Personal Loans BC

October 21, 2020 | Editorial Team

Personal Loans BC

Unlike car loans and mortgages, a personal loan doesn’t have a specific purpose. You can use a personal loan for things such as home renovations, weddings, or any big purchases when you need money upfront.

Getting approved for a personal loan from a bank or credit union is tough if you have a bad credit score. There are other options, though, such as payday loans, pawnshops or private lenders.

We’re going to look into the pros and cons of two lending platforms. Loans Canada and Loans Connect both help connect Canadians with bad credit, and good credit, to private lenders willing to lend them money. If these financial services could be of interest to you, keep reading!

Loans Canada

If you want to find a wide range of bad credit personal loan options, Loans Canada is a great place to start. Loans Canada is a lending platform that was created in 2012. They are based in Toronto but help Canadians from BC, and other provinces find the perfect personal loan.

The platform acts as a middle ground to connect Canadians, even those with bad credit, to the perfect lender. Through Loans Canada, Canadians can find not only personal loans but also those for their car or business and debt relief.

The terms and conditions of your personal loan will depend on which lender you go with. Here are some of the pros and cons you can expect from Loans Canada in general.

Pros

  • Even if you have poor credit, you can still receive a personal loan from one of Loans Canada’s lenders.
  • Interest rates vary but start on the low side of 5.49% to 25%.
  • You can choose from either short term to long term. 60 months, however, is the maximum amount of time you can get a loan for.
  • You can also choose from a wide range of loan amounts. Some lenders on Loans Canada offer up to $300,000.
  • If you need a loan quickly, Loans Canada can often help. Once you’re approved, you will likely get your money within 48 hours.
  • Although Loans Canada is based in Toronto, its lending platform is completely online. So, those in BC or Ontario, for example, can easily fill out the online application for approval from the comfort of their own home.
  • Even if you aren’t tech-savvy, their website is easy to navigate, and the application is easy to fill out.
  • Similarly, your search results will be easy to see as Loans Canada puts everything into a chart. You can then narrow down the available lenders by things such as the interest rates or repayment terms they offer.

Cons

  • If you have a poor credit history, you will likely have a higher interest rate for your bad credit personal loan.
  • The only lenders that will be in your search results are those that partner with Loans Canada.
  • Repayment terms vary depending on the lender. This means you may have to pay a fee if you want to make early payments.

Loan Connect

If Loans Canada doesn’t sound like the lending platform for you, Loan Connect is another great option. They are also based in Toronto but serve every province and territory in Canada.

If you are looking for a loan in Canada, Loan Connect has a huge variety. Loan Connect has it all, from debt consolidation to a car, business, student, or personal loan. Here are some of the pros and cons of applying for a bad credit personal loan with Loan connect.

Pros

  • Your loan term can be anywhere from 6 months to a maximum of 60 months.
  • The lending platform is completely free, and you are not obligated to continue with a lender suggested to you.
  • Interest rates can be as low as 4.6% if your credit rating is not bad.
  • There are 12 different loan types available.
  • To be eligible, you need to be the age of majority in your province and a Canadian citizen in any province or territory. Your debt also cannot be more than 60% of your income.

Cons

  • If you need a lot of money, this may not be the platform for you. The maximum loan amount is $50,000.
  • Your interest rate will be higher if you have bad credit.
  • Canadians whose debt totals more than 60% of their income will be rejected, regardless of their credit rating.

The Bottom Line

Unfortunately, you never know when you will need money in a pinch. Maybe your savings won’t cover emergency home renovations that need to be done. Or your wedding turns out to be more expensive than you thought. Thankfully, personal loans from Canada are possible to obtain, even if you have bad credit.

Alternative lenders, such as the two we discussed, are a great option for Canadians who can’t go the traditional route because of their credit rating. Just ensure that your personal information is in the right hands, and you’re not taking money from just anyone. Knowing what conditions you agree to beforehand is extremely important as you don’t want your credit score to worsen.