Did you know that, in 2021, 65.33% of Canadians (19.52 million) took out a personal loan, primarily to pay off debt and secondly to buy a vehicle? That’s a pretty big chunk of the Canadian population.
Are you in the same boat: thinking about or planning to take out a loan soon to help with your finances? Well, we have created a guide below with tips to get a loan approval, so keep reading.
Prove You Can Pay It Back
Why do lenders lend money out to folks like you? Well, not only do they get some interest on top of what they lent you, but they also lend to people who are reliable enough to pay back the loan without issue.
Lenders are not in a losing business, or at least they try to avoid all losing bets as much as possible. The first thing you need to do is to prove to them that you are not a losing bet. You can do this by using the following measures.
Show Stable Income
All lenders will want to see that you have a job with a good company where the money is deposited into your account every month like clockwork. Most lenders will also have minimum salary requirements necessary to be eligible for loan approvals.
Make sure you show your lender that you have a stable income, by having direct deposit slips or bank account statements ready. The past 3-6 months should suffice.
Show History of Paying Back Loans on Time
Lenders will also wish to see your reliability and trustworthiness in paying off past loans. You might have taken personal loans out in the past, or some other kind of loan, like student loans, credit card debt, or mortgages.
Hopefully, you were disciplined enough to pay off these loans on time, so that the lender can feel comfortable lending you more money.
Show History of Paying Bills on Time
This reliability should also show up in your determination to pay off all bills on time. The more late charges you have on your account, the worse off you will show up in the lender’s eyes.
Show Your Financially Disciplined Nature
Also, try to avoid all non-sufficient fund transactions, as much as possible. Accidents might happen sometimes, and you could have a couple of instances where you forgot to ensure you had enough money in your account before a bill payment came through.
Do not have too many of these transactions. It might prove to the lenders that you are not to be trusted with additional money or that you are in deep financial straits and should not be given more debt.
Choose the Right Loan Type
There are so many different kinds of loans out there. The two you are going to be concerned with are non-secured personal loans and secured personal loans.
If you have a car or home that you can take a loan against, then do that. The interest rates on such loans are much lower because you put something of value against them.
But if you don’t have anything of value that you can put forth as collateral, then consider a non-secured personal loan. Even though the interest rate on such loans is higher, they are meant to be more of a short-term kind of deal anyway. So you take out these loans for small amounts like $500 to $750 for a short period, like 3-12 months.
Find the Right Lender for You
Once you have the above two pieces of the puzzle in place, then you will need to search for the right lender for you. There are so many different financial institutions out there, that give out loans.
The three you wish to pay attention to are, banks, credit unions, and online lenders.
You might already have a relationship with a bank since you have a mortgage, bank accounts, and other investments with them. If that’s the case, go to them first, to ask for a personal loan.
The only problem with banks is that their loan approval process is so cumbersome and takes forever. For a person who needs cash fast, it can be painfully slow and pretty much useless.
Another financial institution that gives out personal loans is credit unions. They are becoming more popular as time goes on. You can form a deeper and closer relationship with them, and thus, get lower fees and more competitive interest rates than other lenders.
The problem with credit unions is that you need to be a member of the credit union to apply for a loan with them.
The most viable option for someone who needs cash fast has to be online lenders. They are becoming more popular in recent times since a majority of Canadians have access to an internet connection.
Getting approved for a personal loan from an online lender like Kingcash is as easy as filling out an application form on the website, and waiting an hour for your loan approval to roll through. They don’t even require a credit check, which is so convenient.
Getting Loan Approval Requires a Bit of Forward Thinking
If you know that your finances get a bit tight around certain times of the year, like Christmas or during the kid’s summer vacation, then maybe you can start planning for such events in advance. Getting loan approval for short-term personal loans is made easier when you can make a plan for it.
Visit Kingcash.ca and start your application process for a personal loan today. With no credit checks in place and loan approvals offered to eligible candidates in an hour, we are exactly what you seek.