There are several ways to borrow money personally which should be considered depending on 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 grant 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 often as many to have the funds in 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
In Quebec, 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 who are most likely to grant him a personal loan and offer the best conditions. This is the reason why they are able to assist clients with good credit scores as well as those with bad records.
APPLY FOR A LOAN WITHOUT AN INQUIRY
For people with bad credit, getting a personal loan from a traditional financial institution is impossible. We must then turn to an organization offering personal loan solutions without investigation. Generally, one can ask for up to $ 1,000 for a first request, even with bad credit. The key is to meet the basic criteria, and in particular to have opened a bank account in Canada for more than three months, have resided at the same address for at least six months, and have a full-time job or benefit from a the CSST, disability insurance, the annuity plan, which generates more than $ 1,200 per month.
If the loan is repaid correctly, it can be renewed with an increased amount.
The other advantage of loans without inquiryis undoubtedly the response and processing time. This type of organization can approve a case in as little as one business hour and, in some cases, deposit the funds the same day into the account.
GO TO A PAWNBROKER
If you have any valuable item such as jewelry, collector’s item, work of art, brand name item, or antique weapon, you can get a loan from a pawnshop. The pawnbroker is for a period of one month renewable on the condition of paying interest every month. 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 amount desired, 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, asking for a large sum or have less than $ 1,200 in income per month, there is usually no reason to be refused from the whole group. organisms.