Get a Personal Loan in London

Personal loans can be put towards a wide range of expenses, unexpected costs, or to improve financial health. Here’s what you can do with your personal loan in London:

• Emergency medical expenses

• Unexpected home repairs

• Vacations 

• Vehicle purchase or other large purchases

• Settling other higher interest debts

• Consolidating debt

• Getting cash quickly

Like all personal loans in Canada, if you are applying with a lender in London, you will need to provide documentation showing that: 

• You have a Canadian bank account

• You are a Canadian resident 

• You are of the age of majority (18 years old or older)

• You have some kind of credit history 

• You have a steady income and consistent employment

You can apply for a personal loan either in person or online, but when you apply online the process is likely quicker and more straightforward. First, check your eligibility, then make sure you have all of the necessary documents for application on hand to make things move even faster. 

When you apply for a loan using Borrowell, you already know whether you are likely to be approved by one of Borrowell’s lending partners. That said, you’ll still need to have some paperwork ready. Here are some of the documents you should collect before applying for a personal loan in London:

• Valid form of ID: for example, an Ontario driver’s license

• Proof of residency: for example, utility bills

• Proof of employment and income: for example, pay stubs or bank deposit slips

• Social Insurance Number

While every lender has different credit score requirements and criteria, a very good score of 660 or higher increases your likelihood of approval dramatically. Other requirements lenders have may include no history of bankruptcy, a solid history of debt repayment, and a low debt-to-income ratio. 

If your credit score is below 660, this doesn’t mean you won’t find a personal loan. You can check your credit score in Canada with Borrowell for free. Sign up for Borrowell to see what loan options are available based on your credit score.

Personal loans actually can help improve your credit score. Here are three ways how you can improve your credit score with a personal loan:

1. Personal loans can help resolve credit-card debt and reduce credit utilization. This will bring down your debt-to-income ratio and make you a more attractive borrower in the future. 

2. Since personal loans are considered installment loans, they are not considered credit debt and help improve your overall credit mix. 

3. Making regular payments towards your personal loan helps you establish a strong credit history; your credit history makes up 35% of your credit score. 

Of course, to enjoy any of these benefits, you’ll have to make on-time payments.

Personal loan interest rates in London vary from lender to lender. Most borrowers in London take out unsecured, variable-rate loans that carry average annual interest rates between 12% and 30%. Loan companies in London are bound by Ontario law and cannot charge more than 60% interest. Lenders must also be licensed and comply with federal and provincial regulations. 

Aside from interest on the principal loan amount, you will also likely pay processing and administration fees. These generally range from 1-3%.

How much interest you are charged on a personal loan will depend on a number of factors:

• The size of the loan

• The borrower’s credit profile

• The repayment term

• The lender

Figuring out how much your loan will cost in total can be complicated, but Borrowell can help you cut through the noise by showing you transparent and easy to understand loan offers. Generally, the longer the duration of the loan, the lower your monthly payments will be. That said, you’ll be paying more interest over time, making a longer term loan more expensive than a shorter duration loan.

Depending on the lender and your financial profile, you will be able to secure a personal loan in London between $500 and $35,000. When applying for a personal loan, the loan amount that you qualify for will be largely determined by your credit profile. Lenders want to know that you are low-risk and are likely to pay the amount borrowed back in full. Building up your credit score before applying for loans will likely get you a wider variety of offers for higher amounts. 

The main way that lenders in London, Ontario decide if you are a suitable borrower is by looking at your credit score. You can anticipate this requirement by checking your score with Borrowell for free. 

Another way that lenders evaluate loan qualification is checking your payment history. Paying back debt on time makes up 35% of your total credit score and gives lenders a good idea of whether you are a risky borrower. 

Steady employment, no history of bankruptcies, and basic regulatory requirements (like age or citizenship) are also things that lenders in London will look for before approving you for a personal loan.