Alternative lenders in London, Ontario

Alternative lenders are a common choice for people with financial problems, those with fair and tarnished credit, and persons who need cash urgently. Customers are offered bad credit loans and credit cards with higher than average rates because they are regarded as less creditworthy. Some lenders in London also offer reverse mortgages and HELOCs, the latter of which work like an adjustable rate mortgage.

Payday Loans

Payday lenders in London offer short-term loans to customers from all walks of life and regardless of their credit history and score. This is because repayment is ensured by being linked to the customer’s paycheck. While almost everyone gets approved and many providers advertise instant approval, the interest rates are quite high (in same cases they range between 300 and 400 percent). Still, a payday loan can be an option for borrowers who need urgent cash to pay for medications, prolonged hospital stays, medical emergencies, utility bills, etc. On the positive side is also the fact that this type of loan is unsecured. You don’t risk losing an asset such as your house or car if you are unable to repay the loan.


This is an alternative solution for borrowers with poor credit provided that they have home equity to offer as collateral. The problem is that customers with low incomes and those with financial problems risk losing the collateral. If you use your home as a loan guarantee, it is better to invest in some asset of value or a major item or project, whether home improvement, college education, or anything else. Home equity lines of credit usually offer a lower interest rate but it is unwise to use the money for day-to-day or unnecessary expenses. While there are no restrictions or limitations on what to spend your money on, it is best to use the HELOC only to add value to an asset and to pay urgent expenses (medical bills, car repairs, and the like).

Keep in mind that the closing costs add to the cost of borrowing. Your lender might impose penalty fees if you choose not to use the HELOC. Finally, your financial institution may cancel your line.

Bad Credit Loans

Some lenders also offer bad credit loans with higher than average rates because they deal with high-risk customers: In fact, some providers offer very high interest rates which makes borrowing quite expensive. Not only that, but there is a limit on the amount you are allowed to borrow. On the positive side, alternative lenders advertise quick approval, and it is much easier to qualify compared to standard loans.

Credit Unions

If you are a union member in London, Ontario, you might want to try your luck there first. These financial institutions have a more lenient approach when dealing with regular customers. What is more, unions often have more relaxed criteria and standards when it comes to customers with less than perfect credit. There are additional benefits for borrowers, one being the fact that credit unions tend to impose fewer penalties and fees than other lenders. The best part is that they extend unsecured loans to borrowers with blemished credit. Keep in mind that there are some limitations if you have poor credit. One is that poor credit often means a smaller loan because you are still considered a higher-risk customer. The repayment period is also shorter for unsecured loans. While there are some cons to keep in mind, the good news is that unions offer lower rates compared to banks and non-traditional lenders.

Peer to Peer Lenders

Peer to peer loans are yet another option for customers with tarnished credit because they are easier and quicker to obtain compared to standard lenders. This can be a good choice provided that loans come with fewer fees and penalties, and the rates are usually lower. Many peer to peer lenders are also willing to extend higher amounts than banks and credit unions.

Reverse Mortgages

Lenders in London, Ontario also offer reverse mortgages to elders, and payments are not due until the property is sold or the homeowner passes away. Read more at: