Know About The Application Process Of Bad Credit Loans Canada

If you have a bad credit and still want a loan then you must be all the more careful. You have to be well prepared to prove the lender that you are a good risk and are worthy enough to pay back the loan in spite of your bad credit. Therefore, during the application process for bad credit it is better that you ask the lender to have a one to one interview in person so that you can convince them about your credit worthiness. Once you get the assurance of such an interview make sure that you are well prepared for it with all relevant documents that will prove that you are worth taking a risk by the lenders.

The Stability Factor

All lending institutions will love to have borrowers who have a steady income and stability so as to ensure that their money will be safe and will be returned on time with interest. Simple things like staying in the same house and the city for a long time can assure the lenders that you will not run away with their money. On the other hand if you can prove that you have been in the same job and working for the same employers for several years it will also ensure stability and help you a lot in getting bad credit loans canada easily. Therefore, have a plan made early and arrange all the documents so that you can show it all within the short time allotted for your meeting.

Common Documents To Carry 

There are few common things that you should bring with you for the meeting to avail a Second Mortgage Canada and to provide your credit worthiness. Such documents include your tax returns, 1099 and W-2 forms. It is better to carry such documents from at least previous two years as that will show that you have been earning as well as paying your taxes consistently. This will also show that you are a responsible payer by paying your taxes regularly on time. The lender will make an assessment of your income, your expense and the amount of money that may be left for the repayment of the current loan. 

Include Some Other Documents 

In order to substantiate your claim for credit worthiness even further during application for bad credit loans Canada, you may include some other documents with it as well. It is good to include the details of your job and its history, the job letter, salary details including pay stubs. Apart from that you can include your list of assets like property, car, home, investments and stocks et cetera so that lender knows where you stand after meeting with all your expenses of living. Insurance and lists of credit cards and other unsecured debts along with medical bills are also good to provide with.

Your Responsibility Factor

You can also prove that you have become a responsible payer by including documents to prove that you pay or receive child support or alimony. Include your bank statements to further substantiate such payments and receipts along with checking, CDs and savings. Though all these documents are not essentially required to include but more the documents, more will be the worthiness proved. Therefore, include whatever documents available with you that will demonstrate that you have become sensible payer and responsible with your money. This will be a plus for you. Apart from proving it with your documents, you will also have to answer to some questions put up by the lender. These questions will be related to your credit history which has a negative impact on you. 

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Created on Oct 25th 2017 05:26. Viewed 463 times.

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