A personal loan is a common type of loan in Ontario, which is easy to get and can help people to meet various expenses.
If you have a bad credit score and are planning to borrow money in Ontario, the following information can come in handy for you. There are different factors that you should consider when filling out an application form and contacting a lender.
What is Bad Credit?
In Canada, a credit score is a three-digit number that shows how successful you have been managing your finances. A score equal to 750 and above is considered excellent. A score above 650 is good and anything below 600 is bad.
Secondly, we would like to mention what makes up your credit: new credit accounts, types of accounts, credit history, the balance owed, and payment history.
Why is it Personal?
Here at Loan Away, it does not matter for us why you need the money. As long as you can show us a proof of your income, you are good to go. Yes! You can use it however you want.
Some of the major benefits of loans include:
- Loans are easy to apply. You do not have to visit the lender as you can apply on their website.
- It has proven to be an easy way to get quick money without any hassles.
- It can be obtained if a person doesn’t have an asset.
- The loan is easy to manage as there are fixed installments with fixed amounts.
- It can help in building credit
Where to Get it in Ontario?
Many lenders in Ontario are ready to help you even if you have a poor financial history. You merely have to contact the most reliable one, decide on the terms and conditions, and get the loan amount. The processing time usually takes 24 hours or less.
Factors to Consider
In order to ensure you will have a smooth experience of obtaining and managing a loan, you need to consider the following factors:
The Reputation of the Lender
The top thing to consider is the reputation of the lender. If you come across a lender who is offering the loan at the terms and conditions that are too good to be true, do not sign the papers before making sure they are not conducting a fraud. Only contact lenders who are reputed and reliable. You can take help of the Internet or ask your friends or family for referrals.
Rate of Interest
Negotiate as much as you can when it comes to the rate of interest. Do your research on the rate of interest other lenders charge and then take the decision accordingly.
Many times lenders some clauses included in the contract that result in borrower having to pay extra money at the time of repayment. Therefore, it is advised to ensure there are no hidden costs involved. For this purpose, thoroughly read the contract papers. Go through the terms and conditions and only sign the contract if there is no ambiguity.