Whether you need to finance a dream vacation, cover unexpected expenses or pay down debt, many Canadians turn to Personal Loans for the extra cash they need. The best personal loan will depend on your situation, as rates and terms vary from lender to lender. Your credit score, a number that reflects your financial history, is the main factor that lenders consider when they determine the terms of your loan. A credit score of 660 or higher is often considered excellent by lenders and will help you get the lowest possible rate on your personal loan.
You can get a free copy of your credit report from one of the two major credit bureaus (Equifax or TransUnion) each year, or you can pay a fee for monthly credit monitoring from services like Mogo and Borrowell. A good way to improve your credit score is to pay down debt, which will increase your available credit and lower your outstanding balance.
From Dreams to Reality: How Personal Loans Can Fulfill Your Goals in Canada
You can get personal loans from the large national banks, credit unions and online loan brokers. Most lenders require that you provide basic information, a government-issued ID and proof of income before approving your loan. They may also ask for additional documents, including a bank statement and paystubs. Some lenders will instantly process your application, while others take a few days to confirm your eligibility. Personal loans can be secured or unsecured and can have fixed or floating interest rates, which are adjusted each month based on prime rate1 fluctuations.