In collaboration with Alterfina
Bad credit can get you into trouble, especially if you need money fast. Banks are reluctant to lend to people with bad credit. Fortunately, Alterfina looks beyond the numbers on your credit report to give you a hand when you need it most.
What is bad credit?
Your creditworthiness is represented by your credit rating, expressed as a number between 300 and 900 determined by one of two credit bureaus in Canada: Equifax and TransUnion. In short, your credit score represents your ability to manage and repay your debts. The higher your score, the more likely it is that you are a reliable borrower. The lower your score, the less likely banks and lenders are to lend to you. A poor credit score is generally considered to be between 300 and 579.
Several factors influence your rating. The most important is your payment history. Every missed or late payment affects your credit rating negatively. The credit utilization ratio is also an important factor. The higher the balance owing on your credit cards and lines of credit, the more of a risk there is to lenders. The age of your credit accounts, the number of applications you have made, and your history with collection agencies also have an impact on your score.
What are the impacts of a poor credit rating?
A bad credit rating can make life difficult. Banks and other lenders may refuse to open a new credit card, line of credit, or give you a loan, whether it is a personal loan, a mortgage or a car loan. Even if they agree to give you a loan, the conditions may be poor: lower amounts, exorbitant interest rates and rigid loan conditions.
But that's not all. A poor credit rating can affect your chances of finding a place to live or getting a job. Landlords and employers may check your credit rating and decide that you are not a good candidate if they determine that your rating is too low.
What if I need money now?
The only way to increase your credit rating is to make your payments regularly and over the long term. That's all well and good, but what if you need money right now? That's where Alterfina comes to the rescue. This lender gives you access to credit from $500 to $2,500, regardless of your credit situation.
Instead of relying on your credit rating, Alterfina evaluates your borrowing capacity based on realistic criteria. Its goal is to help you move forward when you have an urgent financial need. This could be a rent payment or to pay off overdue bills, for example.
The process is very simple. You simply fill in an online form, which takes a few minutes to complete. Alterfina then performs an instant bank check and if approved, you will receive your funds within a day!
There are only a few eligibility criteria. You must be 18 years or older and a resident of Quebec. You must also have a stable income of at least $1,500 gross per month.
Does this have an impact on my credit rating?
This is the great advantage of Alterfina: the loans and their repayments have no impact on your credit rating, as the company does not communicate with the credit agencies. The repayment process can also help you gain discipline in paying your debts!
How does it work to pay back an Alterfina loan?
Alterfina loans carry an annual interest rate of 18.99%. The amount and frequency of your minimum payments are determined together with you, depending on your ability to pay and the length of the repayment period. Alterfina loans are generally repayable in 3 to 6 months. The repayment policy is also very flexible, so that you can repay the rest of your balance, in full or in part, at any time! And in case you can't make a payment, you can request a deferment of payment at least 72 hours before the due date.
Alterfina is there to help you quickly and easily.
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About The Author: Arthur Dubois
Passionate about personal finance and financial technology, Arthur Dubois is a writer and SEO specialist at Hardbacon. Since his arrival in Canada, he’s built his credit score from nothing.
Arthur invests in the stock market but doesn’t pay any fees because he uses National Bank Direct Brokerage online broker and Wealthsimple’s robo-advisor. He pays for his subscriptions online with his KOHO prepaid card, and uses his Tangerine credit card for most of his in-store purchases. When he buys bitcoins, it’s with the BitBuy online platform. Of course it goes without saying that he uses the Hardbacon app so that he can manage all of his finances from one convenient place.
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