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While people in Calgary make among the most money in Canada, people in the city still need to take out loans to do the things in life that they want to do. When most of us think of loans, we likely think of those student loans, car loans, or mortgages that often are accompanied by several years of payments. While those long term loans are popular, they are not the only kind of loans in Calgary.
Looking for some information about mortgages in Calgary? Check this out.
What if your life just isn’t going your way and you need a little extra cash to catch up? Or you have a small purchase that you can’t quite afford to buy with cash but need it quickly? For these issues and tons more like them, people all over Calgary look to short term loans. Short term loans are generally paid off in one to three and typically come in smaller amounts, anywhere between $1000 and $10,000.
Click here to learn more about loans in Calgary.
How to Get Approved for a Short Term Loan in Calgary
While each lender in Calgary will have their own process, based on predetermined criteria, for deciding who gets approved and who doesn’t, there are a few steps you can take to give yourself a better chance.
- Doing a check on your credit report. You want to ensure everything is in order and that there are no errors or unexpected black marks. Without good credit, getting a short term loan can be more difficult (Check out the 5 most common errors that you might find within your credit report).
- If your credit score is low, you should improve it as it will make you a less risky option for lenders.
- Take time to shop around the different lenders in Calgary. Each one may have different requirements and some may offer better deals than others.
- If you have debt currently, you should be sure to pay it down and ensure you are always up to date on your payments.
- Have a budget and keep it updated. It is a good idea to not only know how much money you have coming in but also know where it’s going every month.
If you manage to complete most of the things on this list, as well as implement some good financial habits, you shouldn’t have a lot of difficulty at all when it comes to being approved for a short term loan.
What Can You Use a Short Term Loan For in Calgary?
Now that you know the best way to ensure you can apply and be approved for one of these short term loans in Calgary, what can these loans be used for? In short, you can basically use these short terms for anything your heart desires, including:
- To help build your credit easily
- To cover the cost of an unexpected emergency, whether it is a car crash, medical emergency or car maintenance
- To take a trip that you simply cannot afford to pay off in cash all at once
- To make a large purchase such as a new couch or TV that you might not have enough money for
Of course, you should think before getting any type of loan, even if it’s only a small short term loan. If you don’t, you might end up getting yourself into financial trouble by owing a lot of money.
Do you know what the true cost of borrowing is? Check out this infographic.
Pros and Cons of Short Term Loans
So these short term loans are a great option for some, but they are not perfect for everyone in Calgary. In an effort to help you see if short term loans are for you or not, we have decided to craft a little pros and cons list.
- You get your funding quite fast, normally within a few days at most
- They are much more manageable and less daunting than getting a larger loan
- There are generally more places that offer them, but make sure to only work with legitimate and reasonable companies/individuals
- The interest rates and fees you will generally pay are higher with short term loans
- They often come with more frequent payments, so you may even be making weekly payments on your loan
- You can potentially get caught in a cycle of debt with these types of loans, where you need to take out a new short term loan to pay off the last one.
Searching for an online loan with affordable monthly payments? Look here.
Need Help Finding the Right Short Term Loan in Calgary?
If you are looking for a great short term loan that meets your needs, Loans Canada can help match you with a great lender in your area.