Looking for a personal loan? Let's face it, circumstances can change unexpectedly. And, an emergency can pop up at the worst possible time. From an unexpected home improvement bill or tax liability to your kids asking for a loan, don't stress it. Personal loans are a way to obtain the money you need and, depending on the bank, you might be able to get the money within 24-hours or less.
Use these tips to help you get instant access to the best personal loan providers.
Consider the Type of Personal Loan You Want
There are different types of personal loans you can request:
- Debt consolidation or to pay off credit card debts or medical expenses.
- Home improvements or for a home improvement emergency.
- A child's wedding, a honeymoon or engagement party.
- A vacation or purchase a vehicle.
- Other reasons include a new job, moving and relocation expenses. Or to put a security deposit on a new home. A loan can also be used to cover funeral expenses for a relative or to invest in a business.
Shop for the Best Lender (Bank) to Approve Your Loan
When you look for a lender, a mistake is looking up the first bank you find online and going with the rate they offer. It's unlikely that they will have the best interest rate. And, if you have less than perfect credit for your loan, another lender might offer better terms.
When you shop for a lender:
- Use an online comparison tool. You can view the top lenders in Canada and compare rates and loan terms.
- When you find a lender you like, contact them to lock in your rate and get your money.
- Review the fine print to ensure you understand the loan terms.
Fill Out Your Application in its Entirety
Once you find the bank you want to use, you'll have to fill out your online application. This will help them review your credit and start processing your loan request.
Tips to help with loan applications:
- Only use a trusted lender. Review the lender online before you submit your personal information (social security number, date of birth).
- Only fill out an online loan application from a secure computer. Ensure the connection is secure and the site is using "https" not "http" for the website address.
- Fill out all areas of the application. Don't leave anything blank as this can slow down the pre-approval process.
- If you had a lapse of income or a time frame when your bills fell behind, let the lender know. If it's a one-time occurrence, it might not affect your loan approval.
Figure Out Exactly How Much Money You Need
Having the exact amount of money you need means you won’t find yourself running short if you didn’t do the math correctly. Here’s an example.
You have a flood in your bathroom and you’re preparing for major repairs. You request a loan for $7,000 but then forget to add in for the extra parts and labor.
Questions to ask to avoid this mistake:
If your loan is for services or repairs:
- Do you have estimates back from at least three companies to compare rates?
- Are you looking at the final bill due with all taxes and fees included?
- Is the final estimate in writing and did you read all the terms and conditions, i.e., the fine print?
- Is a personal loan better or a home equity line of credit (HELOC loan)?
If the loan is for your children, a friend or a relative:
- Is this all the money they need?
- How do they want you to give them the money? By a bank check to them or in installments where you pay with a credit card?
- Will they give you a receipt for the loan? Will they set up repayment terms? What is the time frame for you to get your money back?
- Can I/we afford to take out a loan for someone else without it affecting my/our savings or retirement?
If you’re using the money for a trip:
- Am I including all travel details, i.e., flights roundtrip, hotels, airfare, rental cars and excursions?
- Have I looked for travel rewards credit cards that might provide free hotel nights or cash back rewards?
- Did I sign up for price alerts so I’ll know if the hotel or airline rates go up or down?
If the money is for debt consolidation or to pay off credit cards:F
- If I negotiate a lower price, will they give me a receipt in writing that I'm paid in full?
- Will they accept a smaller pay-off amount if I make the payment as soon as I have the loan?
- Will they accept an installment payment for a lower amount?
Ready to Shop for the Best Personal Loan Rates?
Whether you need money for remodelling, to pay off credit card debt or for a vacation, shop around for the loan you want. That way you can have the money you need and you can lock in the best interest rate. If you need help with applying for a personal loan or if you have questions, contact RATESDOTCA.
With RATESDOTCA, you can get the money you need at the best interest rate. Compare rates from Canada’s best financial lenders and apply for a personal loan today!