To help you navigate post-CERB Canada, here is everything you need to know about what government help is available to you in 2022.
If you live in Manitoba and are looking for a way to pay for expenses that your bank account or credit cards won’t support, a personal loan might be exactly what you need. Not only can personal loans in Manitoba help you buy things that you might normally have trouble affording, they’re an effective credit-building instrument when used sensibly. After all, having good credit will open the doors to a world of future credit products for you.
Click here to learn how you can get a large unsecured personal loan with good credit.
Building Credit for Your Future in Manitoba
Wondering how a personal loan can give your credit a much-needed boost? And, for that matter, how good credit will one day benefit you? Well, here’s a timeline:
- You’ll find a legitimate lender in Manitoba to borrow your personal loan money from
- If you’re approved your lender will report your progress to one of Canada’s two credit bureaus (Equifax and TransUnion)
- These credit bureaus compile and calculate your credit report, credit rating, credit history, and of course, your credit score
- Good payments improve your credit (and your creditworthiness in the process), while late, short, and missed payments damage it
- The more creditworthy you become, the more important credit products you’ll be approved for down the line (mortgages, auto loans, etc.), along with better interest rates for your payments
Why Your Credit Score Matters
So, we’ve determined that a good credit score is important for your future. However, why does it matter right now? What qualifies as a good credit score in the first place? How does your score affect your chances of personal loan approval in Manitoba?
- Your 3-digit credit score (ranging from 300-900) shows your lenders in Manitoba how you will potentially handle your loan payments
- Generally, a score of 650 or above is considered good
- The higher your score is, the less risky of a borrower you’ll be considered. It signals to them that your likelihood of missing payments is lower than someone with a bad score
- You may still be approved with a score lower than 650, but you may be given a higher interest rate, costing you more money in the long run
Can’t figure out your credit score or credit rating? Read this.
Why Credit Cards Aren’t Always the Best Choice
Maybe you’re now thinking that using your credit cards is a better, simpler way of dealing with your expenses. While it is true that credit cards are also a good tool for building credit and come with many benefits, they can also cause harm to your finances when not used properly. Whether you live in Manitoba, or anywhere in Canada:
- If you’ve been missing payments or making late ones, your credit score will drop
- If you’re only making minimum or short payments, you could end up stuck in a cycle of unpaid consumer debt
- That unpaid debt can go on for months, sometimes years, costing you thousands more in interest than you feel comfortable paying
- If your credit and finances are damaged, it can be extremely hard to recover and be approved later on
Will paying off your credit card bill help increase your credit score? Find out here.
Your Credit Cards in Manitoba Might Be Better For…
- Making quick, smaller purchases that are easily paid off within 30 days
- Earning reward points (if you have the right card)
- When you don’t want to use cash right away
A Personal Loan in Manitoba Might Be Better For…
- Larger purchases that your credit card limit and bank account balance won’t cover
- Tuition fees and other educational costs
- Going on vacation or travelling
- Elective medical/surgical operations
- Repairs, renovations, or additions to your home
- Repairs and other costs for your car or another vehicle
- Any emergency expense that comes up in your life
Elements Your Lender in Manitoba Might Inspect
In Manitoba, every lender’s application procedure is slightly different. All lenders, however, want to be sure, first and foremost, that you can afford to repay your loan in full. So, they might inspect:
- Your employment record
- Your recent bank statements
- Your gross monthly and yearly income
- Any assets (house, car, other valuable property) you offer as collateral
- Your credit report, score, rating, and history
The Application Process in Manitoba
It’s important to take the following measures before you apply:
- Talk to a financial advisor and ask your lender about their rules and regulations. Be sure that a personal loan is right for you
- If so, gather and revise any personal and/or financial documents that your lender might examine
- Request a copy of your credit report to see what shape your credit is in. Both Equifax and TransUnion will provide you with one free copy per 12 months
- Check your credit score (both bureaus also offer this service for a fee)
The Size of Your Personal Loan
Depending on your financial ability and your lender’s regulations, the amount of loan money and the interest rate you’re approved for in Manitoba will depend on several elements, such as:
- How high your credit score is
- What your payment history looks like
- How easily your income will allow you to make your payments
- Whether or not you’re offering assets
- Whether or not you have a cosigner to cover for you in the event of non-payment
Collecting Your Personal Loan in Manitoba
Again, every lender’s process in Manitoba will vary slightly, so make sure to ask them when and how you will be able to collect your personal loan money. That being said, lenders will generally offer you the option of direct depositing through your bank.
Want to know if closing your bank account will affect your credit score? Look at this.
Should I get a personal loan or a payday loan in Manitoba?
Can I get a bad credit loan in Manitoba?
Can I get a loan with Employment Insurance (EI) as income?
Need a Loan in Manitoba, Choose Loans Canada
If you’ve come to the conclusion that a personal loan is what’s best for your financial situation, the Loans Canada Team can help! We’ll get you connected with the best personal loan providers in Manitoba. All you need to do is apply!