How to Apply for a Personal Loan in Canada

How to Apply for a Personal Loan in Canadą Before you apply for a personal loan in Canada there is some work that should be done. Not only will this expedite the process, but it may lessen the chance of being denied or not getting as good of a deal as possible. How much do you need? It's important to know how much you need so you don't request too little or too much. If you obtain more money than you actually need you'll pay more in interest. Secured vs. unsecured loans There are two types of personal loans available to people in Canada, secured and unsecured. A secured loan uses part of your property, usually a house or car, as collateral while an unsecured loan isn't attached to anything you own. - ! "A " Interest – fixed vs. variable rates Why do you need the loan? Fixed rates usually charge a little higher interest rate because the bank is taking the risk that interest rates will not rise above the rate they're charging. A variable rate loan puts the risk on the consumer. Common uses for personal loans include: Consolidating debts Paying for unforeseen bills House repairs Vacations Scheduling an Appointment What if I have little or poor credit? After scheduling an appointment with your bank representative, they will ask for all the details of your loan as well as review your financial information. When banks review your finances, they may determine that you're at higher risk than normal. When this happens you may still be able to acquire a loan, but they may require you to take out insurance on the loan. Then if you're unable to pay back the loan and default, the insurance company will pay the bank. SOURCE: Canada Wide Financial - 866-342-5099 - Bad Credit Mortgages in Toronto & GTA