Announcing The Winner of Our Financial Literacy Scholarship (Spring 2022)
We are awarding $750 to a student every semester. All you have to do is show us how financial literacy has made a difference in your life.
For this post, we’ve teamed up with our partners at Fairstone
When you’re looking to borrow money, the last thing you want to have happen is to be turned away. If you’ve been turned down by a lender before or you’ve never applied for an installment loan, you may be wondering how you can find out if you qualify before applying. We asked our partners at Fairstone to come up with 4 tips to help people find out if they’ll qualify for a loan before they set foot in a financial institution. Here are their tips:
These days it’s fairly simple to check your credit report on your own. You can access your report through a third-party provider, or contact one of the two Canadian credit bureaus – Equifax or TransUnion – for a copy of your report. For the most accurate result, you’ll want to go right to the source. Once you know your current credit score, outstanding bills or debts, and your general credit standing, you’ll be able to get a sense of which financial institutions will be likely to lend you money. The higher your credit score and the less debt you have, the more likely you are to be able to qualify.
There is a spectrum of lenders, each of whom serves a particular credit score niche. Once you know your score, you can determine where you may qualify for a loan.
After considering the type of lender you might choose, you’ll want to do some investigating to see if they offer a loan estimate or loan calculator tool. This is a generic tool that you can use yourself to find out what types of loans they offer, without providing very much personal information. A loan estimator gives you a rough guess of how much you may be able to borrow, but will not be personalized to your current financial context.
#4 – Ask the lender for a personalized quote that won’t impact your credit score
Once you’ve tried the general tools on a lenders’ website and learned about their loan products, it’s time to see if they can offer you a personalized loan quote. Ideally, the lender should be able to take just enough of your information to be able to develop a quote that reflects your current financial standing but does not require a hard credit check. Remember, every time a lender does a “hard” credit check it is reported to a credit bureau, and having too many credit checks close together can actually negatively impact your credit score.
Are you interested in a loan quote from a middle-ground lender? If you want to find out how much money you might qualify for, without impacting your credit score, get a no-obligation instant quote from Fairstone.
Although it can be nerve-wracking if you don’t know whether or not you’ll qualify for a loan, doing your research and asking the lender to provide a no-obligation quote puts you in the driver’s seat. Whether you’re looking for a loan to cover urgent expenses, consolidate debt, or just for some extra room in your budget, there’s a lender that is right for your current financial situation.
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