While you work hard and budget your money, it is totally normal to come up against a financial situation that might need urgent cash. Whether you are in Ontario
or some village up north, money situations happen.
Emergency home repairs, car expenses or personal emergencies can come out of the blue and be incredibly stressful. In these circumstances, it can be comforting to know that there are options to secure quick funds.
There are many different types of loans available for Canadians from many different lenders, both online and in person. Including unsecured loans
which a lot of people prefer as well.
If you are considering a short term loan in Canada, here are some questions to ask:
Where can I borrow money?
While your first thought to borrow money may be to go to a bank, often the process of bank loans is a lot longer and more complicated than emergency situations allow. Aside from the banks, there are private lenders called loan agencies that have created a faster and often easier option for quick cash.
A loan agency is a lender that is able to authorize funding to borrowers under a specified contract. Usually it is for individuals or businesses that are in need of quick cash due to an emergency or tough financial situation.
A loan agency has the ability to determine if a borrower is eligible for a loan, and how much money they are willing to lend. Once a loan has been approved the two parties sign a contract, with pre-determined loan repayment terms usually reflecting the borrower’s ability to pay.
While there is often a list of requirements to be met before a loan can be approved by an agency, for many Canadians it is a great short term option to get their finances back on track.
Borrow money online
- Unlike a bank, the process of applying for a loan through an agency is designed to be fast. It is possible to get the funds in a very short amount of time. This is becoming very common for Vancouverites by the way.
- You can often apply for a loan 24/7, especially from an online agency. This is an advantage for truly urgent cash loans.
- Loan agencies can be either online or in person, meaning there is likely a loan option that is right for you. Make sure to do your research to find a Canadian loan agency that matches your needs.
- Private loan lenders often have a well-established customer support system, meaning that any questions or concerns can be discussed with a loan agent.
What to look for when borrowing money
When searching for a loan agency that meets your needs, it is crucial to do your due diligence. Like with any financial matters, there can be scammers out to steal your financial information or money. To avoid this, here are some important factors to look for:
- Loan agencies must be licensed to practice in Canada, and their licensing information should be freely available (or presented upon request).
- There should be a guarantee between the lender and borrower that any sensitive financial information is kept securely to prevent your identity from being sold or stolen.
- A reliable lender should have a strong history of positive reviews online. If there are bad reviews or no reviews it can be a sign of a scam or a dodgy loan agency. A loan is not the place to take a chance on a new business.
- All communication from the lender should be clear and in writing. There should be no confusion about terms of repayment or loan conditions. Remember that even if you are only borrowing a small amount, you will still be entering a legal contract and all documentation should reflect this.
- As well as this, the loan agency should also be easy to contact with effective customer service. It is important to trust that any questions or concerns you may have regarding your loan will be quickly and thoroughly addressed
How to apply for a loan
Once you decide to seek out a mobile loan, here is how to secure your cash quickly and safely:
- Research the best lenders available to you in your province of Canada. Each region may have slightly different interest rates, so make sure to keep your search narrow and specific
- Once you decide which loan service to use, take the time to properly fill out the application and submit it
- Once your application has been submitted and approved, the lender will present you with a loan contract. This contract is no obligation, so make sure to read it carefully (including the fine details)
- If you approve of the terms of the contract and repayment schedule, you can electronically sign it and return it. This whole process is done online
- Once the lender has received your signed contract they will transfer the funds to your account. Most lenders advertise that the funds will reach your account within 30 minutes
- You will then have to repay your loan in accordance with the signed contract. This can either be all at once or through installments. Before signing it is worth checking if the loan is able to be paid off all at once - this can be a great way to pay off the debt if you are suddenly able to
What if I have bad credit?
If you have been previously denied a loan from a bank or an agency because of bad credit, you may believe that you are not eligible for a short term personal loan.
This is not necessarily true as there are many agencies that specialize in low or no credit lending. While your credit score will likely still be checked as a formality, it is very possible to be approved for a loan from an agency, even with bad credit.
When money is tight it can feel scary, but know that there are options for quick cash that can help! A loan agency may be the right option to help you get ahead and take control of your finances, or to get you out of an emergency situation. Make sure to do your research, and you could be one of the many Canadians that takes advantage of this easy financial resource.