We Are Your One-Stop Solution For Personal Loans
LoanConnect is your one-stop solution for personal loans. By partnering with various lenders across Canada, we are sure to provide you with a personal loan for whatever aspect of life you need it for. We help Canadians find the right loan by presenting them with various options. By filling out a quick loan application, you can get a multitude of loan options at your fingertips in seconds.
If you have bad credit, no problem. A number of our partners are ready and willing to loan out to Canadians with bad credit. Don’t let your credit score stop you from getting the loan you need, apply today and be surprised by the results.
Personal loans have a variety of applications, and you can use the money for just about anything! Get your own personalized loan options in just four easy steps.
Our loan application is quick. Answer a few simple questions and then move to the pre-approval process.
After you have filled out your loan application, get what you qualify for in as little as 60 seconds.
Pick Your Loan
After you have been presented with the best options, pick a loan that best suits your needs.
Get Your Cash
You can get your cash in as little a 24 hours from the time of your application, It’s that simple!
We Have Personal Loans For Every Aspect of Life
Home Renovation Loans
If you are looking to renovate your home, a personal loan can you help you reach your goal in no time.
Eliminate Credit Card Debt
Using a personal loan with a lower interest rate to eliminate credit card debt can save you thousands in interest payments.
Have you had your eyes set on a new boat? Or maybe that motorcycle you’ve always wanted? Take out a personal loan and get the things you deserve.
Looking to continue your education but don’t qualify for traditional student loans? A personal loan can help you achieve your academic dreams.
Need more capital to purchase inventory or pay expenses? A personal loan can help take your small business to the next level.
Marriages, honeymoons and more, a personal loan can help you pay or the events in life that matter most.
Having a Baby
Having a baby is one of the most exciting things in life, but the expenses aren’t. A personal loan can help you with some of the initial expenses.
Whether it’s a medical emergency, or something else, a personal loan can do the trick in a sticky situation.
Looking to go on a vacation but are short on cash? Take out a personal loan and get ready for your flight, you deserve it!
LoanConnect is an innovative solution to loans, allowing you to find some of the best loan options the market has to offer in a matter of minutes, saving you hours of tedious research. With partners across Canada, we have loan solutions for virtually every aspect of life. Over the last two years, we have processed over $500 million in Canadian loan applications, and continue to help Canadians find the loans they need quickly, and at some of the best rates around.
LoanConnect is 100% dedicated to finding you the right loan. You can contact our dedicated and professional customer service agents who will gladly help you navigate your options.
Thousands of Canadians have trusted us with their loan needs, and many more continue to trust us every day.
Get pre-approved in as little as 60 seconds, and get your cash in as little as 24 hours from the time of your application.
All of our lenders are verified and vetted, ensuring that you are always working with nothing but professionals.
Won't Impact Your Credit Score
Applying for a loan with LoanConnect WILL NOT impact your credit in any way shape or form.
We take your security and safety very seriously, and take all the appropriate steps to ensure that your personal information is guarded.
A Guide to Personal Loans in Canada
What is a Personal Loan?
A personal loan is a loan taken out from any type of lender, for personal purposes. The vast majority of personal loans are unsecured and paid back on a month to month basis, like any other type of loan. Personal loans typically have lower interest rates than credit cards, and in the right circumstances, can be extremely beneficial for Canadian borrowers.
When to Choose a Personal Loan
Finding the type of personal loan, with the right interest rate and payback period, can be tricky. Not to mention, if there are loans specifically for things such as cars and purchasing a home, why bother with a personal loan in the first place? Though there exists a variety of loans for specific purposes, there are many instances where a personal loan may be the only answer.
There are many circumstances in life where there is no defined loan type designed to service your loan needs. When there isn’t a loan option available for your specific needs, it’s probably time to start considering a personal loan.
Weighing Options and Interest Rates
Like any other loan, picking the right loan, with the right interest rates and payment options, is crucial to your financial well-being. When looking for a loan, be sure that the interest rate is fair based on your credit score. Many lenders may offer loans, but these loans may be designed for individuals with bad credit. It is important to do your research and weigh as many options against one another as possible. For example, using a search engine for loans like LoanConnect will allow you to quickly go through the options available to you and allow you to pick the best one.
Unsecured Vs. Secured Personal Loans
In Canada, the vast majority of personal loans are unsecured. An unsecured loan is when the borrower takes the loan out without securing it against any form of personal asset. Unsecured loans usually have higher interest rates, but if the borrower has a reasonably healthy credit score, an unsecured loan is the best route to take. Secured loans are secured against personal assets such as your car or home, which act as collateral against the loan.
Advantages and Disadvantages of Personal Loans in Canada
Personal loans have a variety of advantages associated with them that can make them preferable to other types of lending solutions. In order to best gauge the advantages of a personal loan, check out the list below:
- Personal loans typically have lower interest rates than a credit card and lines of credit
- Personal loans can be used for almost any type of lending need, including renovations, weddings, vehicle purchases, medical needs and more
- Personal loans are offered by virtually every type of lender and can be quickly taken out with little, to no hassle
- Personal loans offer an easy month to month payment schedule, usually over a term of 2 to 5 years in length
Though personal loans have a variety of advantages, there are certainly some disadvantages you should be privy to. If you would like to know about the disadvantages of Canadian personal loans, check out this list:
- Personal loans usually have higher interest rates than other types of loans
- Personal loans with a reasonable interest rate usually require a healthy credit score and you may be limited in your options if you have a bad credit score
- Personal loans often times have hefty administrative fees
- Personal loans are usually capped at $30,000, and if you require more, you might have difficulties securing the full amount.
What Can I Use a Personal Loan For?
Personal loans have a wide variety of applications. You can use a personal loan for just about anything. Whether you need to pay off credit cards, need a loan for your education, or to renovate your home, a personal loan can do the trick in just about any circumstance. Personal loans provide you with the flexibility you need to spend the money you receive from lenders, without restrictions.
How Do Personal Loans Differ From Other Types of Loans?
As mentioned before, personal loans do not have nearly as many restrictions as other types of loans on the market. The main differences typically come in the form of how the money is allowed to be spent, and how the money is disbursed. For example, a mortgage can only be used to pay for a house, student loans have to be used to pay directly for tuition and related costs, and car loans have to spent on the purchase of a vehicle. Personal loans can be spent on virtually anything the borrower desires. Personal loans are also disbursed directly to the borrower, when in other cases, like a mortgage where the money is disbursed to the former homeowner, the money is not actually given to the borrower.
Fixed Rates Vs. Variable Rates
Most personal loans are based on a fixed interest rate, however, there are times when you may have the option of choosing a variable interest rate. A fixed interest rate is an interest rate that stays the same throughout the duration of your loan repayment. A variable interest rate fluctuates according to what the prime rate is at any given time. The prime rate is based on how much it costs the bank and other institutions to borrow money. If the rate goes up, you pay more in interest, if it goes down, you pay less. Both have their advantages and disadvantages.
A fixed interest rate can be lower or higher than a variable interest rate. It is ideal because you always know what you are paying, and do not risk the rate going up due to fluctuations in the prime interest rate. Its disadvantage is that you may be paying more when the prime rate falls. A variable interest rate is the better option when the prime rate is falling, but since the prime rate is influenced by many different factors, it can be difficult to time the rise and fall of the prime rate over a long time period. Most financial experts recommend variable rate loans be limited to durations of one year or less.
The Process and Disbursement of Funds
As mentioned above, personal loans are disbursed directly to the account of the individual who is seeking the loan. Compared to the other loan types, the disbursement of funds is relatively quick, and you can expect to get your money from anywhere between 1 to 3 days’ time. Like all other types of loans, you will be required to fill out a loan application where personal information is collected and verified. Pre-approval may help to expedite the process when appropriate. With LoanConnect, you can get pre-approved in as little as 60 seconds and help lenders quickly approve your loan application with the information you provide.
Personal Loans and Installments
If you have been browsing the internet to find out more about personal loans in Canada, you may have come across the term “installment”. The term installment, unfortunately, at times, can confuse potential borrowers. Installments are not to be confused with a traditional monthly payment. Installments are fixed amounts, that have to be paid by the borrower on a periodic basis. For personal loans, this is normally monthly. However, be sure not to confuse this with a minimum monthly payment. Though the installment is the minimum amount you must pay, it is not a minimum payment. Many times you cannot pay more than the installment without penalties. Paying your installments guarantees you will have paid off the loan over the agreed upon term length.
Personal Loans and Bad Credit
If you are looking for a personal loan, and have bad credit, your options may be very limited. The majority of banks and larger financial lenders design their loan programs and give preference to individuals with a good credit score. As the vast majority of personal loans are unsecured, lenders must protect their interests by loaning out to Canadians with strong credit. However, if you have bad credit, not all hope is lost.
Many private lenders in Canada are willing and ready to offer unsecured personal loans to individuals with bad credit. If you have bad credit, working with a private a lender is probably your only option. You still must have a credit score above 550, and you should expect to pay a significantly higher interest rate. If you have bad credit, but ample cash flow to pay your installments, getting a personal loan from a private lender is a viable option. You can use LoanConnect to wade through your options from private lenders to find the right loan for you.
Approval Criteria For Personal Loans in Canada
Approval criteria for personal loans will vary by bank, lender and institution. However, there is some common criteria and guidelines. For larger lenders, you normally have to have a credit score above 650 and have a healthy debt to income ratio. Your bankruptcy score must also indicate that you are not in any danger of going bankrupt and defaulting on your payments. Loans with the best interest rates are reserved for Canadians with credit scores of 740 and above. For private lenders, you will have to have a credit score of at least 550, but likely need a credit score of higher than 600 to receive a personal loan that is beneficial for you and your borrowing needs.
Do Personal Loans Show On Credit Reports?
Yes, personal loans, like most other types of debt will appear on your credit report. When you apply for any other form of debt, lenders will be able to see how much you still currently owe on your personal loan, whether or not you have been making payments and if you are still in good standing with the creditor.
Do Personal Loans Help or Hurt Your Credit?
Depending on the situation, a personal loan can both help or hurt your credit score. When you apply for a loan or take a loan out, it has the potential to lower your credit score in the immediate short-term. However, if it does lower your credit score, it is usually to a small extent and you should not be concerned by it. Making your installment payments and eventually paying off your loan will help your credit score in the long-term.
Do Personal Loans Require Collateral?
For the most part, no. Personal loans are normally, if not always, unsecured forms of debt, meaning that no collateral is required. When you take out a personal loan, you will typically not have to worry about creditors having a legal claim against your assets or home. However, if you default on the loan, lenders can take you to court and could possibly have your wages garnished until you have paid off the loan in its entirety.
Does a Personal Loan Help You Build Credit?
Yes. If you have bad credit, taking out a personal loan can potentially help you build your credit over time. Any form of debt where you make periodic payments on time and without incident, will help you build your credit over time. Be sure that the lender you choose reports your payments to the credit reporting agencies (Equifax and TransUnion in Canada), as not all private lenders will report your payment history.
If I Pass away, does my Personal Loan Debt Disappear?
No. Personal loan debt does not disappear if you pass away. Lenders maintain the right to collect what is owed. Typically, this amount is easily taken care of by the assets left behind. If assets are not enough to pay off the remaining debt, the debt can’t pass onto children or other relatives.
Will a Personal Loan Affect my Mortgage Application?
To an extent, yes. Having personal loan debt technically will impact how mortgage lenders view your application. However, you should not let this discourage you. Any form of debt will be reflected in your debt to income ratio, which is a metric most mortgage lenders take into account. However, the impact will be fairly minimal. As most personal loans are below $10,000, the small amount of debt will not make any difference in whether or not you are approved for a mortgage. You should not be concerned about taking out a personal loan and its potential impact on a mortgage application.
Do Personal Loans Impact My Taxes?
No, personal loans should not impact your taxes at all. Personal loans are not viewed as any form of income. Paying interest on your loans is also not deductible, and therefore, is not part of any form of the tax return.
How Long Does a Personal Loan Take to Get?
It depends on how you are applying for the personal loan. If you are applying at a major bank, the approval process can take anywhere between 2 to 4 business days, and then to disburse the money to your account can take up to another 5 business days. If you apply for a personal loan online, it tends to be quicker. The approval process usually takes a few hours from the lender’s side, and then the money can be disbursed to your account in as little as 24 hours from the time of your application date.
What Should I do if I am Denied a Personal Loan?
If you are denied a personal loan, the first thing to do is to understand why you were denied. Were you denied because of poor credit, or was it because your income was not high enough? If it was because of poor credit, you may have to take steps to rebuild credit. You may want to consider a savings loan or debt management program which will you help fix your credit in the long-term.
When I Apply for a Personal Loan do Lenders Check my Income?
In some cases, yes, lenders will require that you provide proof of income. However, many times, more often than not, lenders can gauge your income level by checking your credit history to see if you have had any difficulties paying debts in the past. If you have a poor credit history or no credit history at all, lenders will probably ask you to provide them with proof of income before approving your loan application.