No Credit Check Loans is an excellent choice for unsecured debt consolidation loans. With comparatively low rates and great customer service, we proudly serve Alberta and BC. We lend to people with bad credit or no credit at all.
What is an unsecured debt consolidation loan?
An unsecured debt consolidation loan is a personal loan that is used to pay off other higher interest debts. It is not secured by a mortgage over real estate. The objective is to consolidate a borrower’s loans into a single account at a lower interest rate. The borrower benefits because:
- They only have to make one payment, rather than multiple payments to various creditors
- The borrower pays a lower interest rate
Consider this example:
Anna currently has the several loans from private lenders and payday lenders. They each have different interest rates, but they’re all at least 40% per year. Anna can manage the payments, but she’d prefer to make a single monthly payment to one lender. She would also save money if she could borrow at a lower interest rate.
As such, she applies for an unsecured debt consolidation loan through No Credit Check Loans. After she’s approved, Anna now has a single loan with an interest rate of 22%.
What interest rate can borrowers expect to pay?
Unsecured debt consolidation loans are more expensive than mortgage loans because they are not backed by collateral. The cost of borrowing will increase if you have bad credit. Many lenders charge over 45% interest per year. In contrast, our loans bear interest at a rate of between 15-31% per year.
Who can benefit from a bad credit unsecured consolidation loan?
If you are paying above 31% interest per year, then an unsecured debt consolidation loan may make sense for you. Further, our loans are interest-only, which can free up your monthly cash flow.
What are the risks?
Unsecured debt consolidation loans are just like any other loan: they must be repaid as per the agreement. If the loan isn’t repaid, the borrower can face serious legal and financial risks, including garnishment of wages. You should never take a loan if you aren’t able to repay it.
Who qualifies for our loans?
We offer loans in Alberta and BC, Canada. Applicants must have a monthly income of at least $4,000. The maximum loan amount is $50,000.
How long does the entire loan process take?
We recognize that interest on loans can accumulate daily, so time is of the essence. If you apply online for a loan, you should expect to receive a phone call within a business day. If you’re approved for a bad credit unsecured consolidation loan, funding typically takes place on the following business day.