Bad Credit Loans

Bad credit loans are borrowing options for people with low credit scores or limited credit history.

You may still qualify even if traditional lenders have declined you. Approval is not guaranteed. Interest rates and fees can also be higher when your credit score is low.

KOHO Cash Advance

KOHO Cover is not a traditional payday loan. It is a cash advance designed for Canadians who need a smaller amount of money to cover short term expenses.

With KOHO Cash Advance, you can:

• Get up to $250 as an instant cash advance (amount depends on eligibility)

• Pay no interest on the advance

• Avoid a credit check

• Repay automatically once you add money or get paid

You subscribe to the Cover bundle for a low monthly fee, and in return you get the advance feature plus extras like a credit report, financial coaching, and priority support.

How Do Bad Credit Loans Work?

Bad credit loans work much like other loans.

You apply for an amount of money. The lender reviews your application. If you qualify, you receive the funds and repay them over an agreed period.

The lender may look at more than your credit score. They may also consider your income and existing debt.

Can You Get a Loan With Bad Credit?

Yes. Having bad credit does not automatically prevent you from getting a loan.

Your options may be more limited. You may also receive a smaller loan amount or a higher interest rate.

The lender will decide whether you meet its eligibility requirements.

Can You Get a Bad Credit Loan With No Credit Check?

Some borrowing products do not require a traditional credit check.

That does not mean everyone will qualify. The provider may use other information to determine eligibility.

Are Bad Credit Loans Expensive?

They can be.

A lender may charge a higher interest rate when it considers a borrower more likely to miss payments.

Before accepting a loan, check:

• Interest rates

• Borrowing fees

• Monthly fees

• Repayment dates

• Late payment costs

• Total repayment amount

The total cost is more important than how quickly you can get approved.

What Should You Consider Before Applying?

Start with how much money you actually need.

Then look at whether the repayment will fit into your budget. Do not borrow more just because a lender offers you a higher amount.

Make sure you understand when payments are due. Check what happens if you cannot make a payment on time.

Can a Bad Credit Loan Help Build Credit?

It may help if the lender reports your payments to the credit bureaus.

Making payments on time can add positive payment history to your credit report. Missing payments can hurt your credit.

Check whether the lender reports to the credit bureaus before assuming the loan will help build your credit.