What Does It Take to Be Eligible For a Bad Credit Loan?

By Michael Adams

If you could use some funding to take care of a situation right now, don’t feel alone. Just about everyone needs a loan at one time or another. Even if you have a few credit issues, don’t assume that obtaining a loan is out of the question. You can check with lenders and easily determine if you qualify for loans for bad credit in Toronto. As you begin the search, keep in mind that most lenders will require that you meet certain qualifications. Here are some common examples of what you will encounter.

Confirmation of Your Identity

Providing proof that you are who you claim to be is one of the essentials. This can be done by supplying information that leaves no doubt about your identity. If you’re not sure what to provide, rest assured that the lender will provide a list of acceptable documents. One of them will be some form of government issued identification.

Your Income Level

While there are lenders who specialize in working with applicants with less than perfect credit, it’s still necessary to provide proof of your income. That income must exceed what the lender considers a minimum monthly amount. As long as you do meet this requirement, the odds of being approved are a little higher.

Don’t make assumptions about what a particular lender considers sufficient income. That figure can vary based on the loan type as well as the lender. Once you determine that your income is enough to meet the basic requirement, feel free to proceed with the application.

Acceptable Forms of Income

There’s another point about your income that must be considered. Some lenders are open to all sorts of legitimate income. Others may only accept certain kinds of income sources. It’s up to you to find out which forms of income the lender will take into consideration.

Keep in mind that if you’re receiving government benefits, there are lenders who are willing to consider those funds when they evaluate your eligibility. You should also consider listing all forms of income when you submit your application. If you are receiving federal or provincial benefits as well as funds from a private pension or a job, include them all. That will enhance the odds of being approved for the loan.

A Valid Bank Account

Many lenders use electronic transfers to the funds into the hands of approved applicants. You will need to have a valid bank account that can be used to receive funds transfers as well as to make them. This type of arrangement ensures there are no delays in receiving the loan proceeds. You can also set up automatic withdrawals that ensure your loan payments are made on time every month.

Proof of a Permanent Address

You do need to provide evidence that you have a permanent physical address. That address can be any type of residence that one can imagine. Along with a house, confirmation that you live in an apartment is sufficient. If you live in an assisted living facility, confirmation of that fact will allow you to meet this qualification.

How do you provide proof of a permanent address? Many lenders will accept proof like utility bills, a letter from a landlord, or a letter from the manager of your assisted living facility. If you’re not sure what sort of confirmation will do, consult the application guidelines. It won’t take long to determine what sort of documentation will do.

Even if you’ve been turned down by a local bank, don’t assume that obtaining a cash loan is impossible for now. Consider working with a lender who offers loans to people with a wider range of credit scores. If you meet the lender’s qualifications, the money could be in your account in a couple of business days.