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Latin for “queen”, Regina was named in honour of Queen Victoria in 1882 and was officially made the capital city of Saskatchewan 1906. It’s the second-largest city in the province, next to Saskatoon, with a population of just over 215,000 residents. Regina receives the most hours of sunshine of any capital city in Canada. Much like the rest of the province, the city is mostly made up of flat, treeless plains. Therefore, its main source of industry comes from its agricultural community, which includes the production of gas and oil. Regina is also home to the Canadian Mounted Police, with the only training school for Mountie cadets in the country. In the heart of the city is the lovely Wascana Park. Spanning over 2,300 acres, it’s one of the largest urban parks in North America.
Want some information about loans in Saskatchewan? Look here.
One thing to know about loans in Regina Saskatchewan? There are a lot of myths surrounding them. This misinformation can cause anxiety for the average person looking to apply for one. Below are some of the more commonly heard loan myths that you might come across:
- You must have a high credit score to be approved for a loan. Actually, with the exception of most banks, many lenders won’t require you to have amazing credit to secure a loan. In fact, some lenders don’t even check your credit score. Looking for a more detailed explanation of your credit score and credit rating? Try this.
- Only banks and credit unions provide loans. Not true. There are many alternative lenders out there that will provide you with a loan. Just remember to do proper research and make sure that your chosen lender is legitimate.
- All lenders charge the same interest rate. Another myth. Depending on what type of loan you’re requesting and how large it is, most lenders have varying interest rates for their services. Shop around for the right rate to suit your financial needs.
- Applying for multiple loans at once is a good way to get approval. No, applying for too many loans in Regina at once will negatively affect your credit score and decrease your chances of being approved. When a lender checks your credit, it’s called a “hard inquiry”, which causes your credit score to drop a few points and remains on your credit report for up to 2 years. A lower score and the fact that you’re applying more than one might even make your lender think that you have a debt problem and are constantly being denied.
- Loans are reserved for people who have full-time jobs. Untrue, lenders determine your creditworthiness based on your ability to make your payments in full and on time.
Preparing to Apply For a Loan in Regina Saskatchewan
Applying for a loan in Regina is not always a simple process. While some lenders do not check your credit score, it’s always important to have your finances in good standing before you start applying. In fact, there are several different steps that you should take, each of which can help the process run smoother, such as:
- Calculate exactly how much money you wish to borrow and whether you’ll be able to afford it with your current income.
- Think about checking your credit score prior to applying. If your score is low, it might be a good idea to work towards improving it first.
- Remember, when a lender checks your credit report, a hard inquiry is performed, causing your credit score to drop. However, when you request your own report, it’s a “soft” inquiry, which won’t affect your score. Every credit user is entitled to request one free copy per year from either of Canada’s credit reporting agencies, Equifax or TransUnion.
- Calculate your debt-to-income ratio. Your ratio should never be more than 30-35%, so consider the financial issues you might have if it were ever to go higher.
- Ask your chosen lender what their payment options are. How frequently can you make payments? What interest rates do they charge? Etc. Read this to learn how lenders arrive at their interest rates.
- Decide what will work better for your financial situation. A “secured” loan (if you’re buying an asset like a car) or an “unsecured” loan (does not require collateral).
Loans and Your Credit Score
Remember, any type of loan that you get is going to affect your credit score in different ways, so listen carefully to everything your lender tells you. For example:
- Making your payments on time and in full will help build your credit score.
- Late or missed payments will lower your credit score.
- A loan is a good credit-building tool. Because of this, it’s important to make sure your chosen lender legitimately reports to either Equifax and TransUnion.
True, having a solid credit score will facilitate your chances of securing the loan that you need, especially if it’s a larger loan (like a mortgage or car loan). However, depending on your lender, you don’t necessarily need a high credit score to get approved. A high score is an asset, not a necessity.
Trying to rebuild your credit score after a late payment? Look here.
Applying For a Loan in Regina
- How can I get approved for a loan? There are a number of steps you can take that will help improve your chances of getting approved, including:
- Can I make my payments ahead of schedule? It depends on your lender. Many lenders will not allow you to make advanced payments because it will change in the amount of interest they will earn from your loan.
- How long will it take to get my loan once it’s approved? Again, this depends on your lender. As long as you provide all the necessary information and fill out the application forms properly, you should receive your loan anywhere between 24 hours and a few days.
- Is it a better idea to pay expenses using a credit card or by taking out a loan? This depends on the size of the expense. If it’s something that you’ll generally be able to pay back in a month (i.e. food, consumer goods) it can be better to use a credit card. If it’s to finance something larger (i.e. a car, home, or business) it might work in your favour to apply for a loan. Are there ways of increasing your credit score without increasing your credit card debt? Find out here.
- Why do some lenders ask for a deposit before I can apply? Watch out! When a supposed “lender” asks for a deposit upfront, this a warning sign that they’re trying to scam you. A legitimate lender will never charge you before you receive your loan. Doing so is illegal. If they try to, do not pay them anything. Walk away and cut off all further contact with them. Take a look at this short video to learn how you can identify a loan scam.
- Why does my bank keep rejecting my applications? For a variety of reasons. Most banks have certain policies when it comes to their lending process. If you have a low credit score, too much other debt, or don’t match their specifications in some other way, they might reject your application. However, banks are not the only lenders in town.
- I don’t have a credit history, can I still apply? Yes, if you don’t have a credit history, this means that you have never used a credit product, like a credit card. Nevertheless, you can still get approved. As long as they can confirm that their payment schedule will be met, some lenders will not even check your credit. However, building a credit history and using your credit responsibly beforehand will increase your chances, especially for larger loans in Regina.
Applying For The Best Loans in Regina Saskatchewan
Loans Canada is your go-to source for financing in Regina! Look no further, we’re here to help!