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Canada is full of great places to live from coast to coast. However, in 2018, the city that was named the best place to live was Oakville, Ontario. This suburb outside of Toronto is affluent and has some of the priciest real estate in the country. These are just some of the reasons it scored so high on the list.
While it is a great place to live, the high cost of living can make it difficult for some to afford. Some may have enough cash to get by, but others might be struggling to afford their bills and make their payments every month. This can be incredibly stressful to deal with, especially over long periods of time.
Thankfully, personal loans in Oakville can help people gain access to additional funds when they need it the most. There are dozens of lenders in most cities that can get you the money you need.
What Can a Personal Loan Be Used For?
But what exactly can a personal loan in Oakville be used for? Essentially, a personal loan can be used for anything that you need. Most lenders don’t have rules as to what you can use a personal loan for, so feel free to use it on anything you need some assistance with. Including but not limited to:
- Emergency
- Travel
- Make a large purchase
- Home or vehicle repairs
- Medical bills
- If you need some additional money to get by
However, just because a personal loan can be used for anything, doesn’t mean it should be. There are some good reasons to use personal loans, but also not so great reasons. Generally, a loan should only be used for something that you need or something that is very important.
Getting a large loan to go on a trip or borrowing money to purchase a huge TV or a new gaming system often isn’t the best financial decision. On the other hand, getting a loan to fix your vehicle so you can still make it to work reliably isn’t a bad idea.
How Large of a Personal Loan Can You Get?
So now you are aware of what a personal loan is and how they can be used, how large of a personal loan can you get? Well, this depends on a number of different factors. The size of the loan you can get will depend on your credit score, your income, your ability to repay the loan in full, and whether or not you decide (or are able) to provide some kind of security.
Generally, the better your finances and credit score, the more you will be able to borrow. Also, the amount you can borrow may vary from lender to lender. Some may be willing to loan people large amounts, while others might be more cautious and only want to lend smaller amounts. Not only that, but you will often gain access to better interest rates if you pose less of a risk to your lender.
Also, just because you can get a large personal loan, doesn’t mean that you should take advantage of that option. Whenever you borrow money, be sure to only borrow amounts that you are confident you can afford to pay back. When figuring out how much you can afford to borrow, don’t forget about interest as well. If you borrow too much, you can potentially ruin your finances by not being able to repay it. Consider how much you need, and only borrow that much. It can be tempting to borrow more, but that often ends badly.
How to Apply for a Personal Loan?
So if you are interested in getting a personal loan in Oakville, how do you apply for one? Well, thankfully, the process isn’t too difficult. First, you need to find the right lender to work with. Be sure to look at the reputation of the lender, their experience, their terms, and the types of loans that they are willing to offer.
Once you have selected a lender, it’s time to send in your application. The information required on an application is quite standard and they shouldn’t take too long to fill out. Once the application has been filled out and submitted to your chosen lender, it’s time to play the waiting game.
The amount of time it will take to apply will vary from lender to lender and potentially depend on the contents of your application. Once you have been approved for the loan, you should often get the money fairly quickly. The method through which you receive the money can vary from lender to lender, but it is usually via direct deposit to keep things as simple and streamlined as possible.
If your loan application was denied, try to find out why and then fix the problem or address the issue before reapplying, or try to apply to a different lender and see what the result is.
What Are Lenders Looking for When Approving a Personal Loan in Oakville?
However, getting approved for personal loans in Oakville isn’t always automatic. Lenders are often looking for specific criteria when approving people. It is a good idea to know about what lenders are looking for when approving personal loans. This will give you the best chance of your application being accepted.
The first thing lenders often look for is a steady income. Without a steady stream of income, lenders might be uneasy about lending to you. This is because they may not be confident that you will be able to pay off the loan on time and in full. Another thing that they will look at is your credit score.
In Canada, credit scores range from 300 to 900 and the higher your score is, the better the chance that your loan application will be approved. While most loans don’t require an incredibly high credit score to be approved, having one doesn’t hurt. Lenders may also want to see things like bank statements.
These bank statements could give them a look at your overall financial situation and see how much other debt you currently have. If you have a ton of other debt, some lenders might be scared to give you more in fear that you might become financially overwhelmed and be unable to pay it all off on time.
They will also look at whether you have provided security of some kind. If you put up something of value (like your home or car) as collateral, lenders will often be more willing to approve the application, and potentially give you a better rate at the same time. This is because this reduces the risk for the lender, as they can take possession of your collateral if you default on the loan, so they are protected either way.
If you don’t meet the criteria for the lender of your choosing, you may need to look at other lenders. Many areas have bad-credit lenders that are willing to work with individuals who can’t get approved for standard loans. While their interest rates could be higher and their terms could be more strict, they can give you access to the money you need.
Using a Personal Loan to Increase Your Credit
While most people get personal loans in Oakville when they need a little extra money, these loans can also be used to increase your credit. Having low credit can make life difficult at times, and getting a loan and paying it off can have a very positive effect on your credit and score.
Of course, there are a few things to look out for when borrowing money if your goal with a loan is to build up your credit. You need to make sure that:
- You only take on a loan that you know you can afford to pay off in full
- The lender you work with will report to the credit bureaus
- You make all of the required payments on time
- You don’t take on additional debt that could affect your ability to make the repayment
If you don’t follow this advice, the loan that you secured to help improve your credit and financial situation could actually end up hurting it.
The Right Personal Loan For Your Unique Situation
Whether you’re looking to make a large purchase or need help covering an unexpected expense, a personal loan could be the right solution for you. If you live in Oakville and aren’t sure where to start when it comes to finding the right personal loan, Loans Canada can help.
