Loans with imperfect credit

A missed payment, a maxed-out credit card, an account sent to a collection agency: a credit report keeps track of moments like these for years. People call it “bad credit.” We say imperfect credit, because a credit report doesn’t sum up a person.

If yours isn’t perfect and you’re looking at loans for bad credit, here is how a request is reviewed at Money911, what a co-borrower changes and what it doesn’t. On timing: once you’re approved and the contract is signed, the money lands within the hour by Interac e-Transfer (an extra fee applies), or the same day by direct deposit if the signed contract is back before 11:30 a.m., otherwise the next day. Our guide to fast loans in Canada covers timing in detail.

Why no one can promise approval

Some ads promise approval, whatever your credit file looks like. Yet a credit decision starts with your situation. In Québec, for example, the Consumer Protection Act requires a merchant to assess the consumer’s capacity to repay the credit requested before entering into a credit contract.

At Money911, every request is reviewed for your ability to repay; a request judged too risky is refused. Approval is not guaranteed.

What we can do is show you everything before you start: the criteria, the published reasons for a refusal, the bank verification and who does what. Then you decide, with the full picture.

What a co-borrower changes

A co-borrower commits to the loan with you, which lowers the lender’s risk. At Money911, that co-borrower is us. The loan itself comes from a separate lender.

No co-borrower in your circle? Money911 commits to the loan with you. You don’t have to ask a relative or a friend to commit with you.

What stays the same:

• The eligibility criteria apply to every request.
• Your ability to repay is still reviewed.
• The loan comes from a separate lender, who sends you the contract.
• Approval is not guaranteed.

To see who does what, read how a loan with a co-borrower works or learn about our co-borrower service.

Eligibility criteria

Before you apply, check that you meet these criteria:

• 18 or older
• Living in Canada
• A stable job
• Pay received by direct deposit into a Canadian bank account
• Net income of at least $1,500 a month
• No consumer proposal, debt consolidation or bankruptcy in the last 30 days, and none planned in the next 6 months

Instant bank verification (IBV) is part of every request. Self-employed? Your request is reviewed like an employee’s.

Income we don’t accept: support payments, student loans and bursaries, and Social Solidarity Program benefits (Québec) when net income is under $1,500 a month.

Meet the criteria? Fill in the online request form, open anytime.

Published reasons for a refusal

A request can be refused for any of these reasons:

• Bank verification (IBV) not completed
• Bank account too recent
• Incomplete documents
• Eligibility criteria not met
• Debt ratio too high
• A returned (NSF) payment or a stop payment
• Other reasons judged appropriate

Two terms deserve a word. Your debt ratio compares your debt payments with your income: when it is too high, one more payment can stretch your budget too far. An NSF payment is a payment returned for lack of funds; a stop payment is one you asked your financial institution to stop.

You’ll find the same list in our FAQ on eligibility and on our page about how a request works.

Bank verification (IBV)

Instant bank verification sends us a read-only copy of your statement. We never see your username or password.

Your financial institution sends the statement. We review each request for your ability to repay using that statement and the information in your request.

The verification is part of every request, and a missing one is a published reason for a refusal. Do it as soon as you’ve filled in the form: your request is reviewed after that.

If your request is refused

A refusal doesn’t make the need go away, but it does tell you where to look. Compare your situation with the published reasons:

• Was the bank verification completed, and were your documents complete?
• Do you meet every criterion, including a stable job and net income of at least $1,500 a month?
• Do your current payments already weigh on your budget? Then a new loan could add to the strain. Take stock of your expenses first.

Not sure what your credit report says? It sums up how you’ve used credit in the past, and you can get it for free from Canada’s two main credit bureaus. The Financial Consumer Agency of Canada explains how. Check it for errors.

A question about your request? Call or write to us.

Borrow responsibly

• Borrow what you need, not the most you could be offered.
• Avoid taking several small loans at once: the payments can outgrow your budget.
• Read the lender’s contract before you sign: the applicable terms are in it, and no payment or advance is required at signing.
• A payment getting hard? Call us before it is due.