There are all kinds of banking institutions out there. But when it comes to obtaining emergency loans to avoid a service cut-off, pay an unexpected bill, or avoid a bounced cheque, not all of them necessarily have the responsiveness required to grant a loan quickly and release the funds immediately. What solutions should you turn to in this case?
The traditional personal loan
Conventional banking institutions offer lines of credit and personal loans to their clients as long as they meet a certain number of conditions: have a stable situation, less than 30% debt, a bank account free from payment incidents, and a good credit rating. However, even if all these criteria are met, at this type of institution, there is no guarantee that the loan will be granted quickly and that the funds will be disbursed in a timely manner to address the urgency of the situation.
The no credit check loan
Faster to obtain than the conventional personal loan, the no credit check loan is also accessible to a greater number of people, since obtaining it is in no way subject to the verification of the applicant’s credit rating. Financial institutions generally grant this type of loan based on the following criteria:
- Income, which must be equal to or greater than $1,200 per month
- A full-time job with seniority of at least six months
- Payment by direct deposit or cheque
- Status as an employee, self-employed worker, or beneficiary of a CSST program, disability insurance, pension plan, or maternity or parental leave
- An unchanged residential address for at least six months
- A chequing account that has been open in Québec for at least three months.
As long as you have provided all the requested information and documents, you will get a response for this type of loan very quickly. And if it’s granted, the funds are generally paid out to the bank account on the same day.
The loan through a broker
In Québec, there are brokers specializing in obtaining personal loans. Experts in the field, they work with an extensive network of private lenders and financial institutions. According to the client’s profile, they know which organizations to select to handle a difficult file. In addition, since they regularly entrust a significant volume of business to each institution, they negotiate several files at the same time and are therefore more likely to obtain a loan for a client with a bad credit rating. However, granting and releasing the funds for this type of loan requires more time than in the context of a no credit check loan.
The loan from a pawnbroker
For owners of a valuable object such as a collector’s item, a precious jewel, a work of art, an antique weapon, or a premium-brand object, there is the pawnbroker solution. They grant a thirty-day loan, keeping the valuable object as collateral. This loan can be renewed multiple times, as long as the interest is paid each month. In addition, this option lets you leave the pawn shop directly with the funds in your pocket.
In case of an urgent need for money, it’s possible to apply for a personal loan from your own bank or through a broker. However, the fastest solutions in terms of both the approval time and the disbursement of funds are the no credit check loan and the loan from a pawnbroker.