Quebec has one of the largest economies in the world and is responsible for approximately 20% of Canada’s GDP. However, the average hourly rate in Quebec is $20, which is one-third less than the national average. The cost of living is lower in Quebec to help offset the lower-than-average minimum hourly wage. Yet many residents routinely turn to personal loans in Quebec for help with unexpected expenses, renovations, and other personal costs.
Personal loans can be a great way to increase cash flow without assuming a ton of risk. However, to make your loan work harder for you, it’s important to do your homework and borrow from reputable and trustworthy lenders.
At LoanConnect, we strive to make loans accessible and affordable to all. We partner with the most respectable lenders throughout the country so that we can present our users with competitive loan rates and favorable terms. We boast a quick pre-approval process that often takes less than 60 seconds of your time and that has zero impact on your credit score. Upon approving a loan, we encourage lenders to deposit funds into borrowers’ accounts within 24 hours of the time of the application. In short, we work hard to help you get the funds you need quickly and with as minimal an impact to your overall finances as possible.
What Is a Personal Loan and When Is It Appropriate?
Many loans from traditional banking institutions have a strict purpose; a mortgage to purchase a home, an auto loan for buying a car, and home equity lines of credit to increase equity in your home. However, a personal loan has no restrictions and can be used for any number of personal expenses. From covering medical bills, to unexpected expenses, or even weddings and vacations, personal loans work for you, however you need them. You might consider using one if no other loan type will meet your needs. Just ensure you do you research to find the most competitive interest rate, with manageable terms. Otherwise, using a personal loan could do more harm than good.
What Are the Approval Criteria for Personal Loans in Quebec?
Most personal loans in Canada come with the same approval criteria as any credit card, auto loan or conventional loan. Typically, lenders like to see scores of 650 or above. They also want to see that you have a healthy debt-to-income ratio and that you have gainful employment. If you are unemployed, you may have to provide proof of a steady income source, such as disability payments, a pension or unemployment income.
What Is the Average Interest Rate on a Personal Loan?
The average interest rate on personal loans changes depending on which credit tier you fall into. The general average is between 9.30% and 22.16%. However, your APR can be significantly lower if you have an Excellent credit score. For instance, as of July of 2021, some lenders were issue loans with rates as low as 3.99%. If your credit score falls into the Fair to Bad categories, expect your APR to be much higher than the average high, and closer to 35.99% to 46.99%. Because rates can soar above 40%, it’s a good idea to shop around for preapprovals. If you cannot get a rate better than 35.99%, consider holding off on applying until you have raised your credit score.
Can Personal Loans Help Boost Your Credit?
As with all types of debt, how it affects your credit depends largely on how you treat it. If you make all your payments on time and without incident, there is a good chance a personal loan can help you build your credit. However, if you neglect your monthly payments, attempt to pay it off early or default on it, it can take a huge toll on your credit score.
Something else you should also be aware of is the lender’s reporting practices. Some private lenders don’t report to the credit bureaus, meaning the loan won’t affect your credit at all. While this can be good if you happen to default, it won’t do you much good if you’re hoping to use the loan to build your credit.
How Long Does It Take To Receive Personal Loan Funds?
If you apply for a personal loan with a traditional banking institution, the whole process — from the date of the application to the receipt of the funds — can take up to seven business days to complete. The approval process alone can take anywhere from two to four of those days. It may take another five business days for the bank to disburse your funds.
When you go through a private, online lender, however, the process goes much more quickly. For instance, when you apply with us, we can generate a preapproval in as little as 60 seconds. Our lenders typically make a decision within hours and, upon approval, distribute funds within 24 hours. Personal loans can be great tools for meeting your financial needs and goals. Use our personal loan search engine to shop around for the best rates and terms today.