While much of Canada is affordable, there are some areas where the cost of living can be quite high. Of course, this is true in places like Toronto and Vancouver, but also in smaller cities like London Ontario.  While the high cost of living can mean expensive groceries and electricity, it normally refers to the price of real estate.

Everyone should avoid these personal loan application mistakes.

While London sits outside the top 10 in terms of size, it has some of the most expensive real estate in the country. In fact, the average price of a home is higher than in Edmonton, despite London being only half the size.

With this high cost of living, not everyone will always have the money for the things they need. Thankfully, applying for a personal loan in London is an option for many residents.

What Can You Use a Personal Loan For in London?

The good news is, you can essentially use a personal loan for anything you need in London. Including but not limited to:

• Emergency costs or bills
• Unexpected travel
• Car or house repairs
• Large purchases
• To build your credit
• Medical bills
• Consolidate your debt

Of course, just because you can qualify for a personal loan doesn’t mean you should get one. Whatever you borrow will need to be paid back in full, plus interest. So be sure to only borrow what you can afford to pay back. Also, you should only take out a loan for something you need, not just something you want. You are better off saving your hard earned money to purchase the items you want than to take out a loan to get them.

Learn how to find the best personal loan for your needs, click here.

What Are Lenders In London Looking for When Approving a Personal Loan?

Now that you know what these loans can be used for, how do you go about getting one? The first step is to apply for one, and hope you get approved. This seems simple enough, but it’s not always easy to get approved for a personal loan in London, especially if your financial history is less than perfect.

So what are lenders in London looking for when they approve a personal loan? Well, there are a number of different things. First and foremost, a lender will want to see that you have steady income and employment to be able to actually pay off your loan. Next, they will want to see that you have a decent credit score. The better your credit score, the less risky you are to lenders.

In London, Lenders may also want to take some looks at your bank statements, to ensure you have the means to pay back your personal loan, and aren’t already drowning in other types of debt. Also, if you fail to meet any of the requirements above, or just want a shot at a better interest rate, you might have to put up something as collateral to make yourself less risky.

Of course, every lender is different and some will be willing to work with different people than others. So be sure to shop around and find the right lender for your needs before making anything official.

Interested in the true cost of borrowing? Check out this infographic.

How Big of a Personal Loan Can You Get in London?

Now that you are aware of what lenders look for when approving personal loans in London, how do you know how large of a loan you can get? These loans can vary from a few hundred bucks to make ends meet, to potentially hundreds of thousands of dollars for a home. How are you supposed to know how much is appropriate for you to apply for and how big of a loan you can get?

Well, the general answer is that the size of the loan you get in London will depend on a number of different things. This will include your ability to pay back the loan, what type of lender you are working with and the history of your credit. Also, as briefly mentioned earlier, having security or collateral can often get you a bigger loan in addition to a better rate.

So if you are experiencing financial issues such as bad credit or are in between jobs, it might be better off to wait to apply for a loan until your credit score is better or you have a larger income. These will help you get a larger loan, and also a better rate in London. Of course, this isn’t always possible, but always make sure you can afford to pay back the size of the loan that you get. If not, you could spend months or years trying to dig yourself out of a financial hole.

How Much Does It Cost To Take Out A Loan In London Ontario?

Other than actually paying off the money you borrow, you’ll be paying an interest on the amount owed and  potentially fees in regards to the application process. The processing fees may also include administrative fees and will typically cost between 1-3% of the amount borrowed.  For example, if you borrow $500 dollars, you may incur a fee of $5 to $25 dollars. Depending on the lender you choose in London Ontario, there will likely be a charge for an late or missed payments. So, be sure to inform yourself by asking your lender.

When Will I Get My Money

Once you provide the information necessary to your lender in London, the lender will then evaluate your application. This may take one day to a few weeks depending on the information provided. If approved, the lender will transfer the money straight to your bank account.

The Right Personal Loan For Your Needs

Are you looking for a high-quality personal loan in London? If so, be sure to reach out to Loans Canada, we are confident we can help you out.