- 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
Many online lenders will use instant bank verification (IBV) to verify your identity and income. Typically, you’ll have to enter your banking credentials via a secure portal which is often hosted by IBV providers like Plaid, Flinx and Yodlee.
Instant bank verification involves immediate validation of your personal information, after which the lender is sent a temporary copy of your bank statement. This entire process not only saves you and your lender plenty of time, but it’s also safe thanks to robust encryption that protects your sensitive data.
BC is one of the few provinces in Canada with high-cost credit regulations in place. In BC, a high-cost credit lender is one that charges at least 32% annual percentage rate (APR).
The High-Cost Credit Products Regulation under the Business Practices and Consumer Protection Act governs high-cost credit products and lenders to ensure that consumers are treated fairly.
Max Interest Rate | In BC, there is no maximum interest that a high-cost credit lender can charge, as long as the APY does not exceed 60%, as per Section 347 of the Criminal Code. |
Fee Caps | While there are no provincial caps on fee charges, there are federal rules. The total fees, cost and interest of a high-cost personal loan cannot be more than the criminal interest rate of 60% APY. |
Do Lenders Require A License? | High-cost credit lenders must be licensed in BC and comply with requirements under the Business Practices and Consumer Protection Act. This license number must be clearly displayed on the high-cost credit lender’s storefront or website. |
Debt Collection Rules | When collecting debt, high-cost credit lenders have rules to follow under the Business Practices and Consumer Protection Act. Lenders cannot: – Collect a debt payment before the due date. – Require information that would give the lender direct access to a borrower’s bank account. – Use account information for any purpose other than to process a pre-authorized payment. – Use threatening, intimidating or coercive language in an attempt to collect unpaid debt. – Communicate with the borrower’s family, neighbours, friends, or employer in a manner that is considered harassment. – Collect debt payments until the borrower has been informed in writing. – Communicate with a borrower to collect a debt until five days after written notice has been provided. |
Typically, if you’re looking for a personal loan to help cover an unexpected expense or make a large purchase, you have three main options to choose from:
While lenders in British Columbia will have their own unique borrowing requirements, there are a few basics that all consumers should be prepared to meet, including but not limited to:
Most lenders will also require the following documentation:
To boost your odds of qualifying for a personal loan in BC, consider the following:
Get pre-approved. During the pre-approval process, your lender will assess your finances to provide you with an estimate of the loan amount you may qualify for and the interest rate you will be charged. Getting pre-approved will help you understand your eligibility for a loan.
Pay off some debt first. Your debt load will play a role in your ability to get approved for a personal loan in BC. The lower your debt, the better your chances of loan approval. Take some time to pay down your debt before applying for a loan to increase your chances of approval.
Use a loan comparison platform. You can quickly compare loan providers and loan products across Canada by using an online loan aggregator. The loan amounts and interest rates that populate are based on your personal and financial information.
The cost of your personal loan will depend on a number of factors including your interest rate, term length, and loan amount.
Loan fees are another cost to consider when taking out a personal loan in BC. These fees can significantly increase the cost of your loan, making your loan more expensive than you originally thought. Before signing an agreement with your personal loan lender, be sure to ask about these fees:
Generally speaking, a personal loan can be used as a tool to help build credit. Just keep in mind that credit scores react differently and it will take time to see any improvement. If you’re taking out a personal loan and are interested in building healthy credit, make sure you follow all of these tips:
Take out a personal loan that you can actually afford to pay back and one that you actually need. Taking on debt you can’t afford in hopes that it will improve your credit is never a good idea.
Work with a lender in British Columbia who officially reports to Canada’s credit bureaus (Equifax and TransUnion). Some lenders may only report to one of the bureaus, which means only one of your credit scores will reap the benefits of your timely payments.
Payment history is a big part of building healthy credit. This is why it’s important to follow your payment schedule properly and always make your payment on time. Also, consider how additional unnecessary debt (consumer credit card debt) could affect your ability to afford your loan payments.
Yes, you can get approved for a personal loan in BC if you’re currently unemployed and collecting EI. Lenders typically require borrowers to be employed and earn a regular income, but some may accept non-employment income, including EI, disability insurance benefits, Canada Child Benefit (CCB), and others.
That said, you’ll likely pay higher interest on your loan if you’re not currently working as this may place the lender at a higher risk.
For help finding a job, you can use the services of employment agencies in BC. These companies connect employers with job seekers.
Here are a few job agencies in BC that you can use to start your job search:
STRIVE Recruitment has been helping Canadians find work since 2008. The company specializes in corporate administration, accounting and finance, and manufacturing and operations industries. Job seekers can find work with dozens of employers within STRIVE Recruitment’s network, including Fortune 500 firms.
STRIVE Recruitment offers the following:
The recruitment team at McNeill Nakamoto Recruitment Group always has their finger on the pulse of available employment opportunities in BC. The team has over 50 years of combined experience in the recruitment industry, helping countless candidates find work that closely matches their desires, experience, and qualifications.
Features of McNeill Nakamoto Recruitment Group include the following:
Express Employment Professionals helps job seekers all across Canada, including BC. The recruitment team provides a comprehensive range of employment solutions, including full-time, part-time, and temporary employment in several industries.
Express Employment Professionals offers the following features:
You might be reading this and wondering if you couldn’t simply use your credit card to handle whatever financial situations might come your way while living in British Columbia. While using your credit card certainly comes with benefits, personal loans have their own. Let’s explore some of the differences between these two valuable credit products.
While this also depends on your lender’s specifications, generally a credit score of 650 or above will give you the best chance of getting approved for a personal loan in British Columbia. If your score is below that point, you may still be approved. However, it’s important to know that your interest rate might be higher the lower your credit score is.
Employment Insurance (EI) | Learn More |
Canada Child Benefit (CCB) | Learn More |
Maternity/Parental Leave | Learn More |
Federal Disability Tax Credit | Learn More |
Compassionate Care Benefits | Learn More |
GST/HST Tax Credit | Learn More |
Green Tax Credits | Learn More |
If you require additional financial help, there are several public programs available in BC that you may be eligible for:
Other assistance programs are available in BC in addition to the government programs mentioned:
BC Housing’s Rental Assistance Program provides eligible low-income families with financial assistance to help cover the cost of rent. Depending on the location, families of three can receive $1,108 per month. While families of four or more can receive up to $1,250 per month.
BC residents who have difficulty covering their electrical or gas bill payments may be eligible for a utility supplement. The program is meant to help residents avoid having their utilities cut off due to missed payments.
Dozens of food banks are scattered throughout the province of BC to provide food products to families who struggle to pay for groceries. Food Banks BC runs a membership program made up of more than 100 hunger relief agencies across BC.
BC residents who face emergency situations may be eligible for a one-time payment to prevent immediate physical danger to themselves or the removal of a child. An emergency or disaster supplement is also available.
A personal loan can be a useful financial tool if managed properly and responsibly. If you’re looking to apply for a personal loan in British Columbia, find a reputable lender that you’re comfortable working with. Shop around for an interest rate and payment plan that fits into your budget and ultimately, choose a loan you can afford.
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