RRSP vs. RSP
Often the the terms RSP and RRSP are used interchangeably, which can be correct, but it depends on the context.
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Most adults living in Calgary will need to, at one point in their lives, apply for a loan. There are mortgages to buy houses, auto loans to buy cars and, of course, personal loans for all sorts of other expenses. Personal loans, one of the most versatile types of loans, come in the form of a one time deposit from your lender.
Here are just a few expenses you can pay for with the help of the right personal loan:
If you’re a Calgary resident and are interested in more information about applying for a personal loan in the province, we have all the information you need.
Some people find the personal loan application process to be a bit tricky, but it doesn’t have to be that way for you. When you’re about to apply for a personal loan, the key is to be prepared for the process using some of these simple steps:
Unfortunately, there are many predatory lenders across the province and country that will try to take advantage of you by charging ridiculously high-interest rates and fees. There are also many scam artists posing as lenders to steal your financial information. So, it’s essential that you research multiple lenders and make sure they are legitimate and gave a good reputation.
Need some debt relief from predatory loans? Look for it here.
Before applying for a personal loan in Calgary, ask your lender what factors of an applicant’s financial profile they typically examine during the application process. This will often include your bank/income statements, personal information, debt history, etc. Have these elements updated and ready to go to make the process smoother. Show your lender that you’re dedicated and ready for the responsibility of a personal loan.
Here’s what your bad credit lender will look at when assessing your loan eligibility.
As a Canadian credit user, you are entitled to one free annual copy of your credit report (you can always request another copy for a small price). Since your lender may also check your credit, it’s best to go through your report and check it for errors that might be harming your credit score.
Living in a large city like Calgary, you likely own a vehicle. Offering it (or another valuable asset) up as collateral, is a huge help when you have bad credit, want a lower interest rate or a larger loan amount. While your lender will perform their own evaluation of your assets, getting a professional to appraise them beforehand is a good way to ensure that you’re getting a good deal. However, your lender will hold the rights to your asset until your loan is fully paid off, meaning it could be repossessed if you default on too many payments.
Has your car been repossessed? Click here to learn how you can get another car loan.
Another optional but helpful thing to do before you apply is to find a trustworthy and financially strong borrower to co-sign your loan application. This is another way to receive a lower rate and a higher loan amount when bad credit or an unfavorable income prevents you from approval. Be sure to inform them about the risks of being a cosigner, namely that the responsibility of the loan will fall to them if you can’t afford your payments. This can damage their credit/finances if they also default.
Check out this infographic to learn more about how your credit score is calculated.
While some lenders in Calgary don’t perform credit checks during the approval process, this may not be the case for your personal loan. Depending on the size of your loan and your lender’s standards, your credit score (ranging from 300-900), may need to be 650 or above to receive the best chances of approval and the lowest interest rates available.
Don’t understand your credit score or credit rating? Take a look at this.
If your score is lower than that, don’t give up, approval is still possible. However, your interest rate may be higher due to the fact that a low score may signify to your lender that you are a risky borrower. That higher rate could cause you severe debt in the long run, so consider improving your credit score before you apply.
Speaking of credit score improvement, did you know that you can use your personal loan for that purpose? That’s right, your credit will be affected positively if you take the proper precautions, such as:
Looking for some debt management tips? Check this out.
As we said, your personal loan approval chances and interest rate will depend on various elements, like your lender’s policies and your credit score. If you’re requesting a relatively large amount (some personal loans in Calgary can be up to $100,000) your lender might examine your:
If you’re approved, you’ll likely receive your personal loan funds through direct bank deposit. You can then negotiate a payment plan that works for your finances.
Just like any major city, Calgary can be an expensive place to live which means you likely have a wide variety of expenses to cover throughout the year. So, if your expenses are closer to the $1,000-$5,000 range, you might be wondering if a credit card is a better payment method. After all, your credit limit may be high enough.
Credit cards are usually more efficient when:
Look here to see what happens when you stop paying your credit card bill.
Personal loans, on the other hand, maybe more beneficial in Calgary when:
Trying to increase your credit score without increasing your credit card debt? Click here.
If you’re a Calgary credit user and you’re looking for the best personal loan in town, Loans Canada can help. When you apply with us, you’ll be quickly introduced to the right lender for your personal and financial needs.
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Often the the terms RSP and RRSP are used interchangeably, which can be correct, but it depends on the context.
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