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With a population of just under 2.3 million residents, Calgary is one of Canada’s fastest growing cities, due in part to its oil production, tourism, and manufacturing industry. It’s the fourth largest metropolitan area in Canada and largest city in the province of Alberta. Calgary is also often considered the best place to live in Canada because of its high employment wages, cleanliness, and overall quality of living.
Calgary is located between the foothills of the Rockies and the plains of the Prairies, the outskirts of the city is where you’ll find the last of the Rocky Mountain Douglas-fir trees before the terrain starts to flatten. Calgary is also a sports fan’s paradise. In 1988, it was the first Canadian city to host the Winter Olympics. Every July, over one million people attend the Calgary Stampede, one of Canada’s most popular events. In the summer, there’s also the CFL (Canadian Football League) team, the Calgary Stampeders, and during the winter, thousands will flock to the Scotiabank Saddledome to see the Calgary Flames play hockey.
Want some more information about loans in Alberta? Look at this.
When it comes to loans, there is no shortage of misinformation floating around in Calgary. So, whether you read them online or heard them from your neighbour, we’re here to dispel some of the most common loan myths.
- Credit scores are the only factor that lenders consider when approving or denying loan applications. Some lenders in Calgary do use credit scores to assess the risk associated with potential borrows. However, that’s definitely not the only element they consider. Your financial standing, employment record, and other such details will also be examined. There are lots of lenders in Calgary that do not even perform credit checks when considering their applicants.
- All lenders charge the same interest rate. No, lenders charge whatever interest rates they feel will earn them a profit for the money they’re investing. However, there are laws in place that prohibit them from charging extremely high-interest rates.
- A house is the only asset you can use to secure a loan with. While a mortgage is a type of “secured” loan, a house isn’t the only asset that you can use as collateral. Vehicles, land, and other types of valuable property can be used to secure a loan.
What’s the difference between a collateral mortgage and a conventional mortgage? Find out here.
Preparing to Apply for a Loan in Calgary
The loan application process can seem long and complicated, but it doesn’t have to be. If you’re prepared with all the necessary documentation on hand, applying for a loan, no matter what you need it for, can be quick and stress-free.
- Consider checking your credit score before you apply. If you’re applying with a lender who requires an examination of your credit, pre-checking your credit report is a good idea. This way, you’ll have a better idea of where your finances are.
- Determine how much debt you can handle. When you take out a loan, you’re putting yourself in debt. So, before you apply, carefully consider how much debt you can afford to handle.
- Compare lenders before you settle on one. There are countless lenders in Calgary, some are great and some aren’t. A responsible borrower should always research and compare lenders before they sign on the dotted line.
- Beware of fraudulent lenders! While comparing lenders, make sure to look each one up in the Better Business Bureau database to confirm that they’re legitimate. Also, if a lender asks you to pay a deposit before they approve you, it means they are trying to scam you. No legal organization will ever ask you for an upfront deposit.
For more information on your Canadian credit score, click here.
Loans and Your Credit Score
When it comes to loans and credit scores, each one affects the other in some way. For instance, if you manage your loan responsibly, your credit score will benefit. If you miss one or more payments, your score will suffer. Your credit score can also affect whether or not you’ll get approved. A high credit score can increase your chances and a lower one can worsen them. However, the good news is that not all lenders in Calgary consider credit scores when they approve or reject loan applicants. Always make sure you choose a lender that fits your needs.
Read this to find out how your payment history affects your credit score.
Do I need a high credit score to get approved for a loan? Absolutely not. There are so many options when it comes to today’s lending institutions. Some lenders in Calgary won’t even pull your credit. Keep in mind, however, that all legitimate lenders will perform some kind of financial risk assessment before they can approve you.
Click here if you’ve been trying to compare lenders in Canada.
How will taking out a loan affect my credit score? If you properly manage your loan and always make your payments on time, your credit score will grow. If you mismanage your loan, your credit score will go down several points with every late, short, or missed payment that occurs.
Need to rebuild your credit after a late payment? Check this out.
How can I get approved for a loan? This greatly depends on the type of loan you’re interested in and the lender you’re applying with. All lenders in Calgary, even those who lend to borrowers with low credit or none at all, are looking for clients who can afford to make their monthly payments on time and in full.
The Right Financing For You!
Looking for a loan in Calgary? Good news, you’ve found Loans Canada!