Find the Best Rates from the Top Personal Loan Providers
Even when you do your best to keep your finances in check and not be reckless with your spending, you sometimes may need some bailing out. To get out of a tricky financial situation, many Canadians take out a personal loan. These can help you overcome your money troubles painlessly.
But not all banks offer the same loan terms. Also, there are often multiple requirements you need to meet for your personal loan to be granted. Moreover, you can choose from a number of different loan types, such as secured or unsecured. Since there are many factors involved in personal loans, it’s important to take them all into account before you make your decision.
In this article, we’ll give you a list of Canada’s best personal loans, to help you narrow down your choice. But first, we’ll discuss various personal loan types so that you have a clear idea of what you’re applying for.
What Types of Personal Loans Are There?
There are three main personal loan types:
Secured loans include collateral (e.g., your car or house) that you risk losing if you fail to make payments. The upside is low interest rates.
Unlike the previous type, unsecured loans don’t require collateral. However, these loans are harder to qualify for, since they require higher credit scores. The interest rates are higher too.
To take out a reverse loan, you first have to deposit the amount of money that you’ll eventually borrow. This type of loan can help improve your credit rating, but it can also come with a high interest rate.
Offerhub’s List of the Best Personal Loan Providers in Canada
It’s important to note that LoanConnect isn’t a loan provider. It’s a system that can connect you to other loan providers, depending on the loan range and type you’re applying for.
There are several conditions you need to meet with each lender that LoanConnect collaborates with. However, the fundamental requirement is that you’re an adult Canadian citizen.
LoanConnect’s partners are extremely flexible in that they even offer personal loans to persons who have had experiences with poor credit ratings and bankruptcy. Their loans are short-term and unsecured. Furthermore, the starting point for their loan rates stands at 4.8% APR (annual percentage rate), but some companies tend to go much higher and reach almost 47% with their annual percentage rates.
One of the main advantages of LoanConnect is the speed with which you can take out a personal loan. On average, it takes just a couple of minutes to apply, and about five minutes for a lender to approve your loan. What is more, you can expect your loan to be wired to your bank account within 24 hours.
There are no fees for using LoanConnect’s services. Still, you may need to pay some lenders their origination fees.Get Approved Now!
Loans Canada is another indirect personal loan provider. It can connect you with various lenders, and you can get approval for a number of different loan types. Other than personal loans, some of the most common loans you can get with the help of Loans Canada include:
- Personal expense loans
- Debt consolidation loans
- Small business loans
- Vehicle loans
Overall, this company doesn’t have too many loan requirements. In fact, there are no income or credit requirements whatsoever, and you can get in touch with lenders who specialize in granting loans to persons with bad credit scores.
Loans Canada can help you get a wide range of personal loans. The minimum amount of money you can take borrow is $500, and the maximum amount is $300,000. The funds typically reach your bank account the same day that the lender approves your loan.
Accordingly, the repayment periods also vary based on the amount you have been granted. More specifically, you can repay your loan anywhere between three months and five years.Get Approved Now!
Ferratum is known for its rapid personal loan approval. You don’t need to submit any specific documents, and you can take out a $500-$15,000 personal loan within a day. The entire application process takes about ten minutes. Nonetheless, there are several other conditions you need to fulfill to qualify for a Ferratum personal loan:
- You must be 20 or over.
- You must be a full-time employee for a minimum of three months.
- Your monthly minimum income must amount to $2,500.
- Your credit score must be a minimum of 600.
In addition, you can obtain Ferratum loans in the following areas:
- Nova Scotia
- New Brunswick
- British Columbia
Ferratum offers a wide array of loans. People normally take out one of the following:
- Personal loans
- Medical loans
- Travel loans
- Renovation and moving loans
- Self-employment loans
As for repayments, the only two things you need to worry about are the principal amount and the interest rate. This means that there are no additional fees included. The APR of Ferratum loans are average; you can take out a loan at a minimum of 18.90% APR, with a repayment period of anywhere from six months to five years.
The highest value of the loan you can take out from Borrowell is $35,000. One of the greatest benefits of Borrowell is its interest rates, which start at 5.6%. Additionally, the only fee you need to cover is the origination fee. Depending on your loan’s size, the amount of the origination fee is 1%-5% of your total loan amount.
The application process consists of providing Borrowell with some information and applying for your credit rating using their platform. Getting approval might be tricky, but there are ways you can improve your chances:
- You don’t live in Saskatchewan or Quebec.
- You have Canadian citizenship or permanent residence.
- You don’t have a history of consumer proposal or bankruptcy.
- Your credit history in Canada is at least one year long.
- Your credit score is a minimum of 660.
- You have no current delinquencies.
- You have a bank account with a valid financial institution.
- Your email address is valid.
If Borrowell approves your loan, they’ll send you a quote that you’ll need to accept. Borrowell will also require you to send them proof of your income, and verify your account. Once the confirmation process is complete, you can expect your loan to reach your bank account the next business day.
If you don’t get approval, Borrowell will recommend various partners who may provide assistance.
How Else Can You Borrow Money?
Personal loans are most people’s go-to option for borrowing money. However, some alternatives might be a better fit, depending on your current situation. Here are some means of borrowing money you should also consider:
Balance Transfer Credit Cards
Balance transfer credit cards might suit your needs better, especially if you’re looking to consolidate your debt. This is because they enable you to transfer your debt to another card for much lower interest rates than personal loans. The transfer period normally lasts between six and 12 months.
However, debt consolidation using a balance transfer credit card is probably the only option where credit cards are a better option than personal loans. In all other cases, personal loans come with lower interest rates, which is why taking out one generally makes more sense.
Lines of Credit (LOCs)
Lines of Credit work by offering you a maximum amount of credit you can withdraw. The moment you make a withdrawal, you’re charged on the amount of money withdrawn instead of your credit limit. You can keep making withdrawals, provided you’ve paid back the previous amount of money, and the interest it has accrued.
Taking this into consideration, Lines of Credit closely resemble credit cards. Nevertheless, there are some crucial differences between these two borrowing methods. Most notably, Lines of Credit usually come with lower interest rates. On top of that, there are no grace periods like with credit cards, meaning that your creditor starts charging you interest the moment you withdraw money.
Home Equity Lines of Credit
Home Equity Lines of Credit (HELOCs) are secured lines of credit that only persons who have a minimum of 20% equity in their home can obtain. In other words, the remainder of their mortgage mustn’t amount to over 80% of the value of their home.
The two main reasons why HELOCs may be the most beneficial option for you are their high credit limits and low interest rates. First, your credit limit can be as much as 65% of the market value of your home. Second, the interest rates are generally just 0.5% to 2% higher than your lender’s prime rate. Therefore, the combination of these two factors may sometimes give HELOCs the edge over personal loans.
Make a Wise Choice
Before you decide to apply for a personal loan, carefully research what each of your potential lenders has to offer. Consider the eligibility requirements, the interest rate, as well as the repayment period. Choose the amount that will help you cover your immediate financial concerns but make sure that you’re not left high and dry after you’ve repaid your loan.
Finally, check out other methods of borrowing money, such as credit cards or lines of credit. They might turn out to be a better solution to your problem.