Reduced Hours, Less Money And Desperate For A Loan?

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How Does Credit Rating Work and is it Possible to Get a No Credit Check Loan Canada?

Like many people, I had my hours cut following the last Covid lockdown earlier in the year.  This has meant a drop in income, which left me unable to keep up with certain payments that I had no problem with before. So I decided to try and apply for a loan to get me through this difficult phase, especially as the situation has worsened again. It has been a total nightmare! Worst of all my credit rating seems to have been negatively affected! Like so many people around the world, I am now terrified at the prospect of not being able to pay my rent, buy food, pay bills, etc.

So in the midst of my despair, I called up a really good friend of mine in a complete state of panic, and they told me not to worry because there is a website where I could find a no credit check loan on!  No way! These really exist – a loan without a credit check!? Sounds too good to be true! Well, I will tell you all after I first share with you what I found out about the credit rating system in Canada and how it works.

How is my Credit Rating Checked?

OK, in case you don’t already know, if you ever have a bank account or anything that involves applying for credit, there will be a file kept on you. Yep, that’s right, everything from household electric, gas, rent payments – even your favorite department store card – they all feed into this central credit file. This file is then accessible to any organization that offers credit of any form.

So, let’s say, like in my case, you have a home rental contract, credit card, mobile phone contract, store card, and electricity account (oh, and a pretty mean Landlord!). All of these guys are in effect giving me credit of some sort and can see if I am “credit-worthy”! They are also able to feed into this central system if I were to miss a payment or stop paying altogether (known as a “default”).

Now your credit rating is basically a score in the form of 3 numbers. These go between 300-900, so if you have 900 everyone’s throwing money at you, but if you are down the lower end, no one wants to give you a cent!

Who Holds This Information?

So, just this month I found that I could check this score out for myself, after having had a couple of loan applications declined.  There are two companies who hold this information and you are entitled to one free credit report per year from them or, for a small fee, you can join one of them and view your credit file whenever you want. They are called Equifax and TransUnion and you can see all the info on who you have credit with and previous payments, along with your all-important credit score. Mine made very worrying viewing as my rating is currently sitting at 580! No one will want to come near me now! I may even get potential future employers seeing it! I’ve since learned it’s a good idea to join one of these services because not only can you check your report whenever you want, but they will send you alerts when anything is applied for or new credit is taken up. With all the identity theft around these days, it’s a really safe and cool idea.

Now, in my case, I had been faced with the decision to prioritize which of my outgoings were the most important as I could not pay for them all. So I decided I couldn’t live without electricity or my phone, and of course the roof over my head. I have also always paid my credit card off every month in the past but was now struggling to clear it. I decided it was the store card that was the least important one. I really thought all this Coronavirus stuff would be over soon and I could then catch-up with my payments again – but no! Especially with another probable lockdown looming!

Something I hadn’t realized was that every time I made an application for credit and it was declined, it also affected my credit score negatively! So I felt totally stuck in this negative vortex without a chance of getting out now! So you can imagine I have been in a complete panic and feeling pretty desperate.

financial stress - bankrupt - depressed

So How Do I Apply for a No Credit Check Loan?

Enter my bestie who dried my tears and put me onto the guys at Personal Money Network to talk about a no credit check loan. They were so easy to deal with! I just had to go onto their website and fill out a form. They actually use a whole bunch of lenders so it saves you going around one after the other and potentially getting more black marks on your credit file, and they let you know really quickly if they can lend to you.

They do say that if you include a “clean” bank account number that doesn’t have any issues, then it makes the whole process of applying for a no credit check loan a lot quicker. I was able to do this as my bank account just has a very small agreed overdraft on it. I did make a silly mistake with my address though and this resulted in a bit of a delay as they had to call me up, but I had the funds I needed within a couple of days. Of course, it would have been quicker if I hadn’t made that silly error – I think it was probably down to being so upset and not thinking straight!

So, for now I am able to ride the storm a little longer thanks to this no credit check loan, but all I want is to be working my proper hours again and be earning what I was earning before. I know this will probably resonate with a lot of readers, as I know we are all going through a tough time of it at present. But all we can do is hope and pray that it won’t be long now until we can all put this horrible situation behind us and move forwards and get our lives and finances back on track soon!

Be strong, stay positive, and most importantly stay safe and well!

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