You can apply and be approved for all kinds of personal loans in Canada, no matter whether your credit is good or bad. The type of loan can be a personal one, serving to pay unplanned expenses. In the usual case, personal loans are not linked to some specific purpose – the borrower may use the money to go on a trip, cover utility bills or emergency expenses. There are some excellent benefits when it comes to these types of loans. These include flexible repayment options, low interest rates, easier approval, variable use, and free estimates, among others. Typically, the lending institution lets the borrower choose how much and how to repay, as well as the repayment period. Sometimes, you can get a flexible loan that permits you to pay less now and more later, or it can be the opposite.
Canadians with good credit can find very low interest rates on personal loans if they shop around. Many lending institutions are competing for customers and will happily offer an estimate or free quote as to help borrowers get a good deal. Personal loans are not intended to fulfill a concrete purpose, so you can use them in any way you want. However, the lender will ask for the specific purpose and may reject or approve the application on this basis. The purpose may not be too specific in case the borrower needs a short term loan to cover emergency expences. In addition, personal loans are easier to obtain compared to some other types of financing. This is what makes them especially advantageous for many borrowers.
Personal loans come with a variety of benefits. Just remember that you must be capable of repaying the amount you have borrowed. If you can’t, do not bother applying for a personal loan.
Apart from obtaining it online, you can get a personal loan from a bank, lenders in directories, social lending organizations and more. If you have established a relationship with a bank or another financial institution, you should ask them if they have anything to offer you. If you have bad credit and are rejected on those grounds, they might have information about companies that offer loans to people with poor or bad credit. If you get a reference from a respected establishment, you face a lesser risk of entering into a relationship with a subprime lender.
Alternatively, borrowers can check the yellow pages for subprime lenders that are likely to offer loans to bad credit borrowers. There are also some online directories – in Canada the most popular one is Dmoz. This is an option for persons with a compromised credit rating. Social lending platforms include CommunityLend, IOU Central, Prosper, and Zopa. They are able to offer good rates due to the fact that they transform financing into investment opportunities. Creditors offer loans in the range $1,000 to $25,000 for up to 3 years. The opportunities, as you can see, are almost unlimited, regardless of your credit score.
Canadian personal finance blog tackling many topics including borrowing, debt problems, taxes, and budgeting.
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