be but quick enough to get (especially if you compare to something like a home equity loan). The method of repayment varies from lender to lender. The cost of an unsecured private loan is only a fraction of that of a payday loan.

If the cost (the interest rate) of a loan is important to you, then the unsecured loan may not be what you are looking for. For a loan to be negligible, the lender will want to have some kind of collateral in order to reduce the risk and the loss that would come with the event of a default. The usual assets that are used to obtain a loan are the vehicles or the goods. Individuals who are looking for smaller loans often avoid refinancing their home (the cost of breaking a mortgage may not be worth it) but rather opt for a better alternative: that of refinancing their mortgage. vehicle. This is a fairly easy thing to do if you own your vehicle or if your vehicle has a high value (if you have paid a large portion of the financing for your vehicle). If you have any questions about payday loans, private loans or car loans, do not hesitate to contact us by clicking here. What is the best option, do you think? Let us know by leaving a comment below.

Negotiate with your collection agent

Collection agents are often associated with untouchable people who must be obeyed. The reality is that we should not be afraid of those people with whom it is even possible to negotiate. On the other hand, do not give the task of negotiation to a company or to a third party because it is possible to do it yourself. This may seem scary at first, but negotiating with the agent personally will save you a lot of money in the long run. Here are six tips for successful negotiation with the debt collector.

Be prepared

If you decide to negotiate with your collection agent, you must be well prepared and knowledgeable about your current financial situation. You need to know your monthly income, monthly expenses and other debts. This information is important to know because it will tell you how much money you can actually pay to your agent, either monthly or in a single payment. Start making a budget to see how much of your surplus income you have left after all expenses are paid. Having accurate numbers helps you negotiate better and saves you from accepting an offer that exceeds your ability to pay.

Have a hard skin

 Have a hard skin

Although this task seems difficult, it may be the best way to negotiate. The law prescribes any physical abuse on the part of the officer towards you, but it does not prohibit the agent from being verbally aggressive. Collectors collect their money by taking back the money you owe and, believe it or not, they will do everything in their power to get it. Being mean is an integral part of the agent’s strategy. They want to humiliate you by calling you good for nothing or useless. Have a hard skin and do not succumb to these provocations.

Know the law

The federal and provincial governments have all developed legislation on the activities of debt collectors. For example, if an unsecured debt has not been paid on time, there can be no legal recourse. It is important that you know the laws in your province. If, for example, you have exceeded the time limit to repay, you are not legally obliged to pay your collection agent.

Do not make multiple payments

money payment

Although multiple payments may seem like a good idea, it can complicate the repayment process. If you negotiate with your collection agent to make multiple payments, this may result in the renewal of the period during which the repayment should be made, and this may also result in the possibility of legal recourse. Instead, use legal counsel to obtain all the information regarding multiple payments. Thus, you will be informed and ready to negotiate.

haggle

 haggle

Bargaining is, in fact, one of the best options when you are trying to settle the debt with the debt collector. Do not forget! Your debt has been sold to collection agencies that will try to make even more money on your back. It is then plausible that these agencies exaggerate the value of your balance. Know the exact balance of your debt and, above all, do not give in to their first offer. Also, do not accept the possibility of monthly payments that your agent could offer you. Instead, you should negotiate a large single payment. Thus, you would have a better chance of getting a discount on the initial balance sheet. The salary of the collection agent is based on commissions, which means he wants to get your money back as soon as possible. As a result, they are more inclined to negotiate. In order for your negotiation to be successful, contact your collection agent personally at the end of the month. Usually, these agents have monthly quota fill. As a result, at the end of each month, they will be more open to negotiating and settling the account to fulfill their quota.

Ask for paper evidence

 Ask for paper evidence

If you intend to settle the debt, you must absolutely obtain all documents and evidence in writing. If you agree to a reimbursement plan proposed by your agent, be sure to obtain a written version of the agreement. Also, make sure you make no payment without first receiving a written agreement. Finally, make sure that the written agreement makes it clear that following the payment, you will be released from your debt to the collection agency. Doing business with collection agents is not a pleasant thing. Agents want your money and will do whatever it takes to get it. On the other hand, by following our advice about trading, you will be able to get out of debt more easily and have more to do with these agencies and their agents.