Personal Loans Quebec
Compare and Save With Loans Canada
Written by Bryan Daly
Best Personal Loans Quebec (Online) August 2021
Note: Loans Canada does not arrange or underwrite mortgages or any other financial service. We are a simple referral website that provides free educational resources to help Canadians make better decisions.
Quebec, like any other province in Canada, has plenty of inhabitants who rely on mortgages, credit cards, and other kinds of credit products to get by. Another product that’s frequent amongst Quebecers and that you may not have heard about is the personal loan.
Living in Quebec City? Take a look at this.
What Are Personal Loans and How Can I Receive Mine?
These kinds of loans typically come in lump sums of money, which are provided by lenders and paid back in installments. Depending on how your lender does business, personal loans in Quebec are most often deposited directly into your bank account upon approval.
You can then use your personal loan for almost any cost. For example:
- Paying off your tuition or your children’s education
- Buying a decent used vehicle or making repairs to your existing one
- Hiring contractors, plumbers, electricians, etc. to maintain, renovate or repair anything in your home
- Financing an excursion or vacation
- Paying for any voluntary medical procedures, treatments, necessary medications, or other medicinal expenses that your insurance doesn’t cover
- Ridding yourself from the burden of your other debts and bills
What Do I Need in Order to Apply For a Personal Loan In Quebec?
Firstly, you should find yourself a lender with a good reputation. Make sure they’re legitimate by reading customer reviews and looking up their company name in the B.B.B. (Better Business Bureau) database. If you confirm they are lawful, you can prepare yourself to apply with these simple steps:
- Be certain that your credit is in good shape. Examine your credit report and request your credit score through our country’s two major credit reporting agencies (TransUnion Canada and Equifax Canada)
- A credit score of 650 or above is where you should aim to be for the best chances of approval. If your score is below 650 it’s best to wait until you can raise it again. If not, be aware that you may pay a higher interest rate
- Get an approximate calculation of how large of a loan you want and how much you would be able to afford given your present income and employment.
- Review your finances. Ask your lender what personal and banking information they may need, then organize and update said information accordingly
- Pay off your other debts first! Otherwise, your personal loan may only land you in further, more serious debt.
Trying to compare lenders in Canada? Read this.
Are There Other Factors That My Lender Will Look At?
Always ask your lender about their application, approval, and payment procedures before you make them your first choice. Here are some of the possible sectors of your background they might look at:
- Your employment record (to confirm that you can hold a steady job)
- Your collective income and recent bank statements (to know if you can properly afford your loan)
- Your credit score, report, rating, and history (to judge you as a credit user and determine the possibility of you defaulting or missing payments)
- Your history of previous and present debts (to find out how good you are at paying back what you owe)
- Your existing assets, like your car, house, or another piece of real estate (you can often secure a better interest rate by offering valuable collateral compensation)
To find out how using collateral can help you qualify for a loan, click here.
How Large of a Loan Can I Collect?
This again hinges partly your lender’s specifications. For instance, most prime lenders in Quebec, such as banks, set a minimum amount of personal loan money you’re allowed to apply for, sometimes $1,000 or more. Some alternative or private lenders might allow you to apply for less. However, the amount you’re actually approved for will mostly depend on the state of your credit and finances. If these elements look healthy, you’ll be approved for more, even up to $100,000 in some cases. If not, you’ll be approved for less. If your credit and income are terrible, your chances of approval, in general, will diminish.
Why is My Credit Score So Important?
Not only is good credit an essential part of living a healthy financial life, but it also gives you a better shot at approval for a personal loan in Quebec. As we said, a credit score of 650 or more is what you should aim for when you apply, because:
- Your lender may see your good score and grant you a lower interest rate, potentially saving you money over the course of your loan term.
- Your lender then reports your payment activity to TransUnion or Equifax, who will update your credit respectively.
- Punctual, full payments will raise your credit score. Late, short and defaulted payments will diminish it.
- The higher your credit score is and the stronger your credit report looks, the easier it will be to get approved for future loan products and favorable interest rates.
Are There Situations Where My Credit Cards Are More Beneficial?
Generally speaking, a credit card might be a better choice if:
- The expenses are smaller and you won’t have trouble paying for them within 30 days (such as regular consumer goods)
- You’re trying to earn reward points, discounts, and other benefits that come with specialty credit cards
- You’re consolidating a reasonable amount of debt using a “balance transfer” credit card
- You’re good at avoiding mass amounts of consumer debt and don’t usually go over your revolving credit limit
However, a personal loan in Quebec might be a better choice if:
- You’re attempting to pay for a much larger expense ($1,000 or more)
- You’re trying to consolidate a debt of a similar amount
- You’re looking for a credit product with a lower interest rate
- You’d rather have a set limit of loan money and know exactly how much you’ll pay by the end of your payment term
- You’d like the option of paying through installments other than monthly ones (semi-monthly, weekly, bi-weekly, etc.)
What Does the Loans Canada Team Recommend?
At Loans Canada, we feel that you should spend your loan the way you see fit. As long as you’re being responsible and making your payments as scheduled, taking out a personal loan in Quebec can be a responsible way to afford a large or unexpected expense.
Click here to learn how your payment history affects your credit score.
How do I improve my chances of being approved for a personal loan in Quebec?
Should I get a personal loan or a payday loan?
Can I qualify for a personal loan in Quebec if I lost my job?
I’m Interested, What’s Next?
If you’ve read this and you’ve decided that a personal loan is the way to go, all that’s left for you to do is apply. The Loans Canada Team is here to help you every step of the way and introduce you to the right source of personal loans in Quebec.