Filters
- Amount
- Up to $35,000
- Rate
- 9.99% - 46.96%
- Term
- 9 - 78 Months
- Amount
- Up to $60,000
- Rate
- 19.99% - 34.99%
- Term
- 6 - 120
- Amount
- $1,500 – $10,000
- Rate
- Varies by province
- Term
- Varies
Life is unpredictable and often times expensive, typically when you least expect it. If you live in St.John’s and you’re looking for a solution to your financial issues, a short term loan might be a solution. If used responsibly, a short term loan can help you cover the cost of a variety of expenses in St. John’s, from large purchases to unexpected emergencies.
What Expenses Can I Cover Using a Short Term Loan in St. John’s?
Any short term loan you’re approved for in St. John’s will be deposited directly into your bank account. The reason these loans are called short term is that they generally come in smaller amounts (a few hundred to a few thousand dollars) and less lengthy payment terms (1-3 years) than other loan types. As such, any expense that falls, under those circumstances, can be covered with a short term loan in St. John’s.
However, a short term loan is more recommendable for essential costs, such as:
- Unexpected expenses (medical issues, sudden travel, home repairs, etc.)
- Household supplies and groceries
- A much-needed vacation
- Fixing a mechanical problem or another car-related issue
- New appliances, property taxes, utilities, and other home necessities
- Effective credit building or rebuilding (through timely and full payments
Do you know what the true cost of borrowing is? Find out here.
How Do I Get Approved for a Short Term Loan in St. John’s?
Earning approval for a short term loan in St. John’s requires a similar process to any common loan type. You’ll need to find a lender in St. John’s that offers them (most traditional lenders do) and specify the amount of money you want, as well as the timeframe within which you’re able to repay what you’ve borrowed. The lender will then look at some of your finances to verify your aptitude, which may include:
- An inspection of your income and employment history
- An inquiry into your credit report and credit score
- Evaluation of your assets, if you decide to offer any as collateral
- Evaluation of your cosigner’s aptitude, if necessary
Want to know what types of lenders allow cosigners? Find out here.
The healthier your finances and credit profile look, the more chance you’ll have to be approved for a short term loan with a favourable interest rate. While the approval process will be somewhat less strict due to the smaller loan amount and shorter payment plan, it’s still important to prepare yourself by:
- Comparing lenders and finding one with a good, legitimate reputation in St. John’s
- Making as much income as possible and maintaining solid employment
- Pay off any outstanding debts in your name
- Budgeting to confirm you can afford your potential payments
- Improving your credit as much as possible by:
- Checking your credit report and score regularly
- Disputing errors, signs of fraud or identity theft that you find on your report
- Making responsible payments for your active credit accounts
- Use a variety of credit products (also in a responsible manner)
How Expensive Will My Interest Rate Be?
The interest rate you’re approved for with your short term loan will depend on your creditworthiness, as well as your lender’s specific borrowing guidelines. For instance, it’s possible that a prime lender in St. John’s, such as your bank, will offer you a different rate than a subprime lender in St. John’s, such as a private source would. That said, short term loan rates may be slightly higher than other loan types because of their shorter payment terms.
Wondering if you can beat your lender’s interest rate? Find out here.
Always consider this fact before you apply for a loan in St. John’s, as a higher interest rate can certainly be hard to handle when your income isn’t sufficient. While the penalties might be less severe than more expensive loans, defaulting on your short term loan payments can still result in considerable damage to your credit and financial health.
However, you can always earn a lower rate by increasing your creditworthiness, which can be done by:
- Proving you have a good income and net worth
- Going into the process with a credit score of 700-900 (good credit)
- Offering collateral (home, car, etc.) as loan security
- Getting someone to cosign your application and take over your loan payments in the event that you can no longer afford them
Will a Lender Offer Me a 100% Guaranteed Approval?
Always be cautious around any lending source in St. John’s or any other city that claims to offer “guaranteed” approval for a supposed short term loan. Although there are plenty of ways to increase your creditworthiness and approval chances, no legitimate lender in St. John’s will ever make this claim because it is illegal in Canada to do so.
A source that does offer a 100% guarantee is probably not a real lender. In fact, they may be a scam artist attempting to get ahold of your financial and/or personal information. One way they do this is by telling you that you need to purchase “loan insurance” before they can guarantee your approval. This is also illegal. No lawful lender in St. John’s and Canada in general, is permitted to charge you anything before your loan has been deposited. If your supposed lender tries to do this, they’re surely want to steal your money, maybe even your identity, so avoid them at all costs and report them to the St. John’s authorities.
Here’s how you can tell if you’re a victim of identity theft.
Payday Loans vs. Installment Loans
Should I Get a Payday Loan Instead?
During your time as a credit user, you may have looked into payday loans and how easy they are to get, being that no credit check will be performed and all you need is a bank account, proven income, and St. John’s address for approval.
Unfortunately, a payday loan is only beneficial when you have a dire financial emergency. It might also be appropriate if you can’t get approved for a short term loan due to extremely bad credit. Actually, they can have a significant negative effect on your finances, especially if you can’t afford to pay your full loan back by its designated due date. Desperate borrowers in St. John’s often land themselves in situations where they roll their first loan over into their next, and end up depending on payday loans to survive, which leads to massive debt problems.
There are a few other notable differences between payday loans and short term loans that can drastically affect your financial health, such as:
- Interest rates are far higher (as much as 60% in N.L.)
- Payment terms are as short as 2-weeks and extensions are usually not possible
- Severe penalties apply for defaulting
- Many additional, often hidden fees apply
- Predatory lending is frequent among desperate borrowers
- Scamming is a possibility with online payday loan sources
Thankfully, the Federal Government is due to impose stricter payday loan rules across Newfoundland and Labrador starting in 2019. This should effectively reduce the maximum lending rate in the province, give borrowers a “cooling off” period so they can cancel their loan without penalty, as well as eliminate loan rollovers.
Check out this infographic for even more information about the payday loan cycle.
What Are the Pros and Cons of Short Term Loans?
Since your short term loan can have such a profound impact on your financial profile, it’s best to get some advice from a financial professional in St. John’s before you apply. They can certainly tell you about the various pros and cons that come with a short term loan, including but not limited to:
Pros
- Accessible through almost all prime and subprime lenders
- Short terms and smaller payments are generally easier on your bank account
- Approval conditions aren’t as strict as more expensive loans
- Every responsible payment you make helps improve your credit
- Generally received in 1-2 business days following approval
Cons
- Higher interest rates accompany cheaper loans with shorter terms
- Credit damage and debt problems occur when you can’t afford your payments
- Scamming, fraud, and identity theft are possible when proper research isn’t done
- Applying with bad credit leads to higher interest rates, but lower approval odds
Considering a Short Term Loan?
If so, be sure to make Loans Canada your #1 source! We can set you up with lenders that understand your financial situation and can provide the best short term loan solutions in your area of St. John’s.
