Get a Personal Loan in British Columbia

There are a variety of uses for personal loans in B.C. Many people who take small loans are looking to cover unexpected expenses, such as home or car repairs, while larger personal loans can be used to fund a vacation or life events such as weddings. 

Personal loans can also be put towards settling higher interest debt and improving credit health. Here are some other ways to use a personal loan in B.C.:

• Emergency medical expenses

• Vacations or unexpected travel

• Car purchase or repair

• Debt consolidation

Most B.C. personal loans range from around $500 up to $35,000. The loan amount that you will be able to secure depends on a range of factors. Normally, the loan size depends on:

• Your lender’s regulations

• Your credit score

• Your likelihood of timely repayment

• The value of collateral, if applicable

There are a few ways that lenders in B.C. will determine whether you qualify for a personal loan or other financial services. First, they’ll check your credit score. By signing up for Borrowell you can check your Equifax Canada credit score for free, so you’ll know your likelihood of approval before beginning the application process. 

You’ll also need to supply documents to prove the following:

• You are a Canadian resident

• You have a Canadian bank account

• You are 18 years old or older

• You have at least one year of credit history

• You have a steady income and consistent employment

Lenders will also check if you have ever claimed bankruptcy or defaulted on debt repayments, which makes up 35% of your total credit score.

In British Columbia, getting a loan will require providing a number of documents attesting to your identity, citizenship, and established finances. When you’re ready to apply you in person or with an online application, you’ll need the following personal information:

• Valid form of ID, such as a driver’s

• Proof of residency, such as utility bills

• Proof of employment and income, such as bank account deposit slips

• Social Insurance Number

If you have good credit or better with a score over 660, you will qualify for loans with the most attractive interest rates and repayment terms. 

But even if you have a lower credit score, there are loan options available. Sign up for Borrowell to see what lenders and loan options are available based on your credit profile. 

There are many different personal loans on offer in British Columbia, so even if your credit score is less than excellent, you can still find one that you can get approved for. Of course, the better the credit score, the more favourable the loan terms.

If used properly, a personal loan can help you improve your credit score and stay on top of your finances. A personal loan contributes to a better credit mix and also offers the opportunity of consolidating multiple small loans into one single payment.

One of the benefits of personal loans is that since they are considered installment loans and not credit loans, they don’t contribute to higher credit utilization. Keeping your credit utilization low will help you improve your credit score. 

Interest rates on personal loans are also much lower than credit card rates. If you use a personal loan to consolidate your credit card debt into one manageable payment, you could save on interest in the long-term. It will be easier for you to pay back every month, and you’ll be more likely to make on-time payments. This is a great strategy for improving your credit score.

If you’re not a risky borrower and have a good credit score, the range of interest rates you will be able to secure should fall between 5%-20%. 

Interest rates for B.C. personal loans vary for each applicant and lender. The rates are generally based on financial history and credit score. So, if you have a steady income, no history of missed debt repayments, and meet all standard requirements, you’ll likely be able to secure a better interest rate.

According to Canadian law, the highest interest lenders can apply to personal loans is 60%.

Whether you’ve requested a personal loan in person or via online application, once approved you will be able to get your money quickly. Most lenders in B.C. will deposit funds directly in your bank account, but you may also be able to get the loan in cash or by e-transfer. If you are using the loan to consolidate debt, the lender may apply the loan directly to those accounts.

After your personal loan has been deposited into your bank account, you'll start making regular payments to pay it back. Most lenders set up a pre-authorized debit agreement, which allows them to withdraw your payments directly from your chequing account. 

Depending on your credit score and financial history, the repayment terms will vary. If your credit health is good, you’ll have a better chance of getting a payment schedule that works for you. Most loans are paid out monthly and include both principal and interest payments. 

Make sure you check with your loan providers to ensure you know the repayment terms on your loan. Pay your loan back on time and in full to avoid penalties.

The average range of personal loan terms in B.C. is between 6 and 60 months. The rule of thumb is that the longer the term length, the lower the monthly payments and the higher the interest over time. Short term loans will cost you less by the time you’ve finished repaying it, so try to get a short term loan with manageable monthly payments.

One of the most popular uses of personal loans in B.C. is to consolidate other debts. Collecting small loans or credit card debts into one single payment can help streamline your finances and move you towards long term credit health. 

Depending on the lender, interest rates, payment terms, and other conditions, you’ll probably find that using a personal loan to consolidate debt is a solid strategy.