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While Saskatchewan’s most populated city is Saskatoon, the capital city of Regina is home to its fair share of credit users. If you’re one of those lucky residents, one credit product that you can use to your benefit is the personal loan. Once approved, your loan will be deposited into your bank account. You’ll then repay the loan through scheduled payments with an interest rate (what your lender charges for their services). After you’ve repaid your personal loan in full, you’re free to apply for another or move on. Sound appealing? If so, keep reading, because Loans Canada has some tips that you might find useful when applying for a personal loan in Regina.
Need more information about loans in Regina? Look for it here.
Personal Loan or Credit Card? Which is Better?
All credit products have advantages and disadvantages that make them appropriate or inappropriate for various financial situations. Since credit cards are one of the easiest, most convenient products to use, you might be wondering if they’re a more appropriate payment method than personal loans. They can be, under certain circumstances. However, as we said, every credit product has its downsides.
Credit Cards Are Best Suited For These Types of Situations:
- Paying for less pricey, unnecessary expenses (clothes, restaurant food, etc.)
- Benefitting from certain perks (roadside assistance, reward points, etc.)
- Using your minimum monthly payment to avoid late penalties
- Building credit quickly by making your payments on time and in full
Trying to choose the right credit card? Read this first.
Personal Loans in Regina Are Best Suited For These Types of Situations:
- Paying for more pricey, necessary expenses (home/vehicle maintenance, utility bills, property taxes, insurance costs, etc.)
- Offering collateral assets (home, car, etc.) to secure your loan and lower your interest rate
- Using a cosigner for similar purposes (lower rate, higher approval chances)
- Taking advantage of lower interest rates in general (credit cards often have higher rates)
- Avoiding the revolving debt cycle that your credit card bills can cause
- Reducing your loan schedule with the option of more frequent payments (weekly, bi-weekly, etc.)
Ever wonder what the true cost of borrowing is? Take a look at this infographic.
Are there Other Costs a Personal Loan in Regina Can Help With?
Since your more necessary expenses can be costly and continuous, a personal loan might be a better way of paying for them, depending on the size of the loan itself and your lender’s policies. Here are a few more recommended costs that are easily covered by a personal loan in Regina:
- Lengthy renovations and additions on your home or secondary residence
- Financial emergencies and other unexpected costs
- Medications and elective surgeries
- Important home or vehicle-related repairs
- New furniture, appliances, and other high-cost items
What’s the difference between a personal loan and a line of credit? Find out here.
What Will Regina Lenders Inspect When I Apply?
Every lender has a different way that they go about approving or denying loan applications, making the process a little hard to predict sometimes. However, generally speaking, lenders want to be certain that you can afford to pay them back in full by the end of your payment plan, which you’ll negotiate and confirm with them. For that reason, most Regina lenders will inspect elements such as:
- Your monthly income
- Your recent bank statements
- Your employment history
- Your credit report
- Your assets (if any)
- Your cosigner’s financial strength (if you’re using one)
Can I Prepare Myself for the Process?
No matter what your income or credit looks like, it’s best to be well prepared for the application and financial inspection process so that the whole event goes by without a hitch. The size of the loan and the interest rate you receive will also depend on your financial strength and credit health. So, you can prepare yourself better by:
- Budgeting properly and saving as much extra money as you can
- Increasing your income or get a second job, if possible
- Finding a legitimate lender that offers good interest rates and payment terms
- Request an annual copy of your credit report
- Check your report for errors and dispute them if you find any
- Improve your credit, however, you can
- Updating and categorizing relevant personal or financial documents
Read this before you decide to apply for a personal loan in Regina.
How Are My Personal Loan and My Credit Score Connected?
In Regina and the rest of Canada, credit scores range from 300-900 and represent your actions as a credit user. If you pay a credit account on time, your score goes up and vice versa. For the most part, a score of 650 or higher shows your lender that you have good credit, earning you better approval chances and lower interest rates. While a lower score is often acceptable, higher interest rates will apply because the worse your score is, the riskier your lender will consider you to be.
That being said, you can actually use your personal loan in Regina to grow and improve your credit score when you:
- Choose a lender that relays your loan activity to at least one of our country’s credit reporting agencies (Equifax or TransUnion)
- Only apply for a loan that you can easily pay for with your regular income
- Stay away from non-essential expenses, like consumer debt
- Cover all your loan payments on schedule and never default
Still don’t understand your credit score or credit rating? Take a look at this.
Applying For The Right Personal Loan in Regina
For Regina credit users, including yourself, there are no better sources than the ones that Loans Canada can connect you with. Apply below and the benefits of your customizable personal loan will be right around the corner!