Consolidation Loans: Pay Off Your Debt Easily with Low Interest Loans & Same Day Approval

Looking for a personal loan to get cash and pay off your debts? Do you need a loan despite having a low or poor credit score? Read yourself through our guide about personal loan offers.

Many Canadian households are in severe debt.

Many Canadians also have to take personal loans to sort out different aspects of their lives like credit card refinancing, debt consolidation, home renovation, etc.

But despite this reality, you must fully satisfy specific criteria to qualify for a personal loan in Canada.

Hold on.

As we proceed, we’ll dive into what qualifies you for a loan in Canada and what to expect from taking a personal loan. Before that, it’s vital that you understand the types of loans available, thus determining which one suits your particular needs.

Types Of Personal Loans

Secured Loans: A secured loan is backed up with collateral. Collateral is any valuable asset claimable by the lender should you fail on your loan. This type of loan generally offers an enormous amount plus lesser interest rates. Still, you have to be extremely careful with this as it may lead to losing some of your assets.

Unsecured Loans: Unsecured loans don’t require any sort of collateral. Instead of relying on the borrower’s assets as security, the lender issues a loan based on your creditworthiness. This type of loan is often less risky than its secured counterpart. Examples of unsecured loans include personal loans, student loans, credit card loans.

Vital Aspects to Consider Before Taking a Personal Loan

A personal loan is an amount of money borrowed to cater for a variety of purposes. People can get personal loans from banking institutions, credit unions, and online lenders (which is fast becoming the most used way of getting a loan).

Like every other financial asset, personal loans have trade-offs which are interest rates and fees. The payment pattern often varies depending on the lender.

Before you apply for a loan, there are certain things you need to do and understand. Documents that you should have handy include:

• Any form of personal identification
• Proof of income
• Employer’s information
• Proof of residence

Before you apply for a loan:

• Do research. Look for various organizations and institutions, study and analyze their terms before applying.
• Look for the best rates.
• Choose the best offer.
• Check your credit score. Your credit score is the expression of your creditworthiness in numbers.
• Pick a lender and apply.
• Upload the necessary documents.
• Wait for final approval.

What Qualifies you for a loan?

Income

To apply for a loan, you should ensure you have a stable source of income. This approach is to make sure that you have a basis from which you can repay the loan. If you don’t qualify, you can use a guarantor in your loan application.

Citizenship

Before you apply for a loan in any institution or organization, you must be a citizen of Canada either by birth, marriage, or naturalization. Your citizenship is to help the organization keep a tab check on who lent the money.

Credit score

Your lender will need to assess your profile to ensure that you are credit-worthy before issuing you the loan. The better your credit score, the improved your chances of getting approved for a personal loan.

Age

You must be up to the age of majority in your province to be eligible to apply for a personal loan.

Reliable vendors to get a personal loan in Canada

There are many lenders in Canada for your loan. Here are the best ones based on service flexibility and the capability to cater to different people of varying financial capacities.

Mogo

Mogo ranks high among lenders in Canada. Their services are fast, reliable, and they offer good credit loans. You can take loans up to $35,000 in a matter of minutes through the online application portal. With a not-so-good score, you can still apply.

Skycap Financial

Skycap Financial is a reputable lender that offers excellent services. Their loans are fast with flexible repayment plans. They stand out because they provide loans even to individuals with bad credits.

Borrowell

It’s easy to apply for a personal loan on Borrowell’s online platform, and they satisfy almost every point that makes one a reliable lender. Their repayment plans are not so flexible, though.

Easyfinancial

Easyfinancial is a reliable lender in the Canadian financial market. They offer a fast instant loan, repayment flexibility, and bad credit loans. Using their online application process is simple and straightforward; you don’t need anyone to guide you.

Lendful

Lendful offers loans ranging from $5,000 to $35,000 for qualified persons. Their online application platform is open to Canadians in all big provinces despite having their offices in only Toronto, Vancouver, Calgary, and Montreal. With Lendful, you stand to have access to more funds depending on your credit score. They often offer a fixed term of 3 to 5 years with rates from 9.9%.

Conclusion

Mogo’s operation style makes it easy for the borrower to receive a loan and pay it back with ease. Their approach is effective in accommodating people of different financial statuses.

The qualities of a good loan vendor are:

• fast
• instant loans or a consolidation loan
• low rates and flexibility in paying back
• quick and easy online application
• offer loans for people with a poor credit score
• offers good credit loan

Consult experts if you’re unsure of the lender to take a loan from. Take every factor into consideration before proceeding to avoid financial disaster.