📅 Last Updated: October 4, 2021
✏️ Written By Bryan Daly
🕵️ Fact-Checked by Caitlin Wood
Filters
Loading...
Loans Canada
Loans Canada
Amount
Up to $50,000
Rate
Prime to 46.96%
Term
3-60 months
iCash - Best Quick Option
iCash
Amount
Up to $1,500
Rate
Varies by province
Term
Fora - Best Overall
Fora
Amount
$1,000 - $15,000
Rate
19.9% - 34.9%
Term
Varies
Spring Financial - Best User Experience
Spring Financial
Amount
Up to $35,000
Rate
9.99% - 46.96%
Term
9 - 78 Months
Fairstone Financial - Best For Homeowners
Fairstone Financial
Amount
Up to $60,000
Rate
19.99% - 39.99%
Term
6 - 120
Bree - Best Interest-Free Option
Bree
Amount
Up to $350
Rate
No Cost!
Term
-
Mogo Finance - Highest Approval Chance
Mogo Finance
Amount
Up to $5,000
Rate
9.9% - 47.72%
Term
-
easyfinancial
easyfinancial
Amount
$500 - $100,000
Rate
9.99% - 46.96%
Term
Varies
Cash Money - Best Quick Cash Option
Cash Money
Amount
$1,500 – $10,000
Rate
Varies by province
Term
Varies
LoanMeNow - Best For Low Credit
LoanMeNow
Amount
$500 - $1000+
Rate
28% to 32%
Term
3 Months
SkyCap Financial - Best Alternative Option
SkyCap Financial
Amount
$500 - $10,000
Rate
Term
Nyble - Best Credit Building Help
Nyble
Amount
$250
Rate
No Cost!
Term
-
goPeer
goPeer
Amount
$1,000 - $25,000
Rate
7.5% - 31.5%
Term
36 - 60 months
Unfortunately we couldn't find you a provider with the given filters

As a Burnaby borrower, it’s important to have proper financial tools on-hand to add convenience to your life and help you save money, such as credit cards, lines of credit, and loans. While this is true if you’re a Burnaby resident, the same can be said about living in any major city, where your daily expenses are often higher than average.

One of the more common credit products found in Burnaby is the personal loan. Keep reading if you’re interested in discovering the benefits that come with this solution.

Avoid these common personal loan application mistakes.

Personal Loans Application Check List

What Can a Personal Loan in Burnaby Be Used For?

A personal loan is a specific amount of cash that you can apply for through a lender. If you’re approved, the money will be deposited into your bank account soon after. While this is the most common process, keep in mind that it can vary depending on the lender you’re working with in Burnaby.

Once you have the money, you’ll follow a schedule that allows you to repay your loan through equally timed and divided installments. While repayment plans might be a bit more strict if you have bad credit or a low income, most lenders in Burnaby can adjust your schedule to meet your financial needs.

You can then use your cash to pay for just about anything. That said, any loan is a serious responsibility that can put you in debt for some time. So, it’s important to only use your borrowings for important expenses, such as:

  • Consolidation of unpaid debts
  • Unexpected travel costs
  • Elective surgeries and other medical bills
  • Repairs, accidents, and other vehicle costs
  • New furniture or other large purchases
  • Floods, broken appliances, or other home emergencies

Click here if you want to borrow money for a large purchase.

How Can a Personal Loan Improve Your Credit?

Another benefit that comes with a personal loan is the ability to make responsible payments and, in doing so, build and improve your credit score. That’s right, as long as you’re working with a lender in Burnaby that reports your payment activity to Canada’s credit bureaus (Equifax and TransUnion), you can see your credit score rise gradually with every payment you complete. If you keep this behaviour up, you’ll be more eligible for larger personal loans and more affordable interest rates in Burnaby.

However, the opposite effect will occur if you default on any payments. The more late, short, and missed payments appear in your credit history, the worse your credit score will be. Unhealthy credit leads to lower chances of loan approval, smaller amounts of credit, and higher interest rates due to the increased risk that is imposed on your lender.

That said, you can improve your credit with a personal loan if you take some precautions, such as:

  • Compare your lenders in Burnaby and choose one with the best rates
  • Only apply for a loan amount that you can comfortably afford
  • Factor your potential payments and loan fees into your budget
  • Avoid any unnecessary debt that would jeopardize your payment plan
  • Check your credit report regularly for errors, fraud, and identity theft
  • Make timely and full payments, then monitor your credit as it grows over time

Wondering which credit bureau your lender checks? Find out here.

Minimum Credit Score for Loan Approval

Your credit score is a three-digit number ranging from 300 – 900 and represents your strength as a credit user. The higher your score is, the less risk you pose to a potential lender in Burnaby. Usually, this means you’re more likely to get approved for a larger, and less expensive loan. Typically, you won’t have much trouble if you apply with a credit score of 650 or up.

Then again, most lenders have different standards for which borrowers they approve. For instance, a credit score below the 600 mark means you have bad credit, which may be due to multiple missed payments, identity theft, uncorrected credit report errors, or other financial problems. No matter what the cause, most prime lenders in Burnaby will unlikely to approve you.

While you can still get approved with a private, alternative, or bad credit lender in Burnaby, it will usually be for a lower loan amount at a more expensive rate, so make sure your score is in good standing before you apply.

Canadian Credit ScoreCheck out this infographic for more information about what affects your credit score.

What Else Do Lenders in Burnaby Look For When You Apply?

Getting approved for a personal loan, especially a large one, is all about your ability to make payments on time. Therefore, all lenders in Burnaby, prime or subprime, will inspect your financial health prior to approving you. The stronger you are as a candidate, the better your approval odds will be.

For the best results, make sure you:

  • Have a stable source of employment
  • Are making a large enough income to support all associated costs
  • Establish an emergency fund in case you can’t work or lose your job
  • Improve your credit score as much as possible
  • Present recent bank statements, paychecks, or other proof of your income
  • Fill out your application honestly

Offering Personal Loan Security

If you have bad credit and/or low financial strength, you can always earn better approval odds and lower rates by offering up loan security, which can be done in two ways.

The first is known as collateral, meaning you would offer up one of your assets, such as your house, car, or another piece of property in exchange for a loan. This will make your loan “secured” and give your lender in Burnaby something to sell in the event that you default. The more valuable the collateral, the better the results. Proceed with caution if you go this route, as your asset may be at risk if you default on the loan.

The second kind of loan security comes in the form of a cosigner, meaning a candidate with stronger financial health than your own. In this case, they would be agreeing to take over your payments if you default. That said, taking over your payments could put your cosigner under significant financial strain, so make sure they’re aware of this before you apply together.

When Would a Credit Card Be Better?

Although personal loans come with all sorts of benefits, they’re also not the right financial tool for everyone. If you’re not sure you can handle the responsibility of this kind of product, it’s probably a safer idea to look elsewhere, rather than taking on a debt you can’t afford.

Instead, maybe your credit card is a better option because, rather than having to pay back a lump sum or through mandatory installments, you can withdraw from a revolving credit limit whenever you need and pay your balances back monthly. This option can be very beneficial, as you’ll only have to pay interest on the amounts you borrow, and will also be allowed to make minimum payments if you can’t afford full ones.

Nevertheless, any credit card can also lead to a cycle of unmanageable debt under the wrong circumstances. Like any financial product, it must be used responsibly.

3 times you should choose a personal loan over a credit card, click here.

A credit card might be better than a personal loan in Burnaby when you:

  • Want the option of minimum payments
  • Need to pay for things quickly and finance them monthly
  • Have smaller (less necessary) consumer items to cover
  • Want to build credit quickly by making more than one monthly payment
  • Are offered various perks, such as reward points, travel insurance, etc.
  • Are trying to build your credit from the ground up

The Right Personal Loan When You Need it

If you’re looking for affordable personal loan options in Burnaby, Loans Canada can help. It’s our mission to help you find the best personal loans, lenders, and rates in Burnaby or any other city in Canada. Get started by submitting an application below.

More From Our Experts

Is It Better To Apply Online Or In Person For A Loan?
Is It Better To Apply Online Or In Person For A Loan?

While applying online for a loan seems to be the most convenient choice, is there any advantage to applying in-person?

Can You Get A Loan While On Disability Assistance?
Can You Get A Loan While On Disability Assistance?

Navigating financial challenges while receiving disability assistance can be tough, especially when you struggle to find approval for a loan. For Cana...

Review: Spring Financial – The Foundation
Review: Spring Financial – The Foundation

Looking for a way to build credit and save money? Then you should check out Spring Financials' credit-building program called The Foundation.

Grant vs. Loan: What’s The Difference?
Grant vs. Loan: What’s The Difference?

While both a grant and a loan can provide you with the funds you need, they are two very different options. Keep reading to see which one is right for...

Woveo Review
Woveo Review

Check out Woveo, a community based savings program that also provides access to a interest free line of credit which can help you build credit.

Home Equity Loans For Seniors
Home Equity Loans For Seniors

As a senior, getting a loan can be more difficult due to lower income and age restrictions. Thankfully, there are many home equity loans for seniors i...

Debt Consolidation Loan Rejection: Reasons And What Can You Do?
Debt Consolidation Loan Rejection: Reasons And What Can You Do?

You applied for a debt consolidation loan to finally start tackling your debt but then you got denied. Now what?

What Happens When I Can’t Make My Loan Payments?
What Happens When I Can’t Make My Loan Payments?

Are you missing loan payments? What happens If you can't pay your loan? Finf out what happens and what you can do.

Borrower Rights: High-Interest Loan Legislation In Canada
Borrower Rights: High-Interest Loan Legislation In Canada

To better protect vulnerable borrowers, provinces have enacted legislation that sets boundaries on what alternative lenders can and can’t do.

Need Money Today? Find Out Where You Can Get It
Need Money Today? Find Out Where You Can Get It

Do you find yourself saying "I need my money today" often? Here are some simple and quick ways to get money quickly.

Why choose Loans Canada?

Apply Once &
Get Multiple Offers
Save Time
And Money
Get Your Free
Credit Score
Free
Service
Expert Tips
And Advice
Exclusive
Offers
Caitlin Wood Priyanka Correia Lisa Rennie Bryan Daly Cris Ravazzano Margaret Johnson Kale Havervold Liz Enriquez Sean Cooper Veronica Ott Corrina Murdoch Chrissy Kapralos

A Team of Experts

Get expert tips and guidance from a community of renown personal finance experts right here at Loans Canada. We're here to help you stay informed so you can make the best financial decisions.

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.

Koho Prepaid Credit Card