If you’re light on cash this month, taking out a loan can help when you’re dealing with large emergency costs, like home repairs or paying your rent. A loan can be more cost-effective because you’re able to pay it back in installments. Luckily, there are plenty of reliable lenders in every province and territory that can offer you a loan, as long as you have the financial aptitude to make your payments on time.
Thinking about applying for a loan? Here are the best loan places in Canada.
To find the best loan place in Canada, research is key. Be sure you’re applying with a trustworthy company and that you’re eligible for the loan. If a lender seems sketchy or doesn’t offer good rates and conditions, do some research to compare other loan offers.
Here are some of the most common loan places you can apply for a loan in your region:
Banks are one of the most common loan places Canadians will apply for loans since they already know how things work. That way, they’re guaranteed some security and added convenience, especially if they’re already a client with that bank.
The problem is that traditional financial institutions have tough requirements and often charge high service fees, particularly for applicants with poor credit.
Joining a credit union might be a better loan place than a bank because they have lower requirements. That said, potential borrowers must meet very specific criteria to qualify, like being related to an existing member or living in a certain region.
If you can’t qualify at the loan places mentioned above due to bad credit or a low income, you can apply with a payday lender. These lenders offer small loans of $100 – $1,500 with minimal requirements and short terms of 14-30 days. However, be aware that payday loans have sky-high interest rates and fees.
Pawn shops are another loan place you can get a small loan. Pawn shops will typically accept jewelry, electronics and other valuables as collateral for a loan with no credit check. Be careful here too, since pawn shops charge very high rates and are legally allowed to sell your item if you don’t pay on time.
If you’re having trouble qualifying with your bank or credit union, you could try looking into online loan places. These loans are offered online by alternative or private lenders.
These digital loan places may offer easier requirements, faster approval times and more adjustable conditions than financial institutions. However, their rates may be more expensive than a bank.
If you own a specific type of credit card, you can borrow money from it without having to apply. While you’ll receive the funds instantly, credit card cash advances are expensive because the provider will charge you an additional interest rate (on top of your regular APR). Plus, they may add that interest and a withdrawal fee as soon as you borrow.
Every lender has different requirements when it comes to their customers but to apply with a loan place in Canada, you’ll generally need the following elements:
Don’t forget, you must be a permanent resident and at least 18 – 19 years old to apply.
To find a legitimate and affordable loan place in your province or territory, follow these steps:
When your credit score is in the 300 – 600 range, it’s tough to get approved by prime lenders like banks, because they don’t really accept borrowers with bad credit. That’s particularly true if your credit is low due to a history of missed payments. As someone with bad credit, you simply present too much risk for them to take you on as a client.
Thankfully, there are many online loan places that can approve you for funding, despite your bad credit. These loan places are often privately owned and, as a result, they’re able to set easier standards. Online lenders tend to be more concerned with your income and some might not check your credit at all.
As mentioned, you should always be wary of scams when searching for online loan places. Since many alternative lenders are private, it’s harder for the government to regulate them, which can lead to a lot of theft and fraud. Additionally, alternative lenders may ask you for collateral and charge you a high-interest rate if you have bad credit.
Once you’ve found a trustworthy and cost-effective online loan place to apply, there could be a variety of benefits to take advantage of, including but not limited to:
Then don’t worry, because you can find hundreds of solid loan places all over Canada, both online and in person. Borrowing a loan is a serious responsibility and you should only go through with it if you’re totally prepared to handle the costs. A big part of that preparation is making sure that you choose the best loan places in Canada.
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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