Collectively, Canadians in British Columbia and all over the country owe over $2 trillion in debt. So, it’s no surprise if you have your own sizeable debt. Many Canadians have a variety of debts. It could be from credit cards, going to school, or buying a house.
Making multiple monthly payments on all these debts can be irritating. So instead, why not consider consolidating debts?
Debts consolidation is when a borrower takes out; big loan or lines of credit. This can then be used to pay off all their debt. The borrower will then have one single monthly payment to pay off that loan or line of credit compared to paying off all of their different avenues of debt.
Many people are hesitant to consider consolidation because they are worried about how it will impact their credit score. It will lower your credit score a bit, but not as heavily as something like bankruptcy would.
Best Debt Consolidation Loans BC
Let’s look closer at two companies that can help you find the perfect debt consolidation loan, British Columbia! And, also, apart from BC, we give you the best possible debt consolidation deals in Edmonton, Toronto, Calgary, and also Alberta and Ontario, to boot.
1. LoanConnect
Traditionally, you would have to contact multiple banks or lenders to discuss your debt consolidation options. With LoanConnect, however, you will have all your debt consolidation options laid out for you. LoanConnect is a search engine for consolidation loans (as well as other loan types). It is one of Canada’s most popular lending platforms.
You just input some personal and financial information and the amount/type of loan you need. It has some of the best loan companies in Canada.
Then, LoanConnect will show you a list of the lenders that meet your requirements. They partner with lenders that offer loans up to $50,000. They often offer lower interest rates as well. This will help make your monthly payment to pay off your debts much easier.
Alternatively, you can apply for pre-approval. This involves searching for loans based on your credit score. Your search results will then only include loan providers who are likely to accept your application.
As well as traditional debt consolidation loans, LoanConnect also offers unsecured personal loans and installment loans. You can choose the best loan option for your financial situation.
LoanConnect has no minimum credit score requirement. Even if your debts have had a negative impact on your credit score, you may still be accepted for a debt consolidation loan.
Let’s take a look at some of the pros and cons of using LoanConnect for your debt consolidation loan.
Pros
- LoanConnect offers access to instant approval credit at competitive rates
- LoanConnect lenders offer fair interest rates, starting as low as 4.6%.
- It is also easier to get a lower interest rate, as LoanConnect works with a wide range of lenders.
- You can choose how long your payment term is, ranging from 6 to 60 months.
- Canadians with bad credit can still apply for a loan, as no minimum credit score is necessary.
- It is easier to get a higher loan, as LoanConnect offers loans anywhere from $500 to $50,000.
- The entire application and approval process is done online.
- Lenders tend to approve borrowers within the day. So, you can get your loan to consolidate your debt within 12 hours.
- Each lender is carefully vetted and approved before LoanConnect partners with them.
- LoanConnect offers 12 different types of loans.
- There is no minimum annual income requirement.
- LoanConnect does not perform a hard credit check until you submit a complete application. This means that searching for loans and applying for pre-approval does not affect your credit score.
- You can customize your debt consolidation loan to fit your requirements, regardless of your credit score.
- Flexible terms and interest rates are available.
- Many of LoanConnect’s lending partners will deposit the funds into your account the same day your application is accepted.
Cons
- Regardless of your credit score, if you have a lot of debt, LoanConnect may not be the option for you. To be approved, your debt has to be less than 60% of your income.
- You will only be able to see lenders that LoanConnect partners with.
- LoanConnect is a search engine, rather than a lender.
2. Loans Canada
Loans Canada is similar to LoanConnect as it is also a search engine for loans. Loans Canada also allows Canadians to search for the perfect lender. Once you put in your personal and financial information, Loans Canada will show you a list of lenders who can offer you a debt consolidation loan.
Loans Canada is partnered with trusted lenders across Canada. They specialize in matching you with the perfect lender to help you reduce your debt and streamline your finances. Loans Canada will act as a middleman between you and the lender.
Loans Canada is also partnered with lenders who specialize in bad credit loans. Even if your current debt has negatively impacted your credit score, you can still apply for a debt consolidation loan. Loans Canada will not simply consider your credit score when reviewing your application. They will also consider other factors, such as your finances and your loan requirements.
You can complete a questionnaire on their website with your personal information and your desired loan amount. You will then be provided with a list of potential loans. You can tailor your search further to include your credit score and desired loan term.
You will also be able to see reviews on the lenders from past borrowers before you commit to a loan. This will help you pick the perfect lender even easier.
Here are some of the pros and cons of getting a debt consolidation loan through Loans Canada.
Pros
- Larger loans are available, as you can get up to $300,000 with Loans Canada.
- Canadians with any credit score can apply. There is no minimum credit score or annual income requirement.
- Low interest rates are available, often starting at 4%.
- You can get a loan term of anywhere between 3 to 60 months.
- There is a wide range of loans available on Loans Canada. If you need personal loans, car loans, or business loans, Loans Canada can help. You can also choose whether to apply for a secured or unsecured loan.
- Borrowers often receive their money within 48 hours.
- Searching for debt consolidation loans and applying for them is all done easily online.
- The Borrower Community asks borrowers to rate and review lenders. Loans Canada will then remove any lenders from their platform who have consistently bad reviews. You can also access these reviews at any time.
- Your loan could be deposited into your account within 48 hours.
- Loans Canada will show you all your lender options in a chart. This makes comparing your loan options much easier.
- Loans Canada provides free educational tips, advice, and resources on a range of topics. This includes advice on how to improve your credit score and reduce your debt.
- Their website is user-friendly and easy to navigate. The application process is also quick and simple.
Cons
- You may have to pay a higher interest rate if you have bad credit.
- Loans Canada is not a lender, rather a middleman, connecting Canadians with a lender.
- Your search on Loans Canada will only bring up lenders they partner with.
3. Borrowell
Borrowell is another popular search engine for debt consolidation loans in Canada. They are partnered with more than 50 loan providers and currently have more than 1.5 million customers.
Borrowell work to match your loan requirements and credit profile with the perfect lender. They are partnered with Equifax, giving you free access to your credit score. They also offer free weekly credit score updates. Borrowell aims to not only find you the perfect loan but also help you improve your credit profile and your overall financial wellbeing.
As well as a general search option, Borrowell also offers a pre-approval option. They use your Equifax credit score to provide you with a personalized list of loan providers. This list will show which loans you are likely to be accepted for.
Borrowell aims to find you a loan provider with lower interest rates than you currently pay. The online platform also offers personal recommendations on a number of financial topics. This includes how to improve your credit score and stay out of debt.
Let’s take a look at some of the pros and cons of applying for a loan with Borrowell.
Pros
- Flexible repayment options are available. If you choose to repay your loan early, there is usually no financial penalty.
- There is no obligation when you sign up to Borrowell’s website. You can search for a loan, apply for pre-approval and access your credit score free of charge
- You can still apply for a debt consolidation loan if you have experienced bankruptcy.
- No hard credit check is performed until you submit an application. This helps to protect your credit score.
- Your loan should be deposited into your account within 48 hours.
- You can choose a secured or unsecured personal loan. Alternatively, you can choose a home equity loan or a balance transfer credit card. All these options are an effective way of consolidating debt.
- Borrowell has an A+ rating with BBB.
Cons
- Bad credit loans are likely to have higher interest rates attached,
- To apply for a traditional loan, your credit score must be above 660.
4. RBC Royal Bank
RBC Royal Bank has been offering loans to Canadians for more than 150 years. They are one of the largest commercial banks in Canada. RBC has low finding costs, meaning they can offer lower rates than many other loan providers.
RBC provides several debt consolidation options. You can choose a traditional debt consolidation loan, a line of credit or an RBC Homeline Plan. RBC can advise you of the best option for you based on your financial information and your current assets.
RBC offers an easy-to-use debt consolidation calculator on their website. This allows you to see your loan estimate and an estimate of our overall savings, based on your current debts.
You can also opt for pre-approval. RBC will access your credit score to provide you with a more accurate estimate of your loan. They will also use this information to tell you which loans you are likely to be accepted for. You can also view the proposed rate of interest and repayment terms.
Debt reduction plans are also available. You decide your main debt reduction goal. An RBC advisor will then work with you to create a plan of how to achieve this goal. This helps you to reduce your debt faster and more effectively and improve your overall finances.
Let’s take a look at some of the pros and cons of debt consolidation with RBC.
Pros
- RBC provides free access to your credit score through their online banking.
- Loan terms range from 12-60 months. Choose the loan term that best suits your financial situation.
- You can opt for a fixed payment schedule to suit your requirements and monthly budget.
- You can choose to make only minimum payments. You can then make higher monthly payments any time your budget allows it.
- The Skip a Payment option allows you to skip one payment per year with no financial penalties.
- You can choose to make payments monthly, semi-monthly, bi-weekly, or weekly.
- There are more than 1,200 branches across Canada. Alternatively, you can contact RBC via phone, email, or online.
- RBC provides free tips, advice, and education resources. This includes video tutorials on a variety of topics.
Cons
- RBC has stricter eligibility requirements. They are also more likely to refuse your loan application unless you have a good credit score.
- You cannot choose a longer loan term.
5. Fairstone
Our last offering is Fairstone, a leading provider of loans in Canada for more than 100 years. They are the leading non-bank lender in Canada and are consistently rated highly.
Fairstone offers loans ranging from $500-$50,000. You can choose a loan term between 12-120 months. To apply for a debt consolidation loan, you complete a questionnaire on their website. Fairstone will first provide you with personalized quotes. This allows you to see an estimate of your loan, with no financial obligation.
Searching for a loan with Fairstone has no impact on your credit score. Fairstone also offers a loan calculator. You can use the calculator to customize your results and tailor your search.
Once you have chosen a loan, you will be connected with your own 1:1 lending specialist. Your loan can then be finalized online, over the phone or in a branch.
Let’s examine some of the pros and cons of Fairstone’s debt consolidation loans.
Pros
- You can choose a secured or unsecured personal loan.
- If you are a homeowner, you are likely to be approved for a higher loan amount.
- The lending specialist will help you organize your loan stress-free. They also help you to create a manageable payment schedule. You can choose to make repayments monthly, semi-monthly, or bi-weekly.
- All loans can be customized to meet your financial requirements.
- Debt management tools and educational resources are available on Fairstone’s website.
- You will receive a fixed interest rate for the entire duration of your loan term.
- Funds can be deposited on the same day.
- Fairstone has a 98.7% customer satisfaction rate.
- Eligibility requirements may be less strict, compared to banks and other financial institutions.
- Competitive interest rates are available.
Cons
- There are fewer physical branches than traditional banks, with only 240 branches across Canada.
- Approval for your loan may take several days.
The Bottom Line
Does having only one monthly payment of your debts, rather than multiple payments sound appealing to you? Debt consolidation may be the way to go, BC!
The sad reality is that most people have a variety of debt to pay off, whether it’s from a credit card, student loans, or other types of loans. It’s especially prevalent in cities like Vancouver. Keeping up with each monthly payment can be hard and overwhelming as the interest piles up.
Debt consolidation is a good option to help you become debt-free faster. This is especially true if you get a loan from LoanConnect or Loans Canada. They can help pair you with the perfect lender. Just ensure the interest rate you accept is lower than that of your current debt. If it’s higher, you will end up paying more in interest to consolidate your debt than you would, had you not consolidated.
Start your journey to being debt-free today by heading over to LoanConnect or Loans Canada and applying for a debt consolidation loan.
