There are several ways to borrow money personally which are to be assessed according to your credit rating, the amount requested, and the urgency of obtaining a personal loan. Here are the 4 main ways.
Contact your bank
Banking institutions provide personal loans and lines of credit to their customers, but generally only on condition that they verify that the applicant has a stable situation, an account without incident of payments, a debt ratio of 30% maximum and a good credit rating. When the application is launched and all these conditions are met, you must wait at least several days to obtain the approval of the organization and very often as much to have the funds on your account. If the bank judges that the client’s profile is too fragile, it refuses the file or can ask for a mortgage guarantee on the house, a life insurance contract or even a pledge on the automobile to guarantee the loan.
Go through a broker
There are brokers specializing in obtaining personal loans. As they work with a large number of banking institutions and private lenders, depending on the client’s profile, they select the partners most likely to grant them a personal loan and offer the best conditions. This is the reason why they are able to assist clients who have good credit scores such as those who have bad records.
Apply for a loan without inquiry
For people with bad credit, getting a personal loan from a conventional financial institution is impossible. You must then turn to an organization offering personal loan solutions without investigation. Generally, you can ask up to $ 1,000 for a first request, even with bad credit. The key is to meet the basic criteria, including having opened a bank account in Canada for more than three months, residing at the same address for at least six months, and having a full-time job or benefit from a program of the CSST, disability insurance and the annuity plan, which can generate more than $ 1,200 a month.
If the loan is repaid correctly, it can be renewed with an increased amount.
The other advantage of loans without investigation is undoubtedly the response time and processing. This type of organization can approve a file in as little as one business hour and, in some cases, deposit the funds the same day on the account.
Go to a pawnbroker
If you have a valuable item such as a piece of jewelry, a collector’s item, a work of art, a major brand object or an antique weapon, you can get a loan from a pawnshop. The pawnbroker loan is for a period of one month, renewable, provided that interest is paid monthly. Unless you can turn to a loved one to borrow money from, this is the only way to get a loan for people with little or no resources.
Depending on the desired amount, the profile of the applicant and the urgency of obtaining the funds, there are several ways to make a personal loan. Unless you are bankrupt, over-indebted, ask for a large sum or have less than $ 1,200 in income per month, there is generally no reason to be refused by the group. organisms.