Get a Personal Loan in Vancouver

Here are some things that people use money from personal loans for:

• Medical expenses

• Renovations or home repairs 

• Vacations or events 

• Vehicle repair or purchase 

• Paying off higher interest debts

• Debt consolidation

Regardless of whether you are looking for small, short term loans, or larger long term loans, you will likely find a personal loan in Vancouver that suits your financial needs.

Most personal loans in Vancouver range from $500 up to $35,000, with higher amounts carrying stricter requirements. The loan amount and payment schedule that you qualify for will depend on a number of factors, such as credit history and employment. Improving your credit health before applying for a personal loan in Vancouver will increase your chances of securing more money.

Like all personal loans in British Columbia, and indeed in Canada, if you are applying for a loan in Vancouver, you will need the following: 

• A Canadian bank account

• Canadian residency

• Personal identification attesting that you are 18 years old or older

• Credit history 

• Proof of steady income and consistent employment

Getting a personal loan in Vancouver can be done in person or with an online application. The first step to applying is to check your credit score. You can do this for free when you sign up to Borrowell. Once you know what your credit score is, you can narrow down the loan offers you are likely to qualify for and apply only to those. This protects your credit score from damaging hard credit inquiries made by lenders. 

Collect all of the necessary personal information and financial documents to make the application process fast and smooth. Here are some of the documents you’ll need ready when applying for a personal loan in Vancouver:

• 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

Many lenders in Vancouver will look for a credit score of 660 or higher when qualifying borrowers for a personal loan. Different lenders might look for different credit scores or other criteria, but if you have a credit score of 660 or higher, you’re more likely to secure personal loans with low interest rates and attractive payment schedules. Other requirements include no history of bankruptcy, consistent debt repayment, and a low debt-to-income ratio. 

If your credit score is lower than 660, there are loan options available. Sign up for Borrowell to find loan offers and interests that you can qualify for based on your credit profile.

When used correctly, a personal loan can help you improve your credit score. While many people might think taking out a personal loan is just more debt, personal loans can actually help improve your financial health.

A personal loan can provide you with funds to pay off credit card debt to lower credit utilization. Paying off credit cards will bring your debt-to-income ratio down and improve your credit score. It’s also easier to manage consolidated debt than many small loans that can be hard to keep track of. 

Since personal loans are installment loans and not considered credit debt, it’s a good idea to take out a personal loan to contribute to a better credit mix. Plus, if you don’t already have a financial history, paying back loans is a great way to build up your credit profile. Take note, however, that it’s crucial to ensure that your lender is reporting your loan payments to a major credit bureau so there is an official record of your loan.

Interest rates on personal loans in Vancouver range from 5%-20%. Interest rates for personal loans vary based on your financial history and credit score. The better your financial health, the more likely you are to secure a better interest rate. 

This will also depend on what you are looking for. Small loans with short terms will likely have a lower interest rate. Much larger and longer term loans may carry higher interest rates.  

Financial regulation in Canada stipulates that all lenders in all provinces, including British Columbia, cannot charge more than 60% interest. Lenders in Vancouver must also be licensed and remain compliant with Canadian and B.C. regulations.

Personal loans in Vancouver, British Columbia come in two distinct formats: secured and unsecured.

Secured loans are guaranteed by promising something of value. This is known as collateral. When a loan is guaranteed by collateral, it is usually a larger loan. For small loans, the majority of borrowers take out unsecured personal loans.

Unsecured loans are not protected by collateral. Because of this, unsecured loans pose a greater risk to the lender and therefore generally have higher interest rates and more stringent eligibility requirements. 

Most borrowers in Vancouver have unsecured personal loans with fixed or variable interest. Borrowell users can pick from a wide range of personal offers that suit their individual needs, whether small loans or large, secured or unsecured.

Credit cards are a good solution for short term debt for smaller amounts that you will be able to pay off quickly. For larger, long term loans, a personal loan is a better strategy. 

Personal loans are for when you anticipate needing more than a year to repay. Personal loans are considered installment loans, unlike credit card debt, so personal loans don’t contribute to higher credit utilization. This contributes to a better credit mix and can contribute to enhanced long term financial health.

If you are borrowing money in Vancouver and have multiple loans, it may be a good idea to consolidate them. Debt consolidation is when you group all of your small loans or external debt into one single unified loan. 

The benefit of consolidating loans is that it simplifies financial management and can be used to eliminate higher interest debt in favour of lower interest, larger, and more long term loans. Making sure you have a more manageable payment schedule can help you stick to on-time payments, which will improve your credit health and give you access to more favourable loans in the future.

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. These payments might be withdrawn weekly, biweekly, or monthly, depending on your agreement. Most lenders will also allow you to make extra payments.

Because personal loans use your credit score and financial history to assess your application, the terms on these loans tend to be very good. Depending on the lender, the interest rates, payment periods, and conditions of the loans will differ. If your finances are kept in check, it’s easy to secure a loan with great interest rates and a payment schedule that works for you.