Types of Loans You Can Get On ODSP

If you’re not in full-time employment, you probably know how challenging it is to get approved for financing at a major bank. However, like child tax credit and other social assistance programs, the Ontario Disability Support Program ODSP payments count as qualified income for getting approved by many lenders.

Thanks to the convenience of online personal instalment loans, ODSP recipients don’t have to wait on bank managers or resort to extortionate payday loan providers to get a loan. 

Getting A Loan On Ontario Disability Benefits With Bad Credit

Even if you have bad credit or no credit, it’s possible to get approved for a personal loan for most types of government benefits. You can increase your chances of getting approved with favourable interest rates if you apply with the right lender, only apply for the amount you need, offer collateral, find a cosigner, and look at building credit in the long run. Plus, a good portion of these loans are e-transfer loans, so you can get the funds just as fast without resorting to e-transfer payday loans. 

No Credit Check ODSP Loans

While some lenders offer OSDP loans with no credit check, these loan products typically come with very high charges and fees. Instead, find a lender that can work with any credit score. Spring Financial is one such provider that works with all credit situations. As a responsible lender, Spring will request to see your credit report, but we also do our best to approve every applicant.

Getting approved for a loan while on ODSP income support

To boost your chances of getting approved for an ODSP personal loan, consider the following tips.

1. Find a trusted lender that can help

The Big Five banks aren’t the only places to go when you need a cash advance. The rise of trusted alternative lenders (many of which can be found online) has created options that didn’t exist in the past for low-income individuals. Technology has given online financial institutions the tools to compete with the big-name banks. And some online lenders are equipped to help where banks cannot.

2. Only apply for the amount you need

Think about what you need a personal loan for. You can spend the cash on whatever you like, but you should only apply for the amount you need. The smaller the loan, the better your chances of approval. 

3. Can you offer collateral?

If you can offer collateral, you should be able to get approved at a lower interest rate. As an ODSP recipient, you are allowed to own a car or your home without affecting your asset limit ($40,000 for a single adult), so you may be able to use one of your assets as collateral. However, this option comes with a degree of risk because you may lose the asset if you fail to repay the loan.

4. Can you find a cosigner?

Although not essential, adding a cosigner to your loan agreement (such as trusted family members or friends) can help you secure a bigger loan amount with lower interest. Your cosigner must be financially stable with a strong credit rating. These types of loans are also referred to as guarantor loans and can help you get the financial assistance you need. 

5. Build credit (Long-term solution)

If you have less-than-stellar credit, improving your credit as quickly as possible is another way to not only be approved for a loan but also get a better interest rate. Paying your bills on time and keeping your credit card balances low are two of the quickest ways to raise your credit score.

Remember: a personal instalment loan is a credit-building oppotunity. So long as you make all repayments on time, your credit score will improve.

If you need help monitoring your credit score, check out Borrowell. You can create an account in minutes and download your credit report for free.

Eligibility Requirements Needed To Get An ODSP Loan

In order to get approved for a loan with ODSP, you must be a Canadian citizen. You must also provide all of the documentation that the lender requires. This usually includes proof of income, bank statements to prove you have a valid bank account and government-issued ID. You’ll also need to provide consent for the lender to do a hard credit check. 

While you don’t have to have a good credit score in order to get an ODSP loan, the lender will want to take a look at your full credit report, credit history and credit score, giving them a full financial picture. This gives them information on your debt-to-income ratio as well as any current financing you may have. From there, as long as you meet the eligibility criteria, they can complete the approval process and figure out how much to lend you. 

Once you’ve reached this stage of the loan process, you’ll receive a loan agreement. This includes the loan terms, total loan amounts, and your monthly payments. Everything you need to know about your loan will be in this agreement. 

Types of Installment Loans

Given that ODSP payday loans online or in person are more expensive than other types of loans, two other types of ODSP loans are recommended: unsecured loans and secured loans. Both of these loans are types of installment personal loans. 

Unsecured personal loans are essentially cash loans. Lenders provide you with a cash advance under the assumption that you’re going to pay the funds back. However, based on your credit score, interest rates may be higher on these types of loans to offset the lender’s cost. Secured loans, on the other hand, are much easier to get because they require the borrower to put a large asset up for collateral. 

With a secured loan, if you default on the loan, then the lender can seize the asset. This is why interest rates are often lower as well. The most common types of secured loans are auto loans, home equity loans and secured credit cards. With secured credit cards, a down payment is required and will be returned once the card is paid off and cancelled. 

Lenders that Give ODSP Loans

In Canada, there are plenty of lenders that will give ODSP loans. While it may be more difficult to get these types of loans through traditional banks or credit unions, online lenders and Canada payday loan companies will. That said, payday loan companies can be very expensive and end up costing more personal finance issues in the long run. Before you choose a lender, you want to research lenders. It’s important to get reputable lenders when getting a personal loan. 

Does Spring Accept ODSP Benefits?

Spring Financial is a trusted lender that can provide fast cash when you need it most, even to those receiving ODSP income. Get approved for your ODSP personal loan today.

Why get an ODSP loan online with Spring Financial:

• Instant cash when you need it: Personal instalment loans of up to $10,000 can be e-transferred into your bank account on the same day. Or get up to $35,000 in less than 48 hours.
• All credit scores welcome: Get approved even if you have bad credit or no credit.
• Flexible repayment plans: Choose a short term if you want to pay your loan off quickly or a longer one to make smaller monthly payments.
• Competitive interest rates: Managing your ODSP loan is easy, thanks to reasonable interest rates.
• Zero hidden fees: With Spring, there’s no such thing as application fees or maintenance charges.
• Skip the appointments: Online loan applications allow you to get approved from the comfort of your home.
• Build credit: Compared to payday loans, the positive payment history on a personal instalment loan will help you raise your credit score.
• Trusted lender: Check out the reviews on Trustpilot to see how Spring Financial has helped Canadians across the country reach their financial goals.

Go to the loan application process (it only takes two minutes) and get approved today!