- Any credit accepted
- Rates from 6.99%
- Doesn't affect your credit
- Loans up to $50,000
- Re-establish your credit
- Apply once, get multiple options
Life comes with many recurring expenses, especially in Victoria, where the cost of living has been slowly increasing along with the city’s popularity. Although such costs can often be dealt with using cash or credit cards, sometimes they can be too large to handle with conventional means. Now and again, an alternative form of financing is required to cover high-cost items with an affordable payment plan. If that’s the case for you, a personal loan might be the perfect solution.
One of the best things about personal loans is that you can find them through many different lenders throughout Victoria. Generally, they are available with both prime lenders, such as banks and credit unions, as well as subprime lenders, like alternative and private lenders.
The amount you can get approved for is typically based primarily on your income, debt-to-income ratio, credit health, and the value of your assets (if you offer any). However, most lenders offer personal loans as low as $500 up to $35,000 and more.
Your personal loan will either be deposited as a lump sum directly into your bank account or via e-transfer. Although wait times will vary from lender to lender in Victoria, you can expect to receive your funds as early as 24hours up to several business days following the approval of your application.
Personal loans are installment-based, meaning you will pay back your money in equally divided payments, plus interest and fees. While many borrowers choose to pay on a monthly basis, many lenders in Victoria will give you the option of paying in weekly, bi-weekly, or accelerated installments. Payments are generally repaid through automatic debits by the lenders.
Each lender has its own requirements for a personal loan in Victoria, but there are still some common factors each lender will generally consider.
Although providing security is usually optional, it can be helpful if you’re applying for a significant amount of money or you don’t have good credit. When you offer up an asset, such as your house or vehicle, or when someone with strong finances co-signs your application, it lessens the risk for your lender.
In the case of collateral, they would have something to sell if you default on your loan. As for your cosigner, they would agree to take over your payments if you can’t afford them. When less risk is imposed, your lender in Victoria should be more willing to offer you a larger loan amount with a lower interest rate.
Again, this depends mainly on the lending institution you’re borrowing from. As we said, the average bank may reject your application if you have bad credit. On the other hand, a private, alternative, or bad credit lender in Victoria might not. There are even some lenders in Victoria that don’t check your credit during the application process, wherein your income and employment status would be more important.
Compiled by Canada’s two major credit bureaus, Equifax and TransUnion, a credit report is a detailed personal profile that every credit user has. Within the report, you’ll find records of all your credit-related transactions over a set number of years. It also contains the credit ratings for every active account you have. If you have a credit history filled with good payments and all the ratings on your accounts are high, the results for your personal loan approval will be positive. However, the opposite effect could occur if you have a bad credit history and low credit ratings.
Your three-digit credit scores are a more simplified way of showcasing your creditworthiness. Ranging from 300 to 900, your scores fluctuate according to your credit habits. While it’s tough to gain a perfect score of 900, most lenders will approve your application and give you a decent interest rate when your score is 660 or above.
Making on-time loan payments can you work toward building healthier credit. Keep in mind that all credit scores react differently, your scores may be affected differently than others.
If you’re specifically looking to build better credit, keep these tips in mind:
A credit card qualifies as revolving credit. So, rather than having a predetermined sum of money, you’ll have a revolving credit limit that you can withdraw from whenever you need to. Similar to a personal loan, you’re typically given the option of making payments on a monthly basis. However, there are situations where the benefits of your credit card will outweigh those of your personal loan (and vice versa).
You can use a personal loan for almost any expense in Victoria. That said, remember that any loan is a serious responsibility. Therefore, it’s best to only use your personal loan for essential things, rather than smaller unnecessary costs.
Examples of essential costs (recommended):
Examples of non-essential costs (not recommended):
Looking to compare lenders and choose the best personal loan option for your unique needs, Loans Canada can help. We’re committed to helping all Canadians, regardless of their credit, find the financial products they need. Contact us today for more information or apply below when you’re ready!
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