Can I use my pension as collateral to get a loan?

Funds in a locked-in retirement savings plan (RRSP) cannot be used as collateral, according to the Pensions Benefits Standards Act, 1985 and the Pension Benefits Standards Regulations, 1985 (BPSR). However, funds unlocked in accordance with the PBSR can be used at your discretion. Assets like your home equity or car are more common items used as collateral for secured loans.

What if my pension benefits are less than the lender's minimum income requirements?

If your pension benefits are less than the lender's minimum income requirements, you may not be eligible to apply for that specific loan. Contact the lender or find a different lender that has more lenient eligibility criteria or lower loan amounts.

What are my options for pension loans with bad credit?

If you have bad credit and you're counting on your pension to get a loan, you still have options on the table, but they'll be limited. For starters, you'll need to narrow your scope to lenders that provide bad credit loans and then look through their eligibility requirements to make sure they accept pension. Payday loans are more likely to accept pension income than other types of loans. Many payday lenders don't focus on where your income is coming from. Instead, they prefer that you show them that you have stable income streams on hand to make repayments on your loan.