Have you been rejected by the banks and other more traditional lending institutions even though you have great overall financial health and a good credit score? Do you think that alternative lenders only work with those who have bad credit?
If you answered yes to either of those questions then you’ll be happy to know that the unsecured loan landscape is changing. Big unsecured lending has arrived and people with good credit can now get approved for the large loans they need and want without having to work with a bank or put up collateral.
Banks often scrutinize potential new borrowers and find risk even with those who have good credit scores. The alternative lending industry has witnessed the issues that good credit borrowers are experiencing and has finally stepped up to the plate.
Learn more about the perks of having a good credit score.
A personal loan is a specific amount of money that you can borrow from a lending company near you. The sum you borrow is then deposited into your bank account and must be repaid over time through divided installments with interest. Here are a few other key features of most unsecured personal loans:
These large unsecured loans do not require any collateral; they are given to borrowers based on credit score, credit history, income and overall financial health. While it may seem like these loans are hard to get approved for, they aren’t. If you have good credit, this is without a doubt the type of loan you should be looking for. This is especially true for those who have been rejected by a bank.
The great thing about an unsecured personal loan is that it can be used for all most anything, including but not limited to:
There are numerous lenders looking to help get good credit borrowers approved for large unsecured loans. This means you have options, which is great for getting affordable interest rates and favourable terms.
While you won’t have to provide any collateral, you may need several personal and financial requirements to qualify for a large unsecured personal loan, such as:
When you apply for an unsecured personal loan, particularly a large one, you may need to provide these personal and financial documents as well:
Every lender has its own approval requirements and offers different loan types, interest rates, and repayment plans. That said, there are a few notable pros and cons about large unsecured personal loans in general, including but not limited to:
Remember, the better your credit score and debt levels are, the easier it will be to get approved for credit products with good conditions and rates. However, there are ways to get approved for a large unsecured personal loan with bad credit, such as:
In Canada, you can apply for a large unsecured personal loan at several types of financial companies, including but not restricted to:
Before you apply for any sort of large unsecured personal loan, make sure to research your potential lending source properly to confirm that they’re a legitimate business offering rates, fees and terms that actually suit your finances.
Never give your personal or financial information to a “lender” that charges illegally high rates, doesn’t have a solid reputation, or asks for payment prior to depositing your loan. Remember, if the deal looks too good to be true, it’s probably best to walk away.
Find out why you’ve been rejected for a loan.
Unfortunately, a lot of borrowers forget to factor their lender’s service and administrative fees into the final cost of their credit product. Here are some of the common fees you can encounter with an unsecured personal loan, whether you have good or bad credit:
Whether you have good or bad credit, there’s sure to be a lender that can approve you for an unsecured personal loan in Canada. However, you might need good credit to qualify for a large loan amount and a decent interest rate. Luckily, Loans Canada can help you improve your credit and find the right lenders in your area.
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Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and travelling the world in search of the coolest sights our planet has to offer.
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