- 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
In Kitchener, you’re likely to come across many different lenders offering a multitude of credit products, any of which can come in handy during plenty of financial situations. This is particularly true within the urban sector, where living costs are quite high.
If you have lots of necessary costs to cover, a short term loan might be the exact credit product you need, keep reading to learn more about short term loans in Kitchener Ontario.
Short term loans, the good and the bad. Check out this article.
A short term loan is a relatively common credit product in Canada and is a specific amount of money that you can borrow from various credit lenders in the Kitchener area. This might be a bank or other prime lender, or an alternative/private company.
If your application is approved, your loan would be deposited as a lump sum directly in your bank account. You would then repay said money through equally divided and scheduled installments (with interest). While the length of your repayment plan will vary depending on your lender’s policies and how much you borrow, most short term loans are meant to be paid off within a year or two.
Is guaranteed approval really possible? Find out here.
Although the average short term loan is a somewhat smaller financial responsibility than many other credit products you can apply for in Kitchener, it is still important to prepare yourself properly before entering the application process. This is because your lender will need to inspect your finances and often your credit report to determine whether or not you’re actually qualified to handle the liquid money that you would be borrowing.
Essentially, strong financial health is a sign that you’ll be responsible and pay back your loan on time. As a result, lenders will generally be willing to let you borrow larger with better interest rates.
So, if you want the best approval results and conditions when you apply for a short term loan, it’s a good idea to step up your financial health by:
Another essential step when applying for a short term loan in Kitchener is to take an appropriate amount of time selecting your lender. For instance, while most prime lenders can offer you a larger loan with a lower rate, it may be harder to get approved because their qualifying standards are more restrictive (and vice versa for subprime lenders).
Not only will comparing lenders potentially help you find the best rates and conditions for your short term loan, but it can also help you avoid the danger of a loan scam, which can occur if you don’t do proper research prior to handing over your financial information.
One clear way to spot a loan scam is if your supposed lender says they can “guarantee” that your application will be approved, no matter who you are or what your financial health looks like. Of course, they will only do this if you agree to pay a fee, which they might call “loan insurance” just to throw you off.
Although you can certainly make yourself a stronger candidate and there are lenders who have higher approval quotas than others, no legitimate financial institution will ever make you this promise. In fact, a 100% approval guarantee is an illegal claim, so be sure to avoid them if their deal seems too good to be true.
Learn how to tackle any expense using a short term loan, click here.
Remember, while you should always be on the lookout for a loan scam, there are indeed some lenders in Kitchener who will be less restrictive when approving clients.
Those with the highest approval quotas are often alternative institutions, where you may have to pay more interest for a smaller, less adjustable loan. This is mostly because of the risk they are taking by approving a client that could have a serious debt problem, bad credit, or a recent bankruptcy in their profile.
A prime example of one of these bad credit institutions is a payday loan lender, where you can apply for a small short term loan of $100 – $1,500. Similar to a regular short term loan, this involves a lump sum of money being automatically deposited into your bank account, which you’ll pay back over time with interest.
However, payday loans are far different (and usually more risky) because:
The main appeal of payday loans is that they are convenient and easy to get approved for. You only need to prove that you’re steadily employed, are a permanent resident of Ontario with an active bank account, and that you’re at least 19 years old. As long as you pass their minimum qualifications and can afford your full payment, the money would be transferred into your account within 24 hours.
This makes the payday loan a viable solution when you have very weak financial health, issues with unpaid debt, or a small scale financial emergency on your hands, but can’t get approved by a more conventional lender. Otherwise, the lower risk associated with a normal short term loan may be more worth the effort.
Now that you’re aware of what a short term loan is and how best to find one that suits your lifestyle, let’s take a look at a list of the benefits, drawbacks, and the best ways to use one so that you can finally determine whether it’s the product for you.
In the end, a short term loan is still a financial responsibility, no matter how small it is or where you apply for it in Kitchener.
So, if you think one of these loans is right for your situation, be sure to prepare your finances for inspection, prove that you’re going to be responsible with your payments, and, once approved, only spend the money on things that are absolutely necessary.
If you’re interested in applying for a short term loan in Kitchener, don’t hesitate to contact the Loans Canada team first. We can help you find whatever loan or other credit product you’re looking for. Call us today or check out our website for further information.
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