Most Canadians will need to secure a loan at some point in their lives. This could be a mortgage for a house, a student loan for a university degree, or even just a personal loan to cover an emergency. While the average incomes in places like Markham and the rest of the York region have risen a ton in the last decade, loans are still a necessity for most people. Most of us simply do not have enough in the bank to make all of the purchases we need or to deal with life’s unexpected situations.
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Improving Your Chances of Being Approved For a Loan in Markham
It would be great if everyone in Markham who needs a loan can get one, but that isn’t how it works most of the time. Just as some will get approved for a loan, others in Markham will be denied based on a number of factors. So, if you are in need of a loan, how do you give yourself the best chance of being accepted?
Well, there are a few different things you can do, and most of them are quite simple. These include:
- Pay down any current debt you have. Lenders in Markham prefer to lend to those with enough income to cover their payments, not those already struggling to make payments.
- You want to ensure your credit score and credit report are in a good place. Getting a loan with bad credit in Markham is possible, but will be harder and more expensive.
- Be completely honest in your application. If you lie about certain things or fudge the numbers, they will find out and you will certainly not be approved.
- Provide all of the necessary documents and information that they request. Forgetting certain forms or withholding them will weaken your overall application.
- If you have bad credit or a below-average financial history, you can consider getting a co-signer or provide collateral.
While you may not be able to improve your chances in a day or a week, it might happen faster than you think. If you stick to your plan, be responsible, and work hard at it, getting approved for a loan can be a reality for you.
Secured Loans vs. Unsecured Loans
In general, there are two different types of loans you can get in Markham and the rest of Canada. One type is secured and the other type is unsecured. In order to make sure you understand the difference, we are going to take a look at each with a little more detail. In addition to that, we are also going to look at a few examples of each.
A secured loan requires some sort of collateral for you to get one. This is generally something like a car or your home. If you don’t repay your loan, your lender in Markham can legally take possession of whatever you put up for collateral. Secured loans that you most commonly used are mortgages and car loans. Secured loans can often get better rates, but are risky as defaulting could lead you to lose your asset. These are often easier to get as there is less risk to the lender because they will get your asset if you default.
An unsecured loan is a loan that is not protected or linked to any sort of collateral. If you default on the loan, your property is not at risk of being taken like it is with a secured loan. The most common unsecured loans are student loans, credit cards, and personal loans. Because of the higher risk for lenders, unsecured loans often come with higher interest rates to protect the lender in case of a default.
Take a look at our list of 20 ways to secure a loan.
Watch Out For Loan Scams in Markham
While the majority of lenders in Markham you will see and interact with will be legitimate, this, unfortunately, isn’t always the case. There are plenty of loan scammers in Markham that look to prey on those looking to borrow money. While they can be good at disguising themselves as legitimate, there are certain things you can look for to identify a loan scam in Markham.
Common characteristics of a loan scam include:
- They have no physical address
- They want you to pay up-front
- They pressure you to act right now
- They guarantee approval of their loans
- They seem too good to be true
If you feel that you have been caught in a loan scam, the first thing you should do is visit the website for The Canadian Anti-Fraud Centre and report what you have experienced. While reporting the scam will potentially help others from falling victim to a similar one, the unfortunate truth is that you will likely never get your money back. Because of this, it is very important to always be on the lookout for loan scams when trying to borrow money.
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Helping You Find the Loan You Need
Looking to apply for a loan in Markham or have some questions about the right type of loan for your needs? If so, don’t hesitate to reach out to us at Loans Canada, we can match you with the right loan and the best lender in Markham.