Filters
- Amount
- Up to $35,000
- Rate
- 9.99% - 46.96%
- Term
- 9 - 78 Months
- Amount
- Up to $60,000
- Rate
- 19.99% - 39.99%
- Term
- 6 - 120
Since Halifax is rapidly becoming one of the most popular cities in Canada, it’s likely that living costs will be on the rise. Even if that doesn’t happen, your own regular expenses can be pricey enough that your credit cards and income can’t cover them, at least not without draining your entire bank account.
If that looks like your financial situation, then a short term loan might be the solution you’ve been looking for.
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Receiving and Paying Your Short Term Loan in Halifax
Short term loans are readily available through most lending sources in Halifax, such as banks, credit unions, private, and alternative sources. Bad credit lenders in Halifax also offer these loans to borrowers whose credit is not healthy enough to qualify with traditional sources. Like most installment loans, the money you’re approved for will be deposited as a lump sum directly into your bank account a few days after your application has been processed.
Before you receive your money, you and your lender in Halifax will come up with an appropriate payment plan that allows you to divide the loan sum into a series of payments with interest. While term lengths will vary, most clients in Halifax are able to pay back their full loan a year or so after approval (longer terms are possible). This is usually easier to do because loan amounts are relatively small, often a few hundred to a few thousand dollars.
Looking for an online loan with affordable monthly payments? Read this first.
Suggested Uses For Your Short Term Loans in Halifax
A great thing about a short term loan is that you can use it for almost any cost in Halifax. After all, it’s essentially liquid cash. That said, spending your funds on unnecessary goods and services is not advisable. If you’re going to be in debt, it better be for the right reasons.
Good Investments:
- Car repairs or general maintenance
- New winter tires
- Home repairs or general maintenance
- Groceries, household supplies, and other necessary living costs
- Utilities
- Paying off outstanding high-interest debt
- Financial emergencies (medical costs, rent payments, unemployment, etc.)
- Investing in your business
Bad Investments:
- Clothing
- Magazine/television subscriptions, gym membership
- Eating at restaurants or getting take-out food
- Alcohol, cigarettes, video games, etc.
Do you know what the true cost of borrowing is? Click here to find out.
Preparing For Short Term Loan Approval in Halifax
When you’re ready to apply, it’s important to prepare yourself, because your lender will inspect your finances. No matter how much money you’re applying for or how long your term would be, your lender in Halifax still needs to confirm your ability to pay back what you’ve borrowed. While an alternative lender’s approval process might be less strict than a bank’s, many of the same rules will be involved.
You may need to provide
- Bank statements, paychecks, and other documents that showcase your income
- Proof of your identity, Nova Scotia residency, social insurance number, etc.
- A cosigner (if your financial health is not sufficient for approval)
Your lender might also inspect
- Your credit score and credit report
- The value of your assets (if you wish to provide security for a better interest rate)
- Your employment record and current source of income
- Your payment/debt history
How to Make the Approval Process Easier
- Get an annual copy of your credit report to monitor your credit regularly
- Check your report for errors, signs of identity theft or fraud
- Work extra hours or get a second job to bring in extra income
- Find a new source of employment if yours doesn’t pay enough
- Consolidate your credit card debt or outstanding bills from other sources
- Create a budget and cut out any non-essential expenses
- Do a lot of research and choose a lender that offers the best interest rates
- Make sure your lender is lawful, legitimate, and not trying to scam you
Take a look at our list of 20 Ways to Secure a Loan.
Short Term Loans and Payday Loans
If you’re looking for a small loan with a short term, chances are you’ve heard about payday loans. When you compare them with short term loans, you’ll soon realize how risky payday loans can be and that it’s probably best to avoid them altogether. Below, we’ve included a list of similarities and differences so you’ll understand why.
Similarities to a Short Term Loan
- A shorter term than the average installment based loan
- Relatively easy to be approved for compared to other loans.
- Usually for a smaller amount (a few hundred to around $1,500)
- Found through both physical and online lending locations
- Funds are deposited quicker than most other loans and credit products
Differences from a Short Term Loan
- Same-day approval (short term loans take 1-2 business days)
- Almost no documentation needed (address, bank account, proof of income)
- Far shorter terms than any other loan product (2 weeks following approval)
- No possibility of term extensions or installment payments
- Much higher interest rates than most other loans (up to 25% in Nova Scotia)
- Large penalty fees for defaulting ($40 in Nova Scotia)
- 1 business day “cooling off” period (you can cancel your loan without penalty)
A payday loan can be a viable alternative if you have terrible credit or a financial emergency that needs to be covered immediately. However, since rates are higher in Nova Scotia than almost anywhere in Canada and payment terms are far less favorable than most other loan types, a payday loan can be far more hazardous to your finances than any short term loan.
Check out this infographic to learn more about the payday loan cycle.
Short Term Loan F.A.Qs
When preparing for the application process, there are a few questions that you should ask your potential lender about short term loans, including but not limited to:
What interest rate will I be approved for?
The average short term loan will have a slightly higher interest rate than other loans because of its shorter payment term. That said, the interest rate you receive will be based on your lender’s policies in Halifax and your financial strength. If you have a good income and decent credit, you’ll be approved for a lower rate. While qualification standards are still less strict than they would be with a more expensive loan, the opposite effect will occur if you have bad credit and low income.
Can a short term loan come with guaranteed approval?
Be extremely cautious around a lender in Halifax that offers “guaranteed” approval. You can certainly make the application process easier on yourself and increase your chances of approval by maintaining good financial strength. That said, no lender in Halifax or anywhere in Canada will ever offer you a 100% approval guarantee. At least, not if they’re legitimate.
Unfortunately, scam artists prey on borrowers in Halifax and Canadians in general that need short term solutions to their financial issues. They know the notion of guaranteed approval is attractive and are banking on the idea that you’ll be so excited to get your money that you won’t think things through properly. Avoid any supposed lender who offers guaranteed approval and always do research prior to applying anywhere, whether physical or online.
What are the advantages and disadvantages of a short term loan?
Every loan type comes with certain advantages and disadvantages that will make it good or bad for your financial situation. Short term loans are no different.
Advantages:
- Easier to pay off than larger or lengthier loans
- Less strict approval standards
- Efficient and simple way of improving your credit
- Found with pretty much every kind of lender
- Good payment alternative for singular, less expensive necessities
- Using collateral or a cosigner will earn you a lower interest rate
Disadvantages:
- Slightly higher interest rates than larger/lengthier loans
- Defaulting on payments can lead to damaged credit and finances
- Approval odds go down and interest rates go up if you have bad credit or an income that’s not up to your lender’s standards
- If you fall for a “100% Guarantee” scam, your personal and/or financial information will be compromised
However, if you find a cosigner, you can always apply for a “guarantor” loan.
Getting a Short Term Loan in Halifax
Living in any major Canadian city can be expensive and Halifax is no exception. If you want to avoid taking on too much credit card debt or draining all your savings, a short term loan might be the perfect solution, and Loans Canada can help. Contact us today!
