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- Any credit accepted
- Rates from 6.99%
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- Loans up to $50,000
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British Columbia is home to many Canadians, being the 4th biggest province in Canada. However, it is also considered as one of the most expensive provinces to live in and is home to the most expensive city in Canada: Vancouver. Rent alone averages around $2,000 a month for a 2 bedroom apartment in many cities in BC. Given the high cost of living in BC, many Canadians are hard-pressed for cash. That’s where a loan can help, whether you’re trying to pay for an unexpected expense or one of BC’s many activities like Okanagan Valley, Whistler Village, Yoho National Park, or the Big White Ski Resort, a loan can help you afford these.
Personal Loans In British Columbia
If you’re looking for a personal loan in British Columbia, it’s important you properly research your options, especially if you have bad credit. Bad credit can impact your ability to find a good personal loan lender in British Columbia. Oftentimes, traditional banks in BC will reject anyone with a poor credit score. However, there are numerous online lenders in BC who offer personal loans to those with less than perfect credit scores. These online lenders also usually offer decent rates, a simple application process and fast funding.
Types Of Personal Loans Available
The personal loans available in British Columbia are available to all Canadians across the country. Typically, if you’re looking for a personal loan to help cover an unexpected expense or make a large purchase, you have three main options to choose from:
Unsecured Loans
An unsecured personal loan is what you might refer to as a classic personal loan. It’s a sum of money provided to a borrower, based on their creditworthiness, income, etc. No security or collateral is needed.
Secured Loans
On the other hand, a secured personal loan does require collateral to get approved. Collateral is a valuable asset, like a vehicle, piece of equipment, property, etc. The asset secures the personal loan which can make it easier for someone with poor credit or past financial issues to get approved for a loan. Technically, if you default on your loan, the lender has the right to seize the asset to pay off the remainder of your loan. But of course, if you keep up with your payments, this isn’t something you need to worry about.
Cosigner/ Guanator Loans
For consumers with poor credit or who don’t have an asset to offer as collateral, a guarantor loan or cosigner loan could be a good alternative option. Here, someone you trust and who has better credit will cosign the loan for you. The money is yours and you’re still required to make your payments on time, but if you default on a payment, your consignor or guarantor will have to make the payment.
What Can You Use Your Personal Loan For In British Columbia?
As long as you pay your bills on time, you can use a personal loan for almost any expense in British Columbia, including but certainly not limited to:
- Expensive purchases – Whether you’re looking to purchase a TV, a computer or some other expensive item, a personal loan can spread the cost over a few years so that your cash flow doesn’t take a big hit.
- Household repairs and renovations – Given that housing prices in BC are one of the highest in Canada, renovating one can also be very expensive. A personal loan could not only finance the cost but also help elevate the value of your home.
- Car purchase, repairs, and other related costs – Car insurance in BC can be quite costly. Many British Columbians will have a high deductible in order to lower their insurance premiums. Meaning they’ll have to pay out pocket for part of the cost if they damage their car. A personal loan can be a good option to help with these costs.
- Dental medical bills – If you don’t have dental insurance in BC, it can cost hundreds if not thousands of dollars for dental work, especially for braces, root canals and other major procedures.
Requirements For A Personal Loan In BC
While lenders in British Columbia will have their own unique borrowing requirements, there are a few basics that all consumers should be prepared to meet, including but not limited to:
- Be a Canadian citizen or permanent resident
- Be the age of majority (19 years old)
- Have a stable source of income (meet income requirements)
- The ability to afford your payments
- A reasonable credit score (not all lenders check credit)
- An active bank account
Most lenders will also require the following documentation:
- At least one form of government-issued I.D
- Proof of income (bank statements or pay stubs)
Additional Reading
How Much Will A Personal Loan Cost You In British Columbia?
The cost of your personal loan will depend on a number of factors including your interest rate, term length, and loan amount.
- Interest Rate – Your interest rate is one of the main factors that affect the cost of your loan. The higher your rate the more interest you’ll pay and vice versa.
- Term Lenght – Generally speaking, the longer your term length the more interest you’ll pay over the course of your loan. It is recommended that you choose a shorter term if you can afford it.
- Loan Amount – The amount you borrow will also impact the amount of interest you pay. When taking out a loan, never borrow more than you can comfortably repay.
Fees To Lookout For
Loan fees are another cost to consider when taking out a personal loan in BC. These fees can significantly increase the cost of your loan, making your loan more expensive than you originally thought. Before signing an agreement with your personal loan lender, be sure to ask about these fees:
- Insurance Add-Ons – Many lenders may try to convince you to purchase loan insurance. This is an optional service that you can add to your loan. It is not mandatory for approval.
- Prepayment Penalties – If you want to pay off your loan early, ensure your lender does not charge any prepayment fees.
- Late Payment Fees – Be sure to check how much your lender charges for late payment fees. Late payment fees generally cost between $25 to $45.
- Loan Origination Fees – Check to see if your lender charges any processing fees like loan origination. Depending on the lender, they may charge 0.5% to 8% of your loan amount.
- Upfront Fee – Any lender that asks for an upfront fee is not a legitimate lender. In Canada, it is illegal for a lender to demand fees before providing the loan. If they want to charge you any processing fees, they will deduct them from the loan amount itself.
Estimate Your Monthly Payments
Can A Personal Loan Improve Your Credit?
Generally speaking, a personal loan can be used as a tool to help build credit. Just keep in mind that credit scores react differently and it will take time to see any improvement. If you’re taking out a personal loan and are interested in building healthy credit, make sure you follow all of these tips:
Don’t Go Into You Can’t Afford
Take out a personal loan that you can actually afford to pay back and one that you actually need. Taking on debt you can’t afford in hopes that it will improve your credit is never a good idea.
Make Sure Your Lender Reports To A Credit Bureau
Work with a lender in British Columbia who officially reports to Canada’s credit bureaus (Equifax and TransUnion). Some lenders may only report to one of the bureaus, which means only one of your credit scores will reap the benefits of your timely payments.
Make Your Payments On Time
Payment history is a big part of building healthy credit. This is why it’s important to follow your payment schedule properly, always make your payment on time. Also, consider how additional unnecessary debt (consumer credit card debt) could affect your ability to afford your loan payments.
How To Get A Personal Loan
Steps To Apply For A Personal Loan In British Columbia?
Step 1. Check Your Finances
Before applying for a loan, be sure to prepare your credit and finances for inspection. You can check your credit score and report by requesting a free annual copy of your credit report from Equifax and TransUnion. Understanding where you stand as a borrower will help you choose a lender that will work with you.
Step 2. Find A Lender
Now that you have a clear understanding of finances, you can find a lender whose eligibility requirements match your financial situation.
Step 3 – Apply For Loan
Most lenders have an online application form you can fill out within a few minutes. You’ll need to provide basic information such as your name, address, and contact details. You’ll also need to provide some financial information such as proof of income and employment.
Step 4 – Wait For Approval
Most online personal loan lenders have automated their underwriting process, so you should receive an answer within a few days, some may even get back to you within the day. If you’re approved, you’ll receive a contract with the details of the loan. Be sure to review its contents before signing the dotted line.
Step 5 – Receive Your Funds
Once you’ve signed your loan agreement, your lender will send you your funds shortly after. Some lenders will directly deposit your funds into your bank account, while others may send it via e-transfer.
Should You Use A Credit Card Or A Personal Loan In British Columbia?
You might be reading this and wondering if you couldn’t simply use your credit card to handle whatever financial situations might come up in your life in British Columbia. While using your credit card certainly comes with benefits, personal loans have their own. Let’s explore some of the differences between these two valuable credit products.
Benefits Of Using A Credit Card
- They can help you build and improve your credit through monthly payments
- They allow you to finance a variety of expenses without immediately draining your bank account
- Many credit cards come with reward points, travel insurance, discounts, etc.
The Downside Of Using A Credit Card
- They can make it too easy for you to overspend
- If not handled responsibly, they can cause a cycle of bad debt through high-interest rates and late penalties
- They open up the possibility of theft and identity fraud
Benefits Of Choosing A Personal Loan
- They offer you the potential for fast, large sums of cash
- Depending on the size of the loan and the health of your credit, they can be relatively easy to be approved for
- Payments are made through affordable installments
- The money you receive can be used for any expenses that come up
The Downside To Choosing A Personal Loan
- Not making your payments on time can be bad for your credit and finances
- Penalty fees may apply when bills go unpaid
- If you have bad credit, approval might not be easy and interest rates can be high
What Credit Score Do I Need To Be Approved In British Columbia?
While this also depends on your lender’s specifications, generally a credit score of 650 or above will give you the best chances of getting approved for a personal loan in British Columbia. If your score is below that point, you may still be approved. However, it’s important to know that your interest rate might be higher the lower your credit score is.
More Info About Living In BC
Personal Loan Alternatives
- Social Assistance In British Columbia – If you’ve lost your job or are struggling to afford basic items like food or shelter, you may qualify for the social assistance program in BC. Those eligible can get up to $935 if they are single and $1,720 if they have one child.
- BC Disability Assistance – Living with a disability can affect your ability to make a living. Those eligible for the BC Disability Assistance program can get up to 2,143.50 a month.
- BC Recovery Benefit – If you’re struggling to make ends meet due to Covid-19, the government of BC is providing its residents with extra income through a one-time tax-free payment.
Personal Loan FAQs
Can I get a no credit check personal loan in British Columbia?
Yes, if you have bad credit and would like to avoid having your credit checked, there are many online lenders who’d be willing to lend to you based on other financial factors. This includes income level, employment stability, debt-to-income ratio, and more.
Can I get a bad credit personal loan in British Columbia?
There are many alternative lenders in British Columbia who offer personal loans to individuals with bad credit. So long as you have a steady income and a reasonable amount of debt, then you can qualify for a personal loan.
How do I improve my chances of getting a personal loan in British Columbia?
You can increase your chances of approval in a number of ways. For one, you can work on improving your credit score by reducing your debt and making on-time payments. You can also improve your chances of being approved by offering an asset to secure the loan. The added security you provide to the lender will also allow you to negotiate better rates and terms.
How will I get the money from my personal loan?
While this depends on your lender’s regulations, your loan funds will likely be deposited directly into your bank account.
Bottom Line
A personal loan can be a useful financial tool if managed properly and responsibly. If you’re looking to apply for a personal loan in British Columbia, find a reputable lender that you’re comfortable working with. Shop around for an interest rate and payment plan that fits into your budget and ultimately, choose a loan you can afford.
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