Can I get a student loan with bad credit in 2024
Canada can be a nice place for schooling for both citizens and international citizens. Schooling in top universities in Canada comes with a lot of benefits, and gaining experience and employment opportunities is one of them.
The only price you will have to pay is the high tuition fees and high cost of living. This is why most students resort to getting educational loans to get financial assistance to help them pursue higher education in Canada. In some places, you can’t get a loan with a bad credit score, which can be bad for some students. Instead of losing hope here in this post is a guide on how to get a student loan with bad credit score.
Going to college in Canada can be a bit expensive for some students, some may not even afford the funds to clear some necessary educational bills. Their only means of going through college is by getting a loan to enable them to go through college, but having a bad credit score will limit your chance of getting a student loan.
If you have a bad credit score, you have nothing to worry about since you can still get a good educational loan from the federal government.
All thanks to the Canadian government providing students with loans that will help them go through college. Even if you can’t get a private student loan due to your low credit score, with the federal government student loan you can get an instant education loan with or without a good credit score.
No matter where you live the provinprovincialovernment has unique student loans to help their students go to college. So if your dream is going to college, then the good news is you can make use of these student loans in Canada even with bad credit score.
Introduction
Getting a loan as a student will help you pay your college tuition fees and clear some educational expenses. That is why we have explored the various means of getting loans as a student in Canada and his post is the best means of getting student loan with bad credit.
Also, read Car loans for students in 2024
We all know that many students struggle to meet up in some financial aspect of their education. That is why student loans were initiated to help students get help getting their educational expenses cleared.
So if you are looking for the best Student loan with bad credit then you are at the right place. We will help you get a loan even without having a good credit score.
Who is eligible for an educational loan in Canada
Not everyone is eligible for the educational loan in Canada, before you can be eligible you must meet certain requirements. Some of these requirements include;
- Having an acceptance letter from a well-recognised Canadian university institution full program. This is the first and most important requirement.
- You must be 18 years or above, but if you are not up to 18. You should let your parents apply for you.
- You must choose a job-oriented course with a good career prospect.
- You must provide some kind of collateral security for the loans.
- Having an outstanding academic performance will help your chance of getting a student loan.
Once you meet these requirements you can be sure of getting a student loan with bad credit.
Types of Student Loans in Canada
There are two types of student loans in Canada, we will discuss in detail how to apply for these loans and which is best for you.
The Two types of student loans are ;
- Collateral loans ( secured loans)
- Non-collateral loans (Non-secured loans)
1. Collateral student loans
Just like the name, this type of loan requires students to provide collateral as security. You will need to provide tangible assets like lands, houses, flats or any establishments.
The maximum amount of loan you can get depends largely on the value of your collateral. That means the higher the value of your collateral the better your educational loan.
2. Non-collateralaltudent loan
This is just the opposite of the first one, here the applicants do not have to pledge anything security to the lender. These unsecured loans are only provided by private banks and NBFCs, which means it will require lots of requirements to get this kind of loan.
So you see the difference between the two types of student loans, you now have to choose the one that is favourable for you.
Can I get a student loan with a bad credit score
In Canada you are free to get a student loan with a bad credit score, you can do so through the Canada Students Financial Assistance program.
Whether you are a full-time student or part-time student you can apply for the best student loan with bad credit score.
The answer to the above question is yes, you can get a student loan in Canada with a bad credit score. All you have to do is apply through your province or territory, doing this will give you access to a student loan with bad credit score
Student loans from Financial institutions in Canada
Even with a bad credit score, you still have the the of getting a student loan from your financial institution Just like the federal government some of these banks offer student loans to indignant students with bad credit.
Though each of these banks has different requirements to apply for a student loan, so here are the best 5 banks to get your student loan from.
1. Royal Bank of Canada (RBC)
This is one of the notable banks in Canada that offers student loans and student lines of credit. Their student loans vary depending on the studies you are taking.
Royal Bank offers flexible repayment methods and competitive interest rates. You will need to come up with some requirements, as this will help facilitate your chance of getting a student loan with a
- You should estimate
- Show your proof that you are a Canadian citizen or landed immigrant
- Proof citicitizenenizenin at-secondary education in Canada
- Your means financial incomes such as employment income and funding received for education.
Even if you have a low credit score you can still get your student loan but you must have a co-signer.
2. Scotiabank
Scotiabank offers educational loans to the student to further their education. Their interest payments while in school make them stand out as the best bank to get your educational loan from.
They also offer you a 12-month grace period once school is completed. The minimum credit limit you could receive is $1,000 and the maximum is $20,000. This may vary depending on the course and the time, whether full-time or part-time.
Before you can get a loan from Scotiabank you must meet the following requirements.
- You must be a permanent resident or a Canadian citizen.
- You must provide proof of your school enrollment
- You should meet the credit requirements.
- You must be enrolled in Canadian post-secondary institutions.
If you meet these requirements you should be qualified to get your student loan with bad credit from Scotiabank.
3. Bank of Montreal
Another popular bank that offers student loans with bad credit is the Bank of Montreal (BMO). This bank offers lots of options for you to choose from while selecting the best student loans for yourself.
One advantage of using BMO is that they give you a two-year grace before you start making payments on the principal account.
To get your student loans from BMO, you must provide some of these papers:
- Credit approval
- Copy of your finance
- Proof of enrollment
4. Canadian Imperial Bank of Commerce
With CIBC you can get personal loans that will help you fund your studies to any level. Depending on the course you choose the minimum loan amount is between $5,000 to $350,000.
InToet approved you must meet some of these requirements:
- You must be a citizen or permanent resident of Canada
- Proof of enrollment
- A statement of your finance
Once you meet these requirements you are good to go
5. TD Canada trust
TD Canada trusts another financial institution that offers student loans to many students in Canada. Even without good credit, you are still eligible to get student loans from TD Canada, all you have to do is to cosign so that you can get your loans.
You only need to show your enrollment proof to enable them to ascertain how much should be given to you. You will have 2 years from graduation to start making payments for the principal.
The above banks are the lists of banks that offer you a student loan with bad credit.
What is the lowest credit score for student loans in Canada
Student loans in Canada usually require a credit score of at least 670, a good credit score in Canada should be between 650 to 700. But if you have 725 it will be considered a very good score to get a student loan.
A credit score of 760 and above is considered excellent, as it will be easier for you to get a student loan with such a credit score.
How much loan can I get in Canada as a student
The loan amount depends largely on the course you intend to study, full-time students will get 340 weeks of assistance. While part-time students will get up to $10,000 in compound principal and interest.
Do student loans use credit score
Yes, the lender will have to do some research to know if you are eligible for the loan. The higher your credit score, the lower the interest you will be charged.
Most time students will need to have a co-signer to help them that’s if their credit score is low.
So you see, you can still get a student loan with bad credit score, only if you can provide a co-signer.
wrapping up
Many students want to get student loan with bad credit scores, if you are in this position you should check out the federal government assistance program. But if you have used up your government assistance, you can check your credit line or your local banks for assistance.
This method requires you to have a very good credit score to get your loan approved. In case you want a student loan with bad credit score, you will have to bring a co-signer to help you access the loans.
A co-signer can be a family member, relative or a friend that you trust, but they must have a good credit score.
Related Posts
Top Colleges for high paying jobs in Finance
5 Tips for saving money on home insurance in Atlanta
How to tag a company on LinkedIn in 2024
[…] Also read Can I get student loan with bad credit in 2024 […]